Reviewing the Samco – the fast-growing Discount Stockbroker including Brokerage Charges, Products and Services Offered and Pros and Cons

Capital Markets is a kind of topic that attracts everyone’s attention be it a youngster or an elderly person, a Commerce graduate or an Engineer or an Artist. Everyone would be interested in raising capital by way of investing either in FDs, shares, bonds or other investment options. Similarly, stockbroking is a business that caters everyone’s investing needs as well as the trading needs. Mr Jimeet Modi, founder of SAMCO Securities Limited too started investing in the capital markets at the age of 14 and currently, SAMCO is called one of the fastest-growing discount broking firm. 

It is very well-known for its low-cost brokerage plans, higher exposure, margin products and technology-driven free trading software. The online discount broking company aims to provide low-cost trading solutions along with seamless transaction experience with hi-tech trading platforms. With their headquarter in Mumbai, they are providing online-only stockbroking services to its clients. The company was the first to launch the Indian Trading League (ITL) in 2015 which is a stock market and a commodity market competition to test one’s trading and investment skills.

In this review article, we will highlight exclusively to our readers that will serve as their comprehensive manual and will allow them to study the SAMCO Securities Limited from start to finish. The topics covered here include an inspiring story of Jimeet Modi – the CEO and a founder, the brokerage and other charges they charge for trading and investment with them, what are the advantages and disadvantages of investing and trading with this retail stock-broking firm, what range of other products and services they offer apart from the stockbroking service and so on.  

History of SAMCO Securities Limited

From being an intern with big 4 companies and having secured an All India Rank in the most sought out professional qualification for any graduate – Chartered Accountancy along with a tag of a Chartered Financial Analyst (CFA) to a stock market enthusiast, Mr Jimeet Modi has it all to become a founder and a CEO of a leading discount broking firm SAMCO Securities. In the year 1993 SAMCO Ventures Private Limited was incorporated and it then acquired Samruddhi Stockbrokers Limited which got re-launched as a SAMCO Securities Limited in 2015. In short, SAMCO Securities is a stockbroking wing – a subsidiary of SAMCO Ventures Private Limited. The holding company has other two wings too as its subsidiaries namely, SAMCO Commodities Limited, a Commodities Discount Broking company and SAMCO Holdings and Financing Private Limited, a Non-Banking Financial Company.

Mr Jimeet Modi at the age of 14, started investing in capital markets and developed his interest in stock markets and his qualifications as CA and CFA backed his knowledge and skills as an analyst who can read numbers with great insights of the market. As an intern at Deloitte and E&Y, he was auditing large corporates such as Reliance Industries, Cadbury India, JSW Steel and DSP Merrill Lynch where he understood the business fundamentals and learned of how these corporates function. With his passion to deal with capital markets, he joined the family firm Samruddhi Group as a VP and rest is a history for any young business aspirant who wants to be a leader with a focused aim in mind and continued efforts to only grow in the future. Mr Jimeet launched ITL a trading competition in 2015 and The Giga Trading Engine in 2018 which is an AI-based tool that gathers massive information about the market and financial data to search and generate ideas of effective trading and investments. Modi is a strong believer in gaining customers faith and trust through the creation of genuine value and building practices to give sustainable profitable growth.

With their membership across stock exchanges NSE, BSE, MCX, NCDEX and MCX-SX, SAMCO Securities offer a wide range of online trading products and services along with commodities trading and financial distribution products through its peer subsidiary companies. They offer trading and investment opportunities through stocks, debentures, ETFs, commodities, currency and bonds. It is a Depository Participant with CDSL. They have come up with first and the only stock rating tool ‘SAMCO Rating Tool’ that studies and rates companies on different parameters which include market analysis, earnings, financial statement analysis, corporate governance and many more. They also offer margin finance and margin against shares through various tools. They give high leverage of up to 33x for trading in equity intraday using MIS. They are 100% online stockbroker and hence they do not offer the offline trading facility.

List of Charges: Brokerage and Transaction Charges, Account Opening Charges and Other Related Charges

Brokerage and Other Charges:

EQUITY AND DERIVATIVEDELIVERYINTRADAYFUTURESOPTIONS
Brokerage Charges20 per executed order or 0.2% whichever is lower20 per executed order or 0.02% of gross turnover whichever is lower20 per executed order or 0.02% of gross turnover whichever is lower20 per executed order or 0.02% of notional turnover whichever is lower
Transaction ChargesNSE – 3.25 per Lacs (0.00325%)
BSE – For A Group and B Group Shares – 1 per trade
For other groups – 2.75 per Lacs (0.00275%)
For XC, XT, XD, Z and ZP – 100 per Lacs (0.1%)
For R and P Group – 1000 per Lacs (1.0%)
NSE – 3.25 per Lacs (0.00325%)
BSE – 1 per trade
NSE – 1.90 per Lacs (0.0019%)
BSE – 1 per trade
NSE – 50/- per Lacs (0.05%) on Premium
BSE – 1 per trade
CM ChargesNilNilNSE – 0.25 per Lacs (0.00025%)
BSE – 0.25 per Lacs (0.00025%)
Physical Delivery – 100 per Lacs (0.10%)
NSE – 7.5 per Lacs (0.0075%) on Premium
BSE – 7.5 per Lacs (0.0075%) on Premium
Physical Delivery – 100 per Lacs (0.10%)
GST18% on Brokerage, Transaction & CM Charges18% on Brokerage, Transaction & CM Charges18% on Brokerage, Transaction & CM Charges18% on Brokerage, Transaction & CM Charges
STT100 per Lacs (0.1%)25 per Lacs (0.025%) on Sell-side10 per Lacs (0.01%) on Sell-Side only50 per Lacs (0.05%) on Sell side premium
SEBI Charges0.15 per Lacs0.15 per Lacs0.15 per Lacs0.15 per Lacs
CURRENCYFUTURESOPTIONS
Brokerage Charges20 per executed order or 0.02% of gross turnover whichever is lower20 per executed order or 0.02% of notional turnover whichever is lower
Transaction ChargesNSE – 1.10 per Lacs (0.0011%)NSE – 40 per Lacs (0.040%) on Premium Value
CM ChargesNSE – 0.25 per Lacs (0.00025%)NSE – 7.5 per Lacs (0.0075%) on Premium
GST18% on Brokerage, Transaction & CM Charges18% on Brokerage, Transaction & CM Charges
STTNilNil
IPF0.00%0.00%
SEBI Charges0.15 per Lacs0.15 per Lacs
COMMODITYFUTURES
Transaction ChargesMCX – Non Agri: 2.6 per Lacs (0.0026%)
MCX – Agri: 1.75 per Lacs (0.00175%)
NCDEX – A: 3.5 per Lacs (0.0035%) NCDEX – B: 1.25 per Lacs (0.00125%)
CM ChargesSAMCO is a Self-clearing Member in the MCX and therefore No Clearing Member charges are applicable while trading with SAMCO.
GST18% on Brokerage, Transaction & CM Charges
CTT10 per Lacs (0.01%) on Sell-Side only (Not applicable on Agri Commodities)
SEBI Charges0.15 per Lacs

Other Charges:

  • Call and Trade Charges are applicable at the rate of Rs. 20 per executed order.
  • Physical Contract Notes requests are chargeable at Rs. 20 per contract note plus courier charges

Demat Charges

CHARGESIndividual Retail InvestorsNon – Individual Customers (Eg. Companies, Trusts, etc)
Demat – Annual Maintenance Charges400 + applicable taxes800 + applicable taxes
Demat Delivery Charges – Within SAMCO #110 + applicable taxes10 + applicable taxes
Demat Delivery Charges – outside SAMCO #225 or 0.02% of transaction value, whichever is higher + applicable taxes25 or 0.02% of transaction value, whichever is higher + applicable taxes
Pledge and Unpledged Charges60 per transaction plus applicable taxes60 per transaction plus applicable taxes
Dematerialization Request Charges10 per certificate plus 50 per request towards postal charges10 per certificate plus 50 per request towards postal charges
RE-materialization Request ChargesCDSL Charges at actuals plus 50 per request towards postal chargesCDSL Charges at actuals plus 50 per request towards postal charges

# 1 – 10 plus applicable taxes are charged each time an ISIN is debited from your Demat account. In case the receiving Demat account is SAMCO Demat account then the charges are restricted to 10 plus applicable taxes. In case of market sale transactions, this is an applicable scenario when deliveries are given from your SAMCO Demat Account against Exchange securities pay-in obligations. This is inclusive of CDSL charges.

# 2 – 25 plus applicable taxes are charged each time an ISIN is debited from your Demat account and in case the receiving Demat account is not a SAMCO Demat account. This is inclusive of CDSL charges.

Margin / Exposure

SegmentMargin
Equity DeliveryUp to 4x
Equity IntradayNormal Orders: 3x to 15x | CO & BO: Up to 33x
Equity FutureIntraday – 40% (2.5x), Carry forward – 100%(1x) of Total margin (Span+ Exposure)
Equity OptionsIntraday – 40% (2.5x), Carry forward – 100%(1x) of Total margin (Span+ Exposure)
Currency FutureIntraday – 50% (2.5x), Carry forward – 100%(1x) of Total margin (Span+ Exposure)
Currency OptionsIntraday – 50% (2.5x), Carry forward – 100%(1x) of Total margin (Span+ Exposure)
Commodity FutureIntraday – 40% (2.5x), Carry forward – 100%(1x) of Span

Features of Trading and Investing with SAMCO Securities Limited

  • They provide stockbroking services at extremely affordable costs and is one of the fastest-growing discount brokers of the country.
  • The high-speed trading terminals such as the Art Desktop EXE, Browser or a Smartphone enable their investors to trade and invest comfortably from anywhere and everywhere.
  • They are online-only stockbrokers and offer eAccount Opening facility which is paperless.
  • Their SAMCO knowledge centre allows investors to get an insight into stock market fundamentals and trends.
  • They have a unique feature of SAMCO Caution Watchlist where they suggest investors on what not to buy which is quite innovative as mostly stockbrokers would suggest on what to buy.
  • They offer Intraday and Historical Charts with past 25 years data imbibed in it.   
  • Their Giga Trading Engine by Stock Note Platform offers AI-based analytical technology that identifies opportunities, trends and patterns from the vast database gathered on the market to generate ideas.
  • They offer 100% cashback for the 1st-month trades made through the Stock Note Platform. 

Products, Services, Software and Features

This discount stockbroker offers an amazing range of products and services that will fulfil every need of an investor and a trader. 

Products: The range of products this company offers includes trading in Equity, Commodity, Currency, Options, Futures, Mutual Funds and SIP. 

Services: The services offered by the discount broker contains Demat, Trading, Intraday and IPO services.

Margin Products: The company offers Margin Products that include CashPlus, OptionPlus, StockPlus and IntraPlus. CashPlus offer 4x equity delivery leverage on more than 300 stocks at 0.05% daily interest. The OptionPlus offers 3x margin for buying and 20x margin for selling an option. The StockPlus offers complete margin against shares for intraday or positional trading in Equity, Derivatives and Currency segments. IntraPlus offer margins against shares for intraday trading in equities and derivatives segments with zero brokerage zero balance trading account. 

BTPT: The Buy today Pay Later facility allows customers to buy stocks in delivery by paying only a fraction today and the rest in the next two days.

SAMCO Trader: It is a desktop-based trading platform that allows customers experience speed, reliability and stability in their trading experience. 

StockNote Mobile App: It is a Mobile Trading App that is the simplest and the quickest app to trade in equity as well as commodity market that enables users to experience seamless and hassle-free trading. 

StockNote Web: A New Stock Trading App that apart from easy and quick trading offers Giga Trading Engine that is an AI-based tool that gathers and generates ideas. 

StockNote APIs: An Algo-based trading platform allows investors to the various powerful trading APIs that are fully compatible with major technology stacks.  

Stock Basket: A platform that allows investors to invest in an expert-recommended basket of stocks that are analyzed based on 25 highly intelligent rating parameters. 

RankMF: To invest in Mutual Fund, the company offers RankMF where customers can invest in Mutual Funds as well as get an analysis, ratings and advisory with various Mutual Funds.

SAMCO Star: With this state-of-the-art back office, users can analyze the trades, check account statements, withdraw the money, check the holdings, pledge/unpledged the holdings and many more.

Benefits and Drawbacks

Below is a list of pros and cons of investing and trading with SAMCO Securities Limited.

Pros: 

  • The flat brokerage charges offered by the discount broking firm is indeed a major reason why any investor should think of trading and investing with them.
  • Highly advanced technology-based products, services, trading platforms and tools are offered with the cheap rates which any other discount broker would resist to provide.
  • They offer rating tools where various scrips and mutual funds are ranked based on the set parameters for easy decision-making for their investors.
  • They offer Margin Products such as CashPlus, StockPlus, IntraPlus and OptionPlus that offer extremely advantageous services to its customers.
  • Their Knowledge centre allows users to educate themselves with the fundamentals of the stock market.
  • Their peer wings offer commodity trading and financial distribution products and hence investors can all these services just under one roof.
  • They also provide brokerage and margin calculators.
  • It is an online-only stockbroker and offers paperless account opening facility.

Cons:

  • They do not offer 3-in-1, trading, Demat and bank account service.
  • Since it is an online broker it does not offer in-person assistance to their investors.
  • They do not offer research and advisory services to its customers and hence investors do not get stock recommendations or tips.