In the early stages of the growing stockbroking business, there weren’t many brokers who provided services in stockbroking. Also, before the digital transformation of the trading segments, most of the stock and shares were traded in stock exchanges manually and so there wasn’t much need for a stockbroker. Traders and investors depended less on brokers but the introduction of online trading made it impossible for any trader, regardless of new or experienced to even begin stock trading without taking assistance of an online broker. All trades in stock exchanges are executed by stockbrokers on behalf of each trader who pays them a brokerage fee. Now, in the year 2021, we have thousands of registered stockbrokers with a strong client base. Therefore, Upstox review is presented here to obtain an insight into the services and products offered by this discount broker. However, before jumping into Upstox review let us discuss some of the basics of the company.
Upstox review begins with informing you that the company has been renamed as Upstox, and it was earlier known as RKSV Securities. Upstox is an online discount broker and is among the top most discount brokers in India. In terms of service and products, Upstox offers a flat Rs. 20 per trade brokerage plan for investors which remains constant no matter the size and volume of the trade. The company has traded in equities, commodities, currency, futures and options with an amazing margin option. The brokerage rate for trading is also quite low and includes many products like Upstox brokerage calculator and many other trading platforms which overall affects the trading value.
Upstox brokerage charges are based on many factors that go into a trade. There are various segments each of those carries different trading values and then there are additional charges like stamp duty and GST which all formulate the total charge a customer pays to the stockbroker as a brokerage fee for executing trade in the stock exchange. It is, therefore, crucial for any investor or trader to know what these charges are and what is the estimated total cost of trading apart from the trading value. Another reason for measuring Upstox brokerage charges is to strategize for the trade according to the brokerage charges. Since there is no standard brokerage rate to trade in each segment, brokerage charges are different for each broker and depend entirely on the basic brokerage rate set by that particular broker. Upstox review for the brokerage charges give out a clear picture of all the charges including the additional fee on top of brokerage charge to measure the total cost of investing in the stock market using Upstox. Like many other discount brokers, the brokerage fee and system with Upstox are easy and simple with two brokerage plans, which are:
1. Basic – The basic brokerage plan by Upstox is a Rs. 20 per trade flat brokerage plan which makes investors and traders continue trading in all segments of equity, futures, options, currency all under a flat Rs. 20 per trade fee. Another point of this basic brokerage plan is that it gives a margin of 20x in Equities, 4x in NSE Futures&Options, 4x in BSE/NSE Currency Futures&Options and 3x in MCX Commodity Futures. This is a brokerage plan for those who regularly trade in the stock market by receiving a simple brokerage fee. But along with the brokerage fee, other additional charges like GST and Stamp duty are still applicable over the brokerage fee. Thus the total cost over trade with this plan is Rs. 20 plus the additional charges.
(Futures&Options is a trading segment. It is available in currency, equity and other investments and is also known as F&O.)
2. Priority – This brokerage plan by Upstox is a priority-based brokerage plan which is designed and focused to assist those traders and investors who trade with high volume stocks and shares. The trading executed within this brokerage plan is considered a priority and customers get first-hand services including access to all trading platforms. The flat brokerage fee for Priority brokerage plan is Rs. 30 per trade in equities, commodity, currency and F&O. The margin applied under this plan for intraday orders in 15x in NSE/BSE Equity, 4x in NSE Currency and 3x in MCX Future.
Let us take a look at separate Upstox brokerage charges for each segment as defined:
- For Equity delivery – Rs. 0
- For Equity intraday – Rs. 20/trade
- For Futures – Rs. 20/trade
- For Options – Rs. 20/trade
- For Currency Futures – Rs. 20/trade
- For Currency Options – Rs. 20/trade
- For Commodity Futures – Rs. 20/trade
As mentioned above, brokerage charges are only the fee for brokerage services while some additional charges are applicable on each order which are mentioned down below:
- STT – For intraday and F&O trading the STT is on the sell-side while it is on both sides for equity delivery.
- Stamp Duty – This is charged on a statewide basis.
- GST – 18% of overall turnover plus brokerage and transaction.
- Transaction Charges – For Equity, it is 325/crore, for Futures, it is 190/crore and for Options, it is Rs. 5000/crore.
Upstox review also examines one of the important aspects of the brokerage with the discount broker which is the availability of digital calculators to help know the exact value of charges. For example, there are margin calculators to find out the margin leverage over trade and there is Upstox brokerage calculator which is a tool that provides brokerage charge without even making the trade. Let us get an understanding of how brokerage calculator works:
Upstox Brokerage Calculator:
An online brokerage calculator is built to help in the calculation process of the brokerage fee for each trade. Customers can use these online calculators which are freely available over the website of a stockbroker to measure the exact brokerage rate for the trade which they are planning to make. Doing manual calculation is both difficult and complicated since there are a lot of variables that give the exact brokerage rate. The calculation process can be tricky and can result in errors which can eventually disturb the overall trading technique. To avoid this mistake, Upstox brokerage calculator is often used by most investors to experience hassle-free trading by knowing the brokerage charge and additional charges for a trade. To use a brokerage calculator you need to visit the official site of the broker and choose the brokerage calculator whereby following the simple steps you can know the exact brokerage rate. below are the steps you need to follow to determine the brokerage charge using Upstox brokerage calculator:
Step 1 – Select the trading mode. For e.g. – commodity
Step 2 – Enter Purchasing price in INR
Step 3 – Enter Selling price in INR
Step 4 – Enter No. of shares
Step 5 – Select State from the drop-down menu
Step 6 – Press enter, the brokerage charge will be displayed under a box
This method not only gives the brokerage amount but additional charges like GST, STT and stamp duty are also mentioned under the brokerage calculators readings.
Demat & Trading Account:
With the digitisation of the stockbroking world, all things under the stock market became online and digital. This revolutionary change made it necessary to have several online accounts to hold stocks and transfer them from time to time. Upstox review of the Demat and Trading account explains all that goes into the making and maintenance of these accounts with the discount broker. A Demat account is a depository account which is meant for storing stocks and shares in an electronic form so that the same can be used for trading purposes in the stock exchange by the stockbroker. Now, for buying and selling of shares and stocks, it is necessary to have a medium through which these stocks and shares are stored in the Demat account could be moved and then moved back. Therefore, for this purpose, a trading account is used which transfers stocks and shares from the Demat account to the stock exchange trading and vice versa. Trading account is also used to make the transfer of capital for buying and selling in the stock exchange from the bank account. The same trading account that transfers stocks is used to transfer money from and to the bank account. In a way, a Trading account can be described as a link between the Demat and bank account which transfers back and forth to execute trades. Sometimes there is a fee for the opening and maintenance of these accounts and sometimes the charges are free. Also, the opening procedure for these accounts can sometimes be tricky as it requires to file a request followed by a full verification of the documents. Upstox review of these accounts explains each charge and procedure carefully so that you can make a wise decision. Let us take a look at the account charges:
- Trading account opening charges – Rs. 150 ( one time)
- Demat account opening charges – Rs. 150 ( one time)
- AMC for Trading account – Rs. 0
- AMC for Demat account – Rs. 150 annually
- Transaction charges – Rs. 13 plus CDSL charges per scrip
- Pledge Charges – 0.02% of transaction charges + NSDL/CDSL charges
- Failed transaction – Rs. 50/transaction
Now that the charges in each category are mentioned, let us look at the account opening procedure for the Demat account as part of the Upstox review.
Step 1 – Visit the official website of the stockbroker and click on the side menu bar given on the right top corner. Click on the ‘Open Demat Account’ link from the menu.
Step 2– After clicking the link you will be redirected to a separate page where a document will appear on your screen. By carefully going through all the information and policies regarding the Demat account, start filling up the form which contains columns for personal information.
Step 3 – Submit the form after which you will be required to follow the KYC procedure. Follow through the process which requires some specific documents to verify the age and address of the customer. Be ready with a PAN Card, Adhaar Card and a photograph.
Step 4 – After making sure that you have completed the procedure by providing correct information, submit the form. A sales manager from the broker will call you to start the verification process soon after you submit the duly filled form.
Step 5 – The investor/trader can access his/her Demat account with Upstox and can commence the investment journey as soon as the verification process is complete.
Trading with Upstox has multiple benefits. However, a review is incomplete without mentioning one of the most pivotal reasons to trade with this company. Let us take a look at each of them individually:
- Dartstock – This trading platform is available by a partnership with iDart to give current trading routines of the stock exchange. Some of the important features of the platform are scanning market activity using smart scanners, analytical charts which improve trading trade and productivity and some performance indicators using personalised charts.
- NEST Trader – This is the old fashioned desktop trading terminal which amplifies trading and regulates stock exchange. The interface is user friendly which is designed to work on a faster speed. It is multi-monitor support with advanced charts. The keyboards and function keys are also familiar looking.
- Fox Trader – This is a modern desktop-based trading platform which has live screening facilities along with personalised and customisable trading features which generate strategies. It has a sharp analysis which helps in overall risk management.
These are the three trading platforms by Upstox. Other than the trading platforms that are given several tools and products are also available for customers to improve their trading experience with the broker like ProWeb, ProMobile and Algo Lab which are trading platforms for browser and mobile. Products like mutual funds and global investors are also available by the discount broker.
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