Sharekhan

Sharekhan

Sharekhan is one of the biggest full-service brokers in India. It is a subsidiary of BNP Paribas, which has a banking history and listed on the Euronext Paris Exchange. In fact, it is among the first brokers to introduce online trading services. At the moment, the brokerage present in 575 cities and over 2800 physical offices and franchises across the country.

It is considered a safe broker because it is regulated by the Securities and Exchange Board of India. Read on to find out what it is, how it works, assets that can be traded, key features, the fees involved, customer support and more.

What is Sharekhan?

Founded in 2000, Sharekhan is the third-largest stock brokers in India. It offers brokerage services through its online trading platform and in more than 1800 offices spread across 5500 cities. In the last decade, the firm has seen considerable growth with its services spreading to most parts of the country. On top of that, it has opened offices in Oman and UAE.

The brokerage firm provides its services to all customers, such as individual investors and traders, corporate, institutions, etc. Right now, the Sharekhan has over 1.7 million customers. Trade execution facilities for derivatives segments and equity cash are offered on NSE and BSE while commodity trading facilities on NCDEX and MCX. Also, the firm provides a Demat account and the opportunity to invest in IPOs and mutual funds.

The Sharekhan trading platform is the finest investment portal in the Indian online trading industry. It is well designed with a wide range of investment options. In addition, it features research reports, stock market news, stock quotes, fundamental and statistical information across mutual funds, equity and much more.

Sharekhan’s newly launched app is user-friendly and intuitive. Apart from a fresh look, it comes with remarkable features for both investors and traders. The app will allow you to execute orders efficiently, manage your portfolio and track your stock on the go.

The firm also provides TradeTiger, which is one of the most popular trading platforms for retail investors. Just like the Broker platform, you can place and execute your trades at high-speeds. Furthermore, it offers live data and other meaningful tools on the same screen to improve the trading experience. The ‘ShareMobile’ platform facilitates trading through mobile applications available on both Android and iOS devices.

Some of the services offered include trading in mutual funds, equity, F&O and commodity, insurance, NCDs and bonds. The firm offers three main account types with varied features to suit a wide variety of customer needs. These accounts are first step account, classic account and platinum account.

Sharekhan has a research team that frequently publishes stock tips, investment advice, result analysis of listed companies and news alerts via email or SMS. Also, there is a remarkable knowledge centre on the official website to help all types of investors. In addition, it provides free online seminars and physical classroom workshops. Furthermore, each account is assigned a Sharekhan representative.

Sharekhan Pros and cons

Pros

• Low trading fees
• Reliable customer service
• State of the art trading platforms
• Top-notch research
• User-friendly interface on web and app
• Full range of investment options
• Wide reach across India

Cons

• Few order types
• Limited customization
• Credit/debit card not supported

How Sharekhan works?

Sharekhan operates a 2-in-1 account that includes a trading account and Demat account. The receipts and payments for trading shares, commissions and charges involved are posted in the trading account. All the stocks you buy or sell on your trading account are received or delivered from your Demat account.

To make your account active, you will be required to fill and sign all the forms involved in the registration process. Also, you must submit the relevant legal documents. All the information you provide must be truthful and accurate. Once your application is approved, Sharekhan will open an account for you. The company reserve the rights to either accept or reject your application.

Getting started on Sharekhan

You need a trading account to start trading currency and commodity. However, if you want to invest in equity, where you hold shares for a few days or months, you must open a Demat account. The process of opening an account on Sharekhan is straightforward. There are numerous local offices spread across India, especially in neighbourhoods where Sharekhan has prospectus customers.

To open an account, you need to follow the below easy ways.

• Request am online callback

Go to the official website and click the ‘open an account’ button. Submit your contact information such as your name, email address and phone number. Within a few hours, you will be contacted by a Sharekhan advisor to arrange a meeting to visit your home or office. Before you even meet, you can ask for a demo account to familiarize yourself with the platform.

• Visit a local office or sub-broker

Find a local Sharekhan branch or sub-broker near you and visit them personally. Apart from helping you open an account, you will get a detailed demonstration of the products they offer.

The last step is verification where you will be required to provide the following documents

• Pan card copy
• Copies of aadhar card, passport, ration card, passport and driving license as proof of identity and address.
• Saving account details
• Latest passport size photographs

If you want to trade futures and options, you will be required to provide any of the following documents:

• Bank statement not old more than six months
• Latest salary slip
• Acknowledgement ITR copy
• Copy of form 16

Assets that can be traded on Sharekhan aside from stocks

Although Sharekhan allows you to trade in a wide variety of asset classes, the selection is not competitive in each class. Apart from stocks, these are the other investment options offered.

1. Forex

Sharekhan supports forex trading but only as futures. The only problem is that it only features a few currency pairs that include EUR/USD, JPY/INR, USD/JPY, EUR/INR, USD/INR, and GBP/USD. Although other brokers have a wider forex offers, most of them do not provide currency paired with Indian Rupee.

Lot sizes are fixed and defined by the exchange. Sharekhan requires you to trade in a minimum 1000 quantity in corresponding currency pairs. The minimum quantity required is also called lot size. Therefore, 1 lot is equal to 1000 quantity. For instance, if the USD/INR exchange is Rs 63/, you will have to trade with 1 lot, which means $1000. This means that you will be buying a minimum $1000 or multiple to anticipate the movement of the currency pair. This applies to all the currency pairs on Sharekhan.

There is margin trading which means you will not need to pay the full amount of the currency pair you want to invest in but enjoy the gains of the total buying amount. For instance, when you buy 1 lot of a USD/INR future contract that cost Rs 63, it means you are buying it at Rs 63,000. Since this is future trading, you will get a margin facility of 3% of the total investment. So, instead of buying a single lot at Rs 63,000, you will only need to pay Rs 1900.

1. Mutual funds

Sharekhan offers a wide selection of mutual fund providers. A mutual fund is an investment vehicle that comprises of a pool of funds to invest in various assets such as bonds, money market instruments, currency, etc. It is run by a money manager who has the responsibility to invest the funds to produce gains and income for the investor.

There are various types of mutual funds offered by Sharekhan that include equity MF, hybrid MF, debt MF and solution-oriented scheme. Equity mutual fund is suitable for investors with small amounts to start investing in the stock market. Most likely, these individuals have little or no knowledge about the stock market and do not understand how to study and track stocks. A fund manager will sort out these needs. The wide range of equity mutual funds include multi-cap fund, large-cap fund, mid-cap fund, value fund, small-cap fund, contra fund, focused fund, etc.

A hybrid mutual fund is a type of mutual fund that involves two or more asset classes. Most hybrid funds involve a mixture of bonds and stocks. Some of the hybrid funds offered by Sharekhan include conservative hybrid fund, aggressive hybrid fund, balanced hybrid fund, arbitrage fund, etc.

In most cases, debt funds have a lower expense ratio than equity funds. This is because of lower management cost involved. Also, they pay a fixed interest rate and have a fixed maturity date. Some of the debt mutual funds include overnight fund, liquid fund, low duration fund, money market fund, etc.

The solution-oriented schemes involve a portfolio that is made up of a mixture of equity bonds and stocks. Subcategories include retirement funds and children’s funds.

• Bonds

A bond is a debt instrument offered to raise capital. It can be issued by a government, financial institution or company. Those issued by the government are considered to be the safest. Bonds are grouped based on credit rating, tax status, and maturity period. Certain tax free-bonds offer tax benefits.

According to section 54 EC of the income tax Act of 1961, all tax categories of taxpayers are eligible to save tax, especially for long term capital by investing in certain prescribed bonds. These bonds are classified as ‘long-term specified assets’ and issued by REC, NHAI, NABARD and SIDBI. There is no clear information on the types of bonds you can trade on sharekhan.

1. Options

An option is a contract that will enable you (but not an obligation) to trade underlying assets such as security, ETF or even index at a predetermined price before the contract period expires.  Options are bought and sold on the options market where contracts are based on securities. An option that allows you to buy shares at a later time is known as ‘call option’ while that enable you to sell shares later is called ‘put option’.

Options are considered low-risk because you withdraw an option at any time before the contract expires. Sharekhan offers three platforms to trade options: the web-based platform, mobile app and Tradetiger. Alternatively, you can call a representative to request him/her to make trade orders on your behalf.

Types of accounts on Sharekhan

1. First step account- for beginners

This is an excellent option for those starting in the stock market world. On this account, you will get assistance, even for the small issues you face when trading. It offers extensive research in the form of booklets, demo CDs and seminars. There will be a Sharkhan executive that will guide you through all the steps involved when starting. In fact, even if you don’t know how to execute a trade, they can assist in your first trade and show you how to do it.

1. Investor classic account

The classic account provides an easy way to invest by just clicking a button. You will be able to participate in the live account without going through a lot of formalities and paperwork. This account allows you to execute orders instantly and get real-time prices. In addition, you will be able to access live analysis before and after market hours conducted by experts.

On this account, you will get notifications when the sale of share is available and for cash transfer on purchase. In addition, it comes with a DEMAT account and a digital contract to create a real-time portfolio to track status as well as levy your trust.

There are numerous benefits of using this account.  First, you contact a Sharekhan representative and get valuable advice before risking your money on the live trades. Also, you can trade through phone and get confirmation through email. If you have a bank account in HDFC or Citibank, there is an auto-transfer feature.

• TraderTiger account

This account is ideal for active traders who want to invest in the stock market. It is an integrated account where you can invest the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), IPOs and mutual funds. The layout is arranged professionally to allow you to keep a watch on multiple indicators on a single screen. Moreover, you can customize the alert settings based on the changes in the stock market.

The benefit of this account is that you can execute multiple trading. Also, it features a graphical presentation to enable you to study KST, RSI, MACD, etc. In addition, you will get access to a range of professional tools that include span calculator, action watch, market summary, tick query and many more.

1. HNI Advisory account

The HNI Advisory account is intended for people seeking personalized investment advice. You will get a relationship manager who will keep constant communication and send updates and alerts regularly. One of the most noticeable features on this account is the Portfolio Doctor tool that can analyze, rearrange and design a model portfolio.

Sharekhan features

1. Investment cart

This is an enhanced watch-list feature with advanced functions such as comparable stock suggestions and bulk buy option. It also enables you to have a quick interaction with a relationship manager.

1. InstantMF

This is a lifetime free account to invest in mutual funds. The process of opening this account is simple and only take a few minutes to complete. It has various remarkable features such as lumpsum investment option and SIP option.

• NEO

NEO enables you to make investment decisions that match with your financial goals. It is an automated investment support tool that suggests mutual fund investments based on your risk profile.

1. Sharekhan classes

Sharekhan offers several online classes for both traders and investors. The classes are categorized as follows;

• Trading basics, mutual fund investment and wealth creation
• Advanced concepts involved in trading such as positional trading, technical analysis and common trading tools
• Investment strategy courses and workshops

1. Dial-and-trade

This is a free phone-based service that allows you to place orders. A tele-broker will be assigned to you to advise and execute your orders. You will be required to have a phone ID (IVR Code) and TPIN to use this service.

1. Sharekhan mini

This is the miniature version of the main Sharekhan trading platform. You can access it on your mobile browser even with low internet bandwidth. It does not require installation to start using it.

• Sharekahn app

Although Sharekhan has a history of releasing apps, most of them have received negative attention. Recently the firm introduced a new trading app that is getting a lot of positive response because of its performance, accuracy and speed. The app comes with numerous features such as live reports, news and market trends, etc.

Sharekhan fees

Even though Sharekhan trading fees are low, they are not transparent. It is suspicious that the website does not have any official information about the fees involved. You are required to contact customer support to get the information. Non-trading fees are relatively fair. There is no withdrawal or inactivity fee. Also, you will not incur any Depository Participant (DP) transaction charges. However, you will be charged a maintenance fee of INR 400 from the second year onwards.

Deposit and withdrawal limitations and payment methods

Sharekahn does not charge a deposit fee. However, you can only use a bank transfer because the platform does not support electronic wallets and credit/debit card. The only issue with the bank transfer is that it takes several business days to process. Also, you can only use an account with your name.

There are no withdrawal fees involved, and you can only withdraw through bank transfer. Also, you can only use an account with your name. The withdrawal process takes approximately 1 business, which is better than most of its competitors.

Research and education

Sharekhan offers extensive research and education tools. For instance, you will get trading ideas from reports based on the requested company. In addition, the broker provides fundamental data such as financial statements, cash flow statement, balance sheet, etc. In terms of education, Sharekhan provides tutorial videos, free workshops and educational videos and articles.

Security

Sharekhan is a subsidiary of BNP Paribas, which is a reputable company listed on the Euronext Paris Stock Exchange. Furthermore, it is regulated by the Securities and Exchange Board of India (SEBI). This is an indication that Sharekhan is a safe broker with reputable services.

Customer support

Customer support at Sharekahn is very impressive. You can get in touch with support through telephone, live chat or email. Alternatively, you can visit their offices spread across India.

Verdict for Sharekhan

Sharekhan is a well-known broker with a long history. On the bright side, it features a robust trading platform, low trading fees, reliable customer service, extensive education material and variety of research tools. However, there are some few drawbacks such as non-transparent trading fees, and it is only available in India.

Frequently asked questions (FAQ)

1. Is Sharekhan a discount broker?

Sharekhan is not a discount broker but a full-service broker that offer a wide range of services such as retail trading, mutual funds, investment, portfolio management services, etc.

1. What is the meaning of Sharekhan Flexi invest?

This is a plan that offers the flexibility to change the SIP amount without going incurring the electronic clearing system (ESC) fee. It saves you from the complicated process of changing ESC every time you want to change the SIP amount.

• Why should you Sharekhan be your brokerage of choice?

Sharekhan is ideal for all types of investors. Those that trade in high volumes will enjoy extremely low fees. Also, it is a good option for new traders because of the extensive educational materials and research tools. Senior traders who are not tech-savvy can use the free dial and dial facility where they can place their orders through the telephone.

1. What is Sharekhan’s annual maintenance fee?

The annual maintenance charge (AMC) for a trading account is zero. However, you be charged Rs 300 for the Demat account, which is fair compared to is competitors.

1. How much does Sharekhan charge for intra-day trades?

Also known as Margin Intraday Square-up or MIS orders, Intra-day trades on Sharekhan are charged 0.1%. All open intraday orders are auto squared-off by the end of the day.