Simplifying the art of generating returns from investments in equity market interests a significant section of our society. These investors try to protect their money from erosion resulting through high inflation and low returns and try to get higher RoI from investments in equity. Apart from a full-time job, thus investments in stock markets mark a major source of additional income for many.

However, dealing with stocks involves a calculated risk management and regular monitoring of the stock prices for profitable trading. In the Indian scenario, approximately 50-60 lakh individuals invest in stock trading among which around 20% constitutes of self-traders. The concept of intraday trading deals with buying and selling of stocks on the same day within trading hours as per the ongoing market rates. This strategy, although involves immense risk, is targeted towards earning significant profit, and that too within a shorter period. Hence, a well planned and calculated strategy should be adopted before taking hasty decisions in intraday trading.

Looking at the immense volume of daily stock transactions, Kotak Securities, one of the biggest online trading companies, had introduced the concept of “Happy Day”, whereby, all customers were offered a free brokerage day once a week.The stock market witnessed a boost in share trading post the launch which marked self-traders as the major investors and intraday trading as the basic investment type. Often, investing in stock markets (opening a trading account) and intraday trading involves brokerage costs and a proper broker selection which involves significant expenses enough to equalize the hard-earned profit. This situation can be effectively handled with the help of “Free Intraday Trading (FIT)” a service launched by Kotak Securities in May2018. This product offers FIT for self-trading customers every day, across all equity segments like cash, options or futures. Also, no upper limit to the number of FIT transactions is levied to the customers who have enrolled for the scheme with an annual subscription fee of Rs. 999/- only (a nominal brokerage charge of 1 paisa per share traded will only be applicable). Kotak Securities also offers additional benefits to their clients such as: –

  • Intraday Research recommendation: Expert opinions are provided regarding queries raised by the customers and are resolved with care.
  • KEAT Pro X: This is an online, user-friendly share trading software that is offered free with Kotak Securities Trading Account. It has multi-functional attributes and permits self portfolio control along with real-time online share transactions. It integrates features of BSE, NSE and NSE currency market access and also online transactions in equity, derivatives and currencies, all from the same platform.Salient features include the following:
    • Updated account information: Generates time-to-time updates on self portfolio, records the transactions made and the total profit or loss incurred.
    • Stock Recommendation by Research Analysis: Research analysts at Kotak Securities strive to provide a 24×7 live update regarding the prospective stocks to buy or sell resulting in maximum returns. Constant market feedback makes it almost impossible for the customer to lose track of good opportunities to invest.

However, there are certain terms and conditions applicable for the client who subscribes to the Kotak Security’s FIT scheme. These are as follows: –

  • FIT is operational for self-generated intraday cash & equity derivatives transactions only. A self-generated intraday transaction refers to a case when both the buying and selling procedures are conducted by the customer on the trading platform offered by Kotak Securities Ltd.
  • All statutory charges are applicable.
  • Delivery brokerage charges will be levied as per the terms discussed with the customers.
  • The FIT platform can be used by the following user groups among retail investors:
  • Investors who are Indian citizens having a valid online trading account.
  • Franchisee customers having online accounts looking to make quick gains for their retail clients through Intraday Trading
  • The FIT platform is not meant for the larger organized intraday trading groups like:
  • ODIN Diet clients, NRI, QFI. For example, ODIN DIET is an application-based trading front office solution enabling larger organized clients to connect to KCSPL’s servers via Internet and take part in high velocity high volume trading.
  • Currency derivatives traders, commodity trader, Super multiple, Derivative plus & Option plus orders.

With the FIT scheme, a trader can now save money simply on a day-to-day basis with the entire fund saved which would have otherwise been spent as brokerage costs. Media coverage of the FIT scheme is currently been offered by business channels such as CNBC TV 18, Awaaz, Bazaar, ET now, Zee Business, leading newspapers like ET and digital media like YouTube to reach out to a larger audience.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.