ICICI Direct is India’s leading full-service broker who is operating since last 2 decades. They have various brokerage plans to suit all type of people trading in the stock market. Be it a beginner, be it an investor or be it an active trader, ICICI Direct has plans for everyone. In this post let me take you through the ICICI Direct brokerage plans and let us compare with the peers in the same industry.
Generally ICICI Direct has a scheme of 3-in-1 account that is mainly sold by the bank branches. Here the client gets a savings bank account, a demat account and a trading account in the same time. The savings bank account is interlinked with the trading account and money can be transferred back and forth from the savings to trading account and vice versa. Once the accounts are opened the clients will be able to trade equity, derivatives, currency, mutual funds, ETF, insurance, FD or bonds from the same account.
ICICI Direct Brokerage Plans:
- ICICI Direct has different brokerage products, like I-Saver Plan, I-Secure Plan, Prepaid Brokerage Plan, NRI Brokerage and NRI Prepaid Brokerage.
- In the I-Saver plan the intraday brokerage can vary from 0.375% to 0.125% depending on the trading volume.
- In general like all full-service brokers they also offer less brokerage to high volume customers.
- In the I-Secure, ICICI Direct brokerage plans are irrespective of the turnover. The effective intraday brokerage is 0.275%.
- In Prepaid Plan the brokerage varies from 0.45% to 0.12%. Options and currencies are charged per lot basis and brokerage charge varies from Rs. 15 per lot to as high as Rs. 70 per lot.
- For NRIs the brokerage varies from 0.50% to as high as 1.25%.
For NRIs also, they have a prepaid brokerage structure where NRIs can save up to 72% if they use the prepaid plan. Check the image below for the prepaid brokerage structure for the resident Indians.
Pros Of ICICI Direct:
It has been seen that ICICI Direct brokerage plans are on the higher side if we compare with the discount brokers. The pros of ICICI Direct is their nationwide branch network, where you can get help from your nearest branch. They have the web-based terminal, desktop terminal as well as call and trade facility for both online and offline traders. ICICI is also known for its powerful research.
Cons Of ICICI Direct: The brokerage charge is very high if we compare with a discount broker like Zerodha. While discount brokers are not charging a single penny for equity investments, ICICI Direct is still charging brokerage as high as up to 0.75%. Even in the I-Saver plan, the delivery brokerage for 1 crore turn over is 0.35%. That means a trader or investor need to pay Rs. 35000 for brokerage wherein Zerodha the effective brokerage is zero. That is creating a huge gap. Even nowadays the discount brokers have made a huge improvement of their terminals (example the Upstox Pro by RKSV).
Conclusion: While the ICICI Direct brokerage plans are on the higher side, unless and until you have a big fascination for ICICI Direct account we suggest to open an account in Zerodha and link it with your ICICI Bank account to save money by not paying higher brokerage.