What is free intraday trading?

There are many costs involved for making investments in the stock market. Be it the mandatory securities transaction tax, the brokerage, or the annual maintenance charges. One thing to remember about making investments is that there is no free lunch. There are charges associated with these investments. It is arguable that intraday trading involves more charges than other types of trading.

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A lookback on intraday trading

For many traders, intraday trading is their method of operation in the stock market. Intraday trading means buying and selling a particular share or multiple shares on the same day. Intraday trading is highly risky, with a chance of earning high profits and an equally risky chance of losing even the initial capital invested. Since intraday trading involves two separate transactions of a purchase and a sale on the same day, this means each transaction is subjected to brokerage.

Why the charges matter?

For a small trader who executes one transaction a day or fewer, these costs may not stack up. But for a full time intraday trader, the constant charge of brokerage on each purchase and sale transaction can add up and even eat a portion of the profits. For many traditional brokerage houses, the brokerage is charged at a flat percentage based on the value of the transaction. Some new brokerage houses that offer completely online trading systems offer flat transaction fees on intraday trades.

What if some of these fees were to be waived off?

What is free intraday trading?

Free intraday trading means just as the name suggests: By opening a free intraday trading account, you won’t be charged for intraday trades that you place irrespective of the amount, the segment traded in, or the frequency. Wondering who would give you such an account? Well, to completely cut down on transaction costs for people who want to get into intraday trading, Kotak Securities has come out with free intraday trading. Apart from this, customers of Free Intraday Trading (FIT) get unlimited access to reports prepared by the research team at Kotak Securities. If you’re an existing customer of FIT, it is completely possible to change your existing account to a FIT account.

FIT is completely mobile and allows you to trade from your mobile phone through the Kotak Stock Trader app. For those comfortable with using an application on a desktop or laptop, Kotak Securities offers Keat Pro X application. Kotak Securities also offers trading on the Trade Smart terminal on a browser.

Free Intraday Trading is applicable on all trades except currency and commodity trades. FIT even works for self-generated orders that the customer makes directly. One important point to remember for those looking to get into intraday trading, is that all open positions for the day have to be closed. This means if any share is purchased, it has to be sold. If any share is sold, it has to be purchased. This will close the position and square off the purchase with the sale. If this is not done, then the trade becomes a delivery trade and brokerage is charged accordingly.

Kotak Securities offers free intraday trading at a subscription price of Rs. 999 per year. After paying this subscription price, any intraday trading order placed by the customer directly is not charged, whatever the size of the order. This makes it very profitable to do intraday trading since the subscription price can be recovered in a few trades itself.

To sum it up

The Free Intraday Trading offered by Kotak Securities offers serious intraday traders a chance to invest and make bigger profits from intraday trading without having to shell out massive charges.


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