Should I opt for m.Stock’s zero brokerage account?
Mirae Asset, a global leader in the financial services industry, has launched “m.Stock”, an investment platform. The new product provides access to numerous trading and investment products under one roof, combined with a brokerage-free and commission-free model. Here is a quick review.
What is offered
Mirae Asset Capital Markets (India) offers its online brokerage services under the m.Stock brand. The company received its SEBI Securities Dealer License in January 2018 and its Class I Merchant Banking License in March 2018.
The platform provides a one-stop solution for investing in stocks, F&Os, currencies, IPOs, and mutual funds. One can use the web portal or applications of Android and iOS platforms.
For the ₹999 account, you will be charged a one-time account opening fee of ₹999, where you can trade all products without brokerage. This is not a recurring charge. The zero brokerage fee is not tied to any subscription pack or limited number of trades and it is not a limited time offer. Add a payment of ₹999 (optional) at the time of account opening to make your demat maintenance fee free for life as well. If you do not wish to opt for this optional payment, ₹120 will be charged per term. GST and payment partner fees are extra.
Zero brokerage saves substantial money for active traders, especially in the options segment. For example, 20 orders per day for 20 trading days per month in the options segment at ₹10/order can mean ₹48,000 in annual brokerage. If the order rate is ₹20, the brokerage amount doubles to ₹96,000 in this scenario. Broker-free plans reduce costs and are important for a trader’s long-term profitability.
For the ₹149 account, you will be charged a one-time account opening fee of ₹149. Thereafter, you will be charged ₹20 per trade for intraday trading, futures and options, and forex. Delivery-based trades, mutual funds, and IPOs require no brokerage/commission for this account as well.
Note that additional levies such as STT/CTT, SEBI Fee, Stamp Fee, DP Fee, Pledge Fee, Late Payment Fee, Payment Gateway Fee (in case of net banking), RMS Square Fee for intraday open positions per system, etc. will always be charged.
In addition to disruptive pricing, m.Stock offers pre-designed index baskets, voice search for individual stocks and contracts, access to long-term historical data, purchase of a full trading basket in one click, etc. The platform claims the ability to process more than one crore trade per day for more than 15 lakh clients at the same time.
We tried the account sign-up process on mobile and within an hour the m.Stock (₹999) account was activated successfully.
Our point of view
In an effort to attract new investors and young investors, some stockbrokers have offered unlimited trading plans and zero brokerage programs. Mirae Asset’s m.Stock came out with attractive prices. Recently, Flattrade, an online brand of Fortune Capital Services, has also introduced zero brokerage for its clients.
Technology allows new brokerage firms to conduct large-scale trading operations. The zero brokerage plan is not entirely new as the idea has already been successfully tested by brokers around the world. In this model, brokers generate revenue through funding products and also through the benefits of the exchange by making higher volumes.
Note that a low brokerage is in no way related to successful trading. If you are considering getting into trading, find out about its ups and downs.
While the smart use of technology can solve some problems, unrealistic companies may lack the capital to maintain service standards. Only time will tell if zero brokerage deals in India can usher in the wave of disruption the brokerage industry has seen with discount brokerage.
April 22, 2022