Action Financial announces low brokerage rates

Tags: Mutual Funds
Action Financial Services India, a BSE-listed company, on Tuesday announced aggressively priced brokerage rates for executing trades on behalf of retail investors in capital markets.

Large brokerages on average charge 0.5-0.75 per cent brokerage in cash market and 0.03-0.05 per cent for trade in the futures and options market.

The retail investors can avail 1 paisa brokerage per trade executed (plus normal regulatory charges, like STT, stamp duty and transaction charges), irrespective of the traded amount by placing a refundable security deposit of at least Rs 5,000 for Rs 50 lakh annual turnover and annual asset management charge of Rs 500, the company announced at a press briefing.

Milan Parekh, CMD of Action Financial Services, said, “In this era, when everyone, including the government, is talking about offering low-cost services to investors, we have launched a revolutionary scheme that gives freedom from high brokerage or hidden costs.”

“We offer lifetime free demat account, easy accessibility through online/ offline/ mobile channels as well as transfer of funds. Our offerings are powered by NSE Now technology and NSDL expertise,” Parekh added.

In the broking business, there are several hidden charges that retail investors are made to pay by large brokerages if a retail investor is trading for a lesser amount than the limit set arbitrarily by the broking firm. Even for trading in shares of less than Rs 10 value, the brokerages charges higher than normal brokerages to cover risks.

Market regulator the Securities and Exchange Board of India (Sebi) allows brokerages to charge a maximum of 2.5 per cent of the traded value as brokerage. But big institutional investors negotiate very low broking fee, however, retail investors do not have the same bargaining power and have to pay higher brokerage charges as compared to large institutions.

Investors can become Action Financial members by paying an interest free refundable security deposit and choosing a membership option depending on their individual trading requirements.

raviranjan@mydigitalfc.com

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