Pay Brokerage Only if Make a Profit On Intraday Trade..!

ICICIdirect & WealthRays Securities: Pay Brokerage Only if Make a Profit On Intraday Trade..!

Only 5 to 6% of Indian households hold equities in some form or the other.

As the bull market gathers pace, brokerage houses are devising different strategies to attract customers and get a larger share of their wallet.

ICICIdirect & WealthRays Securities have launched plans where customers pay only if they make a profit on an intraday trade. In case the trade results in a loss, they do not pay any brokerage.

As per ICICIdirect's scheme, investors/ traders can trade in Nifty contracts intraday and pay brokerage only if the trade is profitable.

ICICIdirect claims to have used data analytics to understand customer behaviour & believes this scheme will help it protect the interest of investors who often do not exit their derivative trades fearing a higher loss due to additional brokerage cost.

Mr. Vishal Gulechha, Head - Equity product group, ICICIdirect.com said, “Paying a brokerage only when one profits helps investors exit positions purely based on their views about the market without bothering about any additional costs they may have to incur“

ICICIdirect started off by offering this scheme only on Nifty contracts, which account for 65 % of the total derivative trades. Based on the response and feedback, the brokerage house could extend it to derivative contracts in other securities as well.

Earlier this year, Bengaluru-based broking & research house WealthRays Securities introduced a similar scheme for investment recommendations. WealthRays gives investors three recommendations on every trading day, and would levy a brokerage on every profitable trade.

Both ICICIdirect & WealthRays Securities offer prepaid brokerage cards. Investors have the option to buy these cards & the brokerage would be debited from these cards for every profitable trade made by them.

Only 5 to 6% of Indian households hold equities in some form or the other. As the bull market pans out over the next few years, brokerage houses believe several new investors could buy equities as an asset class.


Brokerages that offer differentiated products stand a better chance of attracting such customers.
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