Trading Account Opening Fees and Charges

What is a Trading Account?

Much like a Demat account, a trading account in India is essential to sell or purchase shares online on the stock market. Earlier on, the open outcry system was how the stock market functioned. Traders had to be physically present, and use verbal communication and hand-signals, likened to bidding for a share, to convey their trading decisions. Once the digital age came around, this system was replaced with the current trading accounts.

How Does Online Trading Accounts Work?

Today, traders and investors simply create an online trading account. Investors are usually required to enlist the help of a professional stockbroker to carry out their buying and selling decisions for them. While there are exceptions, brokerage firms rarely offer free trading accounts as there are maintenance and opening charges.

Due to easy accessibility via the internet, many people have jumped onto the stock market bandwagon. Around 22.5 million people with a trading account in India were partaking in the stock market in 2016. To manage this global influx of new traders, each trader is allotted a unique trading ID, which helps to individually identify traders and their transactions.

Stock markets are open for certain hours during the day during which the market can be seen and trades can be carried out. These are known as trading hours. There are various strategies to employ when trading. These include buying and selling a share on the same day (intraday trading) or holding onto a share until it starts to trend and then immediately selling it at a profitable margin.

Trading Account Opening Charges

Similar to other full-service brokerage firms, IIFL does not offer free trading accounts. However, it charges nominal fees for opening and maintaining a trading account. Here are the general charges to run a trading account with IIFL.

Trading Account Opening Charges
Trading Account Opening Charges IIFL
Account Processing Charges ₹0
Trading Account Opening Charges [One Time] ₹750
Trading AMC [Yearly] ₹0

Different Types of Trading Account and Fees

IIFL offers two different plans for users to choose from: the Flat Brokerage Plan (FBP) and the Variable Brokerage Plan (VBP). Here’s how each of these plans works.

Flat Brokerage Plan (FBP)

As the name suggests, in a flat brokerage plan, one is charged a fixed or flat percentage on the total value of assets they trade, irrespective of turnover rate. The fixed charges under this plan are detailed as follows:

Segment Flat Brokerage (%)
Intraday (buying/selling) 0.05%
Delivery (Normal) settlement 0.50%
Trade-for-Trade/Z group script 0.75%
Futures (buying/selling) 0.05%
Options (buying/selling) 1% of premium or ₹100/- per lot, whichever is higher
Minimum share per brokerage ₹0.05

Variable Brokerage Plan (VBP)

Under the variable brokerage plan by IIFL, the rate charged on brokerage varies depending on the volume of trades made in a month. The amount of trading volume that you achieved during the last 20 trading days (including the current day) will determine the brokerage slab for the current trading day. All charges under the Variable Brokerage Plan are as follows:

Variable Charges for Delivery Cash Volume Trading (buying and selling)

Monthly Trade Volume Delivery Rate
< ₹1 lakh 0.60%
₹1 lakh – ₹5 lakhs 0.55%
₹5 lakhs – ₹10 lakhs 0.45%
₹10 lakhs – ₹20 lakhs 0.35%
₹20 lakhs – ₹60 lakhs 0.25%
₹60 lakhs – ₹2 crores 0.20%
> ₹2 crores 0.15%

Variable Charges for Intraday Cash Volume Trading (buying and selling)

Monthly Trade Volume Rate
< ₹20 lakhs 0.05%
₹20 lakhs – ₹1 crore 0.04%
₹1 crore – ₹5 crores 0.03%
> ₹5 crores 0.02%

Variable Charges for Futures Trading (buying and selling)

Monthly Trade Volume Square-off Settlement
< ₹1 crore 0.05% 0.05%
₹1 crore – ₹5 crores 0.04% 0.04%
₹5 crores – ₹10 crores 0.03% 0.03%
₹10 crores – ₹50 crores 0.025% 0.025%
> ₹50 crores 0.02% 0.02%

Variable Charges for Options Trading (buying and selling)

Monthly Premium Volume** Square-off Settlement Min rate per lot (square off) Min rate per lot (settlement)
> ₹4 lakhs 2.5% 2.5% ₹100 ₹100
₹4 lakhs – ₹10 lakhs 2.0% 2.0% ₹100 ₹100
₹10 lakhs – ₹20 lakhs 1.75% 1.75% ₹80 ₹100
₹20 lakhs – ₹50 lakhs 1.25% 1.25% ₹60 ₹100
> ₹50 lakhs 1% 1% ₹40 ₹100

** Premium volume is (premium*lot size*No of Lots).

Value-added Subscription Plan

The value-added subscription plan has been designed for frequent traders. There are 7 different subscription plans under the model. By paying a specified amount, one can avail more economical brokerage costs for a certain duration. This set of subscription plans makes for a range of choices depending on one’s online trading account behaviour. For instance, under the ₹5000 plan or V5000VAS, the brokerage for delivery trades reduces to 0.35% as against 0.50% in the default plan, while the validity period of 1 year remains the same. Here are all the charges associated with all 7 plans.

Plans Default Plan 1. V1000 2. V2000 3.V5000VAS 4. V10KVAS 5. V25KVAS 6. V50KVAS 7. V1LVAS
Value Added Subscription Value (a) Nil ₹1000 ₹2000 ₹5000 ₹10000 ₹25000 ₹50000 ₹100000
GST(₹) (b) As per Current Applicable Rates
Account Opening Charge (c) 1.75% Nil Nil Nil Nil Nil Nil Nil
Total Margin Cheque (a+b+c)
Delivery Charge 0.50% 0.25% 0.15% 0.35% 0.25% 0.15% 0.10% 0.05%
Intraday Trading Brokerage CM- (buy or sell) 0.05% 0.03% 0.02% 0.04% 0.03% 0.02% 0.01% 0.01%
Trading Brokerages Futures- (buy or sell) 0.05% 0.03% 0.02% 0.04% 0.03% 0.02% 0.01% 0.01%
Intraday Trading Brokerage Futures-(buy or sell) 0.05% 0.03% 0.02% 0.04% 0.03% 0.02% 0.01% 0.01%
Options Trading Brokerage- (buy or sell) 1% of premium or ₹100/- per lot whichever is higher 1% of premium or ₹70/- per lot whichever is higher 0.50% of premium or ₹60/- per lot whichever is higher 1% of premium or ₹90/- per lot whichever is higher 1% of premium or ₹70/- per lot whichever is higher 0.50% of premium or ₹60/- per lot whichever is higher Flat ₹40/- per lot Flat ₹20/- per lot
Minimum Brokerage Per Share (Delivery, Futures and Cash Intraday) ₹0.05 ₹0.05 ₹0.03 ₹0.05 ₹0.05 ₹0.03 ₹0.01 ₹0.01
Plan Validity 1 year 1 Month 1 Month 1 year 1 year 12 Months 12 Months 12 Months

Trading with India Infoline

Without access to a quality trading platform, your trades can get tedious and difficult to manage, ultimately resulting in losses. On the other hand, using a good trading platform can improve your trading skills. India Infoline (IIFL) offers its users a host of advanced and innovative trading platforms that perform with state-of-the-art technology. When you open an online trading account on IIFL, you get access to the following cutting edge trading tools and platforms.

  • TTWeb:

    a browser-friendly easy-to-operate trading portal that utilizes the internet. One can trade from the convenience of their home using TTWeb, with a quick login requiring a password and User ID.
  • TTExe:

    a PC-friendly installable desktop application, accessing all segments, that is suited to fast and high-frequency trading. All features like advanced charts, trading tips, live streaming market movements, daily reports are available on TTExe and TTWeb.
  • IIFL Markets:

    a smartphone app for Android and iOS that helps you trade using your smartphone. For a smartphone app, it has impressive features like trading tips, a customizable watchlist, price alerts, advanced technical charting, and access to live market updates. Mobile-based trading comprised 18.51% of all trades in the cash market in January 2020, while internet-based trading came in at 11.29%, reflecting how apps like IIFL Markets are a convenient trading solution for most.
  • IIFL MF App:

    for those who prefer investing in Mutual Funds only, this app is dedicated to trading and tracking MFs alone. Other features include integration with the IIFL Markets app, portfolio assessment, and sharing relevant industry news.
  • TT Iris:

    a software dedicated to aid traders in making stock-market decisions. Offers a plethora of hallmark features like strategy testing, customized charting, candlestick scanners, portfolio optimization, and price watch

Features and Benefits of Using a Trading Account

Operating a trading account in India offers some special features and benefits to users. They are:

  • Convenient Access:

    With a trading account in India, you are able to reach a variety of exchanges trading in commodities and securities. You have access to leading exchanges like Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX). You are spoilt for choice with access to all these trading options and generating wealth is a simple click away.
  • Smart Tools:

    Online trading accounts offer benefits that open outcry system never could. These smart tools are daily reports, strategy builders, investment advisory services, reports, and advanced charts. Due to most of these tools being software-based, the scope for reporting-error is also low. Such reliable information allows for informed trading decisions.
  • Customization:

    Another benefit of the online trading accounts of today is the ability to tailor them to suit your needs. Whether it is customizing the watchlists of stocks you want to track, creating individualized charts to gain insight into market movements, or setting stock market notification alerts to SMS-only, you can manage your trading accounts to fit your lifestyle without any friction.
  • Flexibility:

    Another aspect of having a trading account in India is how easily accessible they are from different portals. Smartphones, desktops, and browser-based trading portals are typical offerings across brokerage firms today. Some firms go the extra mile and create apps dedicated to Mutual Funds, or smallcases only. This variety enables one to flexibly access the market without worrying about requiring a PC.
  • Seamless Transitions:

    If there’s one feature that characterizes online trading accounts, it is how seamless transactions are thanks to it. Funds transfer within less than 24 hours allowing for more transactions. Advanced technology enables traders today to buy and sell stocks within the same day, popularly known as intraday trading.

FAQs About IIFL Trading Accounts

Can I trade in the derivatives market with an IIFL online trading account?

Yes, you can trade in the derivatives market with an IIFL trading account.

Is IIFL a full-service broker or a discount broker?

IIFL is a full-service broker and provides high-quality research and other financial data to investors. Discount brokers usually just provide buying and selling services.

Can I invest in mutual funds with an IIFL online trading account?

With both, an IIFL demat and trading account, you can invest in mutual funds along with stocks, currencies and commodities. IIFL has also developed a dedicated platform IIFL MF App for mutual fund investments.

Does IIFL charge a minimum brokerage for trading?

If you are trading in the cash delivery system, you will be charged a minimum of ₹ 25 per scrip under the variable brokerage and flat brokerage plans.

Can I invest in IPOs through an IIFL trading account?

Yes, you can invest in IPOs and FPOs through an IIFL demat-cum-trading account.

Open Demat Account at IIFL