With effect from 6th February 2018, we have introduced Zero Brokerage for equity delivery segment. From now onwards, you invest in stocks for free without having to pay any brokerage fees.
We have implemented zero brokerage in equity delivery segment to encourage direct equity investments in the Indian stock market. This is the year of reckoning for us and we decided to remove cost barriers for equity investors even further. It’s a reason to cheer up after LTCG tax of 10% on equities was introduced in the Union Budget 2018!
The participation in equity markets by retail investors in India is abysmally low. As of 2017, there are only around 2 crore demat accounts (Less than 2% of our population). But a majority of them of up to 70-80% are inactive. As per NSE’s report on 31st December 2017, there were only 42,88,171 active clients. The definition of an “Active Client” is someone who has traded at least once in a year. Most people who trade or invest in the market don’t do so very often. Hence, the actual size of the active trading/investing community is less than half of that at around 20 lakhs or so. Why is this? One of the main reasons is because the education system in India has neglected the subject of capital markets. We are taught extensively about the constitution, geography & history but almost nothing about how the stock markets really work and how to invest. Unfortunately, this has resulted in a vast majority of our population with little to no knowledge about investing in equities. Hopefully, the system includes this in the future so that there is more general awareness. Currently, 86% percent of India’s household savings are parked in real-estate and the balance is distributed between Fixed Deposits, Gold and local currency notes. In the last few years, mutual funds have been the popular choice but still, from a macro perspective, the penetration in equity markets has been negligible. If the participation comes via direct equity, it will signal that progress has been made. Our Zero Brokerage platform for investments can contribute to that progress to some extent.
From our end, we are doing what we can to empower the retail traders and investors in India who have faced all sorts of difficulties and for a variety of reasons due to broker issues, lack of capital, trading platforms, opaque pricing policies etc. After introducing “Zero Brokerage for Equity Delivery segment”, we are proud to re-introduce ourselves to you as the “Free Investment Zone”. We feel proud to be the lowest cost brokerage in India after introducing zero brokerage for investments and the Fyers 30 Day Challenge
. You can calculate other statutory charges on our Brokerage Calculator
. If you appreciate our efforts so far and want to enable us to make more revolutionary changes, you can contribute to our growth by referring your friends to us
. If you have any clarifications, you can ask us in the comments section below.
More power to investors. All the best!
Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.