IIFL : Consistency meets Quality – A Detailed Review

Over the years the Indian stock market has endured its fair share of ups and downs but that hasn’t stopped people from investing their money in the stock market as the benefits of investing in the stock market outweigh that of other traditional investments.

As India continues to grow at a rapid pace it will rely heavily on the new generation to contribute to its growth in the stock market, but the problem here lies with the learning curve associated with investing in stock markets which is why the new and inexperienced investors look towards the brokers for guidance in this journey.

This series of reviews is aimed at reducing this knowledge gap and helping new investors in India learn more about the products and services on offer from these brokers.

In this blog, we will cover the various trading platforms, pricing and brokerage and other key services being offered by the full-service broker India Infoline Finance Limited (IIFL).


Open Account and Start Trading


A Little about IIFL

Incorporated in 1995, IIFL is a full-service stockbroking subsidiary of IIFL Holdings Limited currently with a client base of 2,11,569 as of 2019-20. They provide equity broking services to retail as well as institutional clients. The stockbroker also has a presence in 4000 cities around the world with 900 being in India with its reach being much better in the northern states of India like Punjab, Rajasthan, Haryana, etc.

One of the major reasons for its popularity is its accurate research provided to its clients which is supported by a strong in-house research team and a dedicated customer support system.

IIFL won the “Best Broker with Global presence” award at the BSE-IPF D&B Equity Broking Awards in 2012 due to its global presence in cities like Hong Kong, New York, Colombo, London, and Singapore through its various subsidiaries. IIFL’s research team has also been awarded many accolades over the years.

IIFLmainly allows its customers to trade in the Equity, Currency Trading, Commodity Trading, IPOs, Mutual Funds and Bonds segments. IIFL is based out of Mumbai with over 8,000 employees and also has a discount broking subsidiary called 5Paisa operating out of Thane, Mumbai offering competitive pricing as compared to its competitors.

Here is a detailed look at their services:

Trading Platforms

IIFL offers the following trading platforms to its customers:

IIFL Trader Terminal

This is an executable application which needs to be downloaded and installed on the user’s laptop/desktop to start trading. This app is made especially for those who are active traders and like to trade in high volume. Here are some of the features of the app:

  • Suitable for high volume trading with powerful interface and super fast order execution
  • Live streaming of market quotes and prices for multiple stocks
  • Access to Live Intraday price charts which get updated live
  • Get instant P&L of your present and past trades
  • Follow as many stocks as you want and get instant alerts on any price movements
  • Easy cancellation of past and present orders at the click of a button
  • Track the top gainers and losers of the day
  • Facility to square off all your trades at the click of a button
  • Online fund transfer facility with banks like HDFC, ICICI etc.
  • Access to research reports, market calls to help you with your trades
  • Online intraday calls, technical analysis tools and much more at the click of a button

Here is the look and feel of the terminal:

IIFL Trader Terminal
IIFL Trader Terminal Web

The trader terminal application is also available as a browser-based platform where you just need to login and start trading without having to go through the hassle of installing a software. This terminal is made for those customers who want don’t want to trade in high volumes and doesn’t offer super-high speed execution of trades.

Users can log in based on what particular segment they want to trade in. Some of the different logins are below:

  • Equity
  • Currency
  • Commodity

Some of the features of this application are:

  • Heat maps
  • Ease of access from your browser
  • Research reports and real-time tips
  • Advanced tools and charting patterns

Here is the browser based application looks like:

IIFl Trader Terminal Web
IIFL Markets Mobile App

IIFL Markets is the mobile app from India Infoline which is available for Android, ios and Windows users. This app is very highly rated on the Android App store with a rating of 4.3/5. Some of the features of the mobile app are below:

  • Access to live market updates and news on the tap of a button
  • Trade from anywhere using a single swipe feature which allows you to place trade by swiping
  • Set price alerts of securities across all segments
  • Make multiple watchlists across different segments
  • Easily connect with the customer support at the tap of a button
  • Users can now apply for an IPO through the mobile app
  • Get all the required information about a stock from price to latest news and updates at a single click

Here is how the app looks like:

IIFL Markets App

IIFLs Mobile App is one of the top performing apps in its segment with great features and fast loading speed. However, that being said it can still be improved in a few sections.

IIFL Customer Care

These days the customers have very high expectations from customer care. The resolution quality, turn around time, skills of the customer care executive are all the factors that affect the customer care service.

IIFL provides the following modes of communication with the customers:

  • Offline branches
  • Toll-Free Number
  • Email
  • Whats app
  • Phone Number

India Infoline services its customer via the above channels but it is understood that clients having higher trading volume get better service than the customer having lower trading volumes. This is something that can be improved upon.

IIFL Pricing

Here are the Account Opening and Maintenance charges levied by IIFL:

Trading Account Opening Charges (One Time)₹750
Trading Annual Maintenance Charges₹555
Demat Account Opening Charges (One Time)0
Demat Annual Maintenance Charges(Yearly Fee)₹300
IIFL Brokerage

IIFL provides various plans to its customers based on their preference, here are the plans in detail:

IIFL Variable Brokerage Plan

This plan is suitable for traders who hold on to their trades for a long time with a time horizon between a few days to a year for a trade:

Monthly Volume (in Lakhs)Delivery Brokerage Fee(in%)
Less than 10.6
1-50.55
5-100.45
10-200.35
20-600.25%
60-2000.2
More than 2000.15
Intraday Trading: Brokerage applicable both sides

This brokerage plan is meant for intraday traders who trade on a very short term basis. Here are the details:

Monthly Volume (in Lakhs)Delivery Brokerage Fee(in%)
Less than 200.05
20-1000.04
100-5000.03
More than 5000.02
Futures Trading: Brokerage Applicable both sides

This plan is applicable for those looking to trade in futures. Here are the details:

Monthly Volume (in Lakhs)Intraday (in%)Settlement (in%)
Less than 1000.050.05
100-5000.040.04
500-10000.030.03
1000-50000.0250.025
More than 50000.02%0.02%
Options Trading: Brokerage Applicable both sides

This plan is applicable for those looking to trade in options. Here are the details:

Monthly Volume (in Lakhs)Intraday (in%)Settlement (in%)
Less than 42.52.5
4-1022
10-201.751.75
20-501.251.25
More than 5011
Flat Brokerage Plan

This plan is applicable as a conventional plan at a transactional level and is fixed for all trades intraday or delivery across all segments and derivatives. Here are the details:

BrokerageRate
Intraday0.50%
Delivery0.50%
Trade for Trade and Z group scrip0.75%
Brokerage (Futures)0.05%
Brokerage (Options)1% premium or ₹100 per lot whichever is higher
Minimum Brokerage(per share)₹0.05
IIFL Transaction Charges

Here are the transaction charges being levied by IIFL:

SegmentTransaction/Turnover Charges
Equity Delivery0.00325%
Equity Intraday0.00325%
Equity Futures0.00210%
Equity Options0.0510%
Currency Futures0.00250%
Currency Options0.0510%
Commodity0.028%

India Infoline charges minimal transaction charges from its clients although its brokerage is on the higher side. There are certain brokers who charge very high transaction charges by keeping their brokerage but IIFL is not one of them, hence it is one of the trusted Indian brokers.

IIFL Margin

Here are the margin details provided by the broker:

SegmentMargin
Equity DeliveryUpto 20 times Intraday, 3 times for delivery
Equity FuturesUpto 3 times Intraday
Equity OptionsBuying no leverage, shorting upto 3 times
Currency FuturesUpto 2 times Intraday
Currency OptionsBuying no leverage, shorting upto 2 times
CommodityUpto 3 times Intraday

Complaints

Complaints are a way to gauge customer satisfaction among the client base. As per the below table, the number of complaints against IIFL has been low over the years meaning a reasonably better customer service as compared to other full-service brokers. Here are the number of complaints registered against IIFL over the years:

ExchangeFinancial YearActive ClientsTotal Complaints
NSE2019-202115617
NSE2018-19221753133
NSE2017-18225435138
NSE2016-17197996220
NSE2015-16262238238
NSE2014-15286032447
NSE2013-14235241241
NSE2012-131019778336

To access the complete list of complaints registered against brokers with NSE, just click on this link

Conclusion

In a very competitive broking industry, IIFL has been able to perform relatively by providing good products and services to its clients, but their focus has always been on customers that offer large volumes of trades which needs to change if they are to survive in this industry especially after the growing competition from discount brokers who offer similar services at a deep discount. To know more about discount broker like Zerodha, read our review on them by clicking here