Karvy Online : Good Value for Money – A Detailed Review

Investing in the stock market can be a very daunting task for those who are new to the world of equity trading. Hence, they are prone to making mistakes which can cost them as they go on this journey of trading in the stock market.

One of the most common mistakes is choosing the wrong broker, which makes it very important to choose a broker only after doing thorough research. This series of blogs aims to help people in choosing the broker which best meets your requirements.

Introduction to Karvy Stock Broking Ltd (KSBL)

Karvy Stock Broking Limited (KSBL) is the stockbroking arm of the financial conglomerate, Karvy group. Karvy Online is one of India’s leading financial services company and provides stock broking services to over 2,00,000 active clients. Karvy is also renowned for its high-quality research, especially in the intraday segment.

Incorporated in the year 1985, they are one of the earliest full-service brokers in India. Karvy Online currently has a presence in about 400 cities through its various sub-brokers and branches. They offer retail broking and institutional investment services to their clients.

One of the reasons behind Karvy’s growth has been their culture of providing their clients with good customer service and keeping the growth of their clients before their own.

Here is a detailed review of the products and services in areas such as trading platform, brokerage, margin, research, and customer service.

Karvy Online is a member of BSE, NSE, NCDEX and MCX exchanges. It also provides its customers with trading and investing facilities in various segments like Equity, Derivative Trading, Commodity Trading, Currency Trading, IPOs, ETFs,  Mutual Funds, etc.


Open Account and Start Trading


Karvy Online’s Value Added Services:

Advisory Desk

Customers can now get tailor-made investment strategies based on their risk profile prepared by Karvy’s highly experienced and dedicated support team.

The recommendations being provided to customers is based on strong Technical and Fundamental research prepared by the support team.

Pair Trade

First introduced by technical analysts in Morgan Stanley, a Pair trade is a trading strategy that involves a long position and a short position in two highly correlated stocks. This strategy is meant for the smart investor who likes to hedge their risk.

Long V Short

How it Works?

You can select two pairs of stocks from Karvy’s well-researched trade pairs, then you can backtest those stocks by calculating the price ratio and mean of the selected stocks. Take long and short positions (Long for underperforming stock and short for the over-performing stock.) and then book profits as prices deviate from the current trend.

Ask the expert

Karvy Online provides the facility to customers to chat with their Customer Support team, Experts from Trading, IT Support to assist you by resolving all your queries.

Karvy Online’s Ask the Expert

Trade through SMS

Customers can trade, place orders, get information on their holding through this service just by calling or asking a query via SMS.

Trading Platforms

Karvy Online offers three trading platforms to its clients through mobile, desktop and Web interfaces. Let’s us have a look at the features on offer from these trading applications:

NEST Trading
Application

This application comes in a downloadable .EXE format which offers safe and secure access to online trading. Here are some of the features of the Karvy NEST WEB app:

Trading using the NEST Trading Platform
  • Track scrips of users choice by creating market watch groups.
  • View market picture data for scrips.
  • Place Buy/Sell orders to the exchange.
  • View orders, trades and positions data.
  • Set up effective risk management system.
  • Use add-on tools to receive alerts, send internal messages etc.
Karvy Online WEB

It is a browser-based application which can be accessed without downloading any software to your machine. All you need to do is add the application’s web URL and then enter your login credentials and start trading. The application works in most browsers and can also be accessed through your phone’s browser. Here are some of the features of this application:

Karvy Online Web login Page
  • User friendly trading platform
  • Good research recommendations
  • Secured and real time access to trading
  • Access to Live Market News
  • View the best buy and sell rates with order quantity
  • View prices of all securities you are interested in.
  • Get personalized stock market investment ideas
  • Allows position conversion from Intraday to Delivery
  • Easy access to intraday movement of scrips and index
  • Displays the executed trades for all scrips
Mobile Trading App:

Karvy Mobile App is a convenient way to trade, since majority of people tend to use their mobile phones to track and make investments. The app is available for both android and apple users and provides features such as real time quotes, live market updates etc.  

Karvy Mobile App

Here are some of the Features of Mobile Trading App:

  • Place Orders
  • Modify, Cancel Orders
  • View Order Book
  • View Trade Book
  • View Position Book
  • View Holdings
  • View Limits
  • View Quotes
  • View Market Picture (MBP)

Although this app is very easy to use, it does have some inefficiencies which have been raised by the clients time and again:

  • Login issues (Even with valid credentials)
  • Session expiry issues
  • Delayed transfer of funds from Savings to trading A/c

Research

Karvy online provides daily, weekly and monthly research reports to its large number of clients. Karvy is also known to provide a good level of research to its clients using solid fundamental and technical analysis.

The broker is known in the industry to provide good research reports which are better than the industry average which also get published in various journals, newspapers and industry reports.

Here is a small snippet of the report from May 2019:

Karvy Research Reports

For daily access to karvy’s stock market tips, just follow this link.

CUSTOMER CARE

Karvy Online allows the following modes of communication with the customers:

  •  Offline branch
  • Email
  • Phone
  • Web Chat

Other than that HDFC Securities also has chatbot tools called “Ask the Expert”, an automated chatting tool, which assists customers with their issues by getting them in touch with in-house experts.

Pricing

Despite being a full—service stock broker, Karvy charges its clients a very average level which makes it value for money. Here are the charges levied by Karvy Online for its stock broking services:

Account Opening Charges

Here are the charges of opening a 2-in-1 account with Karvy Online:

Trading Account Opening Charges (One Time) 0
Trading Annual Maintainence Charges ₹420
Demat Account Opening Charges (One Time) 0
Demat Annual Maintainence Charges(Yearly Fee) ₹500(Free first time)
Brokerage Charges

Karvy charges its customers an average brokerage fees as compared to the rates offered by other stock broking firms in India:

Segment Brokerage Fee
Equity Delivery 0.30%
Equity Intraday 0.03%
Equity Futures 0.03%
Equity Options ₹30 per Lot
Currency Futures 0.03%
Currency Options ₹30 per Lot
Commodity 0.03%
Transaction Charges

Here are the transaction charges being levied by Karvy:

Segment Transaction/Turnover Charges
Equity Delivery ₹325
Equity Intraday ₹325
Equity Futures ₹230
Equity Options ₹5500
Currency Futures ₹325
Currency Options
Commodity ₹300
Karvy Margin Services

Karvy Online provides the following margins to its customers:

Equity Delivery Upto 20 times Intraday, upto 0 times delivery
Equity Futures Upto 4 times for Intraday
Equity Options Buying no leverage, upto 4 times for Intraday
Currency Futures No Leverage
Currency Options No Leverage
Commodity Upto 4 times for Intraday

Karvy offers decent exposure in the Equity segment which is consistent with industry average. However, they fail to offer any margin to its customers in the Currency segment which should be taken into consideration when opening an account with the full-service broker.

Complaints

The below report provides an insight into the number of complaints being registered against Karvy since the financial year 2012-13. It is also fair to say that the number of complaints being registered against them is slightly more than the industry average. This is something they can look to improve on. Here is the report below:

Exchange Financial Year Active Clients Total Complaints
NSE 2018-19 269327 219
NSE 2017-18 244753 225
NSE 2016-17 181354 150
NSE 2015-16 166923 191
NSE 2014-15 172489 173
NSE 2013-14 126308 113
NSE 2012-13 555326 115

If you want the detailed comparison of Total Complaints by customers against brokers, kindly Click on this link