ShareKhan is one of the few broking firms which have been tremendously successful in building their brand in the trading segment. They are synonymous with share trading due to their effective marketing strategies and off course their name so much so that today when one thinks of Online trading the name Sharekhan automatically comes to mind.
This Sharekhan Review 2020 discusses the boutique of services on offer from the full-service broker to their clients. They currently offer trading in the equity, currency, commodity and their respective derivative segments.
Shripal Morakhia a Mumbai-based entrepreneur founded his brainchild Sharekhan in the year 2000 to leverage newly introduced electronic trading in stock exchanges as well as dematerialization/demat of securities.
Shripal Morakhia, Sharekhan Review 2020
Since its pioneering leap into very first digitization wave, Sharekhan has grown to be largest standalone trading brokerage firm with mutual fund distribution, IPO financing, securities brokerage, ESOP financing, loan against shares and wealth management services.
They are the fourth-largest stock-broker with a customer base of over 5 lakh active customers in India which is very significant. With more than 4800 employees working at 153 branches spread across 575 cities of India, they execute 4 lakh trades every day dealing with over 25,000 business partners. Rebranded as Sharekhan by BNP Paribas, it has become a wholly- owned subsidiary of BNP Paribas after being bought by them for Rs 2200 crore.
ShareKhan is accredited with NSE, BSE, MCX and NCDEX and allows its customers to trade in the following segments:
Apart from this, ShareKhan has also launched its own platform known as Sharekhan Classrooms which aims to help new traders and investors to learn the basics of investing in the stock market. This service is only available to the clients of the full-service stock-broker.
Here is a detailed ShareKhan review of the key products and services offered by the full service broker:
Sharekhan Trading Platforms
ShareKhan offers its customers trading platforms for both desktop and mobile. Here is a quick look at what they have to offer:
Trade Tiger is a hybrid cloud-based stock trading platform that allows users to trade across multiple financial segments like commodities, currency, IPOs, equities, mutual funds, and derivatives. Some of the features of this application include:
- Advanced trading and analytical tools
- Customizable alerts, notifications, and reminders on stocks and exchange
- Detailed research and stock analysis using high-quality graphs
- 14 banks tie-up to support instant pay in or pay out
This platform has been used by ShareKhan’s large customer base for well over a decade and has been compliant with the standards which are expected from most full-service stock-brokers.
Sharekhan Web Trading
It is a lightweight website application that needs basic configuration. You will have to log in with valid credentials to begin trading. The website has a simple user interface which helps customers to trade effectively. Some of the features include:
Sharekhan Web Trading
- Email and SMS order confirmations
- “Path finder” assists investors to filter healthy stocks for long term investments
- Supports trading across various segments
- Third party technical analysis software can be integrated with “O Alert” for automated alerts
Sharekhan Mobile Trading Platform
ShareKhan’s Mobile Trading App is useful for those who like to trade on their mobile phones. This app is available on Android and ios and can be easily downloaded. Here are some of the features of the app:
- Advanced Charting features like Renko, Line Chart, Candlestick Charts all easily available.
- A comprehensive dashboard for market view
- Secured funds transfer facility
- Get access to Sharkhan’s Online Classroom sessions and courses.
They have been notorious for launching too many apps that did not incorporate customer feedback for betterment.
However, their recent mobile app “ShareMobile” seems to be working best in terms of performance, accuracy, and speed. Login issues and absence of mutual funds investment reports makes it a little dull.
It is a specially designed mobile trading solution to work with 2G networks in small towns and rural areas. It is a better performing investment solution that runs with lower internet bandwidths on basic 2G phones and smartphones pretty smoothly. Some of the features include:
- Basic market analysis using charts for BSE &NSE
- Allows pay-in and pay-out of funds to bank, IPO, MF and trading account
- Supports Multi-exchange streaming watch list
- Investment and tracking of mutual funds
Dial And Trade
This facility allows you to trade by dialing in any of the dedicated numbers, then entering the TPIN and choosing the segment you like to trade in and you would be connected to a company executive who will place orders as per your requirement. Some of the other features of this facility include:
- Get unlimited calls for trading
- Free Research advice from Sharekhan
- Call from anywhere in India
- A secure and 3-step process to execute trades
ShareKhan offers its customers to trade in commodities by offering multiple applications like ComTiger, ComMobile and ComMini. It also gives a good quality of research in the commodity section as well.
This facility is available only to the clients of Sharekhan. It is meant for someone who has opened an account with the full-service broker but is not very clear with the basic concepts involved with investing in the stock market.
They have provided various modules which contain the basic concepts of trading and investments. The course material is useful for both traders and investors alike and provides demonstrations of how to execute trades and under what circumstances. Some of the modules for investors are:
- Wealth with mutual funds
- Goal Planning
- Investment for Beginners
For traders as well there are various modules which can very useful such as:
- Intraday Trading
- Trading in Currencies
- Trading in Commodities
Furthermore, there are various modules on stock market basics and demos of their trading app like Trade Tiger, Sharekhan Mobile Application, Web Application. Those who are new to the market should definitely take these courses, not to mention that these courses can come in handy for those who have good knowledge of this industry.
The research reports provided by Sharekhan is based on extensive technical and fundamental analysis done by their research teams. The research reports are then segregated based on the investor’s risk appetite and their objectives. Here is how the reports are segregated and given to the customers:
- Research for Traders
- Research for Investors
- Research for Mutual Fund Investors
The customers can get access to these reports via SMS, email or through the trading platforms. To access real-time fundamental and technical research tips from Sharekhan kindly click on this link
Here are some of the details on the pricing charged by Sharekhan:
Account opening Charges
|Classic Account||Trade Tiger|
|Trading Account Opening Charges (One Time)||₹750||₹1000|
|Trading Annual Maintainence Charges||0|
|Demat Account Opening Charges (One Time)||0|
|Demat Annual Maintainence Charges(Yearly Fee)||₹450|
Sharekhan provides its customers with two plans – Postpaid and Prepaid. The idea behind these plans is simple – the more margin money you put into your account the lesser brokerage you have to pay. Hence, in order to save up on your capital one should put more margin money in your account, however, if you are starting out it is advised to only a small part of your entire capital.
Here are the complete details of both the plans:
Under this plan the customer has to deposit certain amount of margin money based on which the brokerage is calculated. Here are the details:
|25,000||0.50%||Higher of 2.5% of Premium or ₹100|
|40,000||0.45%||Higher of 2.25% of Premium or ₹95|
|50,000||0.35%||Higher of 1.5% of Premium or ₹80|
|100,000||0.25%||Higher of 1% of Premium or ₹70|
|3,00,000||0.20%||Higher of 1% of Premium or ₹50|
|5,00,000||0.18%||Higher of 0.75% of Premium or ₹40|
|10,00,000||0.15%||Higher of 0.60% of Premium or ₹30|
|20,00,000||0.10%||Higher of 0.55% of Premium or ₹25|
From the above table, it is pretty clear that the lowest brokerage is paid by the customers who have deposited ₹20,00,000 or more in their account. But it is not necessary to deposit such large amounts in your account and one should consider their risk appetite before choosing the brokerage plan.
Under the prepaid plan, you have to pay a certain amount to get a better brokerage. Again the more you pay upfront, the lesser the brokerage will be. Here are the details of the plan below:
|Default||0.50%||Higher of 2.5% of Premium or ₹100|
|750||0.50%||Higher of 2.5% of Premium or ₹100|
|1,000||0.45%||Higher of 2.25% of Premium or ₹95|
|2,000||0.35%||Higher of 1.5% of Premium or ₹80|
|6,000||0.25%||Higher of 1% of Premium or ₹70|
|18,000||0.20%||Higher of 1% of Premium or ₹50|
|30,000||0.18%||Higher of 0.75% of Premium or ₹40|
|60,000||0.15%||Higher of 0.60% of Premium or ₹30|
|1,00,000||0.10%||Higher of 0.55% of Premium or ₹25|
These two plans aren’t the same in the fact the difference is that the money paid upfront for a prepaid is non-refundable while under the postpaid plan this is not the case. The money paid upfront in a prepaid plan can be considered as a subscription charge where you pay a specific amount and the brokerage rate is fixed for your account.
Sharekhan charges its customers with additional transaction charges apart from the brokerage which includes the various taxes and transaction charges imposed by the government and SEBI. These charges are in addition to the brokerage already being paid by the customer.
Most customers require some margin or leverage specially when trading options/derivatives. Here are the details of the margin being offered Sharekhan:
|Equity Delivery||Upto 10 times Intraday, upto 5 times delivery|
|Equity Futures||Upto 2 times Intraday|
|Equity Options||NA for Intraday|
|Currency Futures||NA for Intraday|
|Currency Options||NA for Intraday|
|Commodity||Upto 2 times Intraday|
However using margin for trading certainly has its own risks and one should only use this facility if he/she has complete understanding of using exposure on your trades.
Complaints are a way to gauge customer satisfaction among the client base.
As per the below table, the number of complaints against Sharekhan 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 Sharekhan over the years:
|Exchange||Financial Year||Active Clients||Total Complaints|
To access the complete list of complaints registered against brokers with NSE, just click on this link
Sharekhan is one of the biggest share brokers in India with a huge customer base combined with powerful trading tools with good performance and moderately good customer service team. They also have brought ShareKhan Classroom initiative to help their clients learn more about trading which in turn helps them succeed in the stock market which is a good endeavour.
However, the biggest challenge facing them is that of any other full-service stock broker is the emergence of the many discount brokers since the past 2 decades which has made the industry extremely competitive in terms of pricing.