Groww India, the largest brokerage in terms of active clients, plans to raise its minimum brokerage starting late next month.
Key Highlights
- Groww increases minimum brokerage from ₹2 to ₹5 per order, impacting small-value equity trades.
- DP charges rise to ₹20; MTF interest remains at 15.75% for amounts below ₹25 lakh.
The broking firm informed its clients via email that starting June 21, it will increase its minimum broking charges from ₹2 to ₹5. Currently, the firm charges a brokerage fee of ₹20 or 0.1% of the executed order, whichever is lower, with a minimum charge of ₹2. Starting June 21, the minimum charge will increase to ₹5.
The company also increased the interest rate it charges for the margin trading facility (MTF) to 14.95 percent per annum on the funded amount.
Clients' Depository Participant (DP) charges will increase from ₹18.5 per day per stock, regardless of number of sale transactions, to ₹20 per transaction. DP charges are mandatory fees that must be paid for all sales transactions. The depository levies these charges only when an investor sells stocks. They also include any additional fees charged by the broker to facilitate the transaction.
"While the depository charged Groww for each sell transaction, Groww paid those fees for you. "With the revised pricing, DP charges for each sell transaction will now apply to you," the brokerage stated in an email.
Torus Financial Market's CEO, Prakarsh Gagdani, stated that the cost of doing business is forcing brokerages to raise rates.
"Technology has a high cost. Second, due to regulatory changes, previously generated revenues are being reduced. Changes in referrals, true to label norm, funds parked with brokers, and the interest brokers used to receive, as well as an increase in derivative lot size, all had an impact on revenue. On the one hand, costs are rising, and as a result, revenues are declining. "The only way to get ahead of brokers is to raise the fees," Gagdani said.
