When you are ready to enter the financial markets and want good returns from forex and stock trading, it is essential to choose the right broker first. Now, historically, there are very few good stockbrokers. So, it is difficult to find one that executes trades on the behalf of the trader and in the client’s favour. However, it has become easier to find more options at present, thanks to the onset of technology and digitization. These days, ICICI Direct is one of the brokers that have caused a stir in the markets. Here is a brief review about forex trading in India ICICIDirect.
A part of the ICICI Group, ICICI Direct is one of the biggest retail stock brokers in India that offers online trading and investment services to more than 50 lakh customers. The services provided include equity, and currency trading at NSE, BSE, and MCX. The company also offers fixed deposits, bonds, mutual funds and IPO, wealth products, loans against securities, home loans, wealth products, and more.
Click on this link to visit the official website of ICICI Direct.
Is Forex Trading on ICICI Direct Legal in India?
ICICI Direct was established in 1994 and the broker is regulated. It is supervised by the Securities and Exchange Board of India (SEBI), which is a member of the Bombay Stock Exchange regulatory bodies. Any broker that is regulated by SEBI is legal in India. So, the broker accepts Indian clients and you can trade with it without worrying about facing legal consequences. When you choose a broker, you need to remember that binary trading is not legal in India and it is better to avoid any broker that is in binary trading. Since ICICI Direct does not offer binary trading, it is a safer option.
Now, the question is if you can trade forex in India with this broker.
To answer that, forex trading is legal in India as long as you follow the rules and regulations set by the RBI and SEBI. However, keep in mind that forex trading is only legal when the Indian Rupee is the base currency. There are only three currency pairs that are an exception of this rule. So, the legal currency pairs are USDINR, EURINR, JPYINR, GBPINR, EURUSD, GBPUSD, and USDJPY.
ICICI Direct Brokerage Trading Charges and Fees
ICICI Direct brokerage charges are detailed according to the services provided by the broker. First, delivery trading is free for trading. However, when it comes to intraday trading and commodity options trading, ICICI Direct charges ₹20 per order. For futures trading, currency futures trading, and trading AMC, the charges are zero. Equity options trading, currency options trading, and minimum brokerage, all these takes ₹20 per order. Demat AMC charges on the broker are ₹700 annually from second year. There is also a trading account annual maintenance charge of ₹500.The margin money on ICICI Direct is minimum ₹20,000. It means that it is mandatory for traders and investors to maintain a minimum balance of ₹20,000 to trade seamlessly. You may also have to pay a fee to use the brokerage calculator.
Trading and Investment Products
Available tradable markets on ICICI Direct include –
- Currency Trading
- Equity Trading
- Bonds Trading
- ETFs Trading
- Mutual Funds
- Derivative Trading
- IPO
- Fixed Deposits
- Non-convertible Debentures (NCDs)
- Insurance
- ICICI PMS
- eLocker
- Loans
ICICI Direct Account Types
ICICI Direct offers two types of accounts, such as:
- 3-in-1 Account: A 3-in-1 account consists of the bank, Demat, and trading accounts. All accounts are linked together to conduct transactions among them seamlessly.
- 2-in-1 Account: A 2-in-1 account is a combination of a trading and Demat account. The client can connect to the trading and Demat accounts by using their non-ICICI bank account. It allows the clients to avoid opening a new ICICI bank account when they need to trade and invest with ICICI Direct.
ICICI Direct Trading Platforms
ICICI Direct provide its traders with three trading platforms, such as –
- ICICIDirect.com Website: ICICI Direct website is the most used online investment and trading website in India for more than two decades. The website offers online trading and Demat accounts, insurance, SIPs, IPO, mutual funds, and several other products. It also conducts research and offers recommendations.
- Trade Racer (Trading Terminal): Trade Racer is a trading terminal that frequent traders can install. It is a kind of desktop online trading software that is loaded with several tools for highly efficient volume trading. This trading platform is offered to all clients for free of cost.
- ICICIDirect Mobile App: ICICIDiret mobile app allows the traders to trade and invest on the go. You can download it on both Android and iOS devices. It offers all services and products that are available on ICICIDirect.com, along with features such as live price alerts, customised alerts on portfolio stocks, and research notifications.
Pros of Trading with ICICI Direct
ICICI Direct has both advantages and disadvantages when it comes to its trading and investment services. The advantages include –
- The tri-account offered by the broker integrates broking, banking, and Demat accounts. It does not require human interference. This is suitable for an e-trading environment.
- You can access online investment in IPOs, GOI bonds, postal savings schemes and mutual funds – all of these from the same website. General insurance can also be accessed from ICICI Lombard.
- With this broker, you can manage your own bank accounts and Demat accounts via ICICIdirect.com. As soon as ICICI Direct receives the money from selling stock, it becomes available in the ICICI Securities bank account.
- As mentioned before, e-trading is accessible for listed companies on NSE and BSE.
- Low bandwidth sites are available for traders who trade from mobile devices or have a sluggish internet connection.
- You can place buy or sell limit orders for 45 days via valid till cancelled.
Cons of Trading with ICICI Direct
Even though ICICI Direct is very well-known, there are many disadvantages of this brokerage as well, such as –
- The brokerage is very expensive and non-negotiable. The price of trading on the brokerage can only be reduced if you subscribe to ICICI Direct Prime or prepaid brokerage plans, which just adds another cost.
- ICICI Direct broker does not offer commodities for trading, which is a great option when it comes to trading instruments. Also, you cannot trade at NCDEX or MCX because of this.
- The broker charges flat ₹0.05 per share brokerage on stock pricing and the charge can go up to ₹10. This type of high price makes it very challenging to trade in penny stocks.
- The minimum brokerage charge for ICICI securities is ₹35 per trade as per the I-Secure plan. It is extremely high price for novice traders.
- ₹25 is imposed by ICICI Direct for call and trade after the first 20 free calls every month.
- The broker also charges ₹75 per month for using Trade Racer if the trader pays less than ₹750 of brokerage per month.
Conclusion
All the factors described above sum up ICICIDirect India review. The broker has worked its way up to the fame it has today. It is known to be one of the most popular trading companies across the country. However, considering everything, it still needs to take care of a number of shortcomings. Whether it comes to the brokerage, account maintenance fees, website usability, research capabilities, customer service, or overall experience of the traders, everything is below average.
There is not much information about risk management either. So, it does not look a very safe place to invest your hard earned money. Thus, it would be better to stay away from this broker if you have a better option in your hand.