Brokerage Action Finance slashes commission charges
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Small-sized brokerage Action Financial Services today launched a new offering with a very low commission but high security deposit.
The BSE-listed company, set up in 1992, said it will charge only 1 paisa per executed order across exchanges or segments like delivery, F&O, among others.
"We want to standardise the whole game and break this system of having different charges for different sets of customers or different segments," Action Financial Chairman and Managing Director Milan Parekh told reporters here.
Asked about impact on the company's revenue, Parekh said he hoped better volumes will boost its topline.
The brokerage currently has 7,000 registered customers, he claimed and said another 10,000 accounts will help the company break-even.
The company will be charging a one-time security deposit ranging from Rs 5,000 to Rs 50,000, depending on the option a customer chooses and it will not pay any interest on it.
Usually, brokerages charge higher commissions of up to 0.50 per cent for transactions but do not ask for security deposits on a demat account.
The industry players take an annual maintenance charge which Action Financial is also charging, ranging from Rs 500-1,200.