HDFC Securities Review

Category: Reviews | Author: Trading Brokers | Date: October 16, 2023

HDFC Securities is a prominent player in India’s brokerage industry. As a subsidiary of HDFC Bank, one of the country’s largest private banks, it offers an array of financial products and services. HDFC Securities provides various trading platforms, including mobile apps, web portals, desktop software, call and trade services, and an extensive branch network. The brokerage operates under the regulatory oversight of SEBI and is affiliated with significant stock exchanges like BSE, NSE, MCX, CDSL, and NSDL. In this article, we will conduct a thorough review of HDFC Securities, considering factors such as its regulatory compliance, available trading platforms and tools, educational resources, market coverage, account types, and funding options. Additionally, we will present a balanced view by highlighting both the advantages and disadvantages of using HDFC Securities as your brokerage service provider, enabling you to make an informed decision about its suitability for your financial needs.

Pros & Cons

  • Multiple platforms and tools for online and offline trading
  • Various market segments to trade and invest in
  • 3-in-1 account for seamless and convenient trading
  • Education and research services for customers
  • No crypto trading
  • High brokerage charges compared to discount brokers
  • No MetaTrader or cTrader platforms
  • Limited customer support channels (only phone and email)

Summary

HDFC Securities Review

HDFC Securities Review

HDFC Securities, established in 2000 as a subsidiary of HDFC Bank, is a notable full-service broker in India. It offers a diverse range of products and services, including online and offline trading, education, and research. Regulated by SEBI, RBI, BSE, NSE, MCX, CDSL, and NSDL, HDFC Securities provides a 3-in-1 account that seamlessly integrates a savings bank, trading, and Demat account, simplifying trading and investing.

Diverse platforms like the mobile app, web portal, desktop software, call and trade, and branch network cater to varied customer preferences. These platforms offer features like live market updates, advanced charts, and research reports.

HDFC Securities is committed to customer education, offering training courses, webinars, and research products. It enables trading and investment in equity, derivatives, currency, commodities, mutual funds, IPOs, bonds, and ETFs, with various features such as margin trading, intraday trading, and options chains.

Tailored accounts for resident Indians, NRIs, corporates, HUFs, and trusts, including NRE/NRO accounts, cater to diverse customer segments. Funding options include margin trading, enCash, loans against securities/mutual funds, bank transfers, and card payments. HDFC Securities aims to serve as a comprehensive solution for customers’ trading and investing needs while providing strong customer support via phone and email channels.

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Regulation

HDFC Securities operates within a well-defined regulatory framework in India. It falls under the oversight of the Securities and Exchange Board of India (SEBI), the authoritative body responsible for regulating the securities market in the country. Furthermore, HDFC Securities holds membership with several key financial institutions, including the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Multi Commodity Exchange (MCX), Central Depository Services Limited (CDSL), and National Securities Depository Limited (NSDL). Adhering to the regulations and guidelines set forth by these entities, HDFC Securities conducts its business, encompassing trading practices, settlement procedures, and membership obligations.

As a subsidiary of HDFC Bank, one of India’s prominent private banks, HDFC Securities operates under the purview of the Reserve Bank of India (RBI), the central bank and monetary authority of the nation. This affiliation ensures that the brokerage adheres to the requisite financial standards and governance protocols set forth by the RBI. In addition to SEBI and RBI oversight, HDFC Securities is governed by a spectrum of Indian laws and regulations that govern its operations. These encompass a wide range of legislative acts, including but not limited to the Companies Act 2013, Income Tax Act 1961, Goods and Services Tax Act 2017, Foreign Exchange Management Act 1999, and Prevention of Money Laundering Act 2002, among others, ensuring compliance with the legal fabric of the country. While HDFC Securities offers a solid framework for investors, it’s essential to explore various options and consider your unique financial needs. Please see a list of regulated brokers for some alternative options.

Platforms & Tools

HDFC Securities understands that every investor is unique, and they offer a diverse range of platforms and tools to accommodate varying preferences and requirements:

  • Mobile Trading App: HDFC Securities provides a user-friendly mobile app for seamless on-the-go trading and investment. This app boasts features like live market updates, customizable watchlists, portfolio tracking, fund transfers, and research reports. It’s compatible with both Android and iOS devices.
    HDFC Securities Mobile Trading App

    HDFC Securities Mobile Trading App

  • Web-based Trading: Their web portal ensures accessibility from any browser, offering advanced charting tools, technical analysis, a market screener, alerts, and seamless integration with their 3-in-1 account for efficient transactions.
    HDFC securities Web-based Trading

    HDFC securities Web-based Trading

  • Blink: For those seeking high-speed trading in the equity and F&O segments, HDFC Securities offers Blink, a desktop software with features like rapid order entry, real-time price updates, a customized trading interface, and a single screen for equity and F&O trading. Blink is available through a subscription.
    HDFC Securities Blink

    HDFC Securities Blink

  • ProTerminal: Designed for professional traders and investors, ProTerminal is an HTML-based platform offering advanced tools and analytics, including a smart scanner, strategy tester, option chain, heat map, and algo trading capabilities. ProTerminal is also accessible through a subscription.
  • Digify: This digital platform simplifies online mutual fund investments with goal-based strategies, robo-advisory services, fund recommendations, and a SIP calculator. It provides access to various mutual fund schemes from different fund houses.
  • HDFC Securities smallcase: In collaboration with smallcase, HDFC Securities offers thematic portfolios of stocks and ETFs. This service includes curated portfolios based on themes, rebalancing alerts, SIP options, and more, assisting customers in diversifying their portfolios.
  • Voice-enabled Trading Platform, Arya: Arya, HDFC Securities’ voice-enabled trading platform, utilizes voice commands for trading. It features voice recognition, natural language processing, and artificial intelligence, while also providing market information, tips, and guidance.
  • Call & Trade: For customers who prefer trading via phone calls, HDFC Securities offers a call and trade facility. This service allows customers to place orders through a centralized dealing desk or their nearest branch with the assistance of trained executives. It covers various asset classes, including equity, derivatives, currency, commodities, mutual funds, IPOs, and bonds.

Education

HDFC Securities places a strong emphasis on equipping its customers with the knowledge and skills necessary to navigate the complex world of the capital market. They offer a range of educational resources, both online and offline, to foster learning and enhance trading and investment capabilities. These educational services include:

  • Training Courses: HDFC Securities conducts comprehensive online training courses that cover a diverse array of topics related to the capital market. These courses provide a balanced blend of theory and practical insights and encompass areas like;
    • futures and options,
    • commodity derivatives,
    • currency derivatives,
    • technical analysis, and
    • fundamental analysis.
  • Webinars: Regularly scheduled webinars serve as a valuable resource for customers, offering market updates, insights, tips, and guidance. These webinars delve into various market themes and trends, such as sector outlooks, budget analyses, IPO reviews, and portfolio management. Moreover, they encourage interactivity, allowing customers to pose questions and seek clarification.
  • Research Products: HDFC Securities furnishes customers with an assortment of research products, including market reports, analyses, recommendations, and tutorials. These resources are meticulously curated by a team of experts and analysts with profound market knowledge and extensive experience. The objective is to empower customers with the information they need to make informed investment decisions and progress toward their financial objectives.

HDFC Securities recognizes that learning is an ongoing and dynamic process. They are dedicated to providing top-tier educational services and welcome customer feedback and suggestions to continually enhance these offerings. Their commitment to education reflects their commitment to fostering knowledgeable and informed investors.

Markets

HDFC Securities provides a comprehensive range of options for its customers to engage in various financial markets, including equity, derivatives, currency, commodities, mutual funds, IPOs, bonds, and ETFs. Each market segment comes with a set of tailored features and benefits. Customers can access both online and offline trading in the cash and delivery segment of the equity market, with over 5000 listed companies on BSE and NSE available for trading at competitive brokerage rates. Additionally, HDFC Securities offers facilities like margin trading, intraday trading, and basket investing for equities. In the derivatives segment, customers can trade online and offline in futures and options contracts for over 1000 stocks and indices, with the ability to hedge risk, speculate on price movements, and create diverse strategies. HDFC Securities complements this with services like margin funding, option chain analysis, and strategy building.

The currency market allows online and offline trading in currency derivatives, covering USD-INR, EUR-INR, GBP-INR, and JPY-INR pairs on NSE and BSE, along with live currency rates and conversion tools. In commodities, customers can engage in online and offline trading across a spectrum of over 100 commodities on MCX and NCDEX, with access to live commodity prices, news, and research. For mutual funds, HDFC Securities offers online and offline investing in various schemes from over 40 fund houses, with options for lump sum or SIP investments and additional features like the Digify platform, robo-advisory services, fund recommendations, and an SIP calculator. Customers can also invest in IPOs online and offline using ASBA or UPI modes, covering various instruments such as equity shares, NCDs, and bonds, with access to an IPO calendar, analysis, and allotment status. In the bond segment, online and offline investing is available for government and corporate bonds, with tools like bond calculators, ratings, and news. Lastly, HDFC Securities offers online and offline investing in exchange-traded funds (ETFs) tracking various indices or commodities, including index ETFs, sectoral ETFs, thematic ETFs, and gold ETFs, complemented by ETF screening, research, and portfolio management tools. As you explore these offerings, it’s essential to carefully consider your investment goals and strategy.

Accounts

HDFC Securities recognizes the diversity among its customer base and offers a range of account types tailored to specific segments, including resident Indians, non-resident Indians (NRIs), corporates, Hindu undivided families (HUFs), and trusts. Each account type comes with distinct features and advantages:

  • All-in-1 Investment Account: This account is a comprehensive solution for all investment needs. It allows customers to invest in Equity, Derivatives, Fixed Income, Exchange Traded Funds, and Mutual Funds. The account opening process is completely paperless and can be completed in three easy steps.
  • Demat Account: A Demat account with HDFC Securities allows customers to buy, hold, and sell securities in a safe and convenient way. After opening a Demat account, customers can access shares, bonds, mutual funds, and derivatives. The account also allows for quick and informed investment decisions, lower trading costs, and a convenient nomination for the easy inheritance of the portfolio.
  • Trading Account: A trading account with HDFC Securities provides a seamless online real-time platform to trade and track stocks. Customers can buy or sell stocks on both the BSE and the NSE using the online trading platform, Mobile App, or the Call N Trade service.

The account opening process for these accounts is simple and quick. Customers can check their account opening status online. Depending on the account opening scheme that customers opt for, they can avail free brokerage up to Rs 12,500.

It’s important to note that to become a registered user of HDFC Securities, one needs to first open a savings/current account and a demat account with HDFC Bank.

Funding

HDFC Securities places a strong emphasis on providing diverse funding options that empower its customers to engage in the capital market with flexibility and convenience. These options include:

  • Margin Trading Facility (MTF): HDFC Securities extends a margin trading facility that enables customers to purchase stocks by paying only a fraction of the total value, with the remainder borrowed from HDFC Securities. This arrangement allows customers to leverage their capital and expand their market exposure. HDFC Securities implements interest charges on the borrowed amount and offers a margin call facility to keep customers informed about their margin status.
  • enCash: The enCash facility is designed to cater to customers’ immediate cash requirements without necessitating the liquidation of their securities. It provides a convenient means to withdraw cash from a trading account instantly. HDFC Securities imposes a nominal fee for this service and extends a repayment option within 30 days.
  • Loan Against Securities (LAS): With the loan against securities facility, customers can pledge their securities as collateral to secure a loan from HDFC Bank. This offering empowers customers to access funds for various purposes without the need to divest their securities holdings. HDFC Securities extends loans of up to 80% of the value of the pledged securities, subject to interest charges on the loan amount.
  • Loan Against Mutual Funds (LAMF): The loan against mutual funds facility allows customers to utilize their mutual fund units as collateral to secure a loan from HDFC Bank. This facility provides customers with the means to access funds for diverse purposes without the need to redeem their mutual fund units. HDFC Securities offers loans of up to 50% of the value of the pledged mutual fund units, along with applicable interest charges.
  • Bank Transfer: Customers have the option to transfer funds from their bank accounts to their trading accounts through various modes, including NEFT, RTGS, IMPS, UPI, and more. This method offers a swift and secure means of funding their trading accounts.
  • Credit/Debit Card: HDFC Securities also facilitates online funding of trading accounts through credit or debit card payments, offering a convenient and straightforward process.

HDFC Securities’ commitment lies in offering adaptable and accessible funding options, empowering customers to participate in the capital market on their own terms.

Conclusion

In conclusion, HDFC Securities stands as a reputable full-service broker in India, supported by its affiliation with HDFC Bank and a comprehensive range of products and services. It caters to various market segments, offering seamless 3-in-1 accounts, diverse trading platforms, educational resources, and funding options. However, it’s worth noting that while HDFC Securities offers strong features, there are other brokers with longer track records that might be worth considering as alternative options. For additional choices, we encourage you to explore our trading broker reviews.

HDFC Securities Logo

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HDFC Securities stands as a prominent full-service broker in India, distinguished by its extensive portfolio of products and services. Notably, it operates as a subsidiary of HDFC Bank, a prominent player in India's private banking sector.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.


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