IIFL Securities Review

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

Introducing IIFL Securities, a prominent player in India’s financial landscape. Established in 1995, IIFL Securities is a part of the globally recognized IIFL Group, known for its comprehensive financial services. Catering to a diverse clientele, IIFL Securities offers an extensive array of financial products and services, including online trading, research-based advisory services, and NRI trading. In this article, we’ll delve into an impartial review of IIFL Securities, examining key aspects such as regulation, platforms, education, market offerings, account options, funding methods, and the pros and cons associated with trading through this platform.

Pros & Cons

  • Dedicated customer support team available 24/7
  • Free online account opening and no minimum deposit required
  • Multiple platforms and tools for online trading and investment
  • Various educational resources and platforms to learn finance and investing
  • Access to various markets and instruments for trading and investment
  • Margin funding given without notice causing confusion and interest charges
  • Offline account opening procedure is time-consuming and cumbersome
  • Faced regulatory actions in the past for violating SEBI circulars
  • High brokerage fee compared to discount brokers
  • No MetaTrader 4 or MetaTrader 5 platforms offered

Summary

IIFL Securities Review

IIFL Securities Review

IIFL Securities, established in 1995 and headquartered in Mumbai, stands as a prominent full-service stockbroker in India, serving a substantial clientele with an array of financial products and services. Regulated by SEBI, NSE, BSE, MCX, and NCDEX, it boasts over 25 lakh active customers and manages assets exceeding 1 lakh crore. While offering diverse investment options, including stocks, derivatives, commodities, insurance, FDs, loans, IPOs, and bonds, it extends its services globally, catering to NRI trading and investment. A dedicated customer support team ensures round-the-clock assistance through various channels.

IIFL Securities provides an extensive range of online trading and investment tools and platforms, such as IIFL Markets App, Trader Terminal, TT Iris, OneUp, GemRush, Nova, and ETFy. Moreover, it actively promotes financial education through resources like Nova, Webinars, Articles, and Videos, among others. However, traders and investors should proceed with caution. IIFL Securities operates as a market maker, potentially introducing conflicts of interest with its clients. Additionally, it’s important to note that some widely used trading platforms like MetaTrader 4 or MetaTrader 5 are not offered. Furthermore, the broker has faced regulatory actions in the past for violations of SEBI circulars.

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Regulation

IIFL Securities, a prominent brokerage firm in India, operates under the regulatory oversight of the Securities and Exchange Board of India (SEBI). SEBI, as the market regulator, has the mandate to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.

In recent years, IIFL Securities has faced significant regulatory scrutiny from SEBI. The regulator conducted multiple inspections of IIFL Securities’ operations and accounts between 2011 and 2017, uncovering several alleged violations of its rules. These violations included the misuse and mixing of client funds with its own, utilizing credit balances in one client’s account for the needs of others, and failure to appropriately nomenclate clients’ bank accounts.

In response to these violations, SEBI imposed a two-year ban on IIFL Securities from onboarding any new clients, starting from June 2023. This decision was made despite the company’s corrective actions and its argument that the rules were applied retrospectively.

SEBI’s actions underscore its commitment to maintaining the integrity of India’s securities market and its readiness to take necessary regulatory action in light of serious violations. The case of IIFL Securities serves as a reminder to all market participants of the importance of strict adherence to regulatory guidelines and the potential consequences of non-compliance. Check out our list of regulated brokers to explore alternative regulated brokers.

Platforms & Tools

IIFL Securities offers a diverse range of platforms and tools to facilitate online trading and investment for its clients, including:

  • Trader Terminal: An installable trading program designed for active traders who require advanced charting and stock analysis tools.
    Trader Terminal

    Trader Terminal

  • TT Web and TT Desktop: These platforms allow for trading in Equity, Commodity, and Currency.
    TT Web and TT Desktop

    TT Web and TT Desktop

  • IIFL Markets App: A user-friendly mobile application that allows for easy trading, especially for new investors. It also allows users to apply for IPOs online.
    IIFL Markets App
  • OneUp: A platform that allows users to bid online for IPOs, SVGs, NCDs, and track their applications
  • GemRush: Provides real-time stock recommendations by a team of experts with combined research experience of over 50 years.
  • Nova: A one-stop solution for all financial enthusiasts and those looking to enter the field of finance.
  • ETFy: A platform created for users interested in finance, particularly ETFs.
  • Advanced Charting Tools: Available on the IIFL Markets Mobile App, these tools allow for in-depth analysis of stocks.
  • Strategy Builder: This tool, available on the IIFL Securities’ trading and Demat accounts, helps in building strategies for options and futures trading.
  • Algo Trading: This tool allows for automated trading based on predefined strategies.
  • Advanced Prebuilt Screeners: These tools help in filtering stocks based on various financial metrics.

These platforms and tools provide personalized services, customized research, and portfolio advisory. Accessible through the IIFL Securities website or app, they offer a comprehensive toolkit for effective and efficient trading and investment activities.

Education

IIFL Securities offers a variety of educational resources to help its clients understand the financial markets better and make informed investment decisions. Here’s a detailed list:

  • MoneyVersity: This is a financial education app designed by IIFL to offer unique investor-oriented courses on finance online. The courses are delivered through a combination of hand-picked and drafted video modules.
  • Webinars: IIFL Securities regularly conducts webinars on various topics related to trading and investing. These webinars are designed to enhance the knowledge of their clients.
  • Research Reports: IIFL Securities provides comprehensive research reports on various stocks, sectors, and markets. These reports can help investors understand the market trends and make informed investment decisions.
  • IIFL Foundation’s Education Program: While not directly related to financial education, the IIFL Foundation runs several education programs like Sakhiyon ki Baadi, Maa Baadi centers, Chauras, Rathshaala, and Smart Classrooms. These programs aim to influence the prevalent education system in India by empowering children, youths, and teachers.
  • Financial Literacy: As part of its corporate social responsibility, the IIFL Foundation also focuses on financial literacy programs. These programs aim to educate people about the basics of finance and investment.

These educational resources offered by IIFL Securities not only help its clients to understand the financial markets better but also contribute to the overall financial literacy in the country.

Markets

IIFL Securities offers a wide range of markets and financial instruments for trading and investing. Here’s a detailed list:

  • Equities: IIFL Securities provides a platform for trading in shares or stocks. Equity represents ownership in a company, and these shares are either bought directly from the company through an offer or traded on the stock exchanges.
  • Derivatives: Derivatives are financial instruments that derive their value from an underlying asset, which can be equity, a commodity, a currency, or even an index. IIFL Securities offers a platform for trading in derivatives, which are usually in the form of a contract.
  • Fixed Income Instruments: These are instruments that provide a fixed income to the investor. Examples include bonds, debentures, fixed deposits, Public Provident Fund, and Post Office deposits. IIFL Securities offers a platform for buying and selling these fixed-income instruments.
  • Commodities: Commodities are basic goods that can be interchanged with goods of the same type. IIFL Securities provides a platform for trading in commodities.
  • Global Investing: IIFL Securities also offers a platform for global investing, allowing its clients to invest in leading U.S. companies and diversify their portfolios.

These offerings make IIFL Securities a comprehensive financial services provider, catering to a wide range of investment needs. Whether you’re a beginner or an experienced trader, IIFL Securities provides you with a variety of options to invest in the financial markets.

Accounts

IIFL Securities recognizes the unique requirements of its clients and offers a range of account types tailored to their trading and investment needs:

  • Trading Account: This fundamental account grants clients the ability to trade in a variety of assets, including stocks, derivatives, commodities, currencies, and IPOs on BSE, NSE, and MCX. What’s more, the trading account includes a complimentary lifetime AMC and access to a suite of platforms and tools like IIFL Markets App, Trader Terminal, TT Iris, OneUp, and GemRush.
  • Demat Account: A crucial account for holding clients’ securities in electronic form, mandatory for stock and IPO trading. The Demat account comes with a modest AMC of Rs. 250 per year and offers benefits such as online access, swift dividend credits, and management of corporate actions.
  • Mutual Fund Account: This account facilitates hassle-free online mutual fund investments. Notably, the mutual fund account imposes no AMC or transaction fees. Clients gain access to various schemes, performance reports, and portfolio trackers, accompanied by the dedicated IIFL Mutual Funds App.
  • Global Investing Account: Designed for those with a global investment perspective, this account, available for a one-time fee of Rs. 999, opens doors to US stocks, ETFs, ADRs, and more. It stands out with its low commissions and currency conversion charges.
  • PMS Account: The PMS account offers customized portfolio management services, aligning with each client’s risk profile, investment goals, and preferences. Charges include a management fee and performance fee, varying by the selected strategy. Additionally, clients benefit from a wealth of reports, statements, and timely alerts.

These diversified account offerings underline IIFL Securities’ commitment to addressing the distinct aspirations and strategies of its clients, providing them with a versatile range of tools to achieve their financial goals.

Funding

Funding your account with IIFL Securities is a straightforward process with various convenient methods to choose from, aligning with your preferences:

  • Online Transfer: This stands as the most efficient and expeditious method. Funds can be seamlessly transferred from your linked bank account using IMPS, NEFT, or RTGS. Simply set up IIFL Securities as a beneficiary with the following details: Beneficiary Name: IIFL Securities Limited, Beneficiary Account Number: Your IIFL Client Code, Beneficiary IFSC Code: HDFC0000240, Bank Name: HDFC Bank, Branch Name: Kanjurmarg (West), Mumbai. Alternatively, you can employ the online payment gateway on the IIFL Markets App or the Trader Terminal for instant transfers.
  • Cheque or Demand Draft: An alternative method involves depositing a cheque or demand draft made out to “IIFL Securities Limited” at any HDFC Bank branch. Ensure to include your name, client code, and PAN number on the reverse side of the cheque or demand draft. Additionally, forward a scanned copy of these documents, along with the deposit slip, to customercare@indiainfoline.com.
  • Securities: Clients can utilize their securities as collateral to fund their accounts, providing a margin for trading in the derivatives segment. To initiate this, submit a pledge request form along with the necessary documentation to IIFL Securities. The valuation of these securities will follow IIFL’s scrip categorization and haircut policy.

These funding methods afford you the flexibility to choose the one that best aligns with your convenience, ensuring a smooth and efficient experience. Additionally, you can easily monitor your fund balance and ledger through the IIFL Markets App or the Trader Terminal.

Conclusion

In conclusion, IIFL Securities presents a comprehensive suite of services, encompassing diverse markets, educational resources, and funding options tailored to individual preferences. Clients benefit from a range of account types and efficient funding methods, making their trading and investment journey more accessible. However, it’s worth noting that while IIFL 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.

IIFL Securities Logo

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IIFL Securities is one of the largest full-service stockbrokers in India, offering a wide range of financial products and services to its clients.

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


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