Prostocks Review

Category: Reviews | Author: Trading Brokers | Date: October 8, 2023

Stock trading is a popular activity for many investors in India, but choosing the right broker can be a difficult and daunting task. Prostocks is an online broker that was established in 2016 and is regulated by the Securities and Exchange Board of India (SEBI) as a stockbroker, depository participant, and research analyst. It claims to provide various trading platforms, tools, education, markets, and account types for traders of different levels and preferences. However, not all brokers are the same, and some may have hidden charges, poor customer support, or limited features. Therefore, it is important to conduct a thorough and unbiased review of any broker before deciding to trade with them. In this article, we will review Prostocks and provide our verdict on whether it is a reliable and trustworthy broker to trade with.

Pros & Cons

  • Offers various funding options, including online bank transfer, NEFT/RTGS, and UPI
  • Regulated by the SEBI, which is a reputable and independent authority that oversees the securities market in India
  • Does not have a minimum deposit requirement for any of its account types
  • Offers various trading platforms, tools, education, markets, and account types for traders of different levels and preferences
  • Charges a flat fee of INR 15 per executed online order for most stocks across different segments
  • ProStocks does not offer a 3-in-1 account as they do not provide banking services
  • ProStocks does not offer trading in commodities or IPOs
  • Limited research and analysis

Summary 

Prostocks Review

Prostocks Review

Established in 2016 and regulated by the Securities and Exchange Board of India (SEBI) as a stockbroker, depository participant, and research analyst, Prostocks offers a reliable and diverse platform for traders of all levels. The broker’s commitment to providing low-cost and transparent services ensures a convenient trading experience. With various trading platforms, tools, education, and markets, traders can access and analyze the Indian stock market with ease and efficiency. The Prostocks Desktop Trading Terminal is a fully customizable trading application that allows traders to customize trading analysis windows for faster market information. Prostocks also provides various educational resources, including a user manual/guide, a knowledge base, and a FAQ section. Prostock offers a flat fee of INR 15 per executed online order for most stocks across different segments, including Equity Cash (Intraday and Delivery), Equity Derivatives (Futures and Options), Currency Derivatives (Futures and Options), and Depository Services. Additionally, the broker offers various account types, including a Basic account, a Priority account, and a Platinum account, with different minimum deposits and leverage options. Our assessment highlights Prostocks’ ambition to be a dependable broker for regulated trading in India, but as always, understanding the associated risks is crucial.

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

Regulation

Exploring the background of Prostocks, it emerges as a venture of Sunlight Broking LLP, a company based in Mumbai, India, under the registration number AAD-3729. This company is strictly regulated by the Securities and Exchange Board of India (SEBI) as a stockbroker, depository participant, and research analyst, holding the license number INZ000005231. This affiliation with the SEBI holds significance, as this distinguished regulatory body oversees the securities market in India and protects the interests of investors and other stakeholders.

The vital role of the SEBI in ensuring fair and transparent market practices, promoting financial literacy and awareness, and enforcing legal and ethical standards is evident. The manifold benefits of trading with a SEBI-regulated entity are highlighted: safeguarding client funds through segregation from the broker’s funds, providing a protective cover for client funds up to INR 15 lakhs in cases of broker default, imposing strict compliance and disclosure requirements through regular audits, enforcing codes of conduct and business ethics, and providing a robust mechanism for resolving complaints and disputes.

However, a notable aspect arises as Prostocks also acts as a member of the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), as well as a member of the Central Depository Services Limited (CDSL) and the National Securities Depository Limited (NSDL). These memberships entail additional obligations and responsibilities for Prostocks, as well as additional fees and charges for its clients. Please see a list of regulated brokers for some alternative options.

Platforms & Tools

Prostocks offers various trading platforms, including a website, trading terminal, and mobile app. These platforms allow traders to access and analyze the Indian stock market with ease and efficiency.

Prostocks platforms

Prostocks platforms

The Prostocks Website Trading Platform is a web-based platform that does not require any installation or download. It is compatible with all major browsers and devices, and it provides a simple and intuitive interface for trading. The platform supports various features, such as a market watch, order placement, order modification, order cancellation, trade book, order book, net position, funds view, and reports. The platform also offers real-time streaming quotes, charts, and news for all segments.

The Prostocks Desktop Trading Terminal is a fully customizable trading application that allows traders to customize trading analysis windows for faster market information. The platform supports advanced features, such as multiple market watches, technical analysis tools, charting tools, scanners, alerts, and indicators. The platform also offers high-speed execution, low latency, and direct market access for all segments.

The Prostocks Mobile Trading App is a mobile-based platform that enables traders to trade on the go from their smartphones or tablets. The trading app is available for both Android and iOS devices, and it provides a user-friendly and secure interface for trading. The app supports various features, such as a market watch, order placement, order modification, order cancellation, trade book, order book, net position, funds view, and reports. The app also offers real-time streaming quotes, charts, and news for all segments.

In addition to these platforms, Prostocks also offers a range of tools to help its clients with their trading needs. These tools include:

  • Brokerage Calculator: This tool helps traders calculate the brokerage charges and other taxes for their trades across different segments and plans. It shows the total charges, net profit or loss, break-even point, and return percentage for the trade. The tool supports various plans, such as Basic Plan, Priority Plan, Platinum Plan, NRI Plan, and Corporate Plan.
  • Margin Calculators: These tools help traders calculate the margin requirements for their trades across different segments and plans. It shows the margin amount, exposure limit, leverage ratio, margin benefit percentage, and margin benefit amount for the trade.
  • NRI Brokerage Calculator: This tool helps NRI clients calculate the brokerage charges and other taxes for their trades across different segments and plans. It shows the total charges, net profit or loss, break-even point, and return percentage for the trade.

Education

Prostocks’s commitment to helping traders extends to its comprehensive education segment, an invaluable resource aimed at enhancing clients’ trading knowledge and skills. This educational enclave encompasses an array of topics relevant to stock trading, including:

  • User Manual/Guide: This section provides information on how to trade using the Prostocks state-of-the-art trading platform. It covers topics such as installation, login, market watch, order placement, order book, trade book, net position, funds view, reports, and logout. It also explains the features and functionalities of the platform, such as real-time quotes, charts, news, alerts, and indicators.
  • Knowledge Base: This section provides detailed information about Prostock’s services and products. It covers topics such as account opening, account types, account maintenance, brokerage plans, margin requirements, funding options, trading segments, trading platforms, depository services, NRI services, corporate services, and customer support. It also answers the common queries and doubts that clients may have about the Prostocks offerings.
  • FAQ: This section provides answers to the frequently asked questions about Prostock services and products. It covers topics such as the account opening process, account activation process, account modification process, account closure process, brokerage charges, taxes and fees, margin policies, funding policies, withdrawal policies, trading segments and products, trading platforms and tools, depository services and charges, NRI services and charges, corporate services and charges, customer support, and grievance redressal.

Prostocks’s educational thrust doesn’t end here. Complementing web-based learning, the platform also provides opportunities for enhanced learning through research reports and newsletters. These resources are curated by experts and professionals who have in-depth knowledge and experience in the Indian stock market. Among the topics covered are:

  • Market Outlook: This resource provides a daily analysis of the market trends and movements. It covers the performance of various indices, sectors, stocks, commodities, and currencies. It also provides insights into the factors influencing the market sentiment and direction.
  • Stock Recommendations: This resource provides a daily list of stocks that have potential for growth or decline. It covers the technical analysis of the stocks, their entry and exit points, target prices, stop-loss levels, risk-reward ratios, and expected returns.
  • Sector Reports: This resource provides a periodic analysis of various sectors in the Indian economy. It covers the performance of the sectors, their growth drivers and challenges, their opportunities and threats, and their outlook and prospects.
  • Company Reports: This resource provides a periodic analysis of various companies listed in the Indian stock market. It covers the financial performance of the companies, their business models and strategies, their strengths and weaknesses, their valuations, and ratings.

In essence, Prostocks’s education segment and supplementary learning resources pave the way for traders to not only understand the intricacies of stock trading but also to equip themselves with the skills, knowledge, and confidence requisite for navigating the dynamic landscape of the Indian stock market.

Markets

Prostocks allows customers to trade in stocks listed in the Indian Stock Market, including segments such as Equity Cash (Intraday and Delivery), Equity Derivatives (Futures and Options), Currency Derivatives (Futures and Options), and Depository Services. These segments are available in the form of contracts for difference (CFDs), allowing traders to speculate on the price movements of underlying assets without the need for direct ownership.

In the Equity Cash segment, Prostocks provides access to over 3000 stocks, encompassing major, mid-cap, and small-cap options. With a flat fee of INR 15 per executed online order, traders can engage in stocks like Reliance, HDFC Bank, TCS, Infosys, and ITC, capitalizing on the opportunities in the Indian equity market.

The Equity Derivatives segment widens the scope with over 200 futures contracts and over 1000 options contracts, enabling traders to hedge their positions or leverage their returns. From index futures and options like Nifty 50, Bank Nifty, and Nifty IT to stock futures and options like SBI, Maruti Suzuki, and Tata Motors, Prostocks caters to diverse trading strategies.

For those interested in the Currency Derivatives segment, Prostocks offers more than 10 currency futures contracts and more than 10 currency options contracts. This includes pairs of the Indian rupee with major currencies like the US dollar, euro, pound sterling, and Japanese yen.

In the Depository Services segment, Prostocks acts as a depository participant with CDSL and NSDL, offering demat account opening and maintenance services. This includes features like dematerialization, rematerialization, pledge creation and closure, inter-depository transfer, corporate action processing, and nomination facility.

By providing CFDs across these segments, Prostocks empowers traders with flexibility and diversity, enabling them to seize trading prospects while navigating asset price fluctuations without direct ownership. This comprehensive selection aligns with Prostocks’s commitment to delivering a reliable and low-cost trading platform.

Accounts

ProStocks offers different types of accounts to cater to the needs of different types of investors. Here are the different types of accounts offered by ProStocks:

  • Individual Account: ProStocks offers individual accounts for both resident and non-resident individuals, including NRI, FPI, Person of Indian Origin (PIO), etc.
  • Non-Individual Account: ProStocks offers non-individual accounts for entities such as HUF, Company, LLP, Partnership Firm, Registered Trust, FPI, FII, OCB, etc.
  • Demat Account: ProStocks offers a demat account with no opening charges and no annual maintenance charges (AMC) for individuals.
  • NRI Account: ProStocks offers trading and demat accounts for NRIs with the ability to trade in equity futures and options.
  • 2-in-1 Account: ProStocks offers a 2-in-1 account, which is a combination of a trading account and a demat account.

ProStocks charges Rs. 300 as an account opening fee, which is currently waived as a promotional offer. The trading and demat accounts have zero AMC. However, there are other charges such as stamp charges, which are payable upfront at actuals. ProStocks also offers a brokerage calculator to calculate the total trading cost and charges before placing a trading order.

Funding

Prostocks offers various funding options, including online bank transfer, NEFT/RTGS, and UPI. These options allow traders to fund their trading accounts and withdraw their profits with ease and convenience.

  • Online Bank Transfer: This option enables traders to transfer funds from their bank accounts to their Prostocks trading accounts using the Prostocks website. The minimum deposit and withdrawal amounts are INR 1000, with a maximum of INR 10,00,000 per transaction. No fees are charged for online bank transfers, and the processing time is instant.
  • NEFT/RTGS: This option allows traders to transfer funds from their bank accounts to their Prostocks trading accounts using the National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) systems. The minimum deposit and withdrawal amounts are INR 1000, with a maximum of INR 10,00,000 per transaction. No fees are charged for NEFT/RTGS transfers, and the processing time is within one working day.
  • UPI: This option enables traders to transfer funds from their bank accounts to their Prostocks trading accounts using the Unified Payments Interface (UPI) system. The minimum deposit amount is INR 500, with a maximum of INR 1,00,000 per transaction. No fees are charged for UPI deposits, and the processing time is instant. However, UPI cannot be used for withdrawals.

To initiate transactions, log in to your Prostocks account and visit the “Funds” section. Here, select your preferred payment option and follow the on-screen instructions. Processing times may vary depending on the option and bank involved.

Conclusion

In conclusion, Prostocks is a reliable and low-cost online broker that offers various trading platforms, tools, education, markets, and account types for traders of different levels and preferences. The broker is regulated by the SEBI and is a member of the NSE, BSE, CDSL, and NSDL. The broker charges a flat fee of INR 15 per executed online order for most stocks across different segments. The broker also offers various funding options, including online bank transfer, NEFT/RTGS, and UPI. However, it is important to note that Prostocks is not the only option for trading in the Indian stock market. 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.

Prostocks Logo

INR 1000

Prostocks is a relatively low-cost online broker that offers various trading platforms, tools, education, markets, and account types for traders of different levels and preferences. The broker is regulated by the SEBI and is a member of the NSE, BSE, CDSL, and NSDL. The broker charges a flat fee of INR 15 per executed online order for most stocks across different segments.

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


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