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India’s HDFC SKY cuts margin rates, cuts ETF brokerage fees to zero

Pabio October 28, 2024

HDFC SKY has implemented a 20% reduction in the interest rate for its margin trading (MTF) platform, reducing it from 15% to 12% per annum.

In a further bid to support investors, HDFC SKY is now offering zero brokerage fees on transactions involving exchange-traded funds (ETFs).

HDFC SKY is also committed to providing market participants with research-based insights from a team of in-house analysts specializing in fundamental and technical assessments.

The platform has a comprehensive suite of analytical tools, including technical charts, historical data, price alerts and stop-loss recommendations, to further guide clients in their trading journeys. Investors can explore a range of ETFs, including index ETFs, gold ETFs and specialist options focused on sectors such as banking, infrastructure, liquid assets and international markets.

The recent reduction in interest rates on MTFs, alongside the introduction of zero brokerage on ETFs, underlines HDFC Securities’ continued commitment to providing value-oriented financial services tailored to the needs of its customers.

“Investors can now reduce their borrowing costs with our MTF”

Dhiraj Relli, Managing Director and CEO, HDFC Securities, said, “At HDFC SKY, our mission is to put the financial interests of our clients first. Reducing our MTF interest rate and eliminating brokerage fees on ETF transactions reinforces our commitment to providing cost-effective financial solutions. We are confident that these changes will allow our clients to refine their trading strategies and maximize their investment results.

“Investors can now reduce their borrowing costs through our MTF, allowing them to increase their investment potential without the financial burden of high interest payments. Additionally, the removal of brokerage fees on ETF investments facilitates portfolio diversification, thereby motivating broader engagement in the capital markets.

Sandiip Bhardwaj, Head of Operations and Digital at HDFC Securities, commented: “Our margin trading system offers investors amplified buying power, paving the way for enhanced returns, greater diversification and increased flexibility in matters of negotiation and payments. Additionally, ETFs offer a sophisticated and flexible asset class; they are subject to regular rebalancing and can be traded transparently, an option that mutual funds do not offer.

“With HDFC SKY, investors have access to a comprehensive range of 219 listed ETFs, opening doors to increased diversification, reduced transaction costs, improved liquidity, transparent pricing, increased tax efficiency and exposure to a variety of sectors and asset classes. »

HDFC SKY launched in September 2023

Earlier this year, HDFC announced the successful onboarding of clients on HDFC Sky, a multi-asset brokerage application launched in September 2023. In January 2024 alone, HDFC SKY onboarded over 100,000 new clients to reach a total of more than 300,000 users at the beginning of February.

HDFC SKY is a comprehensive platform for various investment options such as currencies, stocks, mutual funds and global investment. It offers a range of services including investment and stock recommendations, proprietary research and margin trading service. The app is designed to help investors and traders of all levels effectively engage in the financial markets to achieve their financial goals.

It provides access to a wide range of investment and trading options, covering Indian stocks, ETFs, mutual funds, futures, options, forex, commodities, IPOs and global stocks, all through a single fintech platform. The app’s users are diverse and span tier 1, tier 2 and tier 3 cities.