Sharekhan Review

Company Background & Regulation

Established in 2000, Sharekhan is a distinguished name in the Indian brokerage landscape. It was founded during a time when the Indian financial markets were transitioning to a more modern and technologically driven phase. The inception of Sharekhan was a strategic move to capitalise on the burgeoning retail investor base in India. Over the years, it has cemented itself as one of the leading full-service brokers in the country, offering a comprehensive suite of services that cater to both novice investors and seasoned traders.

Sharekhan is owned by BNP Paribas, one of the world’s largest banking groups, which acquired a controlling stake in the firm in 2016. This ownership not only provides the broker with a strong financial backbone but also enhances its credibility and trustworthiness in the eyes of clients. Being part of a global financial powerhouse allows Sharekhan to leverage international expertise and resources to provide top-notch services to its clients.

In terms of regulatory oversight, Sharekhan is regulated by the Securities and Exchange Board of India (SEBI), ensuring that it operates within a stringent legal framework designed to protect investors. Compliance with SEBI regulations is crucial, as it mandates transparency and accountability in all transactions and operations. Unfortunately, specific licence numbers are not publicly disclosed by the broker, but adherence to SEBI guidelines is a hallmark of its operations.

Client fund protection is a priority for Sharekhan. While India does not have an investor compensation scheme akin to the UK's Financial Services Compensation Scheme (FSCS), Sharekhan takes several measures to ensure the safety of client funds. These include segregating client funds from the company's operational accounts and maintaining rigorous internal controls. This approach provides a layer of security that is essential for building and maintaining investor trust.

Trading Fees & Spreads

Sharekhan operates on a commission-based model, typical of full-service brokers. Unlike discount brokers that rely on lower fees to attract cost-sensitive clients, Sharekhan offers a value proposition that includes comprehensive research, advisory services, and access to a wide range of financial instruments. The brokerage charges are generally higher compared to discount brokers, which is a trade-off for the enhanced services provided.

The broker offers a variety of asset classes including stocks, indices, and commodities, with spreads starting at 0 pips for certain instruments. However, it is important to note that these spreads can vary based on market conditions and the specific asset being traded. For instance, equity trading typically involves a brokerage fee of 0.50% of the transaction value, while commodity trading might involve different fee structures depending on the commodity.

In addition to brokerage fees, Sharekhan also imposes charges for overnight positions, commonly known as swap rates. These are applicable if a trader holds a position overnight, and the rates can vary based on the instrument. Unfortunately, precise figures for swap rates are not readily available, making it necessary for traders to consult directly with the broker for the most accurate information.

Regarding other fees, Sharekhan does not charge any deposit fees, but withdrawal fees may apply depending on the method chosen. While there is no minimum deposit requirement, the broker charges an inactivity fee if an account remains dormant for a certain period. Compared to competitors, Sharekhan's fee structure is on the higher side, but it is justified by the extensive research and support provided to clients. The broker's fees can be a deterrent for cost-conscious traders, but for those who value comprehensive services and support, the costs are often seen as a worthwhile investment.

Trading Platforms & Tools

Proprietary Web Platform

Sharekhan offers a proprietary web trading platform designed to cater to both novice and experienced traders. Accessible via any modern web browser, this platform provides a robust set of features that facilitate seamless trading across various asset classes, including stocks, indices, and commodities. The web platform is user-friendly, with an intuitive interface that allows for easy navigation and order placement. Enhanced by real-time streaming quotes, it ensures that traders can make informed decisions without delay.

The web platform supports various order types, including market, limit, stop-loss, and bracket orders, allowing traders to implement diverse trading strategies. Alerts can be customised to notify users about price movements, order executions, or significant market events, ensuring that traders remain updated on market dynamics. Although the platform lacks some of the advanced features seen in more modern offerings, it is functional and reliable for everyday trading activities.

Proprietary Desktop Platform

Sharekhan's desktop platform, TradeTiger, offers a more sophisticated trading environment with advanced charting capabilities. TradeTiger provides an array of technical indicators and drawing tools that enable in-depth market analysis. Traders benefit from multiple chart types, such as candlestick, bar, and line charts, which can be customised for different time frames. This makes it particularly appealing to traders who rely on technical analysis to make informed trading decisions.

TradeTiger offers advanced order execution capabilities, including bracket and cover orders, which are essential for managing risk and leveraging trading opportunities. The platform supports integration with Excel, allowing traders to export data for further analysis. While the platform is feature-rich, its interface can appear somewhat outdated compared to more modern solutions, which may impact the user experience for tech-savvy traders.

Proprietary Mobile Platform

The Sharekhan mobile app, available for both iOS and Android devices, provides traders with the flexibility to manage their portfolios on the go. The app offers a streamlined interface with essential trading functionalities, including real-time quotes, charting tools, and the ability to place various order types. Users can set up personalised watchlists to monitor their preferred stocks and indices, ensuring they remain connected to the markets at all times.

Despite offering a range of features, the mobile platform may not be as comprehensive as the desktop version, particularly in terms of charting tools and customisation options. Nevertheless, it remains a valuable tool for traders who require access to their accounts while away from their desktops. Alerts and notifications can be customised to keep users informed about market movements, ensuring they never miss a trading opportunity.

API/Algorithmic Trading and Third-Party Integrations

Currently, Sharekhan does not offer direct support for API or algorithmic trading, which may be a limitation for traders interested in developing and deploying automated trading strategies. Additionally, the platform does not integrate with third-party trading applications or tools, which could be a drawback for those seeking a more flexible and customisable trading environment.

While the absence of API and third-party integration options may be a disadvantage for technologically advanced traders, Sharekhan's proprietary tools do provide sufficient functionality for most retail traders. The broker's focus on providing a comprehensive trading experience through its own platforms reflects its commitment to maintaining a controlled and secure trading environment.

Account Types & Minimum Deposit

Account Tiers

Sharekhan offers a standard trading account that provides access to its full range of markets and trading platforms. The account features include access to research and advisory services, which are particularly beneficial for traders seeking expert guidance. Sharekhan does not offer multiple account tiers, which simplifies the account selection process but limits customisation options for different trading needs. The standard account is designed to cater to a broad spectrum of investors, from beginners to experienced traders.

Sharekhan also offers a demo account, which allows prospective clients to explore the trading platforms and test their strategies with virtual funds. This is an excellent feature for new traders who wish to familiarise themselves with the broker's offerings without risking real capital. The demo account replicates live market conditions, providing a realistic trading experience that can help users build confidence before transitioning to a live account.

Minimum Deposit and Islamic Accounts

One of Sharekhan's appealing features is the absence of a minimum deposit requirement, making it accessible to traders of all financial backgrounds. This is particularly advantageous for new traders or those with limited capital, as it allows them to start trading without the pressure of meeting a high initial deposit threshold. Sharekhan does not currently offer Islamic accounts, which could be a consideration for Muslim traders seeking Sharia-compliant trading solutions.

The broker's focus on making trading accessible to a wide audience is evident in its straightforward account offerings and absence of a minimum deposit. This approach ensures that a diverse range of traders can engage with Sharekhan's services without financial constraints.

Supported Deposit Methods

Sharekhan supports a variety of deposit methods, ensuring that clients can fund their accounts conveniently. These methods include bank transfers, which are the most common option for transferring funds into trading accounts. While Sharekhan does not offer an extensive range of funding options such as credit/debit cards or e-wallets, the available methods are generally sufficient for most traders operating within India.

The simplicity of the deposit process, combined with the absence of a minimum deposit requirement, underscores Sharekhan’s commitment to providing an accessible and user-friendly trading environment for its clients. This approach aligns with the broker's goal of attracting a broad spectrum of traders by eliminating financial barriers to entry.

Markets & Instruments

Sharekhan offers a diverse range of markets and instruments, catering primarily to the needs of Indian traders. The broker provides access to equities, derivatives, commodities, and mutual funds. In the equities market, Sharekhan offers trading in a wide array of stocks listed on major Indian exchanges such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). With thousands of stocks available, traders have ample selection to diversify their portfolios. Additionally, Sharekhan facilitates trading in derivatives, including futures and options, allowing traders to hedge or speculate on market movements.

The commodities market is another area where Sharekhan provides substantial coverage. Clients can trade in commodities such as gold, silver, and crude oil, among others. This diversification into physical commodities allows traders to take advantage of fluctuating prices in these markets. Furthermore, Sharekhan offers a comprehensive suite of mutual funds, enabling investors to participate in pooled investment vehicles that are managed by professional fund managers. This broad spectrum of instruments ensures that investors with different risk appetites and investment goals can find suitable options.

One of the unique aspects of Sharekhan’s offerings is its strong focus on research and fundamental analysis. The broker provides extensive market reports, stock recommendations, and insights into market trends. This is particularly beneficial for traders who prefer to make informed decisions based on detailed analysis rather than purely technical trading. Although Sharekhan does not offer forex trading or cryptocurrencies, its robust selection in equities, derivatives, and commodities makes it a comprehensive choice for domestic traders in India.

Safety & Security

Sharekhan prioritises the safety and security of its clients’ funds and personal information. The broker adheres to stringent regulatory standards, being regulated by the Securities and Exchange Board of India (SEBI). This ensures that Sharekhan complies with all necessary financial regulations and maintains transparency in its operations. A critical aspect of client fund safety is the broker's fund segregation policy. Sharekhan ensures that client funds are kept separate from the company's operational funds, minimising the risk of financial misuse and providing an additional layer of security in the event of insolvency.

Moreover, Sharekhan implements advanced cybersecurity measures to protect clients' data and transactions. The broker employs encryption technologies, firewalls, and secure login systems to safeguard against unauthorised access and cyber threats. While Sharekhan does not offer negative balance protection, its adherence to regulatory standards and its robust security infrastructure provide a reassuring trading environment for its clients. The broker's long-standing presence in the market since its founding in 2000, coupled with ownership by the reputable BNP Paribas, further enhances its credibility and trustworthiness.

Who Is Sharekhan Best For?

Sharekhan is best suited for traders and investors who are based in India and are looking for a comprehensive brokerage service with a strong emphasis on research and advisory. Given its extensive branch network across India, Sharekhan is ideal for those who prefer face-to-face interactions and personalised service. The broker’s full-service model, which includes detailed market analysis and stock recommendations, is particularly beneficial for novice investors who seek guidance in building and managing their portfolios.

Experienced traders who value in-depth market research and fundamental analysis will also find Sharekhan’s offerings advantageous. The broker provides a wealth of information and insights, which can be instrumental for those who rely on detailed reports for making informed trading decisions. However, traders seeking the lowest brokerage fees might find Sharekhan’s charges higher than those of discount brokers, making it less suitable for cost-sensitive traders.

Despite its strengths, Sharekhan is not the best choice for traders looking for international market access or those interested in forex and cryptocurrency trading, as it focuses predominantly on the Indian market. Additionally, traders who prioritise cutting-edge trading platforms may find Sharekhan’s proprietary platforms in need of modernisation. Nonetheless, for those who prioritise a robust domestic trading environment with comprehensive research support, Sharekhan remains a strong contender.

• Ideal for Indian traders looking for a full-service brokerage with advisory support.
• Suitable for investors who prefer in-depth research and fundamental analysis.
• Best for traders who value face-to-face interaction and personal advisory due to its branch network.
• Not ideal for those seeking the lowest brokerage fees compared to discount brokers.
• Less suitable for traders interested in forex, cryptocurrencies, or international markets.
• May not meet the needs of traders looking for the most modern trading platforms.