Discount broking firm Angel One has announced a revision in its brokerage charges for cash and equity delivery transactions, effective from October 1, 2024. The new charges are part of a broader update in the company's fee structure.
New Brokerage Rates
Under the revised structure, brokerage charges will be levied at a flat 20 or 0.1% + GST, whichever is lower per executed order. Additionally, a minimum brokerage of 2 per transaction will be applied. This change marks a shift from the previous policy where no brokerage was charged for cash delivery transactions.
Impact on Revenue and Volumes
The revision in brokerage charges comes in response to changes in transaction charges by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), which have moved to a true-to-label fee structure from October 1. Angel One's management has indicated that this new fee structure could impact the company's revenue by 8%, although the introduction of a 20 per order brokerage could help mitigate this impact. The move is also expected to influence trading volumes, making it crucial to monitor any potential changes.
Market Reaction
The announcement has led to a significant reaction in the market, with shares of Angel One surging up to 7.5% on the day of the announcement. The stock, which had been flat over the last month, saw substantial gains, reflecting investor response to the new fee structure.
Other Revised Charges
In addition to the brokerage charges, Angel One has also revised several other fees. These include increased Securities Transaction Tax (STT) rates, with the STT on the sale of futures in securities rising to 0.02% from 0.0125%, and on the sale of options contracts to 0.1% of the premium value from 0.0625%. Other changes include revised Investor Protection Fund Trust Charges, NCDEX Risk Management Fees, and Exchange Transaction Charges.
Depository Participant (DP) charges have also been updated to 20 plus GST per transaction. Annual Maintenance Charges for Non-Basic Service Demat Accounts will be 60 per quarter from the second year onwards. Furthermore, interest charges on outstanding dues under the Margin Trading Facility (MTF) will be revised to 14.99% per annum, chargeable fortnightly.
