Sharekhan has launched a separate entity called Espresso for discount brokerage services. This Espresso review will cover all important services offered by them in detail. Sharekhan is one of the largest brokers in India, was founded in 2000 and a subsidiary of BNP Paribas since November 2016.
Sharekhan offers a wide range of savings & investment solutions including equities, futures, and options. Currency trading, portfolio management, research, mutual funds and investor education. As per NSE Latest data Sharekhan have more than 6 lacks active client list, to be precise 6,18,867.
Sharekhan today has 20 lakh overall customers, 153 branches and more than 2,400 business partners spread across over 541 locations throughout the country, making it one of the largest brokers in India. On average, Sharekhan executes more than 400,000 trades daily.
You can read Sharekhan review here.
To be honest this was very much expected from Sharekhan as a full-time broker, the broking industry is getting competitive day by day and with rising competition from rival discount brokers such as Zerodha, Upstox, 5Paisa, Fyers etc.
The fulltime brokers are facing tough days, for example recently ICICIdirect have been replaced from 2nd largest stock broker to third by Upstox. Similarly 5Paisa have about 7,57,438 active clients which is greater than Sharekhan, but this does not happened overnight.
Having said that, through launch of Espresso, Sharekhan have made their intention very clear and they will not going to leave this race anytime soon. Which is great by the way for retail traders and investors, coming back to the Espresso review let us discuss in detail what kind of services they have to offer and how it is different from other top stock brokers in India.
Before we know about expresso you need to understand that this company although a subsidiary of Sharekhan is launched in tough times, with ongoing pandemic (Coronavirus) everything has been shifted to work for home (WFH) environment. Espresso got launched on September 22, 2020, R. Kalyanaraman is the CEO of espresso and have worked tirelessly to build a unique platform for traders and investors.
As per the CEO R. Kalyanaraman and I am quoting “Espresso isn’t just an interface. We’re in it for the long run. We’re in it to help you to succeed. That’s why we got our platforms Beta-tested by trading and investing enthusiasts. We didn’t stop there, though! With our Pay Only When You Profit pricing model, our endeavor is to ensure you keep at it and get better and succeed. We are here to help you achieve that, backed by our Sharekhan experience.”
Espresso offers trade execution facilities for equity cash and derivatives segments on BSE and NSE, commodities trading facilities on MCX and NCDEX as well as in currency segment.
They have partnered with both CDSL and NSDL for depository services. The basic idea of espresso is to help clients succeed by ensuring that they have more money in their hands by not paying brokerage on loss-making intra-day trades, or simply put ”pay-when-you-profit-pricing model”.
Espresso Review On Margin:
Margin in stock market refers to buying/selling of securities (shares) by borrowing money from your broker. This is very much similar to taking loan for short period of time. This helps traders in buying or selling more with less money in intraday trading.
If you are an active trader or a beginner who knows what exactly going on with recent changes brought by SEBI, Higher Margin won’t be a factor anymore, now the competition among the broking industry is in terms of better trading platforms and lower brokerages plans.
The upfront margin collection in cash segment has been kept at flat 20%, which means now the leverage for all stocks would be 5x also the penalty provision for short-collection/ non-collection of upfront margin in cash segment has been postponed till 1,dec, 2020.
This means regardless of any broker you won’t get more than 5X times margin in equity cash segment and in FNO you need to have the full margin span+exposure to take any position.
However, this will get implemented in a phased manner from Dec,1,2020 till Aug 2021, so no need to worry as of now. You can read more about it here.
Therefore, the margin or leverages offered will be equal irrespective of the stock brokers in India going forward.
In simple term margin will be:
Maximum of 20 times until Feb 2021
Maximum of 10x from Mar to May 2021
Maximum of 7x from Jun to Aug 2021
Maximum of 5x from Sep 2021 onwards
Above are rough estimates only, it may be more or less similar. check the complete VAR+ELM list here. With 10x leverage, if you have 10k in your account your purchasing power becomes 100k, with 5x leverage it comes down to 50k, so you will have to adjust accordingly.
Margins will increase for Option writing as well, margin requirements will be as below:
- 25%(4X) of the SPAN + Exposure margins until Feb 2021
- 50%(2X) of the SPAN + Exposure margins until from Mar to May 2021
- 75%(1.33X) of the SPAN + Exposure margins until Jun to Aug 2021
- Full SPAN + Exposure margins from Sep 2021
From 1st Dec 2020, intraday FnO positions needs a margin requirement of 25% of 1L, which is 25,000 for intraday FnO position. This requirement goes-up to 100% of FULL span + exposure margin or full 1L from Sep 2021.
Keep in mind this also applies to Currency and commodity derivatives as well. I am still showing you the margin comparison for past reference:
Espresso Exchange Margin Funding (EMF):
Although the margin or leverage are equal for intraday trading across stockbrokers, Espresso has brought EMF, exchange margin funding as a new product to give higher leverages even for delivery based trades.
It is a facility offered by Espresso which allows the Client to take positions by providing prescribed margin and the balance amount is funded by Espresso to meet the pay-in obligation of the Client. Client can later take delivery either by making the necessary funds settlement or square up such positions.
Advantages of EMF with Espresso
As an example suppose you want to buy SBI Bank 500 shares trading at Rs.260, Incase you take delivery without using the EMF by espresso you need to pay the full margin i.e. Rs.1,30,000. Whereas if you opt for EMF by espresso you only need to pay Rs.45,500 almost 3x leverage.
As, we have seen above the margin won’t be a factor anymore, let us now talk about most promising and unique service offered by espresso i.e. brokerage charges.
Espresso Review On Brokerages:
Brokerage is something which as a trader and investor one should always be looking at before choosing the broker, at Espresso you don’t need to pay brokerage for each trade. You Pay only when you make a proﬁt. Let us know how?
Pay Only When You Profit with Espresso:
First of all the brokerage charges are kept at decent Flat Rs 20 per order, For Intraday trades across all segments (Equity, F&O, Commodity and Currency). There are no brokerage charges for delivery based trades at espresso. Moreover, No brokerage on loss-making trades, Let’s break it down with an example:
Suppose you make 20 trades a day every trading day of a year
20 trades a day x 250 trading days = 5,000 trades
5,000 trades x Rs 20 per transaction = Rs 1,00,000
Assuming 40% are loss-making trades, you don’t pay brokerage worth Rs 20,000!
Now let us how espresso brokerage structure works with another example. Suppose you bought TATA Motors 1000 shares @Rs.200 and sold the same @Rs.196, which means you made a loss on the trade. Therefore espresso will only going to charge you one side of the order either buy/sell as it was a loss making trade.
Isn’t great that you don’t pay a penny on your loss making trades by using espresso stock broker. Another thing you must know in equity cash segment the brokerage charges are kept at 0.01% or Rs 20 for every executed order (whichever is lower).
What they mean is, suppose you bought stock xyz priced at Rs.100, quantity 100 on intraday basis,
so the total turnover would be bought 100, sold 100(100*200)= 20,000 on this amount they will charge either whichever amount is lower as 0.01% of 20000, is Rs.2 so they will charge that instead of flat Rs.20.
For all other segments such as derivatives (FNO) IN Equity, Commodity and Currency the brokerage charges at espresso are kept at Rs 20 for every executed order, also Zero brokerage on square-off orders in case of loss.
Espresso Review On Trading and Demat Account Charges:
To open a trading/demat account at espresso there are no charges Rs.0 if you open an account through this link. Whereas the Annual Maintenance charge (AMC) is Rs 400/year + GST charged quarterly.
Moreover, Get additional benefits with Espresso when you open an account through this link. Such as 1 year MoneyFlix subscription free and also a 30% discount on Espresso trade booster program.
MoneyFlix is the world’s first financial movies platform! Whereas trade booster program of espresso is provided by subsidiary company Sharekhan Education.
I think its a win-win deal for you as there are no charges to open the account for a limited period offer*.
Espresso Account Opening Process:
The account opening process is quite simple and can be done in 3 easy steps. To open an account online, you can sign up using your mobile number through this link. You will receive an OTP to your number and you can get started with the process.
You will be required to enter your PAN, bank account details and personal details to continue with the sign-up.
Once you sign up you need to upload certain documents as listed below.
Documents Required To Open An Online Account with Espresso:
In order to open your demat account, you will require the following documents.
- Identity proof: PAN Card
- Address Proof: Driving license/ Voter’s ID/ Aadhaar Card/ Passport/ Rent Agreement (Registered)/ Latest utility bill (which has the name of the account holder)
- Income Proof (not required for Equity and MF): Bank Statement (last 6 months)/ Salary slip (last 3 months)/Latest ITR copy or Form 16
- Signature copy: Your signature on a blank sheet of paper
Please note: In case if the PAN isn’t KYC compliant, you will need to open your account via In Person Verification (IPV). For this, you will need to upload two videos of 10 seconds each; one with your PAN Card in hand and other with the Address Proof document in hand.
Other Charges At Espresso:
The following types of charges are levied on your trades at Espresso:
- Brokerage charges– A flat Rs. 20 or 0.01% (whichever is lower) fee charged by Espresso for all intraday trades (except loss making trades).
- STT– The Securities Transaction Tax is a direct tax levied on every purchase and sale of securities.
- Transaction charges– This is a charge levied by the exchange on every transaction placed.
- Clearing charges– This is a charge levied by the exchange for clearing the trade.
- GST– A Goods & Services rate of 18% is levied on every purchase and sale transaction of securities.
- State stamp duty– This duty is levied on the value of shares transferred and varies as per the individual state.
- SEBI turnover fees– This fee is charged by SEBI on the purchase and sale of all securities.
What are Call-N-Trade Charges at Espresso?
Call and trade charges at espresso is Rs 50 + GST per order placed through Espresso dealing desk. Use 022 67670800 is For Dial-N-Trade.
What are Depository Participant (DP) Charges for Sell Delivery at Espresso?
Rs 13.5 + GST per scrip (irrespective of quantity), on the day, is debited from the trading account when stocks are sold. This is charged by the depository (CDSL) and depository participant (Espresso).
What are Buyback, OFS and NFO Order Charges at Espresso?
- Rs 20 per order + GST will be charged for buyback/takeover/delisting orders placed through the console
- Rs 20 + GST will be charged per order for OFS
Physical Document Charges (includes Contract Note, ledger statements, CP Client Master form)?
- Up to 10 pages – Rs 100
- 11 pages or more – Rs 250
What are Payment Gateway Charges at Espresso?
- Nil charges for fund transfers from Axis Bank, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, Kotak Mahindra Bank
- Other banks – Rs 9
What are Auto squared off charges by Espresso (MIS trade/ MIS plus trade)?
The charges are INR 50/order + GST for auto square off at espresso.
What are Trade Timings at Espresso?
Here are the segment-wise order-placement timings at Espresso:
• Market hours: 9 AM to 4 PM (including pre-opening and post-closing sessions)
• After market hours: Starts between 5:30 and 6 PM and goes on till the next working day at 9 AM
• Market hours: 9:15 AM to 3:30 PM
• Market hours: 10 AM to 11:30/11:45 PM (varies as per season)
• Market hours: 9 AM to 5 PM
Espresso Review On Trading Platform:
The most important factor to consider before opening an account with any broker is trading tools and software’s it has to offers its clients. Espresso have one of the best trading platforms for traders and investors in India, in this section we will discuss all the trading platforms by looking inside them and seeing how they function.
There are 3 trading platform offered by Espresso for all devices:
- Binge (downloadable version) for desktop/laptop
- www.myespresso.com is the web version
- Espresso Discount Broking Mobile App
Let us discuss them one by one:
Espresso Binge Desktop Based Trading Platform:
With Espresso Binge unleash the power of trading using Experience class charts, real-time feeds, multiple market scanners and much more to lend a hand to your trading. It has all the features required to be one of the best trading platform in India.
Advanced market sentiment tracker
Advanced market-watch tools that aid data visualization and decision-making
A watchlist that’s simple and hassle-free
Quick updates that help you stay ahead of the curve
The user interface is so clean and up to the mark, you can easily know which icon will do what, as the moment you will hover to any it will tell you the functionality of it.
Peer tracking beyond highs and lows
If you trade in Futures or Options than this downloadable platform is worth using. You have different tools to help you in trading FNO such as option greeks calculator, option chain, implied volatility tool, black and Scholes calculator in-built.
Get the power of charts with Espresso Binge
Choose and use the best candlestick patterns or other different types of chart such as Renko chart, Bar chart etc.
Placing an order is now quick, easy and FREE
What is most important for a trader or investor is the technical analysis tools and resources in any trading platform. Overall the Binge have all the prerequisite required to best among its key competitor brokers such as Zerodha, Upstox, 5Paisa, Fyers etc.
Espresso Web Based Trading Platform:
www.myespresso.com is a web or say browser based trading platform, which can be opened on any web browser you use. Just like a website but with all the tools and resources needed. Instead of downloading the software you can simply open this in any browser and start your trading and investing.
Let us know more about it.
Espresso web version is a powerful drag and drop tool that can be easily customize and have more than 100+ technical tools studies, resources to do advanced technical analysis.
Dashboard for a comprehensive view of what’s happening in the market at all times with easily refresh rate of stocks, multiple prices, and graphs.
Great Homepage that makes you feel at home
A watchlist that’s simple and hassle-free
Create and see reports that won’t confuse you
Overall the web version of Espresso is quick easy and offers great user interface to its users with all required tools and resources set at one place.
Espresso Mobile Trading Platform:
Espresso also offers its users the mobile app to trade and invest seamlessly online. The mobile version has inbuilt all the major tools, indicator and resources what we have seen in web based platform.
TOP APP FEATURES of Espresso Mobile App:
– Create watchlists of your favorite stocks and F&O and Currency segments
– Multi-Exchange streaming of MarketWatch with more details about scrips and contracts
– Tick-by-tick refresh of stock rates, multiple prices, and graphs
– Latest prices of Sensex and NIFTY
– Heat map of all indices
– In-app EoD Reports
– Stay logged in even after closing the app
– Transfer funds from your bank account to your Espresso account in seconds!
TRADER-SPECIFIC FEATURES of Espresso Mobile app:
– Enhanced live charts (Renko, Line, Candlestick, Bar, Area) with more time frames (ranging from 1 minute to 1 year), tracker ball and advanced chart studies ensure you stay on top of your game
– Fast refresh rates for stocks, multiple prices and graphs
– Fresh Dashboard for a comprehensive view of what’s happening in the market at all times
– In-depth market movers of stocks and Futures and Options
– A variety of order placements in one place – normal order, MIS, MIS+, Bracket Orders (BO)
INVESTOR-SPECIFIC FEATURES of Espresso Mobile App:
– Circumspect financial information at your fingertips!
– Simplified access to your investment portfolio, reports and market movers
– Watchlists, MarketWatch, IPOs
The ratings on play store for espresso mobile app is 3.4, although the reviews are lesser as it is a newly launched company. But it has potential to perform better ratings in future with kind of innovating team Espresso have plus the back of one of the largest and oldest full-time stock broker in India i.e. Sharekhan.
My Opinion On Espresso:
Espresso by Sharekhan might be new in discount broking industry but as we know being a subsidiary of Sharekhan it has support as well as the experience that any new start-up requires. Having said that, Espresso seems to be a perfect choice for anyone who is looking to open an trading/demat account, moreover there are no charges as of now to open an account so nothing to lose at all.
It is a win-win choice for you as an trader or investor. Espresso by Sharekhan has all that is required for being one of the best in broking industry, If I have to rate Espresso after looking at there breakthrough pricing model for brokerages as well as other charges and experiencing there simple yet great user interface for trading platform I would give it 8.5 out of 10.
I am still being harsh as it is a new company, but you may see the ratings may go higher with time in my opinion. So, go ahead and Open your Trading/Demat account with Espresso online, paperless and absolutely free through this link within few minutes.
If you are a beginner in trading and investing, please read this amazing guide on how share market works in India?
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.
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