Sharekhan Forex Broker

Sharekhan Forex Broker - Complete Information Guide

1. Broker Overview

Sharekhan, established in 2000, is one of Indias leading full-service brokerage firms, headquartered in Mumbai. As a subsidiary of BNP Paribas, Sharekhan has firmly positioned itself in the competitive landscape of stock broking, catering to a diverse clientele that includes individual investors, traders, high-net-worth individuals (HNIs), and institutional clients. The firm has expanded its reach significantly, boasting over 4,200 branches and franchise partners across 1,010 cities in India and also serving clients in international markets such as Oman and the UAE.

The company's journey began with a focus on retail online broking, and it has since evolved to offer a comprehensive range of financial services, including trading in equities, derivatives, commodities, and currencies, as well as investments in mutual funds and initial public offerings (IPOs). Over the years, Sharekhan has achieved several milestones, including being one of the first brokers to leverage online trading in India. This innovative approach has garnered a robust client base of over 14 lakh active customers.

The business model of Sharekhan primarily revolves around retail forex trading, providing clients with a user-friendly platform for executing trades, along with extensive research and advisory services. The firms commitment to education is evident through its various training programs designed to empower both novice and experienced investors.

2. Regulation and Compliance Information

Sharekhan operates under the regulatory supervision of the Securities and Exchange Board of India (SEBI), which is the principal regulatory authority for the securities market in India. The firm is registered under the SEBI registration number INZ000171337, ensuring compliance with the stringent regulations governing financial markets.

The regulatory framework also mandates the segregation of client funds from the firm's operational funds, thereby enhancing the safety of investments. This segregation is crucial as it protects clients' assets in the event of financial difficulties faced by the broker. Furthermore, Sharekhan adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, ensuring that all clients undergo proper verification processes.

While Sharekhan is not part of any investor compensation scheme, it maintains high standards of operational integrity and transparency. Clients are assured that their funds are managed responsibly, and the firm has a robust framework for handling customer grievances, further reinforcing its reliability.

3. Trading Products and Services

Sharekhan offers a diverse array of trading products, making it a versatile choice for investors. The broker facilitates trading in a wide range of currency pairs, with a primary focus on major currencies like INR/USD, EUR/INR, and GBP/INR. In addition to forex trading, Sharekhan provides access to Contracts for Difference (CFDs) across various asset classes, including indices, commodities, and stocks.

The broker has also introduced unique trading products such as the Pattern Finder, which helps traders identify profitable opportunities by analyzing chart patterns. This tool is particularly beneficial for active traders seeking to capitalize on market movements.

Sharekhan's retail trading services are complemented by its offerings for institutional clients, ensuring a comprehensive suite of services tailored to various investor needs. The firm also provides Portfolio Management Services (PMS), which are managed by qualified professionals, allowing clients to invest without the need for active trading.

4. Trading Platforms and Technology

Sharekhan boasts a sophisticated trading infrastructure, primarily through its proprietary platforms. The Trade Tiger platform is a desktop-based application that offers advanced features for professional traders, including real-time market data, sophisticated charting tools, and various analytical resources. This platform is designed to cater to high-frequency traders, providing them with the tools necessary for effective market analysis and trade execution.

In addition to Trade Tiger, Sharekhan offers a web-based trading platform that is user-friendly and accessible from any device with an internet connection. This platform allows for seamless trading across different market segments, including equities, commodities, and currencies.

For mobile trading, Sharekhan provides both an Android and iOS application, ensuring that users can trade on the go. These mobile applications are equipped with features such as live market updates, portfolio tracking, and the ability to execute trades directly from charts.

Sharekhan does not currently support MetaTrader 4 or 5, which are popular among forex traders globally. However, the firm offers a Dial-n-Trade feature, allowing clients to place orders via phone, enhancing accessibility for those who may not have reliable internet access.

5. Account Types and Trading Conditions

Sharekhan offers a variety of account types to meet the diverse needs of its clients. The primary accounts include:

• First Step Account: Designed for beginners, this account type provides basic trading functionalities.
• Classic Account: Tailored for investors looking for a more comprehensive trading experience.
• Trade Tiger Account: Aimed at active traders who require advanced trading tools and analytics.
• Advisory Account: Specifically for high-net-worth individuals seeking personalized investment strategies.

The trading conditions vary across these accounts, with a minimum deposit requirement of INR 1. Sharekhan charges a brokerage fee of 0.30% for equity delivery trades and 0.02% for intraday trading. Additionally, there is a minimum brokerage fee of INR 16 applicable to trades.

Leverage ratios are competitive, with up to 5x for intraday trading and 1x for delivery trades. The firm does not currently offer a demo account for practice trading, which may be a limitation for some users.

6. Fund Management

Sharekhan supports various funding methods, primarily through bank transfers. This includes options such as NEFT, RTGS, and UPI for seamless transactions. The minimum deposit requirement is nominal, with no initial deposit needed to open an account.

Deposits are processed quickly, typically within 2-3 business days, while withdrawals are also facilitated through bank transfers, ensuring a straightforward process for clients. Sharekhan does not impose any fees for deposits, although withdrawal fees may vary based on the bank used.

The firms policy on fund management emphasizes transparency, with clients able to track their transactions and balances through the trading platform. However, the lack of alternative deposit methods, such as credit cards or e-wallets, may be seen as a drawback.

7. Customer Support and Educational Resources

Sharekhan is committed to providing exceptional customer service, with support channels including telephone, email, and live chat. The customer support team is available 24/7, ensuring that clients can receive assistance whenever needed.

The firm also offers extensive educational resources, including online webinars, tutorials, and articles covering various aspects of trading and investing. The Sharekhan Classroom is a dedicated platform where clients can access training materials tailored to their experience levels.

Additionally, Sharekhan provides research and analysis services, delivering daily market insights and recommendations to help clients make informed trading decisions. This combination of customer support and educational resources positions Sharekhan as a valuable partner for both novice and experienced traders.

8. Regional Coverage and Restrictions

Sharekhan primarily serves the Indian market, with a significant presence in over 1,000 cities across the country. The firm also caters to non-resident Indians (NRIs), offering specialized accounts to facilitate their trading needs.

However, Sharekhan does not accept clients from certain countries, including those under international sanctions. This restriction limits its customer base to Indian residents and NRIs, which may affect its growth potential in the global market.

In conclusion, Sharekhan stands out as a reputable broker with a long history in the Indian financial markets. Its comprehensive range of services, advanced trading platforms, and commitment to customer education make it an attractive option for investors seeking a reliable trading partner. However, potential clients should consider the brokerage fees and account types that best suit their trading strategies before making a decision.

Overall, Sharekhan broker continues to evolve, adapting to the needs of its clients and the changing landscape of financial trading in India.