The sops on offer include free health insurance cover, Amazon Vouchers and many more.
Taking a leaf out of the playbook of FinTech platforms, brokerages houses are reaching out to investors with sops and freebies with an eye to onboard more customers as the never ever seen rush of new investors are upending the stock broking business. On offer are schemes like refer and earn, a strategy that is eponymous to the burgeoning FinTech platforms, free healthcare insurance, an innovation amid the Covid-19 pandemic and free Amazon vouchers and many more. Some are even offering special tutorials for aspiring investors who want to join the milling retail crowd and zero broking charges for intra-day trade to lure the swelling day trading crowd.
"There is no surprise in the response of brokerages to the never ever seen rush of new investors to join the stock market frenzy since the competition in the space is really biting. Since they could not take a leaf out of the FMCG playbook by dangling the `buy one, get on' carrot, or reduce the sticker price (broking fees) they have to offer something different but appealing to new market participants, especially the `Gen Z' crowd who want something more from any money moves they make", said a senior faculty of a leading business school in Hyderabad, who does not desired to be named.
LKP Securities Limited, a Mumbai-based brokerage house is offering a slew of sops to investors who want to participate in the stock market through its trading terminals. Besides offering free online demat and trading account opening & *No AMC the brokerage house also offers a free hospital cash cover policy worth Rs 10,000. Clients get to earn a flat 20% brokerage for lifetime on every referral trade under its refer and earn scheme and with the successful assertion of its subsidiary Alpha Commodity Private Limited with its Securities business, now clients can active the commodity trading segment for free with this one Free Demat & Trading account access.
Reliance Securities has also thrown its hat into the ring with freebees such as structured products for new investors and Amazon voucher worth Rs 500 for every friend referred by customers. Another leading broking house Kotak Securities has dished out a trade free plan for its members which allow them to trade intraday on its terminals at zero brokerage fees. The Shripal Morakhia founded online stock trading platform, Sharekhan, is also offering a mix of incentives to investors to join its web-based platform including free access to Sharekhan Classroom, free online demat and trading account opening in 15 minutes, refer and earn with SharekhanEarn at a flat rate of 15% of every referred friend's brokerage for 1 year.