Sayantan Chakraborty
Discount Broking has caught good traction in the Indian Stock Market and many new players have arrived in the world of Discount Broking. But it is always hard to trust a new company and that too, with your own hard-earned money. But this is not the case with Espresso. Most of the people who are involved in the Indian Stock Market, at some point in time have heard of the broking giant – Sharekhan. And Espresso belongs to the Sharekhan family.
The creation of Espresso by Sharekhan was fueled by the need for a better platform for Traders and Investors. And most importantly, to save brokerage when the client’s trade doesn’t end up in profit. So it is in Espresso’s interest, that your trade turns out to be a profitable one. Espresso got a host of offers starting from FREE ACCOUNT OPENING to a dedicated portal to learn the craft of trading to hundreds of informative “MOVIE-FIED” videos which were created to help investors and traders know more about the Stock Market. Espresso’s MSP or Main Selling Point is – PAY ONLY WHEN YOU PROFIT brokerage model, about which we will talk in detail later in this discount broker review.
So let us start this Discount Broker Review by asking an important question.
Why Should You Choose Espresso by Sharekhan?
First and foremost, a young company will always try to fulfil their customer’s need, and Espresso, which started in September 2020, is not just young at age but also at heart.
But in the world of finance, new is not always good. Reputation and Experience matters when we are talking about money and investment. Espresso has both of it from their association with one of the biggest broker in India, Sharekhan.
Espresso’s unique PWYP or Pay When You Profit brokerage model is designed to benefit the clients more than the company. Which tells us how much Espresso value their clients.
Espresso didn’t just make another trading platform but they backtested it with actual Traders and Investors. And they further developed the platform based on the feedback they got from the testers. Espresso has designed such a platform that is actually useful for traders and investors.
So you see, Espresso is not just another broker who is dipping their feet into the world of discount broking. Rather we can define Espresso as a customer centric organization which happens to be a discount broker.
Pay When You Profit- Brokerage Model of Espresso by Sharekhan
When you trade in the Indian Stock Market through a Traditional Broker or even any Discount Broker, you have to pay the brokerage charges regardless of whether you make or lose money in that trade.
But with Espresso, you don’t have to pay the brokerage charges for the 2nd Leg of the trade. The 2nd Leg of your trade is BROKERAGE FREE is your trade comes out on the losing side.
Tough to understand? Allow us to explain it!
A trade consists of 2 Legs. The 1st leg creates the position whereas the 2nd leg closes the position for you.
If you think a particular company’s stock is going to rise and you want to buy a few stocks of that company then you ‘go long’ or the 1st leg of your trade buys the stock and opens the position for you. And you close the position by selling the stocks you bought and this is called the 2nd leg of the trade.
Vis-a-vis, if you think a company’s stock is going to fall then you ‘short’ the stock or the first leg of your trade sells the stock of that company and opens the position for you. And in the 2nd leg of the trade, you close your position by buying the stock you sold in the 1st leg.
Espresso by Sharekhan charges brokerage on the 1st Leg of every trade. Be it a profit making trade or a loss making trade.
But, if your trade becomes a losing trade when you close your trade on the 2nd Leg, your 2nd Leg becomes Brokerage Charge Free.
You don’t have to pay any brokerage on the 2nd Leg of your trade if it falls on the losing side.
But regulatory charges like STT/CTT, Transaction Charges, Stamp Duty would be charged on both winning and losing trades.
To sum it up – Traders of the Discount Broker Espresso will not have to pay the brokerage for the 2nd Leg of their trade if their trade turns out to be a losing one. But regulatory charges are applicable regardless.
You can read more about the “Pay When You Profit” model on Espresso’s Website. Espresso has also provided a very nice “Sample Calculation” on their website to help you understand the PWYP or Pay When You Profit model better.
Brokerages of Espresso by Sharekhan
Equity Segment
Equity Delivery
Brokerage
Espresso provides ZERO DELIVERY BROKERAGE for Cash and Carry orders of their clients.
Yes if you are an Espresso client, then you don’t have to pay any brokerage on stocks that you are buying on a delivery basis with upfront cash. Delivery buying in the Equity Segment in Espresso is BROKERAGE FREE.
But if you are using Margin for Delivery buying in the Equity Segment, which means you are not paying the total value of your buy order upfront, then you would be charged either 0.1% of the order value or Rs. 20/- (whichever is lower) per order.
Securities Transaction Tax
An STT or Securities Transaction Tax of 0.1% will be charged while buying or selling stocks in the delivery segment in Espresso.
Exchange Transaction Charges
Exchanges like National Stock Exchange or NSE and Bombay Stock Exchange or BSE charge some percentage of the total transaction value and these charges are called ETC or Exchange Transaction Charges.
NSE charges 0.00325% of the total delivery order value and BSE charges 0.00275%.
GST
GST of 18% is charged on the sum of total brokerage value and transaction charges.
SEBI Turnover Charges
The Securities and Exchange Board of India SEBI is the national watchdog of the Indian Stock Market. The main job of this regulatory authority is to keep a close eye on the securities market. We have already covered SEBI in details here.
SEBI charges a very minimal amount of Rs. 5/- per Crore of the transaction value.
To make it more simple, let us say your transaction value on the Buy Leg of the trade was 50 Lakhs, and on the Sell Leg also it was 50 Lakhs. Then on the total transaction value of this trade which is 1 Crore, you have to pay Rs. 5/- as SEBI Turnover Charges.
But SEBI is going to change the amount of this charge from the Financial Year 2020-21. From the 1st of April, 2021, SEBI is going to charge an amount of Rs. 10/- per Crore which is currently Rs. 5/-.
Stamp Duty
Stamp Duty Charges of 0.015% is applicable on delivery segment only for the buyer.
You can find the full list of Stamp Duty Charges on Espresso’s website here.
Equity Intraday
Brokerage
The brokerage of Intraday Stock Trading on Espresso by Sharekhan is either 0.01% of the order value or Rs. 20/- (whichever is lower) for every executed order.
But if your trade turns out to be a loss-making one after the execution of the 2nd Leg of the trade, then as discussed earlier, you have to pay ZERO BROKERAGE on the 2nd Leg of the trade.
Securities Transaction Tax
An SST or Securities Transaction Tax of 0.025% is applicable only on the sell side on the average rate of buy and sell.
Exchange Transaction Charges
Intraday ETCs or Exchange Transaction Charges are same as the Delivery ETCs.
NSE charges 0.00325% of the total delivery order value and BSE charges 0.00275%.
GST
As discussed in the delivery segment, a GST of 18% is applicable here too.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
A Stamp Duty Charge of 0.003% is applicable to the Buyer.
Derivative Segment
Equity Futures
Brokerage
The brokerage of Intraday Equity Futures Trading on Espresso is either 0.01% of the order value or Rs. 20/- (whichever is lower) for every executed order.
But ZERO Brokerage on the 2nd Leg of the trade if the trade turns out unprofitable.
But Espresso will charge 0.5% on Delivery Orders of Equity Futures.
Securities Transaction Tax
Clients have to pay an STT or Securities Transaction Tax of 0.01% on the sell side of the trade.
Exchange Transaction Charges
NSE charges a ETC of 0.0019%.
GST
Clients have to pay a GST of 18% on Brokerages and Transaction Charges.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
Please to refer to this PAGE to know about Stamp Duty.
Equity Options
Brokerage
The brokerage of Intraday Equity Options Trading on Espresso is Rs. 20/- for every executed order.
But ZERO Brokerage on the 2nd Leg of the trade if the trade turns out unprofitable.
But Espresso will charge 0.5% on Delivery Orders of Equity Futures.
Securities Transaction Tax
Clients have to pay an STT or Securities Transaction Tax of 0.05% on the sell side of the trade on premium. And 0.125% STT on the exercised trade on premium.
Exchange Transaction Charges
NSE charges a ETC of 0.05% on the premium.
GST
Clients have to pay a GST of 18% on Brokerages and Transaction Charges.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
Please to refer to this PAGE to know about Stamp Duty.
Currency Segment
Currency Futures
Brokerage
The brokerage for Trading Currency Futures on Espresso is either 0.01% of the order value or Rs. 20/- (whichever is lower) for every executed order.
But ZERO Brokerage on the 2nd Leg of the trade if the trade turns out unprofitable.
Securities Transaction Tax
Securities Transaction Tax or STT for Trading Currency Futures in Espresso is ZERO.
Exchange Transaction Charges
NSE charges an ETC of 0.00095% and BSE charges an ETC of 0.00022% for Trading Currency Futures.
GST
Clients have to pay a GST of 18% on Brokerages and Transaction Charges.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
0.0001% of the order value is charged on the buyer as Stamp Duty for Currency Futures Trading.
Currency Options
Brokerage
The brokerage for Trading Currency Options on Espresso is Rs. 20/- for every executed order.
But ZERO Brokerage on the 2nd Leg of the trade if the trade turns out unprofitable.
Securities Transaction Tax
Securities Transaction Tax or STT for Trading Currency Options in Espresso is ZERO.
Exchange Transaction Charges
NSE charges an ETC of 0.037% and BSE charges an ETC of 0.001% for Trading Currency Options.
GST
Clients have to pay a GST of 18% on Brokerages and Transaction Charges.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
0.0001% of the order value is charged on the buyer as Stamp Duty for Currency Options Trading.
Commodities Segment
Commodity Futures
Brokerage
The brokerage for Trading Commodity Futures in Espresso is either 0.01% of the order value or Rs. 20/- (whichever is lower) for every executed order.
But ZERO Brokerage on the 2nd Leg of the trade if the trade turns out unprofitable.
In case of Delivery Transaction, a brokerage of 0.5% of the order value is charged by Espresso.
Commodities Transaction Tax
Commodities Transaction Tax or CTT for Trading Commodity Futures in Espresso is 0.01% on the sell side for Non-Agri products.
Exchange Transaction Charges
MCX charges an ETC of 0.0026% for Non-Agri products. And for all Agri products, ETC of 0.00175% is charged except for Castor Seeds (0.0005%) and Pepper (0.00005%).
GST
Clients have to pay a GST of 18% on Brokerages and Transaction Charges.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
0.002% of the order value is charged on the buyer as Stamp Duty for Commodity Futures Trading.
Commodity Options
Brokerage
The brokerage for Trading Commodity Options in Espresso is Rs. 20/- for every executed order.
But ZERO Brokerage on the 2nd Leg of the trade if the trade turns out unprofitable.
In case of Delivery Transaction, a brokerage of 0.5% of the order value is charged by Espresso.
Commodities Transaction Tax
A Commodities Transaction Tax or CTT of 0.05% is charged on the sell side for Trading Commodity Options in Espresso.
Exchange Transaction Charges
You will not be charged any ETC for Trading Commodity Options in Espresso.
GST
Clients have to pay a GST of 18% on Brokerages and Transaction Charges.
SEBI Turnover Charges
Till 31st of March, 2021, SEBI is going to charge an amount of Rs. 5/- per Crore. From 1st of April, 2021, the SEBI Turnover Charge will be doubled to Rs. 10/- per Crore.
Stamp Duty
0.003% of the order value is charged on the buyer as Stamp Duty for Commodity Options Trading.
You can check out every detail about the brokerage structure of Espresso from here.
Trading Platforms of Espresso by Sharekhan
Espresso by Sharekhan has a Trading Platform for both Desktops as well as Mobile Devices.
Espresso also provide a Web Trading Platform for users who do not have access or want to install a separate trading application on their Desktop or Mobile Device.
There are few unique feature that Espresso has developed on their trading platform for their clients.
Few features that we would like to mention among many are –
- Synchronized Watchlist – With the Synchronized Watchlist feature, you can sync your watchlist among all the platform, be it Web, Desktop or Mobile. Espresso users do not have to create separate watchlist on each platform.
- Dynamic Alert Tool – Traders and Investors in Indian Stock Market know about the Price Alert feature that many broker’s platforms provide. But with Dynamic Alert Tool, users get real-time alerts of multiple factors which might affect your favourite stock price.
- Scanner – Yes, a simple feature like a stock scanner is also on our recommendation list of features provided by Espresso’s trading platform. Because this powerful, real-time market scanner from Espresso is provided to the user fully FREE OF COST.
- Single Screen Order Placement – As the name suggests, you can complete a whole order starting from select the BUY or SELL side to clicking PLACE ORDER, all on a single screen. That too with fewer clicks.
- High-Quality Charting – Users of Sharekhan knows how powerful the charting section of Trade Tiger is. Espresso, which is also a Sharekhan company, has maintained this tradition of providing high quality, advance features to their clients, and charting is among one of them.
From displaying charts on different time frames to providing multiple Studies, Oscillators and Indicators for technical analysis. Users of Espresso will get it all under one roof. Espresso also provided a feature where clients can even use the premium charts from TRADING VIEW.
Now let us talk about each platform in detail.
Binge – Desktop Trading Application from Espresso by Sharekhan
If you have been a client of the broking giant Sharekhan, then with BINGE you will feel at home.
The look and feel of BINGE are very similar to that of Trade Tiger, the Desktop Trading Application from Sharekhan. But the inner working of the application is years ahead of Trade Tiger.
You can track the whole market and its Indices at a single screen on BINGE. Many One-Click features are available on BINGE, like One-Click Script Creation, Indices Heat Map Creation, One-Click view of Advance to Decline Ratio of Indices and many more.
We all know and have seen real-time price changes on a live platform screen. But with BINGE, you get real-time signal updates like ‘Fall From Day’s High’ or ‘Volume above Last 1 Week Average’ etc. These will help traders take quick, on spot trading decisions.
With BINGE you can now track All-Time High and Lows and 52 Weeks High and Low of multiple stocks on a single screen. And you can even track multiple stocks performance across different time frames.
Placing Order through BINGE has been made very quick and easy. If you want to avail margin for your order from Espresso, then an Auto Margin Calculator has been provided on the Order Placement window.
With the same Order Placement window, users can now either Trade or Invest in stocks. No need to jump around different windows for different jobs.
From now, users of BINGE will be able to place BRACKET ORDERS in the Delivery Segment.
Being a Desktop based platform, BINGE has a very powerful charting system.
Starting from Multiple View system to customizable top menu bar. Users of BINGE can link their market-watch across exchanges or scrips and time.
Inside BINGE, you can see and operate 6 different charts with just a single click.
If you think BINGE from Espresso is impressive, just from reading about it. Then we would ask you to try out BINGE for yourself.
Try out BINGE from Espresso by clicking here.
Espresso Stock Trading App for Mobile Devices
The whole world has moved to mobile devices, then why should Stock Broking be left behind! Trading your favourite stock is now at your fingertips with the Trading App for Mobile Devices from Espresso by Sharekhan.
Espresso has made a fantastic app for mobile devices so their client can execute any trading or investing decision on the fly.
A lightweight and fast App is what you need to trade through your mobile device. And Espresso has taken care of it by building an app which not heavy on the mobile CPU and Memory but executes your orders within a blink of an eye.
Click here to download the Espresso App for iOS.
Click here to download the Espresso App for Android.
Espresso has tested their trading app for mobile devices by people who are actually involved in the Indian Stock Market and spent most of their time trading or investing in the Indian Stock Market.
One of the prominent features of the Trading App for Mobile Devices by Espresso is its “Voice Search Tool”. Users of the trading app can now search any Scrip or Index by just asking the app with a voice command.
Espresso took special care to design an efficient user interface so that their client can do the maximum work with the least amount of clicks.
Providing a shortcut bar at the bottom for faster navigation is an example of how rigorous testing Espresso did on their trading app and the developed it further from the feedback they received from those testings.
Most of the Discount Broker and their Trading App provide live, real-time alerts, but only for price changes. Espresso’s Trading App not only provides price change alerts but also alerts on corporate events like Dividend Announcement, Stock Slipt, Bonus and more.
The Espresso has implemented multiple features of BINGE, their Desktop Trading Application into their Trading App for Mobile Devices. For example, you will find Auto Margin Calculator on the order screen, Bracket Orders for Delivery buying, which were only available on a Desktop Trading App earlier.
Most of the seasoned Investors in the Indian Stock Market knows the importance of Fundamental Analysis. And for that, you need to know about the fundamentals of a company to analyse it. Espresso’s Trading App for Mobile Devices provides Fundamental Data of companies right at your fingertips.
And the charting system of the trading app is as advanced as its Desktop counterpart. Laced with easy drawing tools, studies, indicators and oscillators, Espresso has made technical analysis super smooth even on mobile devices.
Espresso has made it easy to track important scrips of the day with One-Click access to Market Movers, Top Performing Scrips, etc.
Espresso’s Trading App for Mobile Devices gives you as much edge as its Desktop counterpart. And to some extent, it outperforms Trading App for Mobile Devices of other Discount Brokers.
Web-Based Trading Platform of Espresso
If you don’t want to use either the Desktop Application or the Trading App for Mobile Devices from Espresso, then the Web-Based Trading Platform of Espresso will always be at your service.
Just visit www.myespresso.com and login to the platform using your login credentials and you are good to go.
Along with all the features provided in the Desktop and Mobile Devices Platform of Espresso, the Web-Based platform also provides One-Screen Stock Tracking, Homepage customization, Tax Report and much more.
The Web-Based Trading Platform of Espresso is as powerful as other platforms. And the process of placing an order, editing watchlist, tracking stocks, etc are similar among all the platforms, so you don’t have to learn a platform all over again.
Why Should You Use the Trading Platform of Espresso?
As Espresso by Sharekhan is a young and versatile player in the field of Discount Broking, they designed their platform based on the requests and feedbacks of actual Traders and Investors.
Espresso has listened to the needs of the people who are involved in the Indian Stock Market and designed their platform, which solves the problems faced by the people while trading and investing using other platforms.
Espresso has made Stock Analysis, Decision Making and Trading a lot easy with their Stock Trading Platform. Espresso has also utilized the experience Sharekhan had as a Full-Service Broker.
Exchanges allowed in Espresso for Placing Order
While trading or investing through Espresso, you can place order on –
For Equity and Derivatives
- NSE or National Stock Exchange
- BSE or Bombay Stock Exchange
And for Currency and Commodity
- MCX or Multi Commodity Exchange
- NCDEX or National Commodity & Derivatives Exchange
Depository Service Used by Espresso
Espresso is using both NSDL or National Securities Depository Limited and CDSL or Central Depository Services Limited for Depository Services.
Some FAQs about Espresso
Does Espresso by Sharekhan Allow Currency and Commodity Trading?
Yes, Espresso does allow its clients to trade in the Currency and Commodity segment.
What is the cost of Opening an Account in Espresso?
The cost of Opening an Espresso Account is ZERO. You can open an Espresso Account free of cost by clicking on the button below.
Who is the CEO of Espresso?
R. KALYANARAMAN is the CEO of Espresso and you can find him in Twitter @RKALYANARAMAN11.
Do you really don’t have to pay the Brokerage if your trade turns out unprofitable?
Yes. The brokerage of the 2nd Leg of your trade becomes NIL if your trade doesn’t end up profitable in the end. The USP or Unique Selling Point of Espresso is their PWYP brokerage model which is based on this concept.
What is the AMC or Annual Maintenance Charges of Espresso?
Users of Espresso has to pay an AMC or Annual Maintenance Charges of Rs. 400/- + GST on a yearly basis.
Conclusion
The Discount Broker Espresso is a part of Sharekhan. Sharekhan, as we all know, is one of the Top 10 Stock Brokers in India. So, being associated with Sharekhan, Espresso will not have a problem establishing trust with their clients.
Espresso was not created to provide just another “Trading Platform / Discount Stock Broker” for the Indian Retail Investors or Traders. The Creators of Espresso wanted to prove that Stock Brokers can be a responsible organization who truly care about the financial decisions taken by the clients of the organization.
Their PWYP or Pay When You Profit Model tells a lot about their intentions. Espresso is willing to not charge you brokerage on the closing leg of your trade if your trade ends up losing money.
Espresso is willing to leave money on the table based on your decision. Very few organization or company does that in today’s day and age. It proves Espresso as a broking house actually cares for their customers and clients.
We hope this Review of Espresso by Sharekhan has actually helped you in deciding whether you should choose Espresso as your broker or not. We at Money Premier definitely recommend you to try out Espresso, especially the PWYP brokerage model should attract you if you are a regular trader. You can open your own account at Espresso by clicking on the button below.
Espresso by Sharekhan Review
And as there are no Account Opening Charges, you should try out the new broker Espresso by Sharekhan for free.
If you have found this Espresso Review helpful, then please share it with your friends through Social Media or Chat. Spreading the word helps both, your friends and us.
So at the end of this Discount Broker Review, we would say Good Luck and Happy Trading! 🙂
Disclaimer: The views, investment tips, presumptions, and calculations expressed on Moneypremier.net are not of the website or its management. This article is for Educational Purposes only. Moneypremier.net advises users to check with certified experts before making any financial decisions.
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