Indiabulls Shubh: Subscription based Brokerage (Netflix for Brokerage)

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We have all heard about subscription based plans for video streaming platforms like Netflix, Amazon Prime etc. wherein we pay a fixed amount every month and get unlimited video streaming rights. But how about a similar subscription based brokerage plans for the active traders of Equity, F&O and Currency Markets?

This may sound like a dream but Indiabulls has recently launched such a product by the name of Indiabulls Shubh wherein you pay a fixed amount every month and get to trade unlimited in the Equity, F&O and Currency markets. So by paying a fixed fee every month you can get unlimited trading rights and don’t have to pay any variable brokerage per trade/ volume.

Indiabulls Shubh: Subscription based per month Brokerage Plan

This fixed fee brokerage plan has been recently launched by Indiabulls and is called India Bulls Shubh Plan wherein a person has to pay only Rs. 1000/- month and gets to trade unlimited in the equity, F&O and Currency Markets.

Thus, the brokerage to be paid gets fixed irrespective of the actual trading done and thus becomes very beneficial for active traders who enter into several transactions during the day.

Apart from this Rs. 1,000 pm subscription based plan, Indiabulls has several 14 other plans as well for active traders and a trader can choose from any of the other plans and can also change these plans every month depending on his requirement. You can view all other plans here – https://www.indiabullsventures.com/

Other than these monthly charges, there would be no other fee charged by the broker i.e. Indiabulls. Only the govt fees like STT, Turnover charges would be charged apart from the above mentioned fees.

However, it is important to note here that these govt charges are always extra irrespective of the broker with whom you are dealing.

Comparison between Indiabulls Shubh and other Brokers

I tried to do a comparison of the fees charged by major brokers in India and the same is shared herewith:-

 

The above mentioned figures give a brief overview of the fees charged by various brokers but does not give a direct comparison vis-a-vis the total brokerage which a trader may end up paying and how much you may be able to save by enrolling for this plan.

For this purpose, I tried to do a fee comparison of Indiabulls Shubh plan with the most popular discount broker Zerodha.

Trader trading through Zerodha @ Rs. 20 per trade

Amount (Rs.)

10 trades per day, 22 trading days

4,400

GST @ 18%

792

Total charges

5192

 

If the same person opts for trading through Indiabulls Shubh, he would only be required to pay Rs. 1000 + 18% GST which works out to Rs. 1,180.

And thus, there would be a clear saving of Rs. 4012 per month which is a lot. And if the same person is currently not enrolled with a discount broker but with a traditional broker – the savings would be even higher.

Considering such huge savings, it certainly makes a lot of sense for active traders to shift opt for this subscription based brokerage plan launched by Indiabulls.

Can such subscription based brokerage plans work in India?

The next question which comes to my mind and would also be coming to the mind of most traders would be that can such subscription based plans work in India?

I recently happened to meet the Divyesh Shah, CEO of Indiabulls Shubh over a cup of coffee in his Mumbai office and I asked him the same question and he replied – “Why not?.”

He said that the first and foremost thing to be considered while selecting any broker is the trading platform. If the trading platform is fast and easy to use, then everyone would love to opt for a platform which charges lower fees.

Considering the fact that the brokerage arm of Indiabulls has been in existence for more than 20 years now – they have been able to develop an excellent trading platform and a lot of active traders are already enrolled with it. And considering the fact that it has been in existence for the past 20 years – there are no trust issues as well with the broker.

I also asked him whether this is an introductory offer only or they intent to continue offering the services at such fees to which he positively responded that they intent to retain the same pricing in future as well and still earn profits.

But how will they make money?

A lot of people may be wondering on how would the company be able to offer such a robust platform at such low subscription fees.

And the answer to this question is that India is a not a country of margins but a country of volumes. Indiabulls shubh is a low margin but high volume game for them.

Considering the fact that these are self-service online platforms – the operational cost of the broker is fairly low and therefore even with such low fees – they would be able to offer a robust platform and still make profit.

They have already enrolled several thousand traders within a few weeks of the launch of this plan and considering the response that is coming in, they are optimistic that they would be able to achieve profitability and scale to greater heights with such low margins as well.

Divyesh Shah also told me that when discount brokers were launched in India very few people thought that the business would be sustainable. But the disruption which discount brokers have created in India is phenomenal and has entirely changed the landscape of the brokerage industry in India.

10 years back – the disruption was caused by the discount brokers. But in the next 10 years, the disruption would be caused by the subscription based brokers.

And considering the fact that Indiabulls has the 1st mover advantage in this and is also backed by the strong parentage and robust trading platform, Indiabulls may to soon become a market leader in the subscription based brokerage industry and garner a lion’s share of this industry.

Karan is CA by Qualification with the rare distinction of being awarded All India Rank 22. He is also the founder of this website and is an expert in helping people save Taxes legally. He can be reached by booking an appointment for Tax Advisory Service.