At SAMCO, we have been in the brokerage business since 1993, and understand every client’s requirement.
We have often been asked if a client could buy shares today & make the payment at a later date.
We can now proudly say that SAMCO today is the ONLY DISCOUNT BROKER IN INDIA where clients can get their delivery trades funded!
First, let us explain why we took this step, Brokerage charged in the Industry earlier used to comprise of 3 major components:
- Execution-For the cost of execution of trades at exchanges.
- Interest- Some clients needed a few days to make payments for their share purchases & brokers HAD to charge interest to cover their working capital costs.
- Advice- Clients needed advice on what to buy and brokers had to hire an army of analysts to churn out research reports which may or may not have been used by the clients.
The above 3 were bundled into a percentage rate irrespective of whether clients opted out of availing one or more of these services. The sad part was that all clients were penalized with Interest, even if they could make the payments upfront.
At SAMCO, our aim is to decouple execution, interest costs & advice which is the precise reason for our flat fee charge of Rs.20 per trade, while adding tools such as our Risk Adviser, SAMCO Stock Ratings, and SAMCO Databank among others to provide investment guidance.
With a flat fee brokerage & our innovative tools, we took care of execution & advice as listed above, but some clients did need to get their delivery trades funded for a few days, till they could arrange for the funds.
Now with SAMCO CashPlus, a client can buy shares worth up to 4 times the funds in their Trading Account with SAMCO!
With CashPlus, you can carry forward your Delivery Trades Ad Infinitum as long as your margins remain within the prescribed limits.
So how do you start trading with CashPlus?
- You must login to your SAMCO Back Office & subscribe for CashPlus. There is a yearly subscription fee of Rs.1,000 to use CashPlus. You must accept the Terms & Conditions before subscribing.
- Calculate the amount of shares you can buy with the funds in your account using the CashPlus Leverage Calculator.
- Then login to your Trading Account as usual.
- Select the share you want to take delivery of & instead of using product code-“CNC”, use the product code-“NRML”.
Note: In case of Call-N-Trade, kindly inform the Dealer that you are using CashPlus & ask him to place an order using the “NRML” order code.
Effects of all Corporate Actions such as Dividends, Splits, Bonus Shares etc will accrue to the Client i.e. YOU.
Note that short-selling is prohibited under the CashPlus product.
You can check your CashPlus Margin Positions in trading terminals in the “Net Position Window” and in the Portfolio Tab of the SAMCO STAR Back Office
- Converting Intraday Positions to Margin Positions: To convert Intraday Positions, use the Position Conversion window & change the positions to “NRML”.
- Converting Margin Positions to Holdings: You need to sell these margin positions under the “NRML” code and buy the stock using the “CNC” code by blocking 100% margins.
Brokerage for CashPlus will continue as usual i.e. lower of Rs.20 or 0.02% (Intraday Trades)/0.2% (delivery).
You will be levied a charge of 0.05% per day every day on the Debit balance in your account. No charges will be levied in case of Zero or Credit Balances.
SAMCO will send you a day wise Interest Charged report for your records at the end of each month.
Margin Calls & SAMCO Risk Management Policies
We shall inform you of any margin shortfalls by SMS & E-Mail. Do ensure that your Trading Account is adequately funded to avoid any liquidation of positions by SAMCO.
You shall also get a summary of your ledger debit daily. Also note that SAMCO will liquidate your positions if there is inadequate margin & the Mark-To-Market Losses in your trading account exceed 80%.
CashPlus can be used only for Equity Delivery trades. You cannot use CashPlus in the Equity or Commodity Derivatives segment.
You can also refer Frequently Asked Questions on the CashPlus product.
So head to the STAR Back Office to activate CashPlus.
And if you aren’t a SAMCO customer, go ahead & open an account with us!
Account opening is free & we’ve even waived off the First Year DEMAT AMC!