How to open a trade account with Gulaq?
The process of opening a trading account with Gulaq is simple and completely digital.
To open a trade account with Gulaq, you need to provide personal information, identify proofs and other financial documents.
What are the charges for opening a demat account with Gulaq?
Opening of a demat account including Equity+F&O+Currency segments cost you a processing fee of Rs 300 (inclusive of taxes. No AMC’s for 1st year).
Processing Fee is non-refundable.
How much time does it take to open a demat account?
Once you submit all the information with documents & upload it on our website then usually it takes about 1 working day for a KYC Verified User and 7 working days for a Non KYC verified user to open a demat & trading account with Gulaq.
What kind of margins does Gulaq provide?
Currently we are not providing any margin facility.
What documents are required to open a demat account?
In order to open a demat account with Aadhar based KYC is simple and easy. Apart from that, you just need to keep these documents handy to fasttrack your application : Aadhar card, Pan Card, Photo, Signature Copy, IPV (in person verification), Cancelled Cheque, latest bank statement with IFSC/MICR Code.
Does Gulaq require Power of Attorney to open a demat account.
No, with Gulaq you don’t need a Power of Attorney to open your demat account. We have implemented e-DIS functionality on our platform for enabling Sell of equity/shares.
Do You provide Advisory services?
Yes, we do provide advisory services to our customers.
What is G Score?
G score is basically a methodology, through which pick top stocks from BSE 500. It is basically a combination of fundamental and technical analysis of stocks, upon which we rank the high value stocks or low value stocks. Basically, we take into the account of quality, profitability and value. The Score is updated every month.
What is Digio & how it help works on our platform.
It is a start–up offering paperless product and presence less service delivery for banking, brokerage, insurance, mutual funds, fintech companies and telecom operators as well as enabling intra business process. Through Digio, e- sign gateway, we take the digital signature of applicant for online signing of application forms, agreements and identification document.
What are the tariff charges of Gulaq?
Here is the list of tariff charges of Gulaq on various trades.
|Brokerage||Zero Brokerage||0.01% or Rs 10 executed order which is lower||0.01% or Rs 10 executed order which is lower||Flat Rs 10 per executed order|
|STT/CTT||0.1% on buy and sell||
0.0025% on the sell side
|0.01% on sell side||0.05% on sell side( on premium )|
NSE: Exchange txn
BSE : NIL
NSE Exchange txn Charge : 0.05% ( on premium )
BSE : NIL
|( 18% brokerage + transaction charges )||( 18% brokerage + transaction charges )||( 18% brokerage + transaction charges )||( 18% brokerage + transaction charges )|
|Rs 10/ crore||Rs 10/ crore||Rs 10/ crore||Rs 10/ crore|
Charges Explained :
Securities/Commodities Transaction Tax: It’s mainly a tax by the government, when transacting securities or commodities on the exchange.
Transaction/ Turnover Charges: It’s mainly a combination of exchange transaction charges and clearing charges. Clearing charge is the fee levied by the clearing member for settling all CDS & MCX trades done by the client on exchange.
Stamp duties Charges: Stamp duties will be levied on one instrument relating to one transaction and gets collected only at one place, through the stock exchange.
GST: It is basically a tax levied by the government on the service. It is 18% on ( brokerage + transaction charges ).
SEBI Charges: It is basically the charge levied by the Securities and Exchange Board of India.
DP Charges: It is mainly charged by the depository and depository participant. The charge is basically Rs 20.5+ GST Per scrip (irrespective of the quantity). It is debited from the trading account when the stocks are sold. In the case of BDSA account, the charges are Rs 40.50 + GST Per Scrip.
AMC (Annual Maintenance Charges) :
The charges are basically Rs 300/year + GST charged quarterly.
How digitally signature my demat account documents?
Once you upload the digital signature through Digio. We automatically put the signature on the demat account documents on your behalf. Thus, reducing the time in the whole process.
Basic of Trading :
What is zero brokerage trading?
Zero brokerage trading is the new buzz word of our time. It is the new way to challenge the existing system. Here’s the way, how it functions :
- They charge a flat fee per order traded. For extremely small orders, there is a percentage brokerage system.
- The full-service brokers charge a percentage of the volume of trade, while the discount broker works by providing a flat brokerage structure.
Advantages of Zero Brokerage Trading with Gulaq:
- Low Prices (Rs. 15 for intraday trade)
- Trading on all major exchanges in India
- Easy account opening procedures (completely digital)
- Instant fund transfer
- No requirement of a POA as we are using e-DIS functionality
What is the functioning of brokerage business models?
Old or Traditional Brokerage Model :
The traditional brokerage model made money by charging you brokerage every time you place a trade. The amount of brokerage fees varies depending upon the size of the order that was traded.
For Example, If you have bought 10 lots of NIFTY, you will be charged 10 times as much as if you have bought 1 lot of NIFTY. This makes sense for the broker but not for the consumer.
Zero Brokerage Model :
In traditional model, with every trade there is a certain percentage of brokerage one needs to pay. But in the case of zero brokerage model, there will be no or a fixed brokerage fees charged.
Advantages of Zero brokerage Model
Here is the procedure of functioning of brokerage business models.
Let’s look at the advantages of Zero brokerage Model :
- First of all, you don’t need to worry about the size of the trade.
- Trades on all the exchanges safely.
- Low fees or almost negligible fees.
- Transparent rules and regulations.
- Instant phone and email support.
- Trade on all major exchanges in India safely.
- Intraday Margin facilities to give clients leverage on their money.
What is the trading procedure of Gulaq?
So, whenever you place an order on Gulaq, it is sent to the exchange and then an order no. is generated. The price matching of the open order is listed on the exchange and once it is successfully matched it is termed as a trade is conducted. Afterwards, we send a confirmation to the exchange, and then we display the information to you.
What is interoperability?
Interoperability is mainly defined as the seamless clearing and settlement of equity transactions across different exchanges. Before this procedure, trades made through National Stock Exchange were cleared through NSE Clearing Limited and BSE through ICCL. The interoperability between different clearing corporation ensures that trades made on both NSE and BSE are settled through a single clearing corporation.
How does Interoperability work?
Before the Interoperability, trade executed on NSE were cleared and settled through NSE clearing corporation, while transactions executed through BSE were settled through ICCL. While the trades executed on the Metropolitan Stock Exchange were cleared and settled through Metropolitan Clearing Corporation of India ( MCXCL ). With the help of interoperability, trades can be cleared and settled across clearing corporations seamlessly.
Is interoperability applicable to both types of trade, Intraday and Delivery?
Yes, Interoperability is applicable to both i.e. intraday square off as well as delivery trades. There is an advantage for intraday traders, the big advantage is that you can square off trades across exchanges. As a result, cross exchange buying and selling can be considered as intraday, if the net position amounts to zero.
Is there any charges for the interoperability?
There will be no additional charges for the interoperability. It’s just the connectivity between the exchanges.
Is Interoperability available on Gulaq?
Yes, the feature is available with Gulaq.
What is Margin Report?
Margin trading is trading done with borrowed funds/securities. It is essentially a leveraging mechanism which allows investors to take exposure in the market over and above what is possible with own resources. It has been prescribing eligibility conditions and procedural details for allowing the Margin Trading facility from time to time.
Difference between Demat Account and Trading Account.
Let’s look at the difference between demat account and trading account. Both are essential for trading and investing in securities, a common issue however is the average investor does not realize exactly the difference between demat and trading account.
- A dematerialized account is where you store your shares, bonds, government securities and mutual funds in electronic format.
- A trading account facilitates transaction of the shares, bonds, government securities and mutual funds in your dematerialized accounts.
- Demat acts as a bridge between your bank account and trading account. It can transfer funds from your bank accounts to this trading account and conduct transactions through trading account.
How does trading take place?
After you end up with the process of opening of both demat and trading account, the question that arises is that how to trade with these accounts. Once the account is opened, the account holder receives a client ID and password to login to the trading portal using these credentials. The trader needs to transfer money from his bank account to trading account. When Stocks are purchased, they get added to the demat account and the amount that goes towards their purchase gets debited from the trading account. In trade terms, a trading account acts as a link between a bank and a dematerialized account. Recently most of the banks have started offering three in one packaged account, where the holder will simultaneously get the benefit of all the three account i.e. demat, trading and banking . That’s why we (Gulaq) offer discount brokerage to fulfil the common needs of all investors.
How to use the Gulaq Brokerage Calculator?
Gulaq Brokerage Calculator is the simplest tool to use for calculating brokerage. The calculator will show you exactly how much one would make on a trade after all costs are taken into account. You need to put all the data related to buy, sell, quantity and then select the exchange. Afterwards, click on the submit button. Then it will show you the net profit after all the charges.
How can I access the Gulaq Brokerage Calculator?
Here are the steps to access and use the calculator
- Click on this link: https://www.gulaq.com/brokerage-calculator/
- Now write down buy and sell price.
- Further write down the quantity and then choose exchange.
- Click on submit button.
- After you click on the submit button then you will get to know about all the taxes such as brokerage, STT, Exchange Taxn charge, GST, SEBI charges, Total tax and charges, points to break-even and Net Profit at the end.
Basics of trading account in India.
We all are aware that trading in the stock market cannot be done without any proper trading account.
- Intermediary Account:
Any account which is meant for trading can be considered as intermediary account, connecting your bank account to the demat account. In order to purchase shares, one needs to transfer funds from their bank account to their trading account. After the purchase of your shares, it is used to keep in your demat account. Only after you sell those shares, the shares are shifted from your demat account to your trading account.
- Various Financial instruments :
A trading account opens up a world of opportunity to invest in various kinds of instruments. You can purchase stocks, trade in the derivatives market such as Futures and options etc. Investors can also trade in equities, commodities, currencies.
What is Contract Note?
It is mainly a legal record of transactions carried out on a stock exchange through a stockbroker. It mainly serves as a confirmation of trade done on a particular day on behalf of a client on a stock exchange. So, whenever you trade a contract note will be sent to you on their behalf.
How many parts a contract note is broadly classified into?
A contract note is broadly classified into three parts
- User information
- Trade Information
It contains the basic information such as the date for which the contract note was created, trading codes, user name and other details.
It provides all the information related to the trade. When you fill a single order and multiple trades happen at different prices, then there will be multiple entries in the contract note. We (Gulaq) are a discount broker, the brokerage is calculated per order and not per trade.
This will give you an idea about the charges a user has to pay for the orders placed in the selected segment for a particular day. The charges can be broadly categorised into:
- Transaction charges: It includes the Exchange and Clearing transaction charges, Stamp duty, SEBI fees, Securities/Commodities transaction Taxes (STT/CTT).
- Margin: It is calculated based on the T and T-1 closing prices. It includes the exposure margin, span margin. Our calculator is also an excellent way to calculate the brokerage and other charges levied for individual orders.
- GST: There will be 18% GST applicable on brokerage and other charges for all users.
What is the difference between investing and trading?
There are mainly two types of players in the equity market, investors and traders. People always confuse themselves with the terminology but there are certain basic differences between them.
It is a process of buying stocks and other financial instruments over a longer period of time. It involves a lot of fundamental research about the targeted segment whether it’s a stock or long-term bond. The prime aim of the investor is to create a balanced portfolio of diverse sectors stock and bonds that give returns through increase in value as well as dividends or interest income.
It is mainly referred as buying and selling stocks, commodities, currencies, bonds and other financial instrument over shorter periods. The prime aim is to make profit from the short-term movement in prices of these securities. The role of the trader is to take advantage of volatility through the help of technical charts or analysis.
How to Open a HUF/Corporate/Partnership/NRI account?
In order to open an account, you need to enter the Pan Card, further check whether KYC is done or not. If KYC is done, then you need to enter some other details and upload the documents as per the given instruction. Afterward upload the e-signature image on the portal. In case if the KYC is not done, then you need to access your Digi Locker where all the relevant information is available. Afterwards, write down the other details and then upload the e-signature. In case if there is no digital signature, you can download the physical account forms from our website to open non individual or NRI accounts and send the completely filled forms to our mailing address.
Future and Options
What are futures contract?
Futures contract is mainly a contract between two parties, where both parties agree to buy or sell a particular asset of specific quantity at a predetermined price at a particular date in future.
What are the benefits of future contract?
Here are the benefits of future contract :
- It is more highly leveraged as given by the exchange.
- They ( traders ) are allowed to trade in large amount.
- It can also serve as a hedge in case a trader wants to lock in a certain price of a financial product today, or a certain profit in the case of arbitrage.
- They are highly liquid, hence there is a change that trader will take the price as they want.
- You don’t need to worry about closing your position on the given day.
- Costs are lower in future trading.
What are the options?
An option is basically a contract written by a seller that convey the buyers the right but not the obligation to buy or sell a particular asset. It can be used as a hedging by looking at the future direction of the market. There are mainly two types of options Call and Put. A call option gives the buyer the right but not the obligation to buy an asset at a fixed price at a particular date, Whereas A put option gives the right to buyer to sell an asset at a fixed price at a particular time.
What is an Index Option?
An index option gives a right to buy and sell of underlying index at a particular price at a particular date in the future.
What is Stock Option?
A stock option gives an investor the right but not the obligation to buy and sell a stock at a particular price at a specific date.
What is the buyer of options?
The buyer of the options is the one who by paying the option ( Call/Put) premium buys the right but not the obligation to exercise his option to the seller.
What is the Seller of options?
The writer or the seller of the option ( call/put ) is the one who receives the premium and hence bear an obligation to sell/buy the asset, if the buyer exercises on it.
What is a Call options?
A call option gives the holder the right but not the obligation to buy an asset by a certain date for a certain price.
What is a Put option?
A put option gives the holder the right but not the obligation to sell an asset by a certain date for a certain price.
What is the option price or premium?
It is the price which option buyer pays to the option seller. It is also referred as option price premium.
What is Expiration Date?
The date specified in the options contract is known as the expiration date or the strike date.
What is American Option?
It refers to contracts that give the investor the right to buy or sell a security at a certain price before expiry date.
What is European Options?
European options are exercised on the date of expiry itself.
What are Options Payoff?
When You buy an option then you get the right without any obligation and a put option is the right to sell without the obligation. Since the option loss is restricted to premium paid, the maximum loss is capped at that level. That’s the reason buying option can be lucrative. So, basically option payoff is profitability of the option under various conditions.
Trading with Gulaq
What is Ex-date and Record Date?
To determine whether you are eligible to get dividends, one need to look at two important dates i.e. Ex-date and Record date. When a company declares a dividend, it sets a record date when you must be on the company’s books as a shareholder to decide whether you receive the dividend. So, basically A record date is set by the board of directors of a corporation and refers to the date by which investors must be on the company’s books in order to receive dividend of policy statement. An ex-date is dictated by stock exchange rules and is usually set to be one day before the record date. Incase, If Anyone has purchased the shares before the Ex-date then he/she is eligible for the returns—irrespective of whether you sold your shares on or after the Ex-date.
What is SLB?
SLB stands for Securities Lending and Borrowing is a mechanism through which investors can borrow or lend shares to other market participants. This platform provides a viable alternative to derivatives market for the purpose of hedging. All market participants including retail in the Indian securities market have been permitted to lend/borrow securities only through an authorized Intermediary (AI).NSCCL (NSE clearing corporation) and BOISL (BSE clearing corporation) are the nodal agencies presently.
What is RGESS?
RGESS Stands for Rajiv Gandhi Equity Saving Scheme. It is mainly an equity tax advantage saving scheme for equity investor in India, with objectives of “ encouraging the saving of small retail investor into the domestic capital market . The scheme provides tax benefits to new investor who invested upto Rs 50,000 and whose annual income is below Rs 12 lakh. But in the union budget for 2017-18, the government has decided to end the Rajiv Gandhi equity saving scheme.
Brokerage and Trading
What is a lot size?
A lot is basically the standard number of units in a trading security. A lot basically represents the standardized quantity of a financial instrument as set out by an exchange or similar regulatory body. For example: Nifty future has a lot size of 50.
What are price bands and circuit breakers?
The price bands serve as a boundary for the stock’s trading, the exchange will not accept orders that are set outside the minimum and maximum of the price range. A circuit breaker is a regulatory instrument that halts the trading or an index for a certain period. They are triggered when a security experience a large percentage swing in either direction or a market index perform a huge decline. Most stocks on both exchange either NSE and BSE have an upper and lower price band. There are 5 categories of price bands with upper and lower price brand.
- A stock can have price bands of 20% either way, based on the previous day closing.
- A stock can have price bands at 10% either way, based on the previous day closing price.
- A stock can have price bands at 5% either way, based on the previous day’s clothing price.
- A stock can have prive bands at 2% either way, based on the previous day’s closing price.
What is the Nifty and the Sensex?
Nifty and Sensex are indices as they represent a group of top companies averaged out in a single number. Nifty is a benchmark of the 50 best companies in more than 20 sectors intensely traded by the public on the National Stock Exchange, Whereas Sensex is a benchmark of the top 30 companies of over 20 different sectors highly traded by the public on the Bombay Stock Exchange.
What is an Index?
An index is simply an average of a group of select stocks, Nifty is a weighted average of 50 stocks, meaning some stocks hold more value than other stocks.
What are other popular indices?
Apart from Indian indices, there are other popular indices such as Dow Jones is a popular index in US, while FTSE is most popular index in UK.
What is the value of the top 5 stocks in Nifty?
The market value of a stock is called the market capitalisation, that’s the total number of shares multiplied by the stock price. Here’s a list of top 5 stocks in Nifty according to market capitalization at the time of writing:
|Stock Company name||Market Capitalization|
|Reliance Market cap||874580.41 crores|
|HDFC Bank||667,980.27 crores|
Trading Hours for Different Segments
What are your trading hours?
The trading hours are critical for you to know since different segments have different timing. Be on the top of your trading game by knowing when to prepare, trade and shut down each day. It all depends on what segment you trade on.
For NSE Cash, BSE Cash, and NSE F&O the hours are 9:15 AM – 3:30 PM.
For NSE Currency Derivatives and BSE Currency Derivatives, the hours are 9:00 AM – 5:00 PM.
For MCX, there are two timings. The first one is 10:00 AM – 11:30 PM and it’s from April to October. The second one is 10:00 AM – 11:55 PM and it’s from November to March. On Saturdays, the market timings are 10:00 AM to 2:00 PM. Why are there two different timings? This is because of the practice of daylight savings time in North America.
special trading also takes places (such as Muhurat Trading around Diwali) which occur from time to time.
What are the Securities Transaction tax ( STT )?
STT or securities transaction tax is a tax levied on securities trades ( not on commodities on currency trades). Different STT rates are applicable for equity ( Cash ) and Future and Options ( F&O ) transactions. It is levied on trades on the NSE, BSE and other recognized stock exchanges. For Commodities (CTT ) is levied.
What is securities and Transactions tax on equity?
If the trade is an equity delivery trade, then a tax of 0.1% on the turnover is levied on both the buy side and sell side of each trade. But in case, if the trade is squared off ( closed ) with the same trading day, meaning it is an intra-day transaction, then the STT rate applicable is 0.025% on the sell side trades only.
What is STT on Futures and Options?
The rates for equity and Index futures trades is set at 0.01% on future sell side turnover. The rate applicable for equity and index trades is set at 0.01% on future sell side turnover.
Why do I get an SMS and Email from NSE, BSE when I trade?
NSE and BSE sent SMS and email to check unauthorized stock market trades and alert retail investors for their transactions on days they have traded.
Can I do an arbitrage trade between the two exchanges?
yes, you can do arbitrage trade between the two exchange, if you already have an account in your demat account. SO, for example if you held the ONGC stocks in your account, which is trading on NSE at 1000 and on BSE at 1004. So, you could sell it at 1004 on BSE and immediately buy it on NSE for 1000. This is the way to reduce the cost of your holding.
What does De-listing of stock mean?
The term delisting of securities means removal of securities of a listed company from a stock exchange. Those delisting of the securities would no longer be traded at the stock exchange.
Why is there a difference between last traded price and closing price on NSE?
The last traded price basically differs from the closing price of the day. That’s mainly due to the closing price of the day on NSE is the weighted average price of the last 30 minutes of trading. The last traded price of the day is actually last traded price. Due to this, the LTP will not match the close on the daily charts either.
Why is my order not getting executed even though it’s been placed successfully?
There are certain situations arises due to extremely bad news for the company regarding the company or due to the stock prices drop rapidly. In such a scenario, the stock hits the lower circuit limits continuously on a daily basis and no new trader or investor come to buy these shares. It mainly happens with penny stocks with no liquidity.
What are the different types of orders you can place on?
You can only place normal order with Gulaq.
AM I eligible for opening an account with Gulaq?
Individual, Hindu Undivided family, Proprietary firm or a company can open an account with the Gulaq.
What is a Portfolio tracker?
Portfolio Tracker helps an investor to find how well one’s shares are doing at a given point of time.
How Can I place an order under BSE?
Trader can add Shares in their watchlist after selecting the exchange as BSE.
How to update my new contact number?
In order to update your contact number, you need to forward an email to our support from your registered email address. Then, they will guide you about further procedures.
What is a Primary order?
It is an order which is placed to create a position is called primary/fresh order. These orders are all market orders.
Can I modify after placing the initial order?
Yes, you can modify after placing the initial order.
What is an Equity SIP Request?
Equity SIP request is an online instruction placed by you on to place buy orders in your account as per the details specified by you.
Does Gulaq support two factor authorisations?
Yes, Gulaq support two factor authorisations, it basically a security feature, where a customer needs to satisfy two authentication criteria in order to login into the system.
What is a primary order?
The fresh order that is placed to create a position is called primary/fresh order.These orders are all market orders.
What is Bottoming Out?
Stock Prices move in trends- an upward and a lower trend. But during the periods of bear markets, prices keep falling. After some time, there will come a time, when the market starts to look cheap. At this point they will start to rise again as people start buying slowly. The phenomenon when the market free fall ends and the rise again is called bottoming out.
What are the charges for Account closure?
There is no charges for Account closure.
Do I need to have money before buying of shares?
Yes, you need to have money in your trading account before placing an order.
Common terms used in the Trading Process
What is a Bid?
The bid is the amount, investor is willing to pay per share for the stock. It’s balanced against the risk price.
What is an Offer?
It is the lowest price which a seller is willing to accept for a stock.
What is a Market Order?
An order to buy and sell a specified number of shares at the best available price at the time the order is received on the exchange floors.
What is a Limit Order?
An order for which you request a specific price at which transaction may be executed.
Do You provide Advisory services?
Yes, we do provide advisory services to our customers.
Investment Ready in 30 Seconds.
Gulaq provides you the simplest and an easiest way to invest. It has no commission, no account fees, no hidden charges as well as you can be investment ready in less than 30 seconds. Our platforms provide the most user-friendly experience.
Investments in Mutual fund & Securities Market are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Terms and conditions of the website are applicable.
Gulaq Registered Office
Estee Financial Services Pvt. Ltd. (hereinafter referred to as “EFSPL”) Formerly Estee Commodities Pvt. Ltd ( hereinafter referred to as “ECPL”), 7th Floor, Block 1, Vatika Business Park, Sohna Road, Sector 49, Gurugram, Haryana 122001.
Estee Advisors Pvt Limited (hereinafter referred to as “EAPL”) is registered with the Securities and Exchange Board of India as Stock Broker with registration number INZ000170130 and registered with BSE Star with code 24408 for mutual fund transaction facility. EFSPL and EAPL are group companies and EAPL is authorized to provide its services to the Users on the Gulaq website/app under a Sub-distribution agreement with EFSPL.
Complaints & Grievances
In case of any grievances/ complaints please write to us [email protected]
Mutual fund investments are subject to market risks, read all scheme documents carefully.