ICICI Securities launches bullet trade brokerage scheme

COIMBATORE: ICICI Securities has announced the launch of ‘bullet trade’ on www.icicidirect.com, a brokerage plan where customers will pay zero brokerage for trades squared off in five minutes.
“Bullet trade brokerage scheme is the first of its kind scheme where customers trading in derivatives will pay no brokerage for their five minutes trades,” ICICI Securities said.
This scheme is available with life-time pre-paid brokerage plan offered by ICICIdirect. A large body of empirical research was conducted by ICICI Securities over 10 years across its 3.5 million customers to understand the emerging trading behaviours.
"We have been consistently using big data analytics to get a deep understanding of customer behaviour. We have observed that there is a trend emerging where customers are quickly entering and exiting trades in a disciplined manner,” said Vishal Gulechha, head, equity, ICICI Securities.
“They are making their moves in small movements of their stocks, underlying contracts. This kind of disciplined trading without being emotionally attached to the trading position results in overall better experience while trading in derivatives,” he said.
“It has been our aim to protect the interests of our customers and fostering a disciplined approach using technology and products. In an online world, the customer is glued to his/her positions and small movements are enough if capitalised,” Gulechha said. “At times opportunity is small and for very short term. If the customer takes into account the brokerage element, it may become unprofitable proposition and such opportunities are left un-capitalised,” he said.
“We believe that the bullet trade will help our retail customers trade in a disciplined manner. They can benefit with very small movements (in stock prices) now,” Gulechha stated.
“This scheme will also attract a wide segment of jobbers who don't have to pay any brokerage and can trade at the convenience of their homes,” he said.