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HDFC Securities Limited is a trusted and reliable name in the stock broking industry. There are many reasons which make HDFC Securities a trustworthy broker including two decades of industry experience, strong parent company, lower complaints to active client ratio, a public traded shares, zero promoter pledge, growth, and technology-focused company,
HDFC Securities is a SEBI registered broker. It is also a member of NSE, BSE, and MCX. The transactions of HDFC is monitored by all the stock exchanges and SEBI. Till June 2020, no major violations have been reported against HDFC Securities.
HDFC Securities has completed more than 20 years in India and has branches in all the major cities and towns across India. As of 31st March 2020, HDFC Securities has a total of 262 branches across 161 major cities in India along with the major digital platforms to reach maximum customers.
About HDFC Securities
Here are the facts you should know about HDFC Securities:
- Part of HDFC Bank, India's 2nd largest private sector bank.
- Leading broker in offering comprehensive online trading portal services
- More than 2 decades of industry experience
- In-house developed trading platforms
- Offers 3-in-1 account
- Offers IPO and Mutual Fund services
Why HDFC Securities is safer than other brokers?
1. Strong Parent Company
HDFC Bank is a parent company of HDFC Securities and has the largest market capitalization as of March 2020. Considering assets, it is one of the leading private sector banks in India. HDFC Securities cross-sell its products to a huge customer base of HDFC bank customers. The broker is also benefitted from the brand appeal of the HDFC bank.
2. Zero Promoter Pledge
As of May 2020, HDFC Bank has a zero promoter pledge and has no shares of promoters are collateral against loans. Generally, a high promoter pledge raises questions on the financial health of the company.
3. Good Financial Performance
HDFC Securities is a subsidiary of HDFC Bank and one of the growth-focused brokers in India. The total income of HDFC Securities is Rs 862 cr and has excellent CAGR growth of 21% in revenue in FY19-20. The broker has given an interim dividend of Rs 135 per share in the financial year 2019-20.
4. Technology Focused Company
HDFC Securities offers both online and offline services to the clients. For online trading, it has a range of technology-focused software to make trading easy for customers. As per customer requirements, they can choose from the web-based platform, Proterminal, mobile trading app, Blink, Arya, and Dignify trading tools.
5. Profit Making Company
HDFC Securities is a profit-making company and has shown continuous profits over the last 5 years. Profit after tax till 2020 was Rs 509 cr. In the last five years, it has shown a massive CAGR growth of 30% in PAT (Profit after Tax).
6. Offline Network (in-person service)
HDFC Securities has a strong network of more than 260 branches across 185 cities in India. The offline presence of the broker increases in-person service access for the clients.
7. Lowest Complaints to Active Clients Ratio
HDFC Securities has a lower complaint to active client ratio. The lower complaints against the broker indicate good customer support and services offered by the company.
HDFC Securities Risks
HDFC Securities is a safe broker considering the above points. But there is some risky proportion as well. Consider these points as well before deciding HDFC Securities is safe or not in your terms:
1. Proprietary Trading
HDFC Securities does proprietary trading which makes it a risky broker as compared to the broker not offering this facility.
2. Power of Attorney
The brokers offering power of attorney to the customers can misuse the holdings in the Demat account without prior permission of the client. The customers with HDFC Securities have to provide the power of attorney to the broker.
HDFC Securities Memberships
HDFC Securities is a SEBI authorized broker and a member of stock exchanges (NSE, BSE, and MCX) in India. All the brokers in India are SEBI registered and have to follow the guidelines aligned by the authority. HDFC Securities is a depository participant with NSDL and CDSL.
HDFC Securities memberships details:
- SEBI Registration No.: INZ000186937
- NSE Trading Member Code: 11094
- BSE Clearing Number: 393
- MSEI Trading Member Code: 30000
- MCX Member Code: 56015
- CDSL DP ID: 12086700
- NSDL DP ID: IN304279
- AMFI Reg No. ARN -13549
Conclusion
HDFC Securities is a safe, reliable, and trustworthy full-service broker. It is a listed company with BSE and NSE. It has the strong support of HDFC Bank. Considering the last 5-years' performance, it is a growth-oriented and profit-making company. However, you may have to consider brokerage plans, power of attorney, and proprietary trading terms before investing with HDFC Securities.
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Frequently Asked Questions
1. What does HDFC Securities do?
HDFC Securities is a stockbroker and distributor of financial products and services across India. It is also a depository participant with NSDL and CDSL and offers Demat account-related services. It allows investing in equity, derivatives, bonds, commodities, mutual funds, and IPO.
2. Is HDFC Securities good for trading?
HDFC Securities is a good stockbroker for naive and long term investors. It has a percentage-based brokerage model. For intraday and experienced traders, they may find charges quite high. The research services of HDFC Securities are also good and can help investors who need proper advisory.
3. Is HDFC securities safe?
Yes, HDFC securities is a safe and trusted brokerage firm in India.
HDFC Securities is a subsidiary of HDFC bank, one of the top private banks in India. The company provides both online and offline services through its branches. HDFC securities offer 128-bit encryption technology on transactions for secured trading. The company has a low complaint to active client ratio and has been registering good profit and revenue numbers continuously.
Moreover, HDFC Securities is registered and governed by SEBI and a member of BSE, NSE, MCX, NSDL, and CDSL.
4. What is hold in HDFC securities?
Hold Transfer Release in HDFC Securities is a feature that debits funds from your HDFC Bank account only when the trade gets executed and does not require you to maintain excess funds in your trading account.
Hold Transfer Release feature ensures that the excess funds lie in your Bank account and earn interest. This feature is applicable for HDFC Bank Power of Attorney registered customers. It also allows automatic credit of sale proceeds to HDFC Bank account on T+2.
Zerodha (Trade with the best stock broker)
Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.
Read more about HDFC Securities
- HDFC Securities Review - A Detail Analysis of HDFC Securities
- HDFC Securities Brokerage Charges, Fees, AMC, Transaction Charges
- HDFC Securities Ltd FAQs
- HDFC Securities Demat Account Review
- HDFC Securities Mobile App
- HDFC Securities Account Opening Process Review
- HDFC Securities Branch Offices / Sub Brokers / Franchise
- Apply in IPO through HDFC Securities
- HDFC Securities Trading Software Review
- HDFC Securities NRI Account Review
- HDFC Securities Mutual Fund Review
- Is HDFC Securities safe?
- HDFC Securities Complaints Analysis
HDFC Securities Competitors Review
Information on this page was last updated on Wednesday, January 11, 2023
Zerodha (Trade with the best stock broker)
Special Offer - Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.
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