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Fyers Single Margin Account
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Margin
Fyers, a discount broker headquartered in Bangalore, has launched a new product named – Fyers Single Margin Account. Many among you might be wondering what is it?
Well! We understand your curiosity and come up with the detailed review of the new margin trading account. But before that, you must know about the broker in brief.
Fyers is a newly SEBI registered broker, a depository participant with CDSL, and one of the best discount brokers in India. It is a member of NSE, BSE, and MCX. Due to its varied membership, it facilitates its customers to trade in multiple financial securities.
They are:
- Equity
- Currency
- Commodity
- IPO
- Derivatives
- Mutual Funds
With the conclusion of this brief discussion, let’s jump to Fyers Single Margin Account without any delay.
Fyers Single Margin Account Meaning
Now as already discussed, the broker provides an option to trade in different segments, and to make trading easy and more profitable, it provides different margin account.
In general, brokers generally provides two different margin account to trade in equity and commodity segment.
Earlier there were two different limits for both the account but with the new Single Margin Account it is now possible for traders to trade in all the segment with a single limit.
In short, a single margin account helps to trade in all the trading segments with a single limit.
How Fyers Single Margin Account Works?
It is no surprise to guess the answer to this question. Previously, the trader or investor had to maintain a balance in either of the accounts to trade hassle-free. Now, you can have balance in multiple accounts and still trade without fund transfer.
How? Let’s explain this with an example.
Rahul is a trader in the equity and commodity segment. He transferred ₹50,000 into his capital account for availing of the margin facility in the equity segment. In this scenario, he won’t be able to use this amount for the commodity segment.
Now let’s suppose that meanwhile he found a profitable trading option in the commodity segment. In that case, he’ll have to transfer separate funds or withdraw from the capital account, get it credited in the bank account and then retransfer into the commodity segment.
Undeniably, this process was time taking and inefficient. Also, it charges certain fees to transfer funds from one account to another.
To cut down on the inconvenience, a Fyers single margin account has been developed. This account helps in maintaining the trader’s funds in one place and facilitates trading in all segments. It is expected to increase the efficiency and speed of trading.
Therefore, with Fyers single margin account, Rahul can transfer ₹50,000 and use it for any financial instrument.
What Happens To The Current Margin Accounts?
To answer this question in one word – Nothing.
The current accounts have the Capital and Commodity segment accounts. So, there will be one limit for both of them, even if the funds are in either of them.
For instance, if you have ₹10,000 in the capital segment account and ₹70,000 in the commodity segment account, the funds available in your account would be ₹80,000.
Fyers Single Margin Account Operational Changes
A few changes in the operations will be made for the Fyers single margin account. They are listed below:
- The withdrawal procedure will have a single ledger with no alterations in the process.
- There will be no bifurcation in the Capital and Commodity segment funds.
- On working days, the payout will be processed at 7:30 AM sharp. For requests placed before 7:30 AM, they will be executed the same day. In case you place a request after 7:30 AM, they’ll be processed the next day.*
- Since the process of fund transfer is the same, you’ll be shown only one account instead of two.
*As the payouts are done after the execution of all trades, backend processes are concluded, and MCX is closed.
Fyers Single Margin Account Advantages
There is no denying that the Fyers single margin account is highly advantageous. These advantages are listed below:
- The traders and investors have been relieved of the worry about funds and given more time to focus on the opportunities in the market.
- Availing the facility of margin trading has been made hassle-free with no withdrawals and fund transfer from one account to another.
- Trader saves the additional charges levied on these recurring transactions of fund transfer.
- The possibility of a delayed fund transfer from one account to another is eliminated.
- The trader or investor has a unified trading experience irrespective of the trading segment as they don’t have to maintain funds in both the margin accounts.
Why Fyers is Eligible for Single Margin Account?
You must be surprised to know that only Fyers Securities has this facility of the single margin account. Do you know why?
We’ll tell you!
Almost every broker is registered as a separate business entity with MCX. This registration does not allow the interchanging of funds between two companies because of compliance issues.
This issue is existent as, before 2015, commodity markets had Forward Market Committee as its regulating body.
Fyers Securities is among the exceptional brokers who are registered as the same business entity with NSE, BSE, MCX, CDSL DP. This brings better transparency to the regulators and increases the number of clients.
Further, with funds locked in multiple accounts, brokers get extra money to use as the funds are anyway idle. These idle funds help the broker houses to provide higher leverage, but this isn’t favorable for the clients.
Thus, Fyers Single Margin Account is a win-win situation for the investors and traders.
To reap the leverage of margin funding, open a Free Demat Account now. Just fill the form below and a call back is arranged for you in no time.
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