ICICI NRI Trading Account

As the Government of India has allowed NRIs to participate in Indian Equity trading, more and more NRIs are investing their money in India. As such, people interested to open their demat account with ICICI Direct, many of such investors are curious about ICICI NRI trading account charges. Therefore, we will discuss them in detail in this review here.

ICICI NRI Trading Account Review

ICICI Direct offers a 3-in-1 trading account to NRIs. For trading in the Indian equity market, an NRI needs three types of bank accounts. These are NRE/NRO account, an NRI Demat Account, and an NRI Trading Account.

An NRI can offer all of these in ICICI Direct through ICICI direct trading account opening. The advantage of opening all these accounts in a single bank is that the transactions are seamless.  You can use a single platform to solve all your trading purposes.

ICICI NRI Trading Account Charges:

ICICI NRI trading account charges a one-time fee for investment account opening. This fee is called e-invest account opening charges. E Invest Account opening charges for ICICI Direct are ₹4000.

ICICI NRI Brokerage Fee:

The equity delivery brokerage fee for ICICI NRI Trading Account is divided into various slabs.

The first slab is for trades up to ₹5 Lakh. For this slab, the broker charges a brokerage fee of 1.25%.

The second slab is for trades above ₹5 Lakh and up to ₹10 lakh. For this slab, the broker charges a brokerage of 1%.

The third slab is for trades above ₹10 Lakh and up to ₹25 lakh. For this slab, the broker charges a brokerage of 0.9%.

The fourth slab is for trades above ₹25 Lakh and up to ₹50 lakh. For this slab, the broker charges a brokerage of 0.75%.

The last slab is for trades above Rs ₹50 lakh. For this slab, the broker charges a brokerage of 0.50%.

As you can see, the higher the amount of trades, the lesser brokerage is charged in ICICI NRI trading account. Here is a quick summary for your reference:

For trades in the NSE, the brokerage is counted on a per-share basis. This figure is generally rounded off to the fourth decimal place.

For trades in the BSE, the brokerage is counted on a per-share basis as well. However, it is rounded off to the second decimal place.

Additionally, ICICI NRI trading account charges a service tax of 14% of the brokerage. The service tax is also calculated on a per-share basis. It is rounded off to the fourth decimal place.

There are a couple of additional charges as well. Securities Transaction Tax (STT) Equity will be charged too. This fee is 0.1%. To calculate STT, the weighted average price of the client for a particular day is taken into account. It is rounded off to the second decimal place.

Further, a transaction charge of 0.0025% is charged for a turnover in BSE. For a turnover in NSE, 0.0035% transaction rate is charged. The transaction charge is calculated per share and it is rounded off to the fourth decimal place.

Stamp duty is charged as well. It is 0.01% for delivery based trades and 0.002% on non-delivery based trades. It is calculated per share and rounded off to the fourth decimal place.

The total value of brokerage and service tax is calculated by taking the price of one share up to four decimal places and multiplying it by the total number of shares. The total value is rounded off to two decimal places.

The minimum brokerage in an ICICI NRI trading account charged per trade would be ₹75. The minimum value of brokerage accepted is ₹200. This brokerage includes bank charges for Portfolio Investment Services. It also includes postage charges and Demat market transaction charges.

In case the total amount of transactions (buy + sell) is more than ₹5 Lakh in a month, next month’s commission would lower by 25 basis points. It would come down to 1%.  

However, in case that the NRI makes a transaction of less than or equal to five lakh in the second month, the commission rate would increase again to 1.25% (up by 25 basis points).

For example: for the first month, you will start with a brokerage rate of 1.25%. Suppose that you make a transaction of ₹13 Lakh in the first month. The brokerage for the second month would be lowered to 0.90%.

If in the second month you make a transaction of ₹7 lakh, the brokerage for the third month would increase to 1%.

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ICICI NRI Demat Account Fee:

There are no charges for opening a Demat Account. The various fee and taxes related to the account vary for domestic communication address and foreign communication address provided by the NRI.

The NRIs have to pay Annual service charges for their account. For the first year, these charges are paid at the time when you open the account. For every year thereafter, the charges are to be paid in the same month in which the account was opened.

For domestic communication address, this charge is ₹500. If they opt to receive statements by email, this charge is ₹450. For foreign communication address, this charge is ₹1200. If they want to get statements by email, it is ₹1150.

The fee of agreement stamp paper is ₹100. This is the same for any type of communication address.

Then there is a sell market and off-market fee head. It is charged at 0.04% of the transaction value of each ISIN. The minimum amount for this is ₹10.

For rejections or fails, a fee of ₹30 is deducted. This is the same for any type of communication address.

For each request form, a dematerialization fee of ₹35 is deducted. The NRI needs to pay ₹2 extra for each certificate. A rematerialisation fee of ₹20 is charged as well.

There is a charge of ₹350 for postage of items like booklets, security certificates, etc.

There are no charges for account closure.

Here is a quick summary of all the Demat related charges in the case of ICICI NRI trading account:

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NSDL Charges:

For sell market and off-market, a fee of ₹5 per debit instruction is charged. For short term debit papers and commercial instruments, this fee is zero.

A rematerialisation fee of the lower value of – ₹10 per certificate or ₹10 for every 100 securities is deducted.

A pledge creation fee of ₹25 per instruction is charged as well in this ICICI NRI trading account.

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ICICI NRI Futures Brokerage:

When it comes to futures trading, it really depends on the overall turnover you bring and the brokerage rate is correspondingly decided in the ICICI NRI Trading Account:

For a turnover above ₹20 crore, a brokerage of 0.03 % is charged.

For the slab between ₹10 crore and ₹20 crore,  a brokerage of 0.035% is charged.

For the slab between ₹5 crore to ₹10 crore, a brokerage of 0.04% is charged.

For turnover of less than ₹5 crore, brokerage of 0.05% is charged.

Brokerage fee for the first month of the futures brokerage will be always charged at 0.05%. The brokerage fee for the second month will be decided based on the turnover for the first month, and so on.

Here is a quick look at these values:

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ICICI NRI Options Brokerage:

As far as the options trading is concerned, here are the different slabs based on the monthly premium:

For a monthly premium value less than ₹5 lakh, a flat brokerage fee of ₹95 is charged per contract.

For a monthly premium value over ₹5 lakh but less than ₹10 Lakh, a flat brokerage fee of ₹85 is charged per contract.

For a monthly premium value over ₹10 Lakh but less than ₹20 lakh, a flat brokerage fee of ₹75 is charged per contract.

For a monthly premium value above ₹20 lakh, a flat brokerage fee of ₹70 is charged per contract.

Brokerage fee for the first month of the options brokerage will be always charged at ₹95 per contract. The brokerage fee for the second month will be decided based on the turnover for the first month, and so on.

Here is the summary:

 

We hope this ICICI NRI Trading Account Charges will solve any query you have related to the fee structure. If you want to know more, feel free to contact us.

In case you are looking to open a demat account, let us assist you in taking the next steps forward. Just fill in some basic details in the form below and we will take care of the rest:

 

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If you wish to learn more about NRI Trading, here are a few references: