Motilal Oswal Review: Motilal Oswal Securities Limited, incorporated in 1987, is a Mumbai-based diversified financial services firm.
The company offers services in several segments, like:
- Equities
- Derivatives
- Commodities
- Currency
- IPO
- Private Wealth Management
- Investment Banking
- Mutual Funds.
Motilal Oswal has a much-diversified client base that includes retail customers, high net-worth individuals, foreign institutional investors, and financial institutions, including small and large companies.
How Was Motilal Oswal Started?
Mr. Motilal Oswal and Mr. Ramdeo Agrawal are the pioneering entrepreneurs in the financial services as well as the two big names in the Indian stock market who have tried to focus their motive on providing high-quality research-based stock recommendations to their clients.
The two classmates, while studying for their Chartered Accountancy course, thought of the idea of starting their own sub-broking firm.
According to Motilal Oswal, Ramdeo was a genius as he was always into reading balance sheets and was good in studies as well.
While planning to open their own firm, they faced a challenge at that time because the entire broker market was ruled by Gujarati brokers. Soon, they somehow managed to get registered as a sub-broker and started from zero.
The main focus of both of them was to “thoroughly study the markets and the companies and then eventually provide recommendations and tips to their clients.”
During that time, they were both considered important assets of the firm as the majority of clients relied on them. Ramdeo was considered the “Warren Buffet of India” because he had in-depth research and analytical skills.
The company, after its establishment in 1987, is not new in the entire country. The company provides its services across multiple stock exchanges like BSE, NSE, MCX, NCDEX, and MSEI.
The company is also a depository participant in both Central Depository Services Limited (CDSL) and National Depository Services Limited (NSDL). The company also offers the trade of gold through their Gold Accumulation Plan (GAP).
How does Motilal Oswal work?
The company invests nearly 10% of its profit in its research and analysis sector. The research team works on the analysis of large and mid-cap stocks as well as engages in technical analysis.
The research of any company is done using the QGLP formula, which stands for Quality, Growth, Longevity, and Price. Through this, the company has already published 30,000 research reports on over 260 companies spread across 21 sectors around the country.
The reports won the best analyst award all over India in the information technology (IT) and fast-moving consumer goods (FMCG) sectors by Zee Business.
Different types of accounts as offered by Motilal Oswal:-
The company offers 3 types of accounts:-
| Default Account | For casual traders and long-term investors. This account offers investments in equity, derivatives, commodity, IPO, currency, etc. |
| Value Pack | For frequent traders who trade on daily basis. It is a subscription scheme where a customer can choose and enjoy the benefits of trading at reduced charges. |
| Margin Pack | For frequent traders who trade on a daily basis. It is a subscription scheme where a customer can choose and enjoy the benefits of trading at reduced charges. |
Motilal Oswal Account Opening:-
The fastest and easiest way to open a Demat account with Motilal Oswal is online. The account can be opened in a maximum of 15 minutes if your mobile number is linked to your Aadhar card.
All you need to do is to scan the following documents and upload them on the webpage of Motilal Oswal:-
- PAN Card
- Aadhar Card
- A photo of your signature is done on white paper.
- Photograph in passport size
- If you want to trade futures and options, you must have a cancelled cheque or passbook.
The firm charges the following amount during the account opening process:
| Trading Account Opening | Rs. 1000 (single time) |
| Trading Account Annual Maintenance Charges (AMC) | Rs. 0 |
| Demat Account Opening | Rs. 0 |
| Demat Account Annual Maintenance Charges (AMC) | Rs. 299 |
Trading platforms used by Motilal Oswal:-
For trading, the firm uses several platforms:-
1. Motilal Oswal Review about Desktop Application:
The company provides the software that needs to be installed. This application is suitable for traders who need quick execution.
Some cool features of this application are as follows:
- It provides access to more than 30,000 reports.
- Quick, i.e., 1-second refresh rate
- Signals for buying and trading are auto-generated.
2. Motilal Oswal Review about Mobile Application:
This application is suitable for customers who travel a lot because this entire trade setup is inbuilt into a single pocket-friendly device.
Some of the main features of this application are as below:
- The fund’s transfer facility is linked up with more than 60 banks.
- Continuous monitoring of the real-time portfolio
- Multiple asset watch lists with real-time quotes
- secure mobile trading experience with a single login.
3. Motilal Oswal Review about Smart Watch Application:
With this, customers can simply wear the watch and get instant notifications, enabling the user to have a very different kind of experience.
Some of the salient features of this application are given below:
- Position updates
- Global indices, market top gainers, and losers are all available in real time.
- Checking margins in both the cash and commodities segments
- Access to the portfolio across the entire range of asset classes
4. Motilal Oswal Review about Trade:
This is simply a browser-based trading platform where there is no requirement to download any application.
The customer can easily access this platform from anywhere with a good internet connection.
Brokerage charges that Motilal Oswal charges:-
The entire brokerage scheme of Motilal Oswal is classified into 3 segments.
They are as follows:
Default Brokerage Plan:-
This is a very basic plan and is useful for casual investors in the stock market.
This plan includes access to research and advisory services, as well as free online trading software.
The brokerage in this plan is the highest.
| Segment | Brokerage |
| Equity delivery | 0.50% |
| Intraday cash or future- Equity or Commodity | RS. 100 per lot (both sides) |
| Options- Equity | RS. 20 per lot (both sides) |
| Currency F & O | RS. 20 per lot (both side) |
Value Pack Scheme Detail:-
This plan is a prepaid brokerage plan, which offers cheaper brokerage when you pay upfront fees.
This plan is for active traders and includes 7 options available starting from Rs. 2500 to Rs. 1 lakh.
| Segment | Brokerage |
| Equity delivery | 0.10% to 0.40% |
| Intraday cash or future- Equity or Commodity | RS. 20 to RS. 50 per lot (both sides) |
| Options- Equity | RS. 10 to RS. 22 per lot (both sides) |
| Currency F & O | RS. 10 to RS. 22 per lot (both side) |
Motilal Value Pack Scheme Detail: – (everything in RS.)
| Scheme Name | VP2KLT | VP3KLT | VP5KLT | VP10KLT | VP30KLT | VP50KLT | VPILACLT |
| 0.40% (min 2 paise) | 2500 | 3000 | 5000 | 10,000 | 30,000 | 50,000 | 100,000 |
| Validity | Lifetime | Lifetime | Lifetime | Lifetime | Lifetime | Lifetime | Lifetime |
| Account Opening Fee | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Demat Account AMC (1st year free) | 299 | 299 | 550 | 550 | 550 | 550 | 550 |
| Delivery brokerage | 0.35% (min 2 paise) | 0.30% (min 2 paise) | 0.30% (min 2 paisa) | 0.25% (min 1 paisa) | 0.20% (min 1 paisa) | 0.15% (min 1 paisa) | 0.10% (min 1 paisa) |
| Intraday Futures (Equity & Commodities) (both sides) | 0.040% (min 1 paisa) | 0.035% (min 1 paisa) | 0.30% (min 1 paisa) | 0.025% (min 1 paisa) | 0.020% (min 1 paisa) | 0.015% (min 1 paisa) | 0.010% (min 1 paisa) |
| Options (Equity) (both sides) | 0.040% (min 1 paisa) | 0.035% (min 1 paisa) | 0.30% (min 1 paisa) | 0.025% (min 1 paisa) | 0.020% (min 1 paisa) | 0.015% (min 1 paisa) | 0.010% (min 1 paisa) |
| Options (currency) (both sides) | 50 per lot | 45 per lot | 40 per lot | 30 per lot | 25 per lot | 25 per lot | 20 per lot |
| Options (currency) (both side) | 22 per lot | 20 per lot | 18 per lot | 15 per lot | 12 per lot | 12 per lot | 10 per lot |
Margin Scheme Details:-
This scheme is for frequent traders.
The brokerage charges in this plan continue to decrease as you commit more margin money to your trading account.
| Segment | Brokerage |
| Equity delivery | 0.15% to 0.50% |
| Intraday cash or future- Equity or Commodity | RS. 25 to RS. 100 per lot (both sides) |
| Options- Equity | RS. 20 per lot (both sides) |
| Currency F & O | RS. 20 per lot (both side) |
Motilal Margin Scheme Details: – (everything in RS.)
| Scheme | Margin RS 10 to 24,999 | Margin RS 25,000 to 49,999 | Margin RS 50,000 to 99,999 | Margin RS 100,000 to 299,999 | Margin RS 300,000 to 499,999 | Margin RS 500,000 |
| Equity delivery brokerage | 0.40% (min 3 paise) | 0.30% (min 3 paise) | 0.25% (min 3 paise) | 0.20% (min 2 paise) | 0.20% (min 2 paisa) | 0.15% (min 1 paisa) |
| Equity intraday Cash & Future (both side) | 0.05% (min 5 paisa) | 0.04% (min 4 paisa) | 0.03% (min 3 paisa) | 0.025% (min 2 paisa) | 0.02% (min 2 paisa) | 0.015% (min 1 paisa) |
| Options | 100 per lot | 75 per lot | 70 per lot | 50 per lot | 40 per lot | 25 per lot |
| Currency Futures & Options | 20 per lot | 20 per lot | 20 per lot | 20 per lot | 20 per lot | 20 per lot |
Motilal Oswal Demat Account Charges:-
The firm has a separate list of charges for its demat customers.
| Particulars | Charges |
| Account Maintenance Charges (AMC) | 550 |
| Account Administration Charges (AAC) | 199 |
| Advance | 0 |
| Demat transaction charges (outside Motilal oswal) sell only | 30 or 0.03% (whichever is higher) |
| Demat transaction charges (outside Motilal Oswal) sell only | 40 or 0.04% (whichever is higher) |
| Dematerialization | 50 per request + 50 per certificate |
| Rematerialization | 35 per certificate |
| Pledge, Unpledged, Closure, Invocation | 35 or 0.02% (whichever is higher) per ISIN request |
Margin Oswal Margin Exposure:-
The firm’s margin for intraday trading is up to 20% of trade value based on the stock.
The intraday margin is 1.3 times across equity, currency, and commodity trading on the BSE, NSE, and MCX.
| Segment | Margin | Leverage |
| Equity Delivery | 100% of trade value | 1x |
| Equity Intraday | Up to 20% of trade value | 5x |
| F & O (equity, currency, and commodities) | 100% of NRML margin (span + exposure) | 1x |
Trading and Investing have the following unique characteristics:
The firm has a vast series of features in terms of trading and investing. A few of them are as below:
- The stock advisory experts provide the clients with valuable recommendations and tips on which the clients can rely completely, and there are hardly any chances of disappointment.
- The platform is quite easy to access, which is helpful to new investors.
- The Portfolio Management Services of the firm are very innovative and have led to a very eclectic benchmark since its beginning.
Motilal Oswal Review about Other Charges:-
Several other charges as laid down by Motilal Oswal are as follows:
| SEBI Turnover Charges | 0.00005% |
| STT | Equity Delivery: 0.1% on both buy and sell Equity Intraday: 0.025% on the sell side Equity Futures: 0.01% on the sell side Equity Options: 0.05% on the sell side (on premium) Commodity Futures: 0.01% on the sell side (non-agri) Commodity Options: 0.05% on the sell side Currency F & O: no STT On Exercise Transaction: 0.125% Right to entitlement: 0.05% on the sell side |
| Stamp Duty | (On buy side only) Delivery: 0.015% Intraday: 0.003% Equity Futures: 0.002% Equity Options: 0.003% Currency F & O: 0.0001% Commodity Futures: 0.002% Commodity Options: 0.003% (MCX) |
| GST | 18% on brokerage + transaction charge + SEBI fee |
| Margin funding charges | 75% margin |
| Reactivation Charges | 150 per request |
| Margin Pledge/ Unpledge/ Pledge Closure | 35 or 0.02% (whichever is higher) as per ISIN request |
| Margin Repledge | 15.5 + 15.5 (31) per script |
Motilal Oswal Pros and Cons:-
The firm has its own advantages and disadvantages.
Advantages:
The following are the main pros of the firm:
- Trading software for free
- Fund transfer is linked with more than 60 banks.
- a wide range of investment choices.
- Free research and advisory services
- The franchise network is spread across the country.
Disadvantages:-
The following are the main cons of the firm:
- Several hidden fees
- The application does not offer direct investment.
- They also lack customer service.
- The firm does not offer 3-in-1 tradings.
Conclusion:
Motilal Oswal has a very diverse customer base, and here we have tried to cover all the segments linked to the firm.
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