Q. What is Advance Brokerage?
Ans. As you are aware to facilitate your stock market transactions, usually there is a certain brokerage fee that is levied. This fee is charged as a percentage of your trade value or depending on the size and type (delivery/intraday/futures/options) of the transaction. As a consistent investor in the stock market you conduct many transactions on a daily basis. To ensure you to trade consistently without the hassle of brokerages being charged daily on each transaction day EWAL has introduced The Advance Brokerage Plans which rewards your steady trading.
Q. How does it work?
Ans. It works just like the prepaid scheme of the mobile phones. You pay a certain amount to top up your phone under a certain plan, and the balance is deducted as per your usage according to the rates that apply to your chose plan. So if you choose the plan (see Plan schedule given in the next question) where the Advance Brokerage is INR 50,000, then this money will be used for the Brokerage (and STT, Stamp duty, SEBI turnover charges, Service Tax etc) of the client. Moreover the higher the Advance Brokerage, the lower will be the rates applicable to the client.
Q. Are we paying a fee to get the lower rates?
Ans. No. This is not a fee charged by EWAL. This money will be used only and only for the transaction made by the client. The money is for the client’s Brokerage and other SEBI and government charges. It is not a fee that is paid by him.
Q. What is the amount of subscription?
The subscription amount available in these plans are Rs.5000, Rs.10000, Rs.25000, Rs.50000, Rs.100,000. Please refer to the schedule given below for more details:
|Subscription Amount||Plan Tenure||
Brokerage Slab Applicable
|Delivery||Intraday Cash||Futures||Options (Per Lot)|
|Rs. 5,000||3 Years||0.20%||0.02%||0.02%||INR 20|
|Rs. 10,000||3 Years||0.15%||0.015%||0.015%||INR 15|
|Rs. 25,000||3 Years||0.10%||0.01%||0.01%||INR 10|
|Rs. 50,000||3 Years||0.08%||0.008%||0.008%||INR 8|
|Rs.100,000||3 Years||0.05%||0.005%||0.005%||INR 5|
Q. Benefits of advance brokerage?
Ans. Benefits are :
- It offers you low brokerage rates as compare to regular rates
- Valid for 3 years
- Encourage you to maintain consistency in trading
- We are not taking any fee for activating this plan
- Brokerage charges narrows your profits. The Advance Brokerage plans help you reduce your costs and maximize your returns
- Reversal would be done on monthly brokerage generated
Q4. How can I apply for the plan?
All existing clients as well as new clients of the firm are allowed to subscribe to these Advanced Brokerage Plans. To subscribe the clients (prospective clients) have two options:
They need to contact their Relationship Managers and request to activate the plan. For this they need to fill a one page application and credit the advance brokerage payment to EWAL’s account. Instead of the relationship manager, the same may also be requested to their assigned equity dealer, and the dealer will proceed with the formalities.
Q. What are the modes of payment for the Advance Brokerage Account?
Ans. The client has the following options to make the payment:
- Cheque: Drawn in favor of Elite Wealth Advisors Ltd.
- Authority Letter provided by client to debit sum from his/her Trading Account.
- NEFT Transfer
Account Name: Elite Wealth Advisors Limited
- Account Number:
- IFSC Code:
Q. How the Reversal Amount in Advance Brokerage Product is calculated?
Ans. Advance fee reversible is up to the plan value of your opted product. This means is that if the client chooses the plan with the advance brokerage as INR 50,000 where he will be charged 0.10 (delivery) and 0.01 (intraday and futures), then each deduction depending on the type of transaction (intraday/futures/delivery) and the size of transaction will be adjusted from the INR 50,000 at the prescribed rates under the plan. The applicable charges such as STT, SEBI Transaction Charges, Service Tax, etc will also be adjusted from the Advance Brokerage Plan.
Q. How can I check the balance in my Advance Brokerage Account?
Ans. The advance brokerage account is a sub account in the client’s trading account. In order for the client to check his remaining balance in his account the client has the following options:
- The client can ask the Relationship manager or the assigned dealer to send him a copy of the Advance Brokerage account statement.
- He can view the deductions in his advance brokerage account as credits in his Financial Ledger.
Q. What happen if my subscription amount gets finished during the tenure of the plan?
Ans. The tenure of each plan is 3 years. What this means is that 3 years is the maximum duration for which the plan will be activated. So when the balance in the account is finished or has reached 0, then the client has two options. He can either choose to top-up his/her account with additional balance or he can use this opportunity to subscribe to another plan. In case the client does a tip-up to his/her account there is no change to the tenure of the original plan. Whereas if he/she chooses to subscribe to another plan then in that case the validity or the tenure of the new chosen plan will start at the date of the payment made to EWAL by the client.
Q. All other charges, that are given in my contract note (for instance STT, SEBI turnover charges, Stamp Duty etc), will be adjusted from the Advance Brokerage?
Ans. Yes. All levies, Transaction charges, Turnover Fee, other charges, Service Tax, and STT shall be paid separately from the dame advance brokerage account of the client. These charges are levied by SEBI, the state government and the central government. EWAL only charges the brokerage for the services provided.
Currently all clients have to pay the Brokerage and all the other charges as prescribed by law, and the same will be deducted from the Advance Brokerage account once a plan is commenced. There are no changes in the rates of the other charges such as STT, SEBI turnover charges, Service Tax etc under the Advanced Brokerage Plans.
Q. Who do I contact to upgrade my account? What is the procedure?
Ans. In case the client wants to upgrade to a lower brokerage then the same needs to be communicated by him either to his relationship manager or his designated equity dealer or online. The relationship manager will complete the necessary formalities and collect the Advance Brokerage sum from you.
To request for an upgrade online the client should follow the click below for upgrade, fill in the necessary details and the process of the upgrade will begin. Our executive shall get in touch with you for the payment that needs to be as advance brokerage.
Q. Can I upgrade my plan before 3 years are over?
Ans. The plan can be upgraded at any time during the period. But the complete Advance Brokerage must be paid for the chosen plan. There isn’t a pro-rata adjustment made for the chosen plan. This is because the Advance Brokerage paid by the client is his money and not EWALs. It is going to be used for his transactions and is not a fee that is being charged. Therefore for an upgrade to any plan, the complete Advance Brokerage must be paid for the chosen plan.
Q. What if I have a balance in my Advance Brokerage Account, what will happen if I upgrade my plan?
Ans. Once a plan has been chosen the client has the option to upgrade at any point of time, whether or not there is balance in the account. The way it works has been illustrated below:
Suppose I choose to credit my account with INR 50,000 as advance brokerage. During the first month I consume INR 5000 from this through my transactions. After the first month, I decided that I want to lower the applicable brokerage rates; therefore I choose to upgrade my account. Suppose I want the Advance Brokerage Plans that provides me with 0.5 and 0.05 charges. Then in that case I will have to pay an additional INR 100000, and subscribe to the plan 5. Your validity period will begin again and the tenure of the new plan (3 years) will begin once the payment is made to EWAL. The clients balance in the advance brokerage will be INR 145,000 under plan 5.
Q. Can I downgrade my plan?
Ans. No plan can be downgraded during the tenure of the chosen plan. The plans define the applicable Brokerage rates for the client. The higher the Advance Brokerage paid by the client the lower the applicable brokerage rates will be. Therefore it does not rational sense for the client to suddenly choose a plan that increases his cost of transaction.
Q. Can I exit from the plan?
Ans. No, Plan once subscribed can only be upgraded.
Q. Can I withdraw the amount that I have given as Advance Brokerage?
Ans. The amount paid by the client for Advance Brokerage is non-refundable and can only be used for the Brokerage (and other applicable charges). He cannot withdraw this amount under any circumstances.
Q. How much grace period you provide for renewal of the scheme?
Ans. The plan can be renewed during a grace period of 7 days after the completion of the tenure of the plan. What this means is that if there is balance left in the account, but the tenure of the plan finishes then the client will get a period of 7 days to restart or renew his chosen plan. During this time he also choose to change his plan. But the action must be taken within 7 days. If after 7 days no such action is taken by the client, then the base Brokerage Charges of 0.3 and 0.03 will be applied to all transactions of the client. He will lose the privilege of the lower rates under the Advance Brokerage Plans.
Q. If the tenure of my plan ended and there is some balance in my account. Will this balance be refunded to me?
Ans. No, balance or sum from the Advance Brokerage plan is not refundable. So if at the end of the tenure of a chosen plan there is some balance that remains in the account, it will only be used for the trading, investing or other security transactions.
Q. Can I use this subscription amount for trading purposes i.e. to buy and sell securities?
Ans. No. The Advance Brokerage sum will be only utilized by the client for his Brokerage and other charges as prescribed by law. For trading purposes i.e. Buying and Selling instruments there needs to balance in the Trading Account.
Q. Can I request for refund after choosing a plan?
Ans. As mentioned earlier, the sum in the Advance Brokerage Account is non-refundable and non-withdrawable. It will be used only for the Brokerage and other applicable charges.
Q. What happens if I do not renew my Plan after the tenure is over?
Ans. If the plan has not been renewed within the grace period provided by EWAL, then the applicable rates of Brokerage will revert back to the basic rates of INR 0.3 and 0.03 (please see the basic rates in the schedule given in the 4th question).
Q. When will my plan be activated?
Ans. Your plan will be activated on that date on which payment is made to EWAL’s account.
Q. Is the balance in my Advance Brokerage account adjusted daily?
Ans. Yes. All adjustments are done daily at the end of the trading day. So if you ask for a Financial Ledger today, then the Advance Brokerage Adjustments will be seen as credits in the Financial Ledger till as till the day before.