Overview of PARASRAM
PARASRAM, a financial services provider based in India, has been in operation since 1994. The company offers a diverse range of market instruments including equities, derivatives, commodities, and currency trading. Clients have access to various account types, including Demat Accounts such as BSDA and Beneficiary, and Trading Accounts covering Equity Delivery, Intraday, Margin, Commodity, and Currency trading. With a maximum leverage of up to 1:5, PARASRAM satisfies both institutional and retail investors.
The trading experience is facilitated through the PARASRAM Trade Web Platform and the PARASRAM Trade Mobile App. While the company does not offer a demo account, it provides comprehensive customer support via phone, email, and WhatsApp. Clients can fund their accounts and make withdrawals using online banking transfers, NEFT, RTGS, IMPS, cheque, demand draft, digital wallets, and prepaid cards.
PARASRAM also offers a range of educational resources including business development support, product training, client acquisition support, investors seminars, and research-based investment advice, empowering investors with the knowledge and tools necessary for successful trading endeavors.
Pros and Cons
Pros:
Diverse range of market instruments available: PARASRAM offers a wide array of market instruments including equities, derivatives, commodities, and currency trading, providing investors with ample opportunities to diversify their portfolios and explore various investment avenues.
Various account types to suit different needs: With Demat Accounts such as BSDA and Beneficiary, and Trading Accounts covering Equity Delivery, Intraday, Margin, Commodity, and Currency trading, PARASRAM satisfies the diverse needs and preferences of both institutional and retail investors.
Maximum leverage of up to 1:5 available: PARASRAM provides investors with the option to access leverage of up to 1:5, allowing them to amplify their trading positions and potentially enhance their returns, albeit with increased risk.
Accessible trading platforms for web and mobile: PARASRAM offers user-friendly trading platforms accessible via both web browsers and mobile devices, enabling investors to trade conveniently from anywhere with an internet connection.
Comprehensive customer support via phone, email, and WhatsApp: PARASRAM provides robust customer support channels, allowing clients to seek assistance and resolve queries promptly via phone, email, or WhatsApp, ensuring a smooth trading experience.
Cons:
Not regulated by any specific regulatory authority: PARASRAM operates without being regulated by any specific regulatory authority, which will raise concerns about the level of oversight and investor protection afforded by the company.
No demo account offered for practice trading: PARASRAM does not offer a demo account for clients to practice trading strategies or familiarize themselves with the trading platforms before committing real funds, which could be a drawback for novice traders.
Limited information provided regarding minimum deposit amounts: PARASRAM does not provide detailed information regarding minimum deposit requirements for opening trading accounts, which lead to uncertainty or confusion for prospective clients.
Educational resources could be more extensive: While PARASRAM offers various educational resources such as business development support, product training, client acquisition support, investors seminars, and research-based investment advice, these resources could be more extensive to better support clients in making informed investment decisions and navigating the financial markets effectively.
Regulatory Status
PARASRAM does not hold any specific regulatory licenses. Regulatory licenses are crucial for financial institutions as they ensure compliance with established rules and regulations, safeguarding the interests of investors and maintaining the integrity of the financial markets.
Market Instruments
PARASRAM offers a comprehensive suite of financial services tailored to meet the diverse needs of both institutional and retail clients. Their offerings span across various segments including brokerage services for equity, derivatives, commodities, and currency trading, providing clients with access to a wide range of investment opportunities. Moreover, PARASRAM facilitates online trading, ensuring convenience and accessibility for investors. The company also extends depository services, simplifying the process of holding securities in electronic form.
Additionally, they specialize in the distribution of IPOs, mutual funds, fixed deposits, and bonds, satisfying clients seeking investment diversification and wealth management solutions. With dedicated desks satisfying NRIs and institutional clients, PARASRAM ensures personalized service and tailored investment strategies. Their portfolio further includes insurance broking for both life and general insurance products, offering risk management solutions to individuals and businesses.
PARASRAM also provides clearing services, margin funding, and research facilities, empowering clients with the necessary tools and resources to make informed investment decisions.
Account Types
Parasram, a full-service broker based in India, offers a variety of account types to satisfy the diverse needs of its investors. These accounts can be broadly categorized into two main types: Demat accounts and Trading accounts.
Demat Accounts:
The Basic Services Demat Account (BSDA) is the most basic type of demat account offered by Parasram. It allows you to hold shares and securities in electronic form, eliminating the need for physical certificates. You can also use this account to invest in mutual funds and IPOs.
On the other hand, the Beneficiary Demat Account allows you to hold shares and securities on behalf of a minor or someone who is unable to manage their own investments.
Trading Accounts:
PARASRAM offers a range of trading accounts tailored to accommodate diverse investment strategies and preferences.
The Equity Delivery Trading Account enables investors to engage in buying and selling shares in the cash market, with the flexibility to take delivery of purchased shares and hold them securely in their demat account for the long term. In contrast, the Intraday Trading Account satisfies those looking for short-term trading opportunities by facilitating the buying and selling of shares within the same trading day, with no option to hold onto shares overnight.
For investors seeking leverage, the Margin Trading Account provides the ability to borrow funds from PARASRAM to purchase shares, with the requirement to maintain a minimum margin balance and incurring interest charges on borrowed amounts.
Furthermore, PARASRAM extends specialized trading accounts such as the Commodity Trading Account, enabling investors to trade in commodities like gold, silver, and crude oil, diversifying their investment portfolios.
Additionally, the Currency Derivatives Trading Account offers access to trading currency derivatives such as futures and options, allowing investors to capitalize on opportunities within the foreign exchange market.
How to Open an Account？
Opening an account with PARASRAM, an India-based broker, involves several straightforward steps:
Online Application: Visit PARASRAM's official website (https://www.parasramindia.com/) and navigate to the account opening section. Fill out the online application form with accurate personal and financial information as required. Ensure that all details provided match the information on your supporting documents.
Upload Documents: Scan or take clear photographs of the required documents and upload them securely through the online portal. This usually includes your proof of identity, proof of address, and any other documents requested by PARASRAM for account verification.
Verification Process: PARASRAM will review your application and documents for completeness and accuracy. This verification process take a few days to complete. Be prepared to respond to any additional queries or requests for clarification during this stage.
E-signature or Physical Signature: Depending on PARASRAM's procedures, you need to electronically sign the account opening documents using an e-signature platform provided by the broker. Alternatively, you are required to physically sign the printed documents and send them to PARASRAM's designated address.
Account Activation: Once your application and documents are verified, PARASRAM will proceed to activate your account. You will receive confirmation along with your account details and login credentials via email or SMS.
Fund Your Account: After account activation, deposit funds into your trading account to start trading. PARASRAM typically offers various methods for fund transfer, including online banking, NEFT/RTGS, cheque deposits, or digital wallets.
Start Trading: With your account funded and activated, you can now begin trading through PARASRAM's platform. Familiarize yourself with the trading tools and resources provided, and start executing trades according to your investment strategy.
Leverage
PARASRAM, as an India-based broker, provides varying maximum leverage options depending on the specific asset classes being traded.
For equity intraday trading, investors can access leverage of up to 1:5 the amount of their invested capital, although this figure fluctuate based on individual stock dynamics and associated risk factors. In the realm of commodity futures and options trading, PARASRAM offers leverage of up to 1.3, allowing investors to amplify their exposure to commodity markets. However, when it comes to currency futures and options, PARASRAM does not extend any leverage, adhering to a 1:1 leverage policy.
This cautious approach to leverage allocation underscores PARASRAM's commitment to prudent risk management practices, ensuring that investors can access leverage opportunities while mitigating potential risks associated with highly leveraged trading.
Here's a table summarizing the leverage offered by PARASRAM for different asset classes:
Trading Platform
PARASRAM offers its customers two comprehensive trading platforms designed to different preferences and lifestyles.
The Parasram Trade Web Platform provides a robust and versatile solution accessible directly from any web browser. With advanced charting tools, watchlists, and real-time market data, investors can make informed decisions. The platform's portfolio tracking features and risk management tools empower users to monitor their investments and manage their portfolios effectively.
On the other hand, the Parasram Trade Mobile App offers a convenient and intuitive trading experience for those on the move. With a streamlined interface and access to real-time market data, users can trade anytime, anywhere, directly from their smartphones or tablets.
Whether utilizing the web platform or mobile app, PARASRAM ensures that investors have access to the tools and resources they need to navigate the markets achieve their investment goals.
Deposit & Withdrawal
PARASRAM provides investors with a range of convenient payment methods to facilitate transactions and fund their trading accounts. These payment methods typically include online banking transfers, NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement), and IMPS (Immediate Payment Service). Through these electronic payment channels, investors can transfer funds directly from their bank accounts to their PARASRAM trading accounts, enabling swift and secure transactions. Additionally, PARASRAM also offers the option for investors to deposit funds via cheque or demand draft at designated branches or through postal mail. Furthermore, some investors opt to utilize digital wallets or prepaid cards supported by PARASRAM for funding their trading accounts.
As for fees, PARASRAM offers a variety of fee structures tailored to different types of trading activities.
For equity delivery trading, the brokerage fee is a flat rate of ₹20 per executed order, irrespective of the order value. Transaction charges amount to ₹0.0025 per share, with a minimum charge of ₹10 per transaction. Additionally, stamp duty and other statutory charges are applied as per government regulations.
Intraday trading with PARASRAM incurs a flat brokerage fee of ₹10 per executed order, regardless of the order size. Transaction charges mirror those of equity delivery trading, with a rate of ₹0.0025 per share and a minimum of ₹10 per transaction. Securities Transaction Tax (STT) is also levied at 0.025% on both buy and sell transactions.
When trading in currency derivatives, such as currency futures and options, PARASRAM applies specific brokerage fees. Currency futures attract a fee of ₹5 per executed order, while currency options incur a slightly higher fee of ₹20 per executed order. Transaction charges remain consistent with equity delivery trading, and STT is not applicable to currency derivatives transactions.
For commodity derivatives trading, the brokerage fee varies depending on the specific commodity being traded. Commodity futures and options both carry a brokerage fee of ₹20 per executed order. Transaction charges align with those of equity delivery trading, and STT does not apply to commodity derivatives transactions.
Here's a table summarizing the fee structures for different types of trading activities with PARASRAM:
Customer Support
PARASRAM is committed to providing excellent customer support to its clients, offering multiple channels for assistance and inquiries. Clients can reach out to PARASRAM's customer support team via phone at +91-11-47000000, providing direct access to knowledgeable representatives who can address questions and concerns promptly. Additionally, clients can opt to contact customer support via email at customercare@sphpl.com, offering a convenient method for detailed inquiries or correspondence. For those who prefer instant messaging, PARASRAM offers support via WhatsApp at +91 8171871881, where clients can simply initiate a conversation by sending “Hi” to the provided number.
This multi-channel approach ensures that clients have flexibility in accessing support, whether they prefer traditional phone communication, email correspondence, or instant messaging. PARASRAM's customer support team is dedicated to providing timely and effective assistance, enhancing the overall trading experience for its clients.
Educational Resources
PARASRAM is dedicated to empowering its clients with the knowledge and skills necessary to navigate the financial markets effectively.
To this end, the company offers a comprehensive suite of educational resources tailored to various aspects of investing. Business development support is provided to clients seeking to expand their understanding of market trends, industry dynamics, and strategic business opportunities. Product training initiatives equip clients with in-depth knowledge of PARASRAM's offerings, ensuring they can leverage the full spectrum of available financial products and services. Client acquisition support is also available to assist clients in building and growing their investment portfolios, with personalized guidance and assistance throughout the acquisition process.
Moreover, PARASRAM hosts investors' seminars, providing a platform for clients to engage with industry experts, gain insights into market trends, and exchange ideas with fellow investors. These seminars cover a wide range of topics, from market analysis and investment strategies to risk management techniques. Additionally, PARASRAM offers research-based investment advice, drawing on its team of experienced analysts and researchers to provide clients with timely and informed recommendations.
Conclusion
In conclusion, PARASRAM presents a compelling option for investors in India, offering a diverse range of market instruments and account types to suit various investment needs and preferences. With accessible trading platforms, robust customer support, and a commitment to investor education, PARASRAM strives to empower clients with the tools and knowledge necessary for successful trading endeavors. However, the absence of specific regulatory oversight and the lack of a demo account for practice trading raise concerns for some investors. Nevertheless, the advantages of PARASRAM, including its wide range of market instruments, maximum leverage options, and comprehensive customer support, outweigh these disadvantages, making it a noteworthy choice for investors seeking to navigate the financial markets in India.
FAQs
Q: What types of accounts does PARASRAM offer？
A: PARASRAM provides a variety of account options including Demat Accounts such as BSDA and Beneficiary, as well as Trading Accounts covering Equity Delivery, Intraday, Margin, Commodity, and Currency trading.
Q: How can I contact PARASRAM's customer support？
A: You can reach PARASRAM's customer support team via phone, email, or WhatsApp.
Q: Does PARASRAM offer leverage for trading？
A: Yes, PARASRAM offers leverage options for trading, with maximum leverage available up to 1:5 for certain asset classes. However, leverage availability varies depending on the specific asset being traded.
Q: What payment methods can I use to fund my PARASRAM trading account？
A: PARASRAM supports various payment methods including online banking transfers, NEFT, RTGS, IMPS, cheque, demand draft, digital wallets, and prepaid cards.
Q: Does PARASRAM provide educational resources for investors？
A: Yes, PARASRAM offers a range of educational resources including business development support, product training, client acquisition support, investors seminars, and research-based investment advice.
