Discount Broker Comparison

[looser89]

The owner of broking firm knows our details, like client code etc. if they wanted to operate our ACs its possible.

brokers cannot trade client account without poa signed with them . if any broker do it you can complain to sebi because brokers use dealer terminal for placing order which can be traced

 

[looser89]

Hello Everybody,

I am following this thread from beginning.

One thing I can not understand how can I loss my trading capital with WC or any franchise operated by a brokerage house? Can anybody explain it to me please?

Thanks

wc is just simply franchise of aliceblueindia broker .their main function collect clients and earn referal brokerage .if you open account with wc you are opening ac with alice blue .you signed contract with aliceblue wc has no role in it .so no worry about loss in wc

 

[nidhi_agarwal]

Hi,

I have been following this conversation since a long time. Would like to know following things. I trade in F&O

1. What should consider the most while choosing a discount broker(DB)?
2. Which DB has better terminal?

Please revert ASAP

 

[sibu3168]

Hello,

This is possible with every broker, every sub broker and all franchise owner.
Such type of things are possible (I have witnessed it) even with reputed brokers.
In all such cases, I've found that only (exclusively) client is responsible for such mess because the client gave them (their RM) the right to operate their account.

I have a very good example in recent times. Few months back, two of my friends opened accounts with VPS Share with my help. Although I suspected their business model model (which was according to me unsustainable) but from my heart I was searching for that type of plan. Also at that time, I was facing some personal problem. So I recommend my friends to open account with them. They were all regular traders.
Initially VPS was very good at their service. One day both of my friends received mails to withdraw their money as VPS was going to withdraw their plans. They (VPS) also wrote that if anybody was willing to trade with them, then their account will be shifted to normal catagory (where intraday brokerage is 0.01% and delivery brokerage is 0.1%).
One of my friend withdrew his capital from the company but my other friend is continuing with them with good service till now.
Now can I say VPS is bad? No, not at all.
Similarly, when I opened an account with anybody(sub-broker, franchise etc.), in fact, I have to sign KYC with a SEBI registered broker. After that the broker will be responsible for any such misdeeds. Also I know that nobody will transfer my money to his account. So don't worry much about it.

Wish you all a very happy trading.

 

[sibu3168]

Hi,

I have been following this conversation since a long time. Would like to know following things. I trade in F&O

1. What should consider the most while choosing a discount broker(DB)?
2. Which DB has better terminal?

Please revert ASAP

Quote:
Originally Posted by sibu3168 View Post
Hello ,

Here I am neither supporting a new broker nor an old one.

I am sharing my knowledge and experience which I got from my trading life. First I don't believe in rumors or any type of gossips, only believe in facts and figures. Whatever I will write here, it is neither intended to offend anybody nor to show I am a genius. After reading this, it is upto you to choose a broker of your choice.

I will elaborate everything in details. I have lots of experience working with older ones as well as the newer-ones (discount brokers).

1. All brokers (NSE and BSE) come under SEBI rule and they follow the guidelines provided by SEBI and their working is governed by rules and byrules of SEBI. So they can not do business on their own.

2. As long as you have sufficient trading capital, every broker is good even they will treat you as if you are their family members. But the real problem starts when the trading capital depletes. In this case I've seen more than 95% of clients say it was due to the broker because the broker provides them bad tips or the employees of the company misguided him. But personally I have seen the entire fault lies with clients. They never prepared to accept their faults. This problem is more psychological because by blaming someone a person tries to get out from a guilty feeling of being a looser.

3. When you trade/invest with a regular broker, initially after somedays, you will get more margin to trade intraday or to invest (at least two times of your capital) for somedays. Why they provide more margin? The answer is to earn more brokerage. In case of investment, they will get brokerage as well as interest on overdraft limit. How they get more brokerage? Actually their brokerage structure is based either on turnover or per lot size. More the turnover, more the brokerage.

4. The biggest problem lies with these brokers is when your trading account turns negative and unfortunately you indebted some payment to them. At that time, you will be surprized by their attitude. They will knock your door to recover their dues.

5. Their rules changes more frequently. You will often hear they will say you don't do this, it can not be done etc. etc.

6. If you use proprietary account for trading, then the chances of knocking of your doors by brokers will be much high.

After advent of discount brokers, I find discount brokers are far better than traditional brokers.

1. Discount brokers are far more transparent than traditional brokers.
2. Rules are written upfront, so there is no ambiguity.
3. Before start of trading you know when to square-off your position and what margin you are using.
4. Personally I found the services of discount brokers are far better than traditional brokers. For me the meaning of services is the ability of a broker (i) to square off your open position when he receive your phone call. (ii) the promptness to clear your doubts.
5. Basically it is best to use discount brokers for trading purpose only. For investment purpose it is better to go for old traditional brokers as they have their own DP.
6. Regarding the trading platform, almost all brokers provide the same type of trading platform (ODIN, NOW, NEST or NEAT). So not much difference.
7. The emotional attachment with discount brokers is much more less than that of traditional brokers. So one can work more professionally with them. It is because, discount brokers earn much less brokerage (25/- per order to 2000/- per month) than the traditional brokers (lowest is 0.01% and 0.1%). If they show you more undue respect, then they will be in trouble. and finally
8. Trading with discount brokers is more hassle free. That means whenever I want to withdraw my entire money from them, I get it immediately. But when I tried to get my money from a traditional broker it always takes more time as they tried to convince me to not withdraw money. Even if I want to withdraw some of my capital on regular basis, they do not allow me to do so by saying you can only withdraw on Friday or Saturday.

Now the question of reliability.

1. First all brokers whether it is an oldone or newerone are not reliable. In this bloody financial world nobody is reliable. Within two days any broker can get out from this business. How reliable they are looking from upside, in fact they are not reliable.
2. For me the most reliable broker is the broker whose terminal never went off in case of bloodbath on the street and allows his client to trade on that day. He may not provide margin on that day but he should allow his clients to trade on that day.
3. The ease of WITHDRAWING from and depositing in the trading account.
4. Quickness to solve any doubts.

Precautions to be taken while dealing with any broker.

1. Regularly check your account. Preferably in the night of the trading day and if you find any mistakes, then brought that in the very next day. Check how much time it takes to solve that problem. More the time less reliable that broker.
2. Use discount brokers for trading purpose only (Preferably).
3. Never put more than 10 lakhs of margin money with a single broker.
4. Always trade with two different brokers (at least)
5. Always analse which type of trader you are. If you trade one/two trades per day, then per order brokerage plan will be good for you and if you trade more than three trades per day the monthly fixed plan will be good for you.
4. Believe me, don't think much about your trading capital. It is safe with any SEBI registered broker.
5. Never deal with any sub-broker or never give right to anybody to trade on your behalf.
6. Never listen to any RMs for their sweety sweety word. All are there to get their salary from your brokerage.
7. If you are a frequent trader (jobber) or trade in small quantity but many times a day or an algo trader then it is better to go for fixed monthly brokerage plan. Never opt for per order trade plan.

Hope this will clear your confuson regarding selecting a broker.

With best wishes

 

[nidhi_agarwal]

Thank you so much Sibu for the info. It is extensive and quite helpful!

Did you mean more or less all discount brokers are providing similar services. Got your point. But there has be some advantage which some X broker is giving?

May be software, post sale services?

 

[sibu3168]

Thank you so much Sibu for the info. It is extensive and quite helpful!

Did you mean more or less all discount brokers are providing similar services. Got your point. But there has be some advantage which some X broker is giving?

May be software, post sale services?

Most of the discount brokers use NOW, NEST and ODIN software. If U trade in pro account (broker's account), then U may get NEAT platform. All the above softwares are modified form of NEAT software. I've used all the softwares and in my view NOW, NEST and ODIN are all same. In NEST and ODIN you may get the quotes of all exchanges whereas NOW supports only NSE exchange.

Regarding post sale service, till date I have not found anything wrong with the discount brokers I dealt with. They were Zerodha (its charges are high), RKSV and VPS Share. IN fact their service were far better than those so called traditional brokers. I always like the rules that are written upfront. Once I get those rules, I never try to go beyond that line.

Yes, I mean more or less all discount brokers are providing similar services.

After reading lots of negative remark about Wisdom Capital and after talking to them by phone several times, I finally decided to open account with them (aka Aliceblue). (The above line is not to promote Wisdom Capital and of course it is your money to take care of.). Because their plans and approaches completely suits my personality. Also I have many years of experience as administrator in brokerage house, that helps me to understand their business model.

Hope this will clarify your doubt.

With best wishes

 

[bpr]

Thank you so much Sibu for the info. It is extensive and quite helpful!

Did you mean more or less all discount brokers are providing similar services. Got your point. But there has be some advantage which some X broker is giving?

May be software, post sale services?

Except in the department of BO which they are catching up fast discount brokers are always better than traditional broker.
You have 2 choice go with the full service broker (lol at the misleading name) then get disappointed and then open account at discount broker later or save lot of time and headache and directly open with a discount broker.

 

[Alibaba Alibaba]

Yes, I mean more or less all discount brokers are providing similar services.

After reading lots of negative remark about Wisdom Capital and after talking to them by phone several times, I finally decided to open account with them (aka Aliceblue). (The above line is not to promote Wisdom Capital and of course it is your money to take care of.). Because their plans and approaches completely suits my personality. Also I have many years of experience as administrator in brokerage house, that helps me to understand their business model.

Hope this will clarify your doubt.

With best wishes

Please share your experience after opening an account with Wisdom Capital, for the benefit of forum friends.

 

[nishishah]

I am particularly interested to know more about the recent discount brokers that have joined the band wagon! What are the different services offered, how will I as a Trader benefit? All opinions welcome!

I am just starting out as a Trader, every small bit of information will be of great help.