Please share your experience after opening an account with Wisdom Capital, for the benefit of forum friends.
First after reading so many negative remarks about wisdom capital, finally I decided to talk with them. In my conversation, I found satisfaction in their response.
Now I explain it in details.
First their
Business Model
1. They are the master franchise of Alice Blue (A SEBI registered broker).
2. Now many brokerage firms who came into this business around 2007, find it very difficult to acquire or retain clients. Again their set up cost is growing day by day.
3. If they offer direct discount broking service to clients, then there is higher possibility of loosing their regular clients (who are in 0.01% - 0.05% catagory).
4. So to avoid that situation, now they offer this discount broking service through a franchise. In that case, it is a very effective way to handle this situation. In fact, I had advised my broker (employer) to have such a business model around 2007. But everybody had laughed at me saying "marbaoge kya". Now look, how this concept has flourished today.
5. To have this model, you need only 2/3 employees to handle any quories from prespective clients. All other activities will be handled by the main broker.
6. In fact, the real KYC will be signed between the client and the main broker itself. So this will help in safe guarding a client. For any mishappening, the broker will be responsible. So to avoid any unpleasant situation, please don't give any trading right to any third party.
7. The main purpose of the discount firms are to acquire high volume traders. If the franchise acquire 1000 such clients in 6 month time frame and all opted for 6 month fixed brokerage plan (the best scenario, the worst scenario is monthly fixed plan), then it will collect a staggering
1 Crore immediately. I do not even mention about their income from turnover charges, call n trade charges, data charges etc..
Now come to my view regarding
WC:
1. The most important feature of WC is its margin system. With a single deposit, I can trade in all segment namely, equity, currency and commodities.
2. They are providing 4X-10X intraday margins. Why they are providing margins? Because to earn more from turnover charges. Although at the first sight, it seems little but as time passes it will be phenomenal. For me, this fascility is useless because I rarely uses any margin fascility. But yes it generally gives me a psychological boost.
3. The Data service they providing is quite good.
4. After comparing with so many discount brokers (currently I am the client of Zerodha & RKSV.), I found there is a savings of 25000/- to 35000/- per month if I opt to trade with WC.
5. WC is providing trading in NSE Currency and MCX-SX. It is a boon for me as I technically do arbitrage between these two exchanges.
For the last half month, my system has been crashed, so I am planning to buy a new system. All tradings are done from my friend's house. After my father's demise, I have decided to become a full fledged trader. Previously I don't have more money but now I have money by which I can plan financially for rest of my future.
Regarding selecting a brokerage house, I don't care much about others comment. It is my money and I can do whatever I want (unless it hurts other).
With Best Wishes
