Advance brokerage system - A TRAP

milkyblack · #21 17th July 2008, 09:35 PM

Quote:

Originally Posted by CreditViolet

But you are the one saying its all easy risk free money, I am not. And perhaps you should start an account and start trading instead of whining about trivia like some advance brokerage. Even for pro traders there is something called committment volume which decides on the brokerage. If you dont do certain amount of volume for a few months, the broker will try to negotiate the brokerage.

Now you are complaining about margin? Should brokerages penalized for following the rules laid down by SEBI. Where have you been trading before you decided to trade Indian markets, communist China?

One more

Regards

milkyblack · #22 17th July 2008, 09:42 PM

Now let me also share a bit on this Advance brokerage!

It is not a trap at all! Sharekhan provides the speed trade s/w for an advance brokerage of rs 500 a month... a person will take speed trade not just to look at the quotes and have fun... and if that is the intention then must pay rs 500 a month for abt 121 hours of fun per month!

Rs 500/- is nothing when a person is a day trader or in that case even delivery based... if s/he has a TO of Rs 200,000 (i.e 100,000 buy and 100,000) sell... the brokerage will get adjusted!

At least once in a month one will trade right Of that amt???? If not and the intention is not fun looking at quotes (in case of sharekhan) then ADVANCE BROKERAGE IS A TRAP! As you say!

And imagine people day trading? What is this 500/750 a month????? Nothing right?
A TO of 80 Lakhs will be just fine! And that too in a month!

Regards

deb99891 · #23 17th July 2008, 10:42 PM

Quote:

Originally Posted by CreditViolet

If it all sounds so easy why not start a brokerage office and enjoy the risk free income?

good bouncer
yes if a person trading everyday in the market (as for me market is my bread n butter) this rs750/- adv.. brokerage should not be tat painfull.
better we should look at the exact brokerage what we hav to pay for every order execution(weather ne fixed amount or percentage).
it has nothing to do weather im paying it adv or later.
btw if ne one donch like ne scheme there r plenty of others available with other brokerhouses.
regards

aad · #24 18th July 2008, 12:04 AM

Quote:

Originally Posted by aircraft

As ABHAY points I also feel that this thread has now become humorous. Why not try placing in some joke forums to show how people get caught.

Who is / was your broker before you received this offer sir ? What sort of privileges, brokerage structure, terms of payment he had offered you sir ?

Regards,

Abhay

aad · #25 18th July 2008, 12:23 AM

Quote:

Originally Posted by aircraft

Also these type of advance brokerage systems forcibly commit individual for trading no matter whatever the market conditions are. He will be forced to trade just to recover his brokerage.

Sir... there is a conflict of interest between a trader and you... people don't trade to recover brokerage. They trade to earn much more than that. How much is the brokerage you pay anyway, fraction of the capital risked, is it not ? Brokerage is the fee that traders (willingly) give for using their (broker's) resources which is perfectly legitimate for both (trader / broker). Now the way every mobile company has a talk time plan suitable for most of the users, brokers too have plans suitable for every trader. It is for you to know which plan is suitable for your requirements and opt in accordingly. It is quite possible for some brokers to have plans which are not as per your needs (actually I don't think so but still..) in which case, you simply look out for another broker.

This is demand-supply market and brokers develop plans as per the demands they see. If you don't fit into that bracket, simply opt out. Why the fuss ?

I think it is now my turn to become RJ....

Regards,

Abhay

Vairam.Ed · #26 18th July 2008, 06:25 AM

Calm down man..you seem to be on fire....

You believe advance brokerage is a way of fooling (may be true inyour case).
I believe paying low-brokerage is all it matters irrespective of paying it at the begining or end of the month...
Now 10 other members in this forum may have 10 other belief ......

now with so many views which one is true?? the one which works for YOU is true. I would always stick with what works for me. You can't blindly say that advance brokerage system is wrong for everyone. It may not work for you but it may work for me.

I know my average trading volume and if advance brokerage works to be cheaper than what I am paying today, tell me one good reason why I should not pay him a month in advance if I now for sure I have to pay more at the end of the month??

Do you ever wonder why so many people buy everyday stuffs in wholesale? which means they pay in advance for stuffs they will be using next month??

Vairam,

Quote:

Originally Posted by aircraft

Why on high volumes you should pay advance brokerage. Is it to guarantee the brokerage house that you will trade high volumes- or in anticipation of high volume trades striking a deal before hand without ever knowing what market does in three months or for the duration of advance brokerage from now: I dont understand what for actually advance brokerage system is designed for? If your brokerage is kept low by advance brokerage then you are a sure price catch for brokerage houses who pays money in anticipation of making money in future.

Why pay in advance just to say and convince brokerage houses that you are a heavy volume trader. Let your transaction slips speak out what a kind of trader you are. Let your professional trading skills speak out to them which identifies you as a heavy volume trader. Lower bargain brokerages follows next.

Hint: A professional trader already posses full knowledge of markets and his broker. He always tries to minimize his expenses and try to maximize profits. His stand will be in maximize profits, not maximizing volumes or trades to please brokerage houses. So how come a professional trader will undertake a advance expense of brokerage without ever knowing his risk to reward ratio well before committing to the each trade.Only beginners in enthusiasm get attracted by such things until they come to know what has really happened. By that time they will been skinned to bones without any flesh left.

So say no to advance brokerage Pay only for what you trade- only after the trade