BROKING ! Where are they heading ? Have your say.

EquanimoX · #1 1st October 2006, 03:51 PM

There are news that RTRADE, arm of Reliance Money is coming up with great offers in retail broking. It could be offering broking @ 1/3rd the price of best offers today. Also the cuts in broking by various houses is in anticipation of RTRADE.

Is 'broking charges' the only criteria for selecting a Broker. Broking charges may be less & you may get lured to take overleveraged trades just because the charges are less. But end of the day the "Risk" of market exposure is to borne by the Investor / Trader. Now it has all come to volume game, broking houses want more volumes as the brokerage has gone down.

Today's PAN India brokers, hardly provide the right advice. All they are worried about is the turnover you give @ EOD.

Personally I would stick with a broker who perhaps may charge me a little more but give me the right insights of the markets. When to Buy, Sell & Hold is far more important to me than just 'less brokerage'.

I would like all active traders & investors to participate in this debate.....

bslk · #2 1st October 2006, 05:39 PM

In the US brokerage is headed towards 0.

http:www.zecco.com

vince · #3 1st October 2006, 05:41 PM

Hi equanimox,

Brokerage is definitely not the only criteria for selecting a broker but surely is an important factor to consider especially when the difference would make a sizable impact to your bottomline.

You are right , at the end of the day all brokers are concerned about the turn over yu give them, but that is their bread and butter. Let us concern ourselves with what benefits us as a trader.

I would definitely not look to my broker for advice and if I donot have the knowhow I would preferably subscribe to a newsletter or an independant consultant to suit my needs.

As long as the services provided are not deficient in any way to the present services I am using, I would not hesitate to shift my business to another broker if I find them incompetitive in any way including brokerage.

Regds.

swagat86 · #4 1st October 2006, 07:17 PM

Yes Vince agree. When we wre trading wid ICICI direct it was abt 0.7 and 0.10 for delivery and intraday. But wid other players like indiabuls Sharekhan and others hav started to come in rates hav gone down significantly.

now dat reliance is abt to come in the competetion is goin to get heated up. And hence BRKs will be slashed. just check ICICIDirect. MARGIN and Derivatives brks hav been slashed significantly.

Its quite common for any business to give more impetious to High Volume Clients. Quite natural. But for us all matters is simple and easy, to maximise our rturns. Nothin else. So if our fixed costs are cut more gains are on the cards. Now just wait and watch wat ur broker and my broker does.

And il prefer to wait for a few days, take reviews and then Jump in the Reliance Bandwagon.

Have fun

kuldeep49 · #5 1st October 2006, 10:30 PM

Quote:

Originally Posted by EquanimoX

Today's PAN India brokers, hardly provide the right advice. All they are worried about is the turnover you give @ EOD.

Personally I would stick with a broker who perhaps may charge me a little more but give me the right insights of the markets. When to Buy, Sell & Hold is far more important to me than just 'less brokerage'.

I would like all active traders & investors to participate in this debate.....

Lets be clear about this, a broker's job is not to provide guidance but to trade as per your instructions. The research and market insights provided by some of them are the frills. So essentially just like in air travel you decide whether you want to go Jet Air or Air Deccan, brokerage firms would also evolve into the 'frill' & the 'no-frills' category. You get a choice, trading with tips or pure trading. You pay for what you want & get!

etrader · #6 1st October 2006, 10:45 PM

In my opinion, in no-frill broking a/c ( even contact notes should be electronic only) broker should charge a fixed amount plus software charges ( rental or outright purchase) at least for derivative and intraday trades. Competition will decide the fixed charges. It may vary from city to city also. As of now brokarage is major concern for a person having large volume like 1-2 crores. Such system coupled with reliable software would change the dynamics in trading.

aca_trader · #7 1st October 2006, 10:49 PM

Quote:

Originally Posted by etrader

In my opinion, in no-frill broking a/c ( even contact notes should be electronic only) broker should charge a fixed amount plus software charges ( rental or outright purchase) at least for derivative and intraday trades. Competition will decide the fixed charges. It may vary from city to city also. As of now brokarage is major concern for a person having large volume like 1-2 crores. Such system coupled with reliable software would change the dynamics in trading.

Why it should be fixed charge? If the competition can force a right fixed charge it can also fix a right floating charge.

Best Regards,
--Ashish

iamtrr · #8 2nd October 2006, 10:22 AM

Dear Sir,
A good point to debate for the benefit of all
My experience is with many like MOST, India Bulls, Karvy,Peninsular capital markets,and select securities and Rasratha securites both online and offline. You are absolutely right that brokerage is not the criterian to select a broking outfit. But i feel it is one of the important criteria as cost of any any trade apart from script price is also quite substantial especially for those who trade on intraday or swing trade or derivatives. since in addition to brokerage we also have regulatory charges which is 8% of brokerage, service tax on brokerage which is another 12.24% on brokerage and security transaction tax which is another 0.175% of selling turnover all these add up to quite a good amount @EOD.
Secondly not many brokers advises turnout to be sound and some brokers refuse to enter that area at all.I read in some posting that one of the outfits
posts misleading recs to incite investment taking money from vested managements.This could be dangerous to the investing community.
Hence we should conduct a poll and arrive at consensus in terms of
a)brokerage b)quality of advice c)customer careand sorting out issues of debits and charges d)system online availability e) response to client querries etc.
I invite comments from seniors
TRRajagopal

Quote:

Originally Posted by EquanimoX

There are news that RTRADE, arm of Reliance Money is coming up with great offers in retail broking. It could be offering broking @ 1/3rd the price of best offers today. Also the cuts in broking by various houses is in anticipation of RTRADE.

Is 'broking charges' the only criteria for selecting a Broker. Broking charges may be less & you may get lured to take overleveraged trades just because the charges are less. But end of the day the "Risk" of market exposure is to borne by the Investor / Trader. Now it has all come to volume game, broking houses want more volumes as the brokerage has gone down.

Today's PAN India brokers, hardly provide the right advice. All they are worried about is the turnover you give @ EOD.

Personally I would stick with a broker who perhaps may charge me a little more but give me the right insights of the markets. When to Buy, Sell & Hold is far more important to me than just 'less brokerage'.

I would like all active traders & investors to participate in this debate.....

EquanimoX · #9 2nd October 2006, 03:29 PM

Quote:

Originally Posted by kuldeep49

Lets be clear about this, a broker's job is not to provide guidance but to trade as per your instructions. The research and market insights provided by some of them are the frills. So essentially just like in air travel you decide whether you want to go Jet Air or Air Deccan, brokerage firms would also evolve into the 'frill' & the 'no-frills' category. You get a choice, trading with tips or pure trading. You pay for what you want & get!

VERY WELL SAID.

murthymsr · #10 2nd October 2006, 04:41 PM

Quote:

Originally Posted by kuldeep49

.........
So essentially just like in air travel you decide whether you want to go Jet Air or Air Deccan, brokerage firms would also evolve into the 'frill' & the 'no-frills' category. You get a choice, trading with tips or pure trading. You pay for what you want & get!

while choosing my airline, my first consideration is safety (85%), next is the convenience (15%), third is the fare (4%) and the fourth may the food & other perks (1%) & never is the dress of the airhostess!

may be while choosing a broker too!

murthymsr

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