Sub-broker question

Hi,

I was wondering if it's possible to register as a sub-broker, but the intention is not to facilitate customer business.

I am more interested in getting cheaper commissions, as I anticipate a high turnover of trading in both the cash and F&O segment.

Can I register personally as a sub-broker and have my company become the "client'? Or just register as a sub-broker and just trade as myself (or is that too blatant?).

Any suggestions would be appreciated.

Thanks

Gerard

sure. as long as you bring in the turnover, it should be fine.

Start of as an individual sub-broker and then think of going in for company. too many complexities involved in registration of co.
One more thing - if the sub-brokership is in your name and the account you open for trading too is in your name - you don't get any brokerage on it.

Suggest you open trading a/c in someone else's name to reap benefit of brokerage generated by you.

Loke4300,

Thanks for the prompt reply. Yes, registering a company in India is big hassle, so I think your advice is sound, re: get another individual to open up the account.

It seems you have a reasonable amount of this experience in this matter -- may I ask a few more questions?

1. For day trading ODIN DIET seems to come up as the best system around -- fast and reliable. Would you agree?

2. I've seen on the forums people asking their brokers for a 3:30pm square off. This does not make sense, since both NSE/BSE officially close at 3:30pm, why would brokers ask you to square off earlier? I can only think of some kind of margining issue here.

3. What would be a reasonable range of commissions main broker would charge their sub-broker both in the F&O segment and cash equities?

4. Is applying via the sub-broker route a way for active traders to receive cheaper commission?, i.e, is this common practice?

I'm sorry for a lot of questions, but I am new to India market, but not new to the market!!

Rgds

Gerard

PS -- I have been trading US futures for many years, if any one has questions -- happy to reciprocate.

ODIN is the best bet so far.

margin seems to be the concern. I personally don't have this problem. Seniors should add their views here.

TIP:
tell your main broker about your potential turnover - and be ready to bargain on commission. Main broker may offer you slabs/percentage structure etc and may even promise to revise after you achieve a threshold turnover. BUT, try and bargain. My business partner [ex. partner] managed a half paise deal [both ways]! This deal had made him extremely competitive while offering cheaper b'age to his clients and to trade for himself.


No. Who would want to deposit a lump sum amount for sub-brokership just so to trade for oneself on cheaper commission? I'd suggest you check out brokers like - RK Global, Angel etc where you get ODIN and good brokerage rates if you promise turnover.


It'd be nice if you start a thread to share you experience of trading US futures.

Best Wishes.