Trading for brokerage.

D

drvinod_k

Active Member
#1
#1
Hi Friends,
I was wondering if there are brokers in the market who are willing to share brokerage on the business done in one's own account. The idea is to target brokerage instead of the profit/loss for the day. It has many advantages firstly one does not have to wait for profit/tgt for a particular trade. One needs to trade for only intraday. Since the aim would be to get to the breakeven point one can get in and come out of a trade relatively early and safer. Multiple trades can be done in a session. At the end of the session you walk out with some money irrespective of where the market or your position heads. Another advantage is that one need not pay capital gains tax on such income except TDS at 10%. I did my research and did speak to some players in the Industry but they are small time players and in this scenario reliability is a big factor. I am looking for some stronger players and bigger brands who allow such business to be carried out. My humble request to all of you out there to kindly update incase you have knowledge of any such broker/entity.

Thanks.
 
Last edited:
V

vijayvaliya

Active Member
#2
#2
drvinod_k said:
Hi Friends,
I was wondering if there are brokers in the market who are willing to share brokerage on the business done in one's own account. The idea is to target brokerage instead of the profit/loss for the day. It has many advantages firstly one does not have to wait for profit/tgt for a particular trade. One needs to trade for only intraday. Since the aim would be to get to the breakeven point one can get in and come out of a trade relatively early and safer. Multiple trades can be done in a session. At the end of the session you walk out with some money irrespective of where the market or your position heads. Another advantage is that one need not pay capital gains tax on such income except TDS at 10%. I did my research and did speak to some players in the Industry but they are small time players and in this scenario relability is a big factor. I am looking for some stronger players and bigger brands who allow such business to be carried out. My humble request to all of you out there to kindly update incase you have knowledge of any such broker/entity.

Thanks.
Click to expand...
seems like novel idea, good luck
 
ethan hunt

ethan hunt

Well-Known Member
#3
#3
drvinod_k said:
Hi Friends,
I was wondering if there are brokers in the market who are willing to share brokerage on the business done in one's own account. The idea is to target brokerage instead of the profit/loss for the day. It has many advantages firstly one does not have to wait for profit/tgt for a particular trade. One needs to trade for only intraday. Since the aim would be to get to the breakeven point one can get in and come out of a trade relatively early and safer. Multiple trades can be done in a session. At the end of the session you walk out with some money irrespective of where the market or your position heads. Another advantage is that one need not pay capital gains tax on such income except TDS at 10%. I did my research and did speak to some players in the Industry but they are small time players and in this scenario reliability is a big factor. I am looking for some stronger players and bigger brands who allow such business to be carried out. My humble request to all of you out there to kindly update incase you have knowledge of any such broker/entity.

Thanks.
Click to expand...
pls enlighten me :rofl:
 
D

drvinod_k

Active Member
#4
#4
Finally I did manage to get a top broker to get my deal in process. After discussion with the broker I learnt that this has been in practice since long. You only need to do your homework well on the negotiation front. Many HNis have a similar understanding with brokers to offset taxes. Thats it for now. Will keep on updating as it unfolds. I hope Tom Cruise finds this enlightening enough
 
M

my investment

Banned
#5
#5
please let us know also i am also negotiating with top brokers if you get a better deal then we get then we can move with you if we get better deal will surely let you know as of now we are 8-10 people ,may be if you have more people with you then you can get a better deal
 
ethan hunt

ethan hunt

Well-Known Member
#6
#6
drvinod_k said:
Finally I did manage to get a top broker to get my deal in process. After discussion with the broker I learnt that this has been in practice since long. You only need to do your homework well on the negotiation front. Many HNis have a similar understanding with brokers to offset taxes. Thats it for now. Will keep on updating as it unfolds. I hope Tom Cruise finds this enlightening enough
Click to expand...
ntng explained
 
D

drvinod_k

Active Member
#8
#8
my investment said:
please let us know also i am also negotiating with top brokers if you get a better deal then we get then we can move with you if we get better deal will surely let you know as of now we are 8-10 people ,may be if you have more people with you then you can get a better deal
Click to expand...
I have finalised my terms and conditions and I shall be signing an agreement within the next couple of days hopefully. I shall be trading in my own account and have committed for a daily turnover of 5cr across f&O, currencies and commodities. Once I begin operations I shall share details with people who are interested in this mode of business.
 
D

drvinod_k

Active Member
#10
#10
ethan hunt said:
ntng explained
Click to expand...
Just for you Ethan Hunt. Consider I have an account XYZ with a certain broker. I enter into an agreement with the broker that he shall share with me a certain % of the brokerage generated by my trading in XYZ account. So in this case I shall trade for generating brokerage and not for profit. Normally if you generate profit in capital markets you have to pay capital gains tax (30% short term and 10% long term). In this case however I have to pay just 10% tax (TDS) on my income. Besides I am assured of money wether my trades go in profit/loss as I shall trade only for generating turnover(brokerage). Since I shall be aiming for breakeven I can close out trades early and put in multiple trades in a session. I hope this makes it amply clear.
 
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