Nse broker charges cut

#1
NSE creates new membership category, cuts fees for proprietary brokers
Partha Sinha, TNN Sep 24, 2012, 10.28PM IST


Tags:
MCX Stock Exchange|MCX|capital market|Alpha
MUMBAI: Feeling the heat from the ongoing membership drive by MCX Stock Exchange (MCX-SX), which got the regulatory nod to start an equity trading platform, NSE, the country's largest exchange, on Monday introduced a new type of membership that will make it cheaper for brokers to trade with their own money, called proprietary trades.

Under this new membership class, christened Alpha, there will be three separate categories: members in capital market (CM) segment, in futures & options (F&O) segment and in both the segments together. For admission to the CM segment, members would need to keep a deposit of Rs 20 lakh, for F&O segment Rs 25 lakh and for both the segments combined Rs 45 lakh. However, the exchange will not charge any admission fee for admission to these segments under the new scheme, an NSE release said.


ONE FRIEND SENT ME THIS LINK HE SAID WHY ARE YOU BOTHERING ABOUT BROKER BECOME BROKER YOUR SELF I WAS LIKE WHAT ARE YOU TALKING IT COST 5- 10 CRORE SO HE SENT ME THIS LINK AS IT IS I AM QUITE FED UP WITH THE ARROGANCE OF THE BROKERS INCLUDING MY OWN BROKER

WHO LAUGHS WHEN EVER I TALK ABOVE REDUCING BROKERAGE CITING 20 RS PER ORDER OR 15 RS PER ORDER BROKERS
THEY SAY SIR AB 400 RS CRORE SE KAM KYA HOGA :confused:
 

anuragmunjal

Well-Known Member
#2
dear friend

I do not understand why u are facing these problems in today's day & age. the kind of turnover u have, I fail to understand why u have not got a broker who will give ur 'desired brokerage' as well as solve ur margin issues. there are many brokers, not maybe as big as IIFL or indiabulls, but much bigger than many discount brokers out here, who cater to such clients.
nse membership was never 5-10 crores. u cd always become a member in roughly 1-1.5 crores. becoming a member is easier but running the business difficult.
after becoming a member, u have to deal with nse/sebi compliance,audits,cost of vsat/lease line ,accounting softwares, amcs and various other fixed costs. u have to keep up with the daily payin/payouts. if the sole aim is trading one's own account , do u think u wd be able to keep up with all these additional responsibilities without ur trading getting affected. needless to say u wd have to maintain an office, keep staff.
once u calculate these additional costs along with the additional responsibilities, add to it the interest of 45 lacks, do u think ur cost per crore of trading wd increase or decrease?
there are many who trade fr their own account,who could afford the nse membership any time, but chose not to because they wanted to concentrate on their core competency ie. trading. with the brokerages falling so much across the board, there are some nse members,(who trade primarily for themselves) who find it no more viable to take this extra cost and effort and are in the process of surenderring thier tickets.
just my point of view and what I have seen around me.... may not be applicable to u or anyone else.

regards
 
#3
Thanks anurag jee for your learned thoughts as always its always a learning to hear from you , the point is i just dont plan to hedge in my account and only my turnover

I was planning on tapping capital if you can promise 15 - 18 % returns without putting peoples capital to risk i am sure you understand how much capital can be forth coming

i keep getting request from friends and there friends and relatives when they get to know
that we made 30 % in 2008 also when market was hitting multi year lows and we make money every day every week and every month since last decade even if market goes up down sideways

U had a bad experience with religare my prime broker other being globe capital
U know certain people dont have software some dont have margins some dont budge on
brokerage and some are plane jane cheaters

the safety of principal is also very very prime issue for me as the capital involved is huge
Its just a thought and i wrote it here so we can get learned opinions

In this membership people cannot trade or other wise i would have taken it right now
and offered TJ guys rates that these so called arrogant brokers would have disappeared rather then arguing with whole community above the falls TRXN charges they put

You are a jobber who understands what dent TRXN charges in make tuning profits into losses for people trading on small profits

Was thinking these people after putting 2-3 crores are making 50 80 L per month and still are too greedy i am happy if on that amount i make 3-4 % also
 

anuragmunjal

Well-Known Member
#4
dear friend,

if 'globe' is not able to meet all ur requirements, then I see no point in even trying with the brokers here on the forum.
if u plan to source in additional capital from outside, in order to provide returns, may as well go ahead with ur plan...since u get permission only for 'proprietory trading' in the above mentioned model, just check on the working issues of bringing in capital frm outside and distributing profits.

best of luck..
 
#5
Dear All why don't we form a co-operative by sharing Rs. 45 lakh required for NSE fees? If there are 1000 members to start it comes to Rs. 5000/- per head contribution. Then other members will also come and we can start office.:rofl:
 

PartTime_Trader

Well-Known Member
#6
Dear All why don't we form a co-operative by sharing Rs. 45 lakh required for NSE fees? If there are 1000 members to start it comes to Rs. 5000/- per head contribution. Then other members will also come and we can start office.:rofl:
Members in this Alpha category limited to 50 client codes, that too only for family or associate firms :lol:
 
#7
Dear All why don't we form a co-operative by sharing Rs. 45 lakh required for NSE fees? If there are 1000 members to start it comes to Rs. 5000/- per head contribution. Then other members will also come and we can start office.:rofl:
Buying NSE card is pretty simple, what is very difficult is to run it. We have to take care of front end,backoffice, technology,margins,pay in /payouts and SEBI and NSE compliance which is a hell of a job.......we are much better as traders...and should not get into broking which is a different game all togather.

Smart_trade
 
#8
Buying NSE card is pretty simple, what is very difficult is to run it. We have to take care of front end,backoffice, technology,margins,pay in /payouts and SEBI and NSE compliance which is a hell of a job.......we are much better as traders...and should not get into broking which is a different game all togather.

Smart_trade
Rightly said !!! Running a restaurant is very different from being a foodie :D.


Anyway, apart from the costs, what are the other advantages of becoming a broker, just to trade for oneself (and the personal circle). Does one get to do the algos and TSL, bracket orders etc ??


Also, recently there have been advertisements by BSE about becoming a broker. Any more info on that ?
 

PartTime_Trader

Well-Known Member
#9
Rightly said !!! Running a restaurant is very different from being a foodie :D.


Anyway, apart from the costs, what are the other advantages of becoming a broker, just to trade for oneself (and the personal circle). Does one get to do the algos and TSL, bracket orders etc ??


Also, recently there have been advertisements by BSE about becoming a broker. Any more info on that ?
For a proprietary trading team the biggest advantage will be confidentiality and a bit more flexibility with margins etc, rest all including costs may even out as administrative costs, costs for collocating servers, software etc stacks up against any brokerages saved.

Cheers
 

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