Discount brokers or free brokers make money through spread ?

[timepass]

Do you know why finvasia won't change so customers can sell actual units of mf - rather than having annoying fractional units in the demat?
I believe they have to tell their provider to make a minor tweak in the software - I could be wrong but since you said z is allowing you to sell actual units - it should be possible for all others do that as well ..they all are using bse star MF platform

So, can one transfer the MF from Finvaisa to other brokers in future ? I am just starting in MFs, redemption is still a while away.

 

[travi]

Do you know why finvasia won't change so customers can sell actual units of mf - rather than having annoying fractional units in the demat?
I believe they have to tell their provider to make a minor tweak in the software - I could be wrong but since you said z is allowing you to sell actual units - it should be possible for all others do that as well ..they all are using bse star MF platform

yes, a minor tweak.

bcos historically, all exchange traded stuff is in integer, so they have overlooked it. they should allow fractional units for MF
raise a ticket with them

 

[timepass]

yes, a minor tweak.

bcos historically, all exchange traded stuff is in integer, so they have overlooked it. they should allow fractional units for MF
raise a ticket with them

I had asked them about it in their thread and raised a ticket too.

As usual, they replied by phone.

1) For NFOs, you have to send them an email and they will tell you how to transfer the funds for the same.

2) For fractional units sale, you have to raise a CDSL E-dis on the CDSL website.

 

[curiousv]

So, can one transfer the MF from Finvaisa to other brokers in future ? I am just starting in MFs, redemption is still a while away.

Yes if you choose not to close the account ------ via cdsl easiest offline transfer -
But if you close the account - in the final closure form (which is actual closure cum transfer form) you can mention which broker you want to transfer.

 

[curiousv]

I had asked them about it in their thread and raised a ticket too.

As usual, they replied by phone.

1) For NFOs, you have to send them an email and they will tell you how to transfer the funds for the same.

2) For fractional units sale, you have to raise a CDSL E-dis on the CDSL website.

That is another annoying thing - why would they always call - for the most part its ok to email, chat or update your ticket on prizm or something.

Btw - You said fractional units sale - there is a process to redeem via cdsl edis ?
Did they tell you the steps ? if yes please share.

Also - if there is a process to redeem fractional units - we can use the same process for actual units...for example you have 116.45 units - you redeem them via cdsl edis - no need sell 116 units via their platform and another transaction for 0.45 units via cdsl

 

[curiousv]

I found this link - https://play.google.com/store/apps/details?id=com.bseltd.starmf
It says its meant for investors - it even shows on screenshots
so I talked with BSE rep. and he said - your broker needs to approve/create login for this app - BSE can not do that
(I think he meant to say - if you want them in demat - than you need to contact your broker)
I created a ticket

 

[timepass]

That is another annoying thing - why would they always call - for the most part its ok to email, chat or update your ticket on prizm or something.

Btw - You said fractional units sale - there is a process to redeem via cdsl edis ?
Did they tell you the steps ? if yes please share.

Also - if there is a process to redeem fractional units - we can use the same process for actual units...for example you have 116.45 units - you redeem them via cdsl edis - no need sell 116 units via their platform and another transaction for 0.45 units via cdsl

Yes. Their caller was clear about it. You have to create a CDSL E-dis for fractional units. I didn't know anything about this subject so I had no more questions about it.

 

[bottrade]

So what is an another alternative to Finvasia ? I realized you actually get what you pay for ...and there is a saying - Nothing is free - and when its free - you become the product -- For alternatives - It does not have to be free but it at least has to be fixed amount per month - it seems like no one is experienced here with prostocks - neither wisdom capital so what else ? Flattrade is free but it has its own issues for example mutual funds not available

@timepass @bottrade @siyalikashyap @newtrader101 @vsaran @godfather @neo.mx @Vmaster369 @iTrade

As I have already said, I don't find it's worth spending too much time on finding the best broker. One way or other you will have to compromise on things. IMO, for small traders brokers like Finvasia would do, for big traders brokers like Zerodha would do. If you have any serious issues with the broker you trade, trade with another broker. Not that the next one will be good, just for peace of mind or you can tell this to yourself "better the devil you know, than the devil you don't" and stick with the same broker.

 

[kajalnigam]

In my opinion aside from spreads, discount brokers and free brokers generate money in a variety of ways. While they may not charge high commissions like traditional brokers, they have alternative methods of making money. Payments for order flow, interest on idle funds in your account, and fees for specialized services or add-ons can all contribute to their bottom line. So it's not simply spread for these guys—they have a full playbook of methods to make money while maintaining their stated modest costs.

 

[curiousv]

In my knowledge - payment for order flow is not applicable for Indian brokers - it happens in USA but not for Indian brokers - Nithin from Zerodha said so in their forum - tradingqna.com - he said orders directly goes to NSE or BSE i.e. exchanges