Discount brokers or free brokers make money through spread ?

[travi]

I will be looking over www.mfcentral.com , which is a website run jointly by CAMS and Kfintech. All the MF entries go through these two companies. This website is supposed to be a one stop solution for all things MF. You can get your MFs with different brokers directly on this one website using your PAN card.

original concept started here MF Utilities India (mfuindia.com)

MFU is founded and run by all MF AMC to give centralized platform.

The drawback with these platforms is that they dont give DEMAT units, so one cant pledge or for other things like LAS etc which requires units to be blocked for collateral.

 

[timepass]

original concept started here MF Utilities India (mfuindia.com)

MFU is founded and run by all MF AMC to give centralized platform.

The drawback with these platforms is that they dont give DEMAT units, so one cant pledge or for other things like LAS etc which requires units to be blocked for collateral.

Thanks. This is new to me. Will look it up further. Prima facie, I don't see a "sign up" option, just a "sign in" option.

These days I am purchasing various MFs of Rs. 100 investment. I have used 3 different platforms (Finvasia, Groww and Mobikwik) for 40+ MFs. Sometime in future, when I sit down to analyse and sort them, I will need common reports and facility of consolidating them.

 

[travi]

Thanks. This is new to me. Will look it up further. Prima facie, I don't see a "sign up" option, just a "sign in" option.

These days I am purchasing various MFs of Rs. 100 investment. I have used 3 different platforms (Finvasia, Groww and Mobikwik) for 40+ MFs. Sometime in future, when I sit down to analyse and sort them, I will need common reports and facility of consolidating them.

at the top right there is a big banner, open account online"

The Number is called CAN-Common A/c Number and all folios will be linked to it.

My suggestion is to use Demat and purchase units in that form. It is very easy to transfer from DP than AMCs.

 

[timepass]

at the top right there is a big banner, open account online"

View attachment 49851

The Number is called CAN-Common A/c Number and all folios will be linked to it.

My suggestion is to use Demat and purchase units in that form. It is very easy to transfer from DP than AMCs.

Thanks. Got it. Seems like PAN is the only document required.

What's this about using demat ?? I am buying through the brokers only, not directly with any fund house.

 

[curiousv]

I will be looking over www.mfcentral.com , which is a website run jointly by CAMS and Kfintech. All the MF entries go through these two companies. This website is supposed to be a one stop solution for all things MF. You can get your MFs with different brokers directly on this one website using your PAN card.

My first impression is - if we buy through mfcentral - it wont go to our demat - hence we can not pledge them to get collateral margin

 

[curiousv]

original concept started here MF Utilities India (mfuindia.com)

MFU is founded and run by all MF AMC to give centralized platform.

The drawback with these platforms is that they dont give DEMAT units, so one cant pledge or for other things like LAS etc which requires units to be blocked for collateral.

I communicated with mf utilities (I have that account for like 3 years now)..so they said you can choose to deliver in to your demat but you can not sell thru them .(.if you have an account and if you look closely you will find an option to add demat and after you add demat - every time you order MF it will ask you where do you want it to be delivered so you can choose demat option) Problem is you have to sell thru broker platform ...so problem still remains - with finvasia you can only sell rounded units (fractional units still remain in your account ) which is quite annoying.

 

[travi]

I communicated with mf utilities (I have that account for like 3 years now)..so they said you can choose to deliver in to your demat but you can not sell thru them .(.if you have an account and if you look closely you will find an option to add demat and after you add demat - every time you order MF it will ask you when do you want it to be delivered so you can choose demat option) Problem is you have to sell thru broker platform ...so problem still remains - with finvasia you can only sell rounded units (fractional units still remain in your account ) which is quite annoying.

thanks for this great update. I removed everything many (3-4) years ago when this was not introduced. my account is 8+ yrs old. same for family.

But given that i want units in demat, i might as well do buy/sell from Broker platform itself. I dont have finvasia
In Z for eg, you can sell fractional but pledging is round number.

 

[Verde]

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

If finvasia is making money on spreads it is illegal. All orders have to be filled by the exchange.

Yes I confirmed with Nithin at Zerodha - so there are 3 cons with @Finvasia
1. Higher margin
2. Higher haircut
3. Mutual funds you can only sell whole units - fractional units you have to create a separate easiest request and talk with them the same day so they can authorize the sell/redemption (I believe they are doing this to make little more money

What makes you think that Zerodha and other brokers are not looting via spreads? Just because they take brokerage means nothing. Spread is the cream on the milk.

 

[curiousv]

If finvasia is making money on spreads it is illegal. All orders have to be filled by the exchange.


What makes you think that Zerodha and other brokers are not looting via spreads? Just because they take brokerage means nothing. Spread is the cream on the milk.

To my knowledge its not possible for a broker in India to take advantage of spread because all the orders are settled directly at exchange - you get daily trade results via email from exchange directly to verify....

 

[curiousv]

thanks for this great update. I removed everything many (3-4) years ago when this was not introduced. my account is 8+ yrs old. same for family.

But given that i want units in demat, i might as well do buy/sell from Broker platform itself. I dont have finvasia
In Z for eg, you can sell fractional but pledging is round number.

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