Hello
The aim of this thread: Due Diligence of Brokers before joining up.
With so many discount/regular brokers popping up all over think it will be a good idea to put up a thread on Due Diligence of brokers before you place your money with one.
The questions(basic) which comes to mind:
1- Physical address of the Registered Company.
2- Visit to Physical address.
3- Years of operation.
4- Legal/arbitration cases, if any.
5- Exchange membership no. and type of membership.
6- No. of Empoyees. Best to list city and support staff for different
exchanges.
7- Time frame for payout and pay-in.
8- Margin Requirement. (Noticing a variation here)
9- Instruments available for trading. (Ex: MCX brokers will usually not let you trade certain products, infact will not even know all the products, learned the
hard way)
10- RMS system and in cases of their mistake, response and reversal time frame.
11- Any previous regulatory action.
12- Ph. no.s and accessibility of top brass incase of requirement.
13- Turnover details and charge details. (This is where most brokers earn a lot without knowledge of most clients)
14- Reference no. of any client.
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This is just a short list of questions, I am sure a lot of experienced members can add more questions to the list.
RKSV and Zerodha are most prominent discount brokers with reps on the site. Would appreciate if they can start by giving us these answers. Would make people much more comfortable and secure going into this.
Send the list after it has been completed to your broker and get the answers and post here, help others and yourself make an informed decision with regard to brokers.
Cheers
The aim of this thread: Due Diligence of Brokers before joining up.
With so many discount/regular brokers popping up all over think it will be a good idea to put up a thread on Due Diligence of brokers before you place your money with one.
The questions(basic) which comes to mind:
1- Physical address of the Registered Company.
2- Visit to Physical address.
3- Years of operation.
4- Legal/arbitration cases, if any.
5- Exchange membership no. and type of membership.
6- No. of Empoyees. Best to list city and support staff for different
exchanges.
7- Time frame for payout and pay-in.
8- Margin Requirement. (Noticing a variation here)
9- Instruments available for trading. (Ex: MCX brokers will usually not let you trade certain products, infact will not even know all the products, learned the
hard way)
10- RMS system and in cases of their mistake, response and reversal time frame.
11- Any previous regulatory action.
12- Ph. no.s and accessibility of top brass incase of requirement.
13- Turnover details and charge details. (This is where most brokers earn a lot without knowledge of most clients)
14- Reference no. of any client.
----------------------------------------------------------
This is just a short list of questions, I am sure a lot of experienced members can add more questions to the list.
RKSV and Zerodha are most prominent discount brokers with reps on the site. Would appreciate if they can start by giving us these answers. Would make people much more comfortable and secure going into this.
Send the list after it has been completed to your broker and get the answers and post here, help others and yourself make an informed decision with regard to brokers.
Cheers