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Future of Discount Brokers

Contra

Well-Known Member
#2
Is anyone has any views on this news ? View attachment 23777
This is happening among Indian discount brokers too. Upstox is one example.

They have relegated their own platform to the back-burner and are actively pushing 3rd party platforms like Dartstock and Foxtrader. They also run online seminars, classes, algo apps, Trade Academy and a VIP program -- all of which are clearly more profitable ventures than charging 20 bucks an order.

It's only a matter of time before discount brokers realize that there's no money in running a plain vanilla brokerage business. Premium services are inevitably going to be their primary focus. They can't survive otherwise.
 

sumantra

Active Member
#3
This is happening among Indian discount brokers too. Upstox is one example.

They have relegated their own platform to the back-burner and are actively pushing 3rd party platforms like Dartstock and Foxtrader. They also run online seminars, classes, algo apps, Trade Academy and a VIP program -- all of which are clearly more profitable ventures than charging 20 bucks an order.

It's only a matter of time before discount brokers realize that there's no money in running a plain vanilla brokerage business. Premium services are inevitably going to be their primary focus. They can't survive otherwise.
Contra ,you have correctly said. But , untill now, Zerodha is the noteworty exeption. Thanks for that to Zerodha, they really think of the retail investors.
 
#4
Contra ,you have correctly said. But , untill now, Zerodha is the noteworty exeption. Thanks for that to Zerodha, they really think of the retail investors.
I agree, I'm not sure if the article is correct on all counts, given Zerodha's rise since its inception; if only, they were more reliable, they'd undoubtedly be the best broker for most traders. So clearly, Zerodha has already proven that it IS possible to not only survive but even thrive on Rs.20/order pricing-model without having umpteen other sources of income.
 

sumantra

Active Member
#5
I agree, I'm not sure if the article is correct on all counts, given Zerodha's rise since its inception; if only, they were more reliable, they'd undoubtedly be the best broker for most traders. So clearly, Zerodha has already proven that it IS possible to not only survive but even thrive on Rs.20/order pricing-model without having umpteen other sources of income.
The article is correct on all accounts, is taken from wall street journal on 11-01-2018 (Main page)
 
#6
I agree, I'm not sure if the article is correct on all counts, given Zerodha's rise since its inception; if only, they were more reliable, they'd undoubtedly be the best broker for most traders. So clearly, Zerodha has already proven that it IS possible to not only survive but even thrive on Rs.20/order pricing-model without having umpteen other sources of income.
Forget 20 rupee, Finvasia is offering TRUE ZERO commissions.. not even 20 Rs. The revolution begins from Finvasia.
am using Finvasia since 1 month, uptil now no issues, and support system is on live chat too :)
 

superman

Active Member
#8
Who says Zerodha is an exception ! Forgot so many useless startup they are creating to make more money ?
They are offering a third class support now a days ! They are doing this instead of investing and giving us a stable platform which is their main income source. They are aware that not much money can be made solely on pure brokerage business and thats why they are pouring money and time on others !

Refer the Zerodha thread where customers like me and others are crying,begging for a stable platform and they are not giving a damn about us
 
#9
This is happening among Indian discount brokers too. Upstox is one example.

They have relegated their own platform to the back-burner and are actively pushing 3rd party platforms like Dartstock and Foxtrader.
I have seen upstox-pro demo software hanging many times in high volatility conditions, then how can they advocate any other charting platform to outperform on their provided service. I see issues with their connection and bandwidth instead of their charting platform.

Even TSO recommends Foxtrader and only allows single chart window for their Sine software .Sine is nothing in front NEST forget about of MT4 or Amibroker as per my experience. If you provide only single chart window for your software (Sine) at any given time and ask your customer to take Foxtrader etc. etc. points to a different thing, these guys should make their own software robust instead of referring their clients here and there.
 

Creep

Active Member
#10
India is 25 years behind the US in terms of stock markets, brokers, trading and everything else. I think brokers in India have to first get more people to trade before they look at making money from these value added services. Most of the discount brokers have less than 30000 active clients. Even if 3000 people paid Rs 100 for an additional service, they make Rs 3lks. Out of this 3lks there will be a running cost (including the vendor cost). So net they might might make 1.5lks. This is how much a 20 seater office will cost to run.

SEBI is also contemplating increasing minimum networth requirements and deposits. This is to ensure things like Kassa, Unicon etc doesn't happen.

So unless a lot more people start trading in India in the next 2 to 3 years, most of these discount brokers will disappear. The only hope then is that VC's will invest into some of these brokers (like Upstox, Samco), which will give them more time to survive.