Its time to :D or mad: at the broking firms

Discussion in 'Investors Grievances' started by shanku1061, Jan 24, 2008.

  1. shanku1061

    shanku1061 Member

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    Most of our online trading community tasted the good and bad during the last few days time. Now people could give a fair idea on how there broking firm responded in hours of crisis, hours of need .... and all those situations were sampled during this period.

    so now we could have a discussion on how our corresponding broking firms responded.

    One thing I have noticed. People who sticked with web browser based systems suffered the most. I am not naming any as I want to have a productive discussion on this here.
     
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  2. guhaanirban

    guhaanirban Member

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    They are not allowing us to buy yesterday,though we are having fund (credit)with them.We had lost a good chance to buy the stocks @garbage.Can't understand the cause. Most probably they r not having margin from the SEBI or they are purchasing for own.
     
  3. shanku1061

    shanku1061 Member

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    Its time again to ask the same questions.

    How did your trades go in crisis times.

    If you are electronic trading then did you face any unusual instances while trading during these days.

    browser based / java applications / desktop applications... Analyse the difficulties and plus points here.
     
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  4. rkkarnani

    rkkarnani Well-Known Member

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    Writing this without any views or going into the merits or demerits of the action by broking firms!!!!!
    Just my view that we most of the time take view only after the events in the market!!!!

    Hello Dada, Be very fair and ask yourself, were we not calling the shares at garbage rates on 18th Sep. when the Nifty was around 3800 mark and had come down from 4550 on 8th Sep. And more people complained when it went upto 4300 on or about 22 Sep.

    Now we are calling the shares are at lowest at ~3200 levels only as available at garbage rates becoz we are anticipating this to be the bottom!!!

    Just imagine what would my friend say about broking houses whose big chunk of shares was liquidated on or around 23rd Sep. as his Mark to Mkt fell short!!
    He is simply overjoyed!!!! The Nifty was around 4200 levels then, he is candid in accepting that had his broking house not liquidated he would still be holding on to his shares even after a fall of 1000 nifty points!!! He would be fuimng with anger had the mkt gone up from there!!!

    You may be proved correct and the present may be the near term bottom but logically it would be correct to say that if we buy now in a falling markey we in fact are trying to catch the 'falling knife'!!!!

    On 21st /22nd Jan. 2008a very large number of people were having the same complaint when the market hit the lower circuit that their brokers did not allow them to buy, I though I was lucky to have bought some very good shares at really juicy price.....well dada, my portfolio is down by around 38% and now I think it would have been better had my broker also not allowed me to buy!!!! :D

    Normally these actions are for safeguarding and not for their personal gains!!! There may be unscruplous brokers but my view is majority are fair either by choice or by compulsion due to SEBI norms and NSE guidelines!!!

    This is not to defend the action by brokers , after all its our money and we have the right to use it in anyway we think fit!! This was just to bring forth the other side of the coin!!!!

    No offense meant please !!!
     
  5. ratan jain

    ratan jain Guest

    I beg to differ...

    I would like to take my own decisions, and be responsible for them rather than having my broker to decide if I should be able to buy or not.

    And RK, after you bought, did your portfolio not appreciate by at least 20 % in a matter of a few days?
    I am sure it did, and you could have sold at a profit.

    So, I would like to be able to take my own decisions and be held responsible for them rather than to have my broker decide for me.

    I hope I am not offending you, Rkkarnani, just my thoughts :)
     
  6. rkkarnani

    rkkarnani Well-Known Member

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    Ratanji, I agree 100% with you!! And would like to draw your attention to the following line quoted from my post : (In all probabilities u have missed it!!) :)

    This is not to defend the action by brokers , after all its our money and we have the right to use it in anyway we think fit!! This was just to bring forth the other side of the coin!!!!
     
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  7. vasa1

    vasa1 Active Member

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    I'm using Geojit's gold platform which is web-based with Java. No problems apart from the occasional "freeze". All in all, not unhappy.
     
  8. S S

    S S Well-Known Member

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    Hi!

    Maybe this is what might be happenning :

    Many brokers allow the stocks in Demat account as margin for the day, after giving it a haircut. Most of the day-traders use this facility.

    If at the end of the day, the trade is not squared off, then one has to credit the margin. If this is not done timely, then the broker has to pay to the exchange.

    In such a case, while the broker charges you a late payment fee, in reality, may be he uses the cash balance of those accounts, who have not traded.

    So the cash balance already being used by the broker, there shall definately be a delay in the payout, if someone asks to withdraw cash from the broker

    I do not see any other possibility, though I could be wrong.

    Cheers!
    SS
     
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