Limit for maintaining Trading Account Balance

#1
I am having trading Accounts with SBICAPSEC and a discount Broker. To me trading experience with SBICAPSEC-SBISMART was average. I use my smartphone-android for trading. Their trading app on mobile malfunctions every time it is crucial. Any queries mailed to their customer care will not be answered. Whether it is their policy to not answer or their intelligence limit their answering, I do not know.
On the contrary the discount broker is very co-operative. I get quick replies to my satisfaction from them. They use NSENOW app for mobile trading. It is good, fast and troublefree. Their brokerage plan is very attractive Rs 20/- per trade, irrespective of the trade size. I can trade for small profit due to this.

Zeroda also a discount broker. But when I approached them to open an account their customer care was acting adamantly and was not keen to help me to open the account.

Ok this post was not to blame SBICAPSEC or ZERODA. SBICAP is backed by SBI. They offer 3-1 account. Hence I feel safe to maintain large balance to trade with SBI. But due to efficient handling of things by discount broker I want to increase the trading account balance. But upto what amount I can maintain the balance in trading account.

CAN ANYBODY guide me in this regard.
 

aja

Well-Known Member
#2
I don't understand why people go and open their Demat & Trading accounts with Banks,somebody please hit me with a Brick :lol:

Well,when I was new,I too opened account with SBICAPSEC and I hate their pathetic service.:annoyed::mad:

Ok,to answer your query lokanathpai-
There's no limit.If you have 5Crs,you can put that amount with your broker.

I had 16Lakhs with my broker and I used to get 40 times leverage which blow my account. ;)

If you have a decent amount then open 2 Trading accounts,1 with Zerodha and another with RKSV and maintain 50-50 balance with them.

Best Luck :thumb:
 

cloudTrader

Well-Known Member
#3
I am having trading Accounts with SBICAPSEC and a discount Broker. To me trading experience with SBICAPSEC-SBISMART was average. I use my smartphone-android for trading. Their trading app on mobile malfunctions every time it is crucial. Any queries mailed to their customer care will not be answered. Whether it is their policy to not answer or their intelligence limit their answering, I do not know.
On the contrary the discount broker is very co-operative. I get quick replies to my satisfaction from them. They use NSENOW app for mobile trading. It is good, fast and troublefree. Their brokerage plan is very attractive Rs 20/- per trade, irrespective of the trade size. I can trade for small profit due to this.

Zeroda also a discount broker. But when I approached them to open an account their customer care was acting adamantly and was not keen to help me to open the account.

Ok this post was not to blame SBICAPSEC or ZERODA. SBICAP is backed by SBI. They offer 3-1 account. Hence I feel safe to maintain large balance to trade with SBI. But due to efficient handling of things by discount broker I want to increase the trading account balance. But upto what amount I can maintain the balance in trading account.

CAN ANYBODY guide me in this regard.
There is actually no limit for keeping margin with the broker but as there is inherent risk in everything related to trading there should be precautions in our approach. One way of maintaining higher amount of margin is to buy liquid bees of the amount you have deposited with the broker and then do trading with margin against liquid bees. In that way you have a deposit in a safe asset on which your money earns slight interest rate and also helps you do trading taking margin in the same way as brokers offer margin against shares.
 

suri112000

Well-Known Member
#5
There are laws to punish the culprits. The problem is it punishes people for cheating or rule breaking. But no law can stop any person to do crimes. In a sense you are free to do unlawful things. Law cannot stop you from doing those crimes. Law is only to punish wrong doing people.

Yes.... no body can stop discount brokers to cheat with your money. The legal remedy is not that effective to bring them to balance. If a discount broker find it convineint to take away money from your trading account, no law can stop him. The punishment prescribed for such acts is not worth compared to the large benefit of taking money in trading accounts by cheating.
 

cloudTrader

Well-Known Member
#6
My fear is what if he goes bankrupt? Whether he can run away with my money? How secured it is?
There is always risk involved with a broker going bankrupt or running away with money. NSE has placed legal framework for covering clients' money. However that has its own limitations. Amount upto Rs. 10 lakhs could be recovered through NSE, provided the client has all the proofs of the money deposited with the broker.

But its easier said than done. The whole process of getting money with the help of NSE is not that easy. But still a legal framework instill some confidence.

So a better way of doing things is not putting all the eggs in one basket meaning opening account with multiple brokers and mitigating your risk.
 

cloudTrader

Well-Known Member
#7
There is always risk involved with a broker going bankrupt or running away with money. NSE has placed legal framework for covering clients' money. However that has its own limitations. Amount upto Rs. 10 lakhs could be recovered through NSE, provided the client has all the proofs of the money deposited with the broker.

But its easier said than done. The whole process of getting money with the help of NSE is not that easy. But still a legal framework instill some confidence.

So a better way of doing things is not putting all the eggs in one basket meaning opening account with multiple brokers and mitigating your risk.
If you want to read the SEBI document in this relation then here is the link

http://www.sebi.gov.in/cms/sebi_data/commondocs/ch16_p.pdf
 

MewarLion

Active Member
#8
Every Stock Broker is required by Regulation to send ( email or physical , as opted by you ) you margin statement on the Following Day :

1. Day when you traded.
2. Next Day of your trading
3. Whenever change in margin available with your Broker

Please make sure that your Broker is following above practice.

Please avoid Stock Broker who :

1. Does Proprietary Trading , in 120 years history of Indian Stock Market , whenever Stock Broker has defaulted , 98 percent time , reason was Prop Trading.

2. Who gives leverage higher than what is permitted from exchange. Such extra leverage is provided by those clients money who are not trading. E.g. the day you are not trading , your funds are used to 4 times or 6 times or even 10 times extra leverage in FNO to other client. Similarly , When you are trading and taken 4 times or any leverage , which is given from other client money who are not trading that day and so on.

In first case Stock Broker lost money so he defaulted ( and such intra day position was built from client funds )

In second case Stock Broker could not manage risk due to system failure , extreme volatility etc and many client were taken intra day position from other client money and finally lost money as sq off could not happen in time.

Your safety lies in avoiding all such brokers who are doing any one of the above. Never seen and heard that Stock Broker defaulted because of electricity bill , telephone bill, rent or salary to employees .

Ask your Stock Broker if they are doing Prop ? and They are giving leverage higher than permitted by exchange ? You will get your answer. Ask next Stock Broker same question.

This is my 25 years of experience of Indian Capital Market.






I am having trading Accounts with SBICAPSEC and a discount Broker. To me trading experience with SBICAPSEC-SBISMART was average. I use my smartphone-android for trading. Their trading app on mobile malfunctions every time it is crucial. Any queries mailed to their customer care will not be answered. Whether it is their policy to not answer or their intelligence limit their answering, I do not know.
On the contrary the discount broker is very co-operative. I get quick replies to my satisfaction from them. They use NSENOW app for mobile trading. It is good, fast and troublefree. Their brokerage plan is very attractive Rs 20/- per trade, irrespective of the trade size. I can trade for small profit due to this.

Zeroda also a discount broker. But when I approached them to open an account their customer care was acting adamantly and was not keen to help me to open the account.

Ok this post was not to blame SBICAPSEC or ZERODA. SBICAP is backed by SBI. They offer 3-1 account. Hence I feel safe to maintain large balance to trade with SBI. But due to efficient handling of things by discount broker I want to increase the trading account balance. But upto what amount I can maintain the balance in trading account.

CAN ANYBODY guide me in this regard.
 
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