Very important info regarding safety of funds with broking houses

[DSM]

Discount brokers especially like RKSV and Zerodha have come to be a blessings to the traders, as they have stopped the exploitation from the large brokerages houses who have been preying on the innocent/gullible or the ill-informed investors and traders. Some of the large brokerage houses are nothing but sharks who change the terms and conditions mid-way thru, once they realise that the contracts notes are not being checked regularly. I guess without RKSV, Zerodha or such, most of the traders would not be able to trade.....

 

[copypasteaee]

The best way to do it I think is this. I am planning for this. No more brokerages and reliance on brokers. http://www.nseindia.com/content/press/intro_alpha_24092012.pdf

I am working to get more details on this one. In touch with nse guys.
Platform(nse now) , compliance( guess none for individual trading) , no exams I guess since i wont be trading for clients . Any folks thought this way.

Any updates regarding your talk with NSE guys?

 

[lemondew]

Any updates regarding your talk with NSE guys?

Yeah I gave a long list of questions to them For which I got the answers. I would share with you

1. Is it sufficient if I am a trading member for alpha membership to be able to do trading in F and O?
Ans: Yes

2. Other than deposit of 25 lacs for Fand O. Is there any other deposit for alpha in F and O?
Ans: No

3. Advanced transaction charges . Is it additional to 25 lacs deposit?
Ans : Yes. Annual 1 lac

4. Is BMC required other than 25 lacs deposit?
Ans: NO. 10 lac of 25 lac is blocked as BMC

5. Can the deposit of 25 lac be paid in form of FDR lien marked in favour of NSE, bank guarantees through NSE prescribed banks ?
Ans: Yes you can have FD and lien in favour of NSE. You would get the interest.

6. Can this deposit be utilised as margin in F and O?
Ans: Yes. 25- 10 lac for BMC. The rest 15 lac is available as margin for trading.

7. Once I get membership shall i be able to NOw platform for trading. Are there charges for using it?
Ans: Yes. Charges will be given to you from a different department. They will get in touch with you

8. Once I get membership other than taxes any other recurring costs for membership.
Ans: Taxes= 1 lac recurring annual. Nothing else

I want to be a alpha member to deal with following problems
a. High margins for Fand O. Span+ exposure by brokers.
b. Brokers are unwilling to collect margins in form of FDR bank guarantees as prescribed by NSE in INSP25612.
c. High brokerage.

9. In this context for trading for myself as a customer are there norms like clearing exams, compliance or any other norms.?
Ans: Yes you have to fullfill all compliances. Clear the exams

 

[lemondew]

Deleted for now

 

[Smart_trade]

I also found better options for margin against FD for which I opened a thread. It was deleted. I am checking with moderators for reason why it got deleted. Once I know what is in rules and what is against rules I ll repost in a seperate thread the same as per the rules. I am waiting for smart_trades confirmation from his side. Thanks

As informed to you, I have not seen the thread . Check with Traderji/Admin to know why the thread was deleted.

Smart_trade

 

[copypasteaee]

Yeah I gave a long list of questions to them For which I got the answers. I would share with you

1. Is it sufficient if I am a trading member for alpha membership to be able to do trading in F and O?
Ans: Yes

2. Other than deposit of 25 lacs for Fand O. Is there any other deposit for alpha in F and O?
Ans: No

3. Advanced transaction charges . Is it additional to 25 lacs deposit?
Ans : Yes. Annual 1 lac

4. Is BMC required other than 25 lacs deposit?
Ans: NO. 10 lac of 25 lac is blocked as BMC

5. Can the deposit of 25 lac be paid in form of FDR lien marked in favour of NSE, bank guarantees through NSE prescribed banks ?
Ans: Yes you can have FD and lien in favour of NSE. You would get the interest.

6. Can this deposit be utilised as margin in F and O?
Ans: Yes. 25- 10 lac for BMC. The rest 15 lac is available as margin for trading.

7. Once I get membership shall i be able to NOw platform for trading. Are there charges for using it?
Ans: Yes. Charges will be given to you from a different department. They will get in touch with you

8. Once I get membership other than taxes any other recurring costs for membership.
Ans: Taxes= 1 lac recurring annual. Nothing else

I want to be a alpha member to deal with following problems
a. High margins for Fand O. Span+ exposure by brokers.
b. Brokers are unwilling to collect margins in form of FDR bank guarantees as prescribed by NSE in INSP25612.
c. High brokerage.

9. In this context for trading for myself as a customer are there norms like clearing exams, compliance or any other norms.?
Ans: Yes you have to fullfill all compliances. Clear the exams

Thanks for the information my friend.

 

[Bewinner]

So many things to know

 

[tradedatrend]

3. Advanced transaction charges . Is it additional to 25 lacs deposit?
Ans : Yes. Annual 1 lac

6. Can this deposit be utilised as margin in F and O?
Ans: Yes. 25- 10 lac for BMC. The rest 15 lac is available as margin for trading.


8. Once I get membership other than taxes any other recurring costs for membership.
Ans: Taxes= 1 lac recurring annual. Nothing else


9. In this context for trading for myself as a customer are there norms like clearing exams, compliance or any other norms.?
Ans: Yes you have to fullfill all compliances. Clear the exams

10 Lakh unnecessarily blocked (ofcourse we'll get interest on this amount)
+
1 Lakh per year
+
1 Lakh per year
+
Increased compliance

*******

isn't it too much in order to save rs. 999 per month ?

 

[lemondew]

Well yeah. I ll show how it helps. So let us assume your selling nifty options. Margn blocked is approx 30K per lot. Lets us assume conservatively in 1 series you sell 10 lots or 5 lots at a time. Approx margin blocked = 3 lacs. In a fixed deposit you get 9% /annum or 0.75% / month. So 2250 for 3 lacs / month you loose per month. Only for 10 lots you loose 2250/ month. That means you are loosing 27000/ annum for selling 10 lots even if you pay 0 brokerage. Compare that to 10 Rs / lot which non other discount brokerages charge who give margin against FD. Here I save 27000/ annum and pay him a little more brokerage but it saves a lot of money. and lets say you gave a deposit of 30 lacs for margin with no brokerage . Broker will take both brokerage and your tax.........

In 3 lacs you save 27000 . In 30 lacs you save 270000 . The numbers work in your favour.

10 Lakh unnecessarily blocked (ofcourse we'll get interest on this amount)
+
1 Lakh per year
+
1 Lakh per year
+
Increased compliance

*******

isn't it too much in order to save rs. 999 per month ?

 

[lemondew]

The same applies for future too if you are doing carry forward. If you are carrying 10 lots you are loosing 27000 /annum for doing nothing. Though NSE allows margin through fds. So I can see a need for a broker who gives margin against fd and at the same time charges reasonable even if it isnt so cheap as the discount brokers for the non intraday traders. Something in the range of 5 rs/lot or even 50 Rs./trade would be very good.