Very important info regarding safety of funds with broking houses

[vinagra]

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.

So do you mean that if you become an Alpha member, you can continue to earn the FD interest rates on the margin money?

What do brokers like Zerodha do with our margin money?

 

[copypasteaee]

So do you mean that if you become an Alpha member, you can continue to earn the FD interest rates on the margin money?

What do brokers like Zerodha do with our margin money?

right + security of money in case of broker default (recently unicorn has defaulted and run away with clients money) + 1lakh transaction charges fixed with no brokerage is boon ( as the minimum we are paying is 200 per crore which is crossed easily for such a big account) + You will directly trade on NSE server through NOW and many more advantages.

Thats why lemondew is running for a broker who accepts FD as margin money. Think big in terms of margin amount you are going to deposit when you have big positions.

 

[lemondew]

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[vinagra]

right + security of money in case of broker default (recently unicorn has defaulted and run away with clients money) + 1lakh transaction charges fixed with no brokerage is boon ( as the minimum we are paying is 200 per crore which is crossed easily for such a big account) + You will directly trade on NSE server through NOW and many more advantages.

Thats why lemondew is running for a broker who accepts FD as margin money. Think big in terms of margin amount you are going to deposit when you have big positions.

there is very little information on the internet regarding alpha membership; some news items one NSE circular from 2012 and that's about it.

Is it still active? Also what are the other costs (CA, software, people ...)