VPS is the best broker in town

[Deepika sahney]

Hey Neo,

Small piece of advice, don't be pennywise and pound foolish.. The first suggestion would be to think if it is really required to go to these discount brokers, would the savings offered be really that important for the way you trade.

A discount broker in the US removes all the offline services but provides you the best online trading platform. Presently, most of the guys you have mentioned offer NOW trading platform which is basically like this free engine being shared with everyone. Zerodha I guess is the only one that offers NEST hosted on their servers, but even that seems like 3 generations older than the present trading platforms offered by discount brokers in the US. You need to check out think or swim by TD ameritrade.. So ideally none of these are discount brokers in the true sense because they don't offer an awesome online platform.

Finally the reason for my first quote was that, Delhi has the maximum number of defaulting brokers. Brokers who shut shop and disappeared with clients funds. NSE does a good job of hiding it, you can ask SEBI to give you this list. The reason I am telling you this is that if your broker doesn't make any money, are you not worried about him being in business or not? The reason you need to be worried is because your money is sitting with him and when he goes out of business, you know what happens... Think about it!!!

hi,
thanks for all the detailed info u provided for the most popular discount brokers.
One of the members "Creep" replied to this ...and i qoute"Finally the reason for my first quote was that, Delhi has the maximum number of defaulting brokers. Brokers who shut shop and disappeared with clients funds. NSE does a good job of hiding it"

Can u pls both guide me how to judge the reliability and credibility of all the brokers mentioned above??
Are all of them equally reliable or equally risky??
Or there can be some hidden things which we can focus on to find this out just like u mentioned the transaction charges and everything in detail ?

I m thinking of opening an account with 1 out of the 4 mentioned by u.(preferably vps share)
Kindly help.

 

[sibu3168]

Hi,

I just want to ask everybody one question.
I've seen the list of default brokers, also seen the url lead to how lodge complain against any broker. but can anybody tell me how many of these default brokers took client's money and ran away.

If someone show me a single case (where the exchange is under SEBI rule) with valid reason, then I'll think twice to re-enter into the stock market.

Boss these were possible before 2000, but now the surveillance system is so strong that it is almost impossible to vanish with client's money unless otherwise you do some foolish things (like allowing RM to trade on your behalf etc. etc.). Now the most important fact is that a broker must keep its client money in separate bank account which was not a case before.

I've also faced such type of situations before twice (one in early 2000 and other in 2009) but in all case I got my entire money back within 21 days.

A broker defaults generally on three things 1. due to proprietary trading, 2. wrong order punching and 3. bad risk management. In case of default, client's money will be refunded first.


One thing you must judge about a broker's quality is his ability to allow you to trade on extremely panic situation. In fact, in that situation I have seen many broker's terminal went off.

Anyway, don't worry too much, start enjoying trading.

With best wishes

 

[Deepika sahney]

Hi,

I just want to ask everybody one question.
I've seen the list of default brokers, also seen the url lead to how lodge complain against any broker. but can anybody tell me how many of these default brokers took client's money and ran away.

If someone show me a single case (where the exchange is under SEBI rule) with valid reason, then I'll think twice to re-enter into the stock market.

Boss these were possible before 2000, but now the surveillance system is so strong that it is almost impossible to vanish with client's money unless otherwise you do some foolish things (like allowing RM to trade on your behalf etc. etc.). Now the most important fact is that a broker must keep its client money in separate bank account which was not a case before.

I've also faced such type of situations before twice (one in early 2000 and other in 2009) but in all case I got my entire money back within 21 days.

A broker defaults generally on three things 1. due to proprietary trading, 2. wrong order punching and 3. bad risk management. In case of default, client's money will be refunded first.


One thing you must judge about a broker's quality is his ability to allow you to trade on extremely panic situation. In fact, in that situation I have seen many broker's terminal went off.

Anyway, don't worry too much, start enjoying trading.

With best wishes

hello sir,
There is a member named creep who is scaring the hell out of new people like us
pls go through this thread
http://www.traderji.com/brokers-trading-platforms/89681-discount-broker-comparision.html

what should we do ?Whatever he has written if only 25% of that is true then it is really scary??

 

[DataRam]

hello sir,
There is a member named creep who is scaring the hell out of new people like us
pls go through this thread
http://www.traderji.com/brokers-trading-platforms/89681-discount-broker-comparision.html

what should we do ?Whatever he has written if only 25% of that is true then it is really scary??

I don't think Creep is scaring in any way. Points which Creep puts forward are surely meant to give thought upon. Atleast this will let a new person to think in an expansive manner and try to find answers for some facts which they might not have even thought of.

 

[bpr]

paisa gole bhi ho sakta hai ............

This is good info so we are protected upto 10 lakhs and not beyond that.

 

[sibu3168]

Hello ,

Here I am neither supporting a new broker nor an old one.

I am sharing my knowledge and experience which I got from my trading life. First I don't believe in rumors or any type of gossips, only believe in facts and figures. Whatever I will write here, it is neither intended to offend anybody nor to show I am a genius. After reading this, it is upto you to choose a broker of your choice.

I will elaborate everything in details. I have lots of experience working with older ones as well as the newer-ones (discount brokers).

1. All brokers (NSE and BSE) come under SEBI rule and they follow the guidelines provided by SEBI and their working is governed by rules and byrules of SEBI. So they can not do business on their own.

2. As long as you have sufficient trading capital, every broker is good even they will treat you as if you are their family members. But the real problem starts when the trading capital depletes. In this case I've seen more than 95% of clients say it was due to the broker because the broker provides them bad tips or the employees of the company misguided him. But personally I have seen the entire fault lies with clients. They never prepared to accept their faults. This problem is more psychological because by blaming someone a person tries to get out from a guilty feeling of being a looser.

3. When you trade/invest with a regular broker, initially after somedays, you will get more margin to trade intraday or to invest (at least two times of your capital) for somedays. Why they provide more margin? The answer is to earn more brokerage. In case of investment, they will get brokerage as well as interest on overdraft limit. How they get more brokerage? Actually their brokerage structure is based either on turnover or per lot size. More the turnover, more the brokerage.

4. The biggest problem lies with these brokers is when your trading account turns negative and unfortunately you indebted some payment to them. At that time, you will be surprized by their attitude. They will knock your door to recover their dues.

5. Their rules changes more frequently. You will often hear they will say you don't do this, it can not be done etc. etc.

6. If you use proprietary account for trading, then the chances of knocking of your doors by brokers will be much high.

After advent of discount brokers, I find discount brokers are far better than traditional brokers.

1. Discount brokers are far more transparent than traditional brokers.
2. Rules are written upfront, so there is no ambiguity.
3. Before start of trading you know when to square-off your position and what margin you are using.
4. Personally I found the services of discount brokers are far better than traditional brokers. For me the meaning of services is the ability of a broker (i) to square off your open position when he receive your phone call. (ii) the promptness to clear your doubts.
5. Basically it is best to use discount brokers for trading purpose only. For investment purpose it is better to go for old traditional brokers as they have their own DP.
6. Regarding the trading platform, almost all brokers provide the same type of trading platform (ODIN, NOW, NEST or NEAT). So not much difference.
7. The emotional attachment with discount brokers is much more less than that of traditional brokers. So one can work more professionally with them. It is because, discount brokers earn much less brokerage (25/- per order to 2000/- per month) than the traditional brokers (lowest is 0.01% and 0.1%). If they show you more undue respect, then they will be in trouble. and finally
8. Trading with discount brokers is more hassle free. That means whenever I want to withdraw my entire money from them, I get it immediately. But when I tried to get my money from a traditional broker it always takes more time as they tried to convince me to not withdraw money. Even if I want to withdraw some of my capital on regular basis, they do not allow me to do so by saying you can only withdraw on Friday or Saturday.

Now the question of reliability.

1. First all brokers whether it is an oldone or newerone are not reliable. In this bloody financial world nobody is reliable. Within two days any broker can get out from this business. How reliable they are looking from upside, in fact they are not reliable.
2. For me the most reliable broker is the broker whose terminal never went off in case of bloodbath on the street and allows his client to trade on that day. He may not provide margin on that day but he should allow his clients to trade on that day.
3. The ease of WITHDRAWING from and depositing in the trading account.
4. Quickness to solve any doubts.

Precautions to be taken while dealing with any broker.

1. Regularly check your account. Preferably in the night of the trading day and if you find any mistakes, then brought that in the very next day. Check how much time it takes to solve that problem. More the time less reliable that broker.
2. Use discount brokers for trading purpose only (Preferably).
3. Never put more than 10 lakhs of margin money with a single broker.
4. Always trade with two different brokers (at least)
5. Always analse which type of trader you are. If you trade one/two trades per day, then per order brokerage plan will be good for you and if you trade more than three trades per day the monthly fixed plan will be good for you.
4. Believe me, don't think much about your trading capital. It is safe with any SEBI registered broker.
5. Never deal with any sub-broker or never give right to anybody to trade on your behalf.
6. Never listen to any RMs for their sweety sweety word. All are there to get their salary from your brokerage.
7. If you are a frequent trader (jobber) or trade in small quantity but many times a day or an algo trader then it is better to go for fixed monthly brokerage plan. Never opt for per order trade plan.

Now regarding VPS Brokers, In fact, as I used extesively pro account before so I expected some hybrid brokerage plan like VPS from other brokers. Finally I got from VPS and actually it is far far better than all plans provided by discount brokers. Due to some personal problem I have not yet opened any account with them but I helped one of my friend to open an account with them and my friend chooses their value plan. Till now we found that their response to clarify our doubts is as equal as other discount brokers. Now I have accounts with Zerodha and RKSV but in future when I get freed from my problem, then I will definitely give a try with them.

Hope this will clear your confuson regarding selecting a broker.

With best wishes

 

[Deepika sahney]

Hello ,

Here I am neither supporting a new broker nor an old one.

I am sharing my knowledge and experience which I got from my trading life. First I don't believe in rumors or any type of gossips, only believe in facts and figures. Whatever I will write here, it is neither intended to offend anybody nor to show I am a genius. After reading this, it is upto you to choose a broker of your choice.

I will elaborate everything in details. I have lots of experience working with older ones as well as the newer-ones (discount brokers).

1. All brokers (NSE and BSE) come under SEBI rule and they follow the guidelines provided by SEBI and their working is governed by rules and byrules of SEBI. So they can not do business on their own.

2. As long as you have sufficient trading capital, every broker is good even they will treat you as if you are their family members. But the real problem starts when the trading capital depletes. In this case I've seen more than 95% of clients say it was due to the broker because the broker provides them bad tips or the employees of the company misguided him. But personally I have seen the entire fault lies with clients. They never prepared to accept their faults. This problem is more psychological because by blaming someone a person tries to get out from a guilty feeling of being a looser.

3. When you trade/invest with a regular broker, initially after somedays, you will get more margin to trade intraday or to invest (at least two times of your capital) for somedays. Why they provide more margin? The answer is to earn more brokerage. In case of investment, they will get brokerage as well as interest on overdraft limit. How they get more brokerage? Actually their brokerage structure is based either on turnover or per lot size. More the turnover, more the brokerage.

4. The biggest problem lies with these brokers is when your trading account turns negative and unfortunately you indebted some payment to them. At that time, you will be surprized by their attitude. They will knock your door to recover their dues.

5. Their rules changes more frequently. You will often hear they will say you don't do this, it can not be done etc. etc.

6. If you use proprietary account for trading, then the chances of knocking of your doors by brokers will be much high.

After advent of discount brokers, I find discount brokers are far better than traditional brokers.

1. Discount brokers are far more transparent than traditional brokers.
2. Rules are written upfront, so there is no ambiguity.
3. Before start of trading you know when to square-off your position and what margin you are using.
4. Personally I found the services of discount brokers are far better than traditional brokers. For me the meaning of services is the ability of a broker (i) to square off your open position when he receive your phone call. (ii) the promptness to clear your doubts.
5. Basically it is best to use discount brokers for trading purpose only. For investment purpose it is better to go for old traditional brokers as they have their own DP.
6. Regarding the trading platform, almost all brokers provide the same type of trading platform (ODIN, NOW, NEST or NEAT). So not much difference.
7. The emotional attachment with discount brokers is much more less than that of traditional brokers. So one can work more professionally with them. It is because, discount brokers earn much less brokerage (25/- per order to 2000/- per month) than the traditional brokers (lowest is 0.01% and 0.1%). If they show you more undue respect, then they will be in trouble. and finally
8. Trading with discount brokers is more hassle free. That means whenever I want to withdraw my entire money from them, I get it immediately. But when I tried to get my money from a traditional broker it always takes more time as they tried to convince me to not withdraw money. Even if I want to withdraw some of my capital on regular basis, they do not allow me to do so by saying you can only withdraw on Friday or Saturday.

Now the question of reliability.

1. First all brokers whether it is an oldone or newerone are not reliable. In this bloody financial world nobody is reliable. Within two days any broker can get out from this business. How reliable they are looking from upside, in fact they are not reliable.
2. For me the most reliable broker is the broker whose terminal never went off in case of bloodbath on the street and allows his client to trade on that day. He may not provide margin on that day but he should allow his clients to trade on that day.
3. The ease of WITHDRAWING from and depositing in the trading account.
4. Quickness to solve any doubts.

Precautions to be taken while dealing with any broker.

1. Regularly check your account. Preferably in the night of the trading day and if you find any mistakes, then brought that in the very next day. Check how much time it takes to solve that problem. More the time less reliable that broker.
2. Use discount brokers for trading purpose only (Preferably).
3. Never put more than 10 lakhs of margin money with a single broker.
4. Always trade with two different brokers (at least)
5. Always analse which type of trader you are. If you trade one/two trades per day, then per order brokerage plan will be good for you and if you trade more than three trades per day the monthly fixed plan will be good for you.
4. Believe me, don't think much about your trading capital. It is safe with any SEBI registered broker.
5. Never deal with any sub-broker or never give right to anybody to trade on your behalf.
6. Never listen to any RMs for their sweety sweety word. All are there to get their salary from your brokerage.
7. If you are a frequent trader (jobber) or trade in small quantity but many times a day or an algo trader then it is better to go for fixed monthly brokerage plan. Never opt for per order trade plan.

Now regarding VPS Brokers, In fact, as I used extesively pro account before so I expected some hybrid brokerage plan like VPS from other brokers. Finally I got from VPS and actually it is far far better than all plans provided by discount brokers. Due to some personal problem I have not yet opened any account with them but I helped one of my friend to open an account with them and my friend chooses their value plan. Till now we found that their response to clarify our doubts is as equal as other discount brokers. Now I have accounts with Zerodha and RKSV but in future when I get freed from my problem, then I will definitely give a try with them.

Hope this will clear your confuson regarding selecting a broker.

With best wishes

Sibu sir great reply,
Thanks a lot :clapping:
It has cleared many many doubts.

 

[dr.pkjee]

Most of the brokers claiming to be transparent do put brokerage calculator on their sites for new clients to
evaluate their transaction cost. This makes the task of selecting a broker a bit easy for us as far as cost of
transaction is concerned. Beside variance in upfront fee( brokerage fee) one needs to look at STT, Transaction
Charges and Clearing Charges being charged by brokers. One easy way to find is just compare the Service Tax
component in their brokerage calculator. Service tax being charged on Brokerage and Transaction charges will
give you a clear idea about transaction cost. Based on this for I found following –
-------------------------------------
*For Furure Segment Service Tax on 1 cr – Zerodha -60.5, RKSV – 29,Composite -56, Achievers- 48.20, Smart
Trade -29.66, VPS -30.9, Procon-48.20.
*For Option segment – Zerodha -988.8, RKSV -885, Composite – 927, Achievers -927 ,Smart Trade -883, VPS
-772.5 and Procon 865.2.
*For Cash intraday – Zerodha -60.5, RKSV -43, Composite -56,Achievers -43.26 , Smart Trade-43.26,
VPS-41.50 and Procon -64.89.
*For currency service tax component is, Zerodha -55, RKSV-19.76 , Composite -38, Smart Trade-20, VPS
-19.77 and Procon -38.93.
---------------------------------------
calculation -For example ,If I trade 1 cr a day in future segment( total turnover for month is 20-22
Cr) Achievers/Procon – My charges for one month are Rs 500(fix)+ service tax 61.8 + Turnover Charges 390+
service tax-48.20 (20X438.20) =8764. So total amount works out to be -500+61.8+8764 =Rs 9325.8/-.
Same calculation with Zerodha/Composite – Assuming 10 trades a day- (10x20x20) = 4000 Brokerage+ Service
Tax Rs 494.4 + turnover Charges 440 + service Tax 54.38(440+54.38)= 494.38, (20�494.38) =9887.6. So total
cost is = 4000+494.4+9887.6 =Rs 14382/-
Calculating same with VPS/RKSV/SMART TRADE – 1700+ service Tax -210.2+turnover Charges -250+ service
tax30.9(280.9�20)=5618. So total amount that I spend is 1700+210.2+5618= 7528.( saving of Rs 1800 over
Achievers/Procon and saving of over Rs 7000 over Zerodha/Composite)

So on more detailed analysis I would say VPS,RKSV and Tradesmart are best at present.
VPS Comes out to be cheapest as they have good mix of plans
Tradesmart has their own DP services
RKSV good service and competitive pricing.
Zerodha is like good,old,reliable but costly among all discount brokers.

Hi neoman,

thanks for this analysis.I am at present with zerodha.Their sevice is above par and cost is also quite reasonable.
I have designed an excel sheet to track the exact amount of profit/loss of my positions in real time by taking account of all trading costs like STT,turnover tax,SEBI charges,service tax,stamp duty besides brokerage.By matching the contract note with this traker there is only a difference of few paisas.But this difference also should not be there.
Anyway this utility is helping me to improve money management.But it can be improved.Here is an image.Download link in the image.

This excel sheet can be used directly by Zerodha clients.Others have to edit it as per the charges of their brokers
I am uploading it so that it can be used by those who want and find if it is useful & suggestion for change.

thanks & regards

PKJ

 

[neoman]

@dr.PKJ

Thanks,Actually when I wanted to open account with discount broker there was no comparison on charges etc was availabe anywhere o i had to start my own research on the discount brokers.Now many member have done better job and its easy for any newcomer to compare and choose.
Thanks for the excel sheet.

 

[TraderRavi]

Respected Sir,

Is there any issue with VPS ??

wat happened