Best broker for huge trading account

[balab]

My friend just returned from the US and plans to day trade full-time NSE/MCX with a Rs 1 cr account (100 lac inr). I've been in this business a while but it is hard to figure out what broker will do proper justice to that kind of money in one account, in terms of safety of money first and proper execution, transaction charges, reporting, etc etc second. Any thoughts? Zerodha, maybe but they have a lot of frustrating system bugs. Looking at other possible candidate brokers. The so-called HNI brokers with x.x % turnover charges maybe not suitable for day trading with multiple trades a day, I assume.

 

[Mavala]

May be bank brokerages are best one from trust point of view like hdfc securities, icicidirect. At least it’s unlikely that they do get bankrupt but you never know with current banking scams.
For retails traders, practically there is no choice other than to deal with dicount brokers to be profitable.If I have to trade 1Cr, I would divide it in 3 brokers and trade.some of choices are Z, RKSV and many more.

 

[Schatz]

if the money is with broker there is always risk .. but if somebody is invested in stocks the money is not with the broker hence eliminating broker risk ...even if broker goes bankrupt u still hold the shares which nobody can deny

 

[balab]

Yeah as I said its intraday, not even weekly swing style. In MT4 we can do a trade copier and run same trades in multiple brokers but here in India all the trades need to be manually input (unless there's some algo solution, don't know) to replicate trades at 3 brokers. Is that possible??

 

[Abhishek Patil]

if you want to skip Z, then I think RKSV or finvasia would be a good option.
Though trading conditions with RKSV will remain same as Z, but with finvasia you would get zero brokerage trading all over. And if you want algo solution, then both upstox and finvasia offer fox trader.
Both have live chat support, better have a chat with both to clarify about the charges.

 

[balab]

Myself, I trade with Alice Blue. Looking at this also as an option, but seems not very popular somehow. Not the cheapest either but comes with massive 10x leverage.

 

[Tejas Khoday]

When one has a HUGE trading account, then many tend to gravitate towards the bigger brands. Why? Because there is a perception of safety. I have seen this happen many times before that anyone with an amount over and above 60-70 Lacs goes with a broker that has a "Name" and has "Branches" all over the country. I guess it makes them feel like "If I have any problem, I can walk up to the branch and confront him." OR "Oh, they are so big maybe their systems are better than a discount broker." All this is far from the truth.

1. Firstly, discount brokers don't chase large accounts because they don't have any incentive to do so. We charge a flat fee. Hence, we earn the same revenue per trade from someone that has 50,000 in his account and from a client that has 50 lacs. So, they think the effort of onboarding large clients is not particularly lucrative. This, however, doesn't mean that the platform is not suitable for large traders. In fact, if you are an active trader, you should choose a broker that focuses on the platform and charges a fixed fee because they are not trying to milk you by generating additional brokerage or giving you unsolicited advice that can wreck your trading account. I have seen this happen FAR TOO OFTEN at traditional brokerages. Sell-Side trading advice for which there is no additional fee has to be avoided at any cost because is a direct conflict of interest.
   
   
2. Try to avoid brokerages that do proprietary trading regardless of whether it is a traditional or discount brokerage. I think 99 percent of the retail traders are not aware that for far too long, brokers have been utilizing client funds to trade in their own proprietary accounts. Yes! You read that right. Many stockbrokers use clients' funds to trade on their own books and try to generate profits without having to put up their own capital. How is this even allowed by the exchange or regulator? It is not but it happens. Broking is a secondary source of income and the primary is, of course, prop-trading! Needless to say just because a broker trades doesn't mean that they will always be in profits. They can lose money too and when that happens, they're essentially losing clients' money without you ever getting to know. Don't ask me the details, it's more complicated than I can explain in this post but I just thought I should throw light on this aspect because I care about retail traders. Whenever there is a conflict of interest of this kind, misappropriation of funds is a very high possibility. To eradicate the conflict of interest, FYERS did not even apply for a prop trading license. So, the funds are much much safer because we don't do any speculative activities at all. So there will never be any reason to divert funds in the first place. Some classic high profile blow-outs due to diversion of client funds were Karvy and IL&FS. There are many others that don't get enough attention. I'm not saying every broker with prop-trading activities misuses funds. I don't have sufficient information about that but I am just pointing towards a direction to help understand the possibilities.
   
   
3. Avoid brokerages that provide very high leverage. It can blow-out your account faster than in your worst nightmare. Some brokers will offer margin funding etc. but please note that margin funding is risky and has resulted in way too many issues. In the future, the margin funding segment may not exist as we know it today. The rules are changing and perhaps the 2x leverage maximum will become the norm and that too through an NBFC.
   
   
4. Don't be penny-wise & pound-foolish. A brokerage is a business at the end of the day. Yes, minimal fees help but not at the cost of compromising your capital, right? So don't let the brokerage fees be the most important factor when choosing a broker. Choose a broker whose bread & butter is the business of broking and who is straightforward. If you end up in the wrong hands, then god bless your funds and how it will be handled.

If your account is larger than say 10-20 Crores, you can approach the Domestic Institutional brokers. Although many of them have a 50 Cr. minimum requirement, they may not turn down business. I hope this makes sense. Please choose wisely.

All the best!

 

[mohan.sic]

When one has a HUGE trading account, then many tend to gravitate towards the bigger brands. Why? Because there is a perception of safety. I have seen this happen many times before that anyone with an amount over and above 60-70 Lacs goes with a broker that has a "Name" and has "Branches" all over the country. I guess it makes them feel like "If I have any problem, I can walk up to the branch and confront him." OR "Oh, they are so big maybe their systems are better than a discount broker." All this is far from the truth.

1. Firstly, discount brokers don't chase large accounts because they don't have any incentive to do so. We charge a flat fee. Hence, we earn the same revenue per trade from someone that has 50,000 in his account and from a client that has 50 lacs. So, they think the effort of onboarding large clients is not particularly lucrative. This, however, doesn't mean that the platform is not suitable for large traders. In fact, if you are an active trader, you should choose a broker that focuses on the platform and charges a fixed fee because they are not trying to milk you by generating additional brokerage or giving you unsolicited advice that can wreck your trading account. I have seen this happen FAR TOO OFTEN at traditional brokerages. Sell-Side trading advice for which there is no additional fee has to be avoided at any cost because is a direct conflict of interest.
   
   
2. Try to avoid brokerages that do proprietary trading regardless of whether it is a traditional or discount brokerage. I think 99 percent of the retail traders are not aware that for far too long, brokers have been utilizing client funds to trade in their own proprietary accounts. Yes! You read that right. Many stockbrokers use clients' funds to trade on their own books and try to generate profits without having to put up their own capital. How is this even allowed by the exchange or regulator? It is not but it happens. Broking is a secondary source of income and the primary is, of course, prop-trading! Needless to say just because a broker trades doesn't mean that they will always be in profits. They can lose money too and when that happens, they're essentially losing clients' money without you ever getting to know. Don't ask me the details, it's more complicated than I can explain in this post but I just thought I should throw light on this aspect because I care about retail traders. Whenever there is a conflict of interest of this kind, misappropriation of funds is a very high possibility. To eradicate the conflict of interest, FYERS did not even apply for a prop trading license. So, the funds are much much safer because we don't do any speculative activities at all. So there will never be any reason to divert funds in the first place. Some classic high profile blow-outs due to diversion of client funds were Karvy and IL&FS. There are many others that don't get enough attention. I'm not saying every broker with prop-trading activities misuses funds. I don't have sufficient information about that but I am just pointing towards a direction to help understand the possibilities.
   
   
3. Avoid brokerages that provide very high leverage. It can blow-out your account faster than in your worst nightmare. Some brokers will offer margin funding etc. but please note that margin funding is risky and has resulted in way too many issues. In the future, the margin funding segment may not exist as we know it today. The rules are changing and perhaps the 2x leverage maximum will become the norm and that too through an NBFC.
   
   
4. Don't be penny-wise & pound-foolish. A brokerage is a business at the end of the day. Yes, minimal fees help but not at the cost of compromising your capital, right? So don't let the brokerage fees be the most important factor when choosing a broker. Choose a broker whose bread & butter is the business of broking and who is straightforward. If you end up in the wrong hands, then god bless your funds and how it will be handled.

If your account is larger than say 10-20 Crores, you can approach the Domestic Institutional brokers. Although many of them have a 50 Cr. minimum requirement, they may not turn down business. I hope this makes sense. Please choose wisely.

All the best!

Good evening Tejas

Much appreciated. Thanks for this very valuable information.

 

[kaly422000]

i think one sud have good netbanking facility with famous banks like axis etc and with relliable net for transfer of money of huge amount or better transfer small amounts in series to avoid any fault during transfer. payout will not be a problem. but for trading platform choosing better sud choose those brokers who have good reliable platform . in the above case offline brokers,though they are bit costly but may have reliable platform, like icici security,hdfc wud be better

 

[JamesEquity]

Hi Balab!

What to tell you....In fact, there is not at all a 1 fits all solution.

It depends on what is the trading pattern of your friend and what he needs: Cash Equity? FO. Commodities? Leverage? Strategies etc...
Being Discount Broker or Full Service, if and when he trades with BIG volumes he will require a phone support in case of system crashes (his own PC/systems, Internet down, broker problem etc...) to allow him to close a position for example. 1 failure can waste a lot of money if there is not an efficient broker's phone support.
If and when he is trading HUGE volumes even full service brokers and not only Discount Brokers will be keen to offer super competitive pricing to catch his volumes.

So there is not 1 answer but multiples....