Discount Broker Comparison

Guys are there any difference (in terms of safety or costs) between trading FX via exchange products or CFDs traded on OTC? Of course it all comes to differences in these two groups of brokers but I still can't understand which option is better.
 

bpr

Well-Known Member
I am seeing phantom entries in IB Times and Sell window.
E,g if the current price is 100. T&S keeps printing 103/104 .
Also some time I see negative value in their
I know they are agrreagted feed. but still it does not explain.
Anybody has any idea let me know.
here is an example market price 7.40 ..T&S printing 9.50 .there is one entry 1.25
1565254153051.png

here is a negative price entry

1565254370308.png
 
That is incorrect. Brokers do close accounts if a client requests for it by submitting the account closure form. They may persuade you not to close an account but cannot blatantly deny it. If any broker does this, you can raise a complaint to the higher management if they don't respond, you can write to the exchange or depository as the case may be. At the end of the day, it's the clients' wish whether or not they want to continue holding an account with the concerned broker.

Please note: A closure request will be processed successfully only if there are no outstanding dues from the client.
I am also struck with two accounts which I have not used for several years. They are not being closed in spite of sending emails and Forms. One of course is Sharekhan. Used to be good, but I am not keen after sale.
 

Tejas Khoday

Co-Founder & CEO, FYERS
I am also struck with two accounts which I have not used for several years. They are not being closed in spite of sending emails and Forms. One of course is Sharekhan. Used to be good, but I am not keen after sale.
A broker cannot deny a client's request to close an account unless:
  1. The account has a debit balance.
  2. Brokerage & other charges are unpaid to some extent.
  3. Penalties are unpaid or there are some contingent liabilities which can occur in the near future due to which it is put on hold such as Margin Shortfall.
  4. Demat Account AMC is unpaid.
  5. Open positions which are not yet closed.
Unless any of the above points are applicable to you, a broker cannot deny a client his/her right to close an account. I don't want to comment on any individual broker with regards to this. Hope this information helps.
 
A broker cannot deny a client's request to close an account unless:
  1. The account has a debit balance.
  2. Brokerage & other charges are unpaid to some extent.
  3. Penalties are unpaid or there are some contingent liabilities which can occur in the near future due to which it is put on hold such as Margin Shortfall.
  4. Demat Account AMC is unpaid.
  5. Open positions which are not yet closed.
Unless any of the above points are applicable to you, a broker cannot deny a client his/her right to close an account. I don't want to comment on any individual broker with regards to this. Hope this information helps.
Sharekhan keeps sending some message or the other, but had never indicated any due from me. Same for the other. I any case the accounts are inoperative for several years and I have sent multiple requests to close. To best of my knowledge and belief, none of the above five conditions apply.
 
Revised kyc needs to be done every three years else account gets locked, is as good as closed.

Sent from my Redmi Note 7 using Tapatalk
 

Tejas Khoday

Co-Founder & CEO, FYERS
Sharekhan keeps sending some message or the other, but had never indicated any due from me. Same for the other. I any case the accounts are inoperative for several years and I have sent multiple requests to close. To best of my knowledge and belief, none of the above five conditions apply.
Then go ahead and do the deed if you wish to. As I mentioned earlier, A broker cannot deny a client his rights. We can only try and convince the client. The ball is in your court.
 

Tejas Khoday

Co-Founder & CEO, FYERS
Guys are there any difference (in terms of safety or costs) between trading FX via exchange products or CFDs traded on OTC? Of course it all comes to differences in these two groups of brokers but I still can't understand which option is better.

1. Futures markets are always more reliable in any product because the exchange guarantees the settlement of trades. It acts as the semi-regulator of all transactions and collects margins upfront which helps to avoid defaults at a later date. If in case there is a default by any counterparty, the exchange is supposed to settle trades by way of "Novation". To make this possible, the exchanges have setup settlement guarantee funds. You can trade futures through a broker who's a member of the particular exchange. Simple stuff.

2. OTC markets have forward contracts and they do not trade on exchanges. The settlement happens privately between the two counterparties and there is no authority to ensure that it happens seamlessly. Moreover, forward contracts are not standardized like futures. By design, they are riskier and prone to defaults in my honest opinion. The forex market is traded across the network of banks and it is not channelized on any particular exchange. It is not possible for retail investors to trade unless the quantities are meaningful in the OTC market. Which is both rare and unlikely.

3. CFDs are basically modern-day bucket shops. You must be very careful when dealing with them and in fact, avoid them at all costs. Why? Because they are your counterparty for every trade. If you lose, then win. Now, what makes you think you can go to a casino, bet against them, win and walk out easily? There is a direct conflict of interest between the company that's providing the CFD and the so-called client.

Hope this clarifies.
 

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