Discount Broker Comparison

[bpr]

This new loan against security product better be 4x-5x the portfolio value otherwise very costly at 14 to 15 percent interest.

Also If it is 1x then how differnet from curren pledging holdings process and getting 80 to 90 percent margin with no charge. I know there is 50 percent cash clause while using it for trading but still.

This loan can be used as overnight leverage not just intraday leverage which is cool.
What are the others terms and condition I wonder.

The article says already zerodha piloting this feature with 50k users

If anybody already using then please post more details.

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[travi]

This new loan against security product better be 4x-5x the portfolio value otherwise very costly at 14 to 15 percent interest.

Also If it is 1x then how differnet from curren pledging holdings process and getting 80 to 90 percent margin with no charge. I know there is 50 percent cash clause while using it for trading but still.

This loan can be used as overnight leverage not just intraday leverage which is cool.
What are the others terms and condition I wonder.

The article says already zerodha piloting this feature with 50k users

If anybody already using then please post more details.

Sent from my POCO F1 using Tapatalk

4X-5X, am i reading it right ?

they were talking about 60% in livemint article.

The only condition with 4X-5X is like auto-square-off they do when the limits are hit.

12-13% p.a is way too high if they have such auto-square off clauses imho. This becomes nearly hard-cash backed concept.

https://www.livemint.com/companies/...-to-debut-in-coming-weeks-11597853508971.html

Through its 'loan against securities' product, Zerodha aims to provide loans to its consumer base, against their portfolio investments in the public market, levying an interest rate of 12% -13%.

"Loan against securities is a natural extension to our retail brokerage business, and at present we are putting our own capital for this type of lending. If a consumer has investments worth ₹1 lakh in the market, we can provide them loans against 60% of their portfolio," Kamath added.

 

[bpr]

4X-5X, am i reading it right ?

they were talking about 60% in livemint article.

The only condition with 4X-5X is like auto-square-off they do when the limits are hit.

12-13% p.a is way too high if they have such auto-square off clauses imho. This becomes nearly hard-cash backed concept.

https://www.livemint.com/companies/...-to-debut-in-coming-weeks-11597853508971.html

Oh bummer then ...I don't understand how this will compete with collateral margin..

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[timepass]

That 12-13% they talk about, it is a flat rate they mention, right ? Not reducing balance rate ??

 

[travi]

That 12-13% they talk about, it is a flat rate they mention, right ? Not reducing balance rate ??

not sure, i checked to see if i was invited but i'm not so we'll wait for their announcements.

 

[travi]

Oh bummer then ...I don't understand how this will compete with collateral margin..

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I dont think this is just for collateral.

Collateral can be used for Margins in trading "only" with various clauses of haircut and 50% in cash etc but this new NBFC LAS is for hard cash like a personal loan etc
With cash in a/c, they're able to compete with all loan outlets bcos like Muthoot specializes in Gold, they'll be able to do it with securities.

Get client to open A/C with Z, pledge the security, get cash in a/c.
Pay EMIs, on default they'll sell holdings and recover the amount.
I guess thats the whole cycle.
Comparatively risk free compared to other physical assets etc that needs to be disposed.

 

[marimuthu13]

Kodak also offering free intraday trades now

 

[travi]

Kodak also offering free intraday trades now View attachment 43975

what are terms for free intra ?

 

[marimuthu13]

what are terms for free intra ?

FIT Terms & Conditions

• FIT is only applicable for self-generated orders i.e. where the buy and sell leg orders are placed on the Kotak Securities platform by the customer directly.
• Customers will have to provide margins as per the existing agreement with Kotak Securities.
• Delivery brokerage will be as per the agreement with the client.
• Currently, FIT is only open to resident Indians with an online trading account and for online franchisee accounts in equity and equity derivatives.
• Intraday trades placed through a dealer will not be covered under FIT.
• All statutory and other charges shall be charged as applicable.
• Nominal brokerage of just 1 paisa per scrip will be levied on your trade that will substantially reduce your cost of trading.
• FIT is not available for currency and commodity trades. FIT cannot be used by NRIs, QFIs and ODIN Diet clients at this point of time.
• In case you rollover your position beyond the day, the trade gets converted into a delivery trade, in which case, brokerage will be charged

How to get free intraday trading?
It’s very simple. Just open a trading account with Kotak Securities (It’s free if you opt for FIT). Next, opt for the FIT subscription by paying Rs. 999 for the full year.

 

[Raj232]

With the drop in volumes due to margin increases, looks like prop desks which were trading against client positions have had its business badly hit.