On the topic of expenses more than income---Iam wondering how do zero commision (say Finvasia )brokers survive?
I do know when retail buy delivery stocks, broker debit customer 100% of the purchase amount but pay only MTM margin to NSE/settlement corporation.
Then Broker settle 100% funds of the bought stock amount on the T+2 eod to clearing corporation.
If a broker like upstocx with millon clients can make money on the bulk overnight intra corporate lending interest rates from customer amount ?
zerodha has say 2-3 million clients . what will be customer balance amount with them ?
same way Finvasia has 10000 active clients. Can they survive only on interest to pay for expenses (NO AMC also )
corporate accounts are current accounts, current account not able to earn interest as per banking rules..
They earn money from "other charges" (some brokers directly put in contract note, some other hidden charges ) including in transaction charges and other Trading related Business like API subscription,"DELAY payment charges" & etc..
There's no account opening charge and AMC in finvasia, but for option trading first they block whole margin for all legs and then they release margin to adjust margin benefit. so technically you have to keep complete margin for all legs to execute the trade.
There's no account opening charge and AMC in finvasia, but for option trading first they block whole margin for all legs and then they release margin to adjust margin benefit. so technically you have to keep complete margin for all legs to execute the trade.