Evaluate your Broker before Account Opening- Check List & Evaluation Results Update

#11
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

I think you should inquire about VPS services as well.
 

neo1599

Active Member
#12
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

Guys,

My expectations from VPS is also over (review-Failed) as they are very new in the business, started online business few months back, A/c opening charges Rs 300/-. If downloaded form Rs 200/-.
Low on Exposure as providing Intraday only- F&O segment 2.5 times, CDS - 2 times and MCX - 2 times. For Cash segment - F&O stocks - upto 8 times, selected mid cap ( 268) - 4 times.
Does not have their own DP
Though they have good Fixed monthly, hybrid plan but the whole goodness is taken away by high Clearing charges and Txn Charges as they are not a clearing member in NSE F&O segment and MCX.

Transaction Charges & Clearing Charges are additional variable cost which can be minimized/avoided if we wisely select our broker.

I hear you on the Variable Transaction costs part, none of the companies that I am currently in talks with is even remotely interested in helping to explain/lower these.
 

soft_trader

Well-Known Member
#13
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

Guys,

My expectations from VPS is also over (review-Failed) as they are very new in the business, started online business few months back, A/c opening charges Rs 300/-. If downloaded form Rs 200/-.
Low on Exposure as providing Intraday only- F&O segment 2.5 times, CDS - 2 times and MCX - 2 times. For Cash segment - F&O stocks - upto 8 times, selected mid cap ( 268) - 4 times.
Does not have their own DP
Though they have good Fixed monthly, hybrid plan but the whole goodness is taken away by high Clearing charges and Txn Charges as they are not a clearing member in NSE F&O segment and MCX.

Transaction Charges & Clearing Charges are additional variable cost which can be minimized/avoided if we wisely select our broker.[/SIZE]


I am not advocating VPS but, Charges of VPS (clearing charges) is on the lower side. And Isn't the intraday margin sufficient?
 

neo1599

Active Member
#14
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

I am not advocating VPS but, Charges of VPS (clearing charges) is on the lower side. And Isn't the intraday margin sufficient?
The intra-day margin is more than sufficient, any higher(this is at dangerous levels) is a recipe for disaster.

Have a good one.
 

whisky

Well-Known Member
#15
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

The intra-day margin is more than sufficient, any higher(this is at dangerous levels) is a recipe for disaster.

Have a good one.
Guys,

I don't think, specifically for MCX 2 Times & for F&O 2.5 times is not sufficient at all for a high volume day trader..as day hedging strategy require good exposure..atleast 5times...
 

soft_trader

Well-Known Member
#16
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

Guys,

I don't think, specifically for MCX 2 Times & for F&O 2.5 times is not sufficient at all for a high volume day trader..as day hedging strategy require good exposure..atleast 5times...
It is a double edge sword. If you use excessive leverage a few points move against your position can blow out your account in no time.
 

neo1599

Active Member
#17
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

Guys,

I don't think, specifically for MCX 2 Times & for F&O 2.5 times is not sufficient at all for a high volume day trader..as day hedging strategy require good exposure..atleast 5times...


Not sure about your level of experience with leverage.

I am not sure which hedging strategy you mention. A day trade using hedging? Would love to know more.


Not necessarily aimed at you, just relevance to the topic of LEVERAGE:

As soft_trader points out, its a double edged sword.

Most brokers are open to giving you higher exposure levels after your account being with them for a while. Not sure about the one mentioned though.

I have traded with leverage as high as 1:400. This was before, with abandon, and after, with extreme caution. The easiest way to take a fast exit from markets is to use leverage.

Let me repeat:

If your experience and understanding of leverage is limited to: more margin for trades/higher volume trades. DO NOT USE LEVERAGE.

If you have redundant systems in place. (RMS, multiple net connections,

Multiple UPS systems, SL calculators and updating, Loss calculation systems(RT), the list goes on.)

Have a robotic detachment to emotions i.e. trading psychology, and capability of execution.
.
.
.
.
I have my list somewhere.

If you can just check the above items off the list, better yet get a trade journal note everything with time and reasons. Re-valuate after a set time, only then should one even think of using ANY leverage.

Just look up the LEHMAN BRO's case for a cautionary tale.
 

whisky

Well-Known Member
#18
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

Review result for the day...
WISDOM CAPITAL-
Sub Broker of AliceBlue (Review Failed)

-New entrants started few months back, lack of experience
-Management team- background, qualification & experience not clear on the website
- Individual Franchisee of Aliceblue and can't expect good service as it's kind of indirect communication with Aliceblue. It's better to deal with Aliceblue directly to get best deal & service
- Account Opening Charges 100/-
'-Does not have their own DP & Clearing
- High Tranasction Charges & Clearing, it's a varaible cost make trade very expensive
- Low on Exposure in Day Trading in Freedom Plan
 
#19
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

Not sure about your level of experience with leverage.

I am not sure which hedging strategy you mention. A day trade using hedging? Would love to know more.


Not necessarily aimed at you, just relevance to the topic of LEVERAGE:

As soft_trader points out, its a double edged sword.

Most brokers are open to giving you higher exposure levels after your account being with them for a while. Not sure about the one mentioned though.

I have traded with leverage as high as 1:400. This was before, with abandon, and after, with extreme caution. The easiest way to take a fast exit from markets is to use leverage.

Let me repeat:

If your experience and understanding of leverage is limited to: more margin for trades/higher volume trades. DO NOT USE LEVERAGE.

If you have redundant systems in place. (RMS, multiple net connections,

Multiple UPS systems, SL calculators and updating, Loss calculation systems(RT), the list goes on.)

Have a robotic detachment to emotions i.e. trading psychology, and capability of execution.
.
.
.
.
I have my list somewhere.

If you can just check the above items off the list, better yet get a trade journal note everything with time and reasons. Re-valuate after a set time, only then should one even think of using ANY leverage.

Just look up the LEHMAN BRO's case for a cautionary tale.
Good Advice !!!! :thumb: :clapping:
 

whisky

Well-Known Member
#20
Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda

My main concern is Transaction & Clearing Charges which is eating away the profits even after having fixed brokerage plans....
So Called Discount Brokers - Do something for this:thumb:
 

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