Everything Free!

[jdm]

very true jdm,but this guy, qurious2noall ... i got it it right... expects that in the near future, brokerage should also be free too.... Oops...violation of Conservation of Energy...and Entropy and the basic principles of survival.

Anyway, jdm, have you heard about ...adaptive radiation... more on that later.

ss.

adaptive radiation - ahh thats something new to me. let me google it

 

[swagat86]

bv,
consider this:
a typical "small investor" who invests, say, one lakh in a year. now what it means to a broker. nothing much, a revenue of 500 bucks (@ 0.5%, ahh thats high in todays parameter) for the whole year. love it or hate it this "small investor" of ours is nothing but a liability for our friendly broker.

now the broker has two options, one, he gets as many clients he could so that even a low income per client could feed him. icici can be a good example for this. now only one pit fall is that you can have a large client base only if you have a good brand value. icici has an edge on this.

the second option is, devise products (like BTST, intraday calls etc etc) and make the "small investor" churn his portfolio at every opportunity (thus the broker makes a killing) and make believe him that this is the holy grail through which he could maximise his profit. this makes the client viable for the broker, but at the cost of our "small investor" as sooner or later he goes bust.

sadly, most of the brokers chooses the second path, and you really cant put the blame fully on the brokers alone. the mindset (lower the better) of ours, should be held responsible to the maximum extent.

stock market is very rewarding. perhaps there's hardly any other industry which can create wealth like the market can (and that too without licking anybodies ass). it is rewarding but at the same time the hardest of all. it doesn't squeeze your sweat or your blood but your soul. but the sad part is most of the people sees only the reward, and not the hard work that goes behind to get the reward. the saddest part is very few is willing to do the hard work.

one can demand or command, as a matte of fact, a low brokerage only and only if he/she is willing to do the hard work. if not he/she should leave things to the pro, and his service costs.

cheers,
jdm.

Excelent write up


Cheers

 

[bvpraveen]

.....but the sad part is most of the people sees only the reward, and not the hard work that goes behind to get the reward. the saddest part is very few is willing to do the hard work.

one can demand or command, as a matte of fact, a low brokerage only and only if he/she is willing to do the hard work. if not he/she should leave things to the pro, and his service costs.

Thanks for your writeup, Joy.

My view is that although brokerage should be decent enough, what finally matters is the traders knowledge, his edge, etc. Even if a broker comes up with a 'low' brokerage, will all the traders succeed? I dont think so.

Ofcourse these views are almost similar to what you are referring.

Regards,
Praveen.

 

[swagat86]

SUNIL JI!
WHAT IS MEANT BY FREE IS NOT THE LITERAL FREE ,BUT SENSIBLY FREE
TILL A FEW YEARS BACK BANKS USED TO CHARGE FOR DRAFTS,THESE DAYS IF YOU HAVE A DECENT ENOUGH ACCOUNT,DRAFTS/PAYORDERS ETC. ARE FREE (ALONGWITH A BUNCH OF OTHER FREE PERIPHERAL SERVICES OFFERED)

SAME IS TRUE FOR DEMAT ACCOUNTS-Remember the kind of horrendous charges for The ordinary,no frills DEMAT ACCOUNT WE USED TO PAY-now a days brokerages offer free demat account(does it means they are loosing money? certainly not , because highend clients end up paying so much for other services that its still profitable to induce the idea of free demat,so long as they maintain their accounts in a decent way

FLAT FEE BROKERAGE ACCOUNTS,FIXED FEE BROKERAGE ACCOUTS,ONCE PAID LIFE LONG BROKERAGE ACCOUNTS ARE THE CONCEPTS WHICH ARE BEING AGGRESSIVELY PURSUED BY PRACTICALLY ALL BIG (3 IN ONE KIND ONES) BROKERAGES, WHICH IS A PRECURSOR TO THE DAYS TO COME WHEN PURE TRADING WILL BE ALMOST(IF NOT ABSOLUTLY) FREE ,SO LONG AS YOU ARE A ECONOMICALLY VIABLE ALTERNATIVE OTHERWISE TO THE BROKERAGE-ITS UPTO THE BROKER'S INNOVATION,HOW HE IS ABLE TO MAKE THE CLIENT PAY NOT AS BROKERAGE BUT FOR OTHER ADDITIONAL SERVICES OFFERED ALONGWITH

Banks dont charge for darfts etc y???
Can u tel me??
Dont forget the basics dude, u keep ur money in the banks which it lends to the Borrowers and since there a diff of Interest between Loan and Interest on ur Savings a/c hence Banks gain. U keep ur money with them. But even if u hold a demat a/c with ur broker and keeping stks in it the Broker cant use ur shares( except fraudently).

So from where will the broker make money????

The competetion is causing the banks to giv free services like those.

And when u say " Additional service " wat u mean by it???????

And last its a request pls Cut the Caps. Looks odd.



Thanks????

 

[ratan jain]

Swagat: he said I never heard the words " cut the caps"

He looks like a newbie from a village who has just started using the internet, if he does not recognise the words " cut the caps"

Hahahahahah

 

[swagat86]

Swagat: he said I never heard the words " cut the caps"

He looks like a newbie from a village who has just started using the internet, if he does not recognise the words " cut the caps"

Hahahahahah

Sure lemme explain him then, I mean pls typr with no capslock on. In other words i mean type in small letters.

I cant be more clear.


Thanks

 

[kkseal]

very true jdm,but this guy, qurious2noall ... i got it it right... expects that in the near future, brokerage should also be free too.... Oops...violation of Conservation of Energy...and Entropy and the basic principles of survival.

Anyway, jdm, have you heard about ...adaptive radiation... more on that later.

ss.

Might just happen (and take down energy stocks)
http://www.Steorn.net

 

[RaV]

Banks dont charge for darfts etc y???
Can u tel me??
Dont forget the basics dude, u keep ur money in the banks which it lends to the Borrowers and since there a diff of Interest between Loan and Interest on ur Savings a/c hence Banks gain. U keep ur money with them. But even if u hold a demat a/c with ur broker and keeping stks in it the Broker cant use ur shares( except fraudently).

So from where will the broker make money????

The competetion is causing the banks to giv free services like those.

And when u say " Additional service " wat u mean by it???????

And last its a request pls Cut the Caps. Looks odd.



Thanks????

I thought broker could use stocks in your account for shorts. Isn't it?

 

[beginner_av]

good stuff...do u know who formed NYSE? And other exchanges? And why? Look at the history of the stock market, u'll know what brokers are and what they do. They created exchanges so that u can trade and they make money.
They do a lot of stuff too...forget paper work...clearing, settlement, margining and a host of other stuff. So they charge.
Yes brokers can do a lot of stuff "free". They can provide tick by tick data, TA platform, automatic executions etc to make your life easier when you trade. They can give discounts too. But free in a reasonably free sense (whatever that means)...then why will they be there for U to make money?