Need best margin funding broker

[vsreeram77]

i want to do systematic investment in equity shares, like to buy in every fall

is there any good broker who allows to do margin funding with lower charges

kindly guide me

 

[haruns]

buying on every fall with margin??? systematic investment and margin funding are two different things and cant go hand in hand. investment done on margin is nothing but speculative trading. investments done with savings only will give you emotional control

 

[drvinod_k]

Dear vsreeram77,

Absolutely agree with haruns views. You cannot invest with margin funding. Perhaps you are in search of something that NBFCs offer. Certain broking houses are NBFCs as well. They do provide you with margin to carry your positions for longer duration but they charge you interest rates as high as 19-21% for the facility. Edelweiss is one such firm which offers this facility but in this case you have to go as per their terms. They devise a portfolio and fund up to 50% of the cost. Another big trade off is that they also decide the holding period for the portfolio. I see a win win situation only for the broker in this scenario as you end up paying a significant sum as interest towards margin funding and you have the least control over your portfolio. Any gains you make in the future would be insignificant considering the overheads. Hope this answers what you were looking for.

Regards.

 

[gautam7821]

FINVASIA provide 2x margin for some script .

 

[Tejas Khoday]

i want to do systematic investment in equity shares, like to buy in every fall

is there any good broker who allows to do margin funding with lower charges

kindly guide me

@vsreeram77, I assume you have not done it or your account would be burned by now and you would have become inactive on @Traderji. Buying on every decline by pledging your existing holdings can wreck you completely if the markets don't bottom out. Why?

1. If your pledged holding value reduces, you will need to pledge more or bring additional margins.
2. You pay interest.
3. Your MTM losses can cause the broker to sell your pledged holding value.
4. In a bear market, if you pledge existing holding and go long, your account value will get completely eroded and finished. This is a classic recipe for a double-whammy disaster scenario.

 

[vsreeram77]

@vsreeram77, I assume you have not done it or your account would be burned by now and you would have become inactive on @Traderji. Buying on every decline by pledging your existing holdings can wreck you completely if the markets don't bottom out. Why?

1. If your pledged holding value reduces, you will need to pledge more or bring additional margins.
2. You pay interest.
3. Your MTM losses can cause the broker to sell your pledged holding value.
4. In a bear market, if you pledge existing holding and go long, your account value will get completely eroded and finished. This is a classic recipe for a double-whammy disaster scenario.

If i have capital example, 10000 : i take every 5 % fall , invest in SBI .. 1000 rs .. AND once my 10,000 becomes completed, I will start to use margin funding, for the same plan..

What wrong in my concept

I select only one stock.. from this current level, i buy in every 5 % dip, and sell in 20 % high from my buy prices, will use margin funding only after my capital completely utilized.

 

[jagankris]

i want to do systematic investment in equity shares, like to buy in every fall

is there any good broker who allows to do margin funding with lower charges

kindly guide me

So were you able to find the best margin funding broker with least interest rate ?