ProStocks - Unlimited Trading Plan and Flat Fee Plan

[against_tides]

ProStocks does not do Prop Trading. In 120 years history of Indian Capital Market whenever a Stock Broker has defaulted 98 percent time cause was Prop Trading.

What could be a revenue model if every thing is Free? There has to be some catch ? I hope you are wiser and got your answer

This is their answer in this forum itself...
Do you smell any fish..

How does Finvasia earn?

As mentioned above, we believe brokerage is an ancillary service and not a main industry hence our business model is not dependent on brokerage. We will still make money even if we don’t charge our clients. We have many revenue sources apart from brokerage that keeps us going

1) Exchanges pay every broker a volume incentive if the volume of the broker goes over certain benchmarks.

2) We will be launching a suite of products over next 2 years. A lot of these products would be free however there will be some advance products that will attract certain fees, which is another source of revenue for us.

 

[S P Toshniwal]

This is their answer in this forum itself...
Do you smell any fish..

How does Finvasia earn?

As mentioned above, we believe brokerage is an ancillary service and not a main industry hence our business model is not dependent on brokerage. We will still make money even if we don’t charge our clients. We have many revenue sources apart from brokerage that keeps us going

1) Exchanges pay every broker a volume incentive if the volume of the broker goes over certain benchmarks.

2) We will be launching a suite of products over next 2 years. A lot of these products would be free however there will be some advance products that will attract certain fees, which is another source of revenue for us.

You are wiser and still you are asking us to reply. Please understand that neither NSE nor BSE is giving volume linked incentives . Make money even if they do not charge ? Those who do not do Prop can never use client's funds for exposure in Stock Market even for Intra day. Those who Do ???

 

[S P Toshniwal]

A client should be given enough time for such a rule in advance, there is no information regarding it from any of the broker

As far as SEBI is concerned, There is no change in Regulation. Regulation from the day Futures and Options were allowed on Exchange Platform is of Upfront Collection of Margin. Those who are giving are in Gross Violation and no one will notice in advance stating that we will not do violation after this date ? Such Intra-day margin is given from other client's funds and securities. Please do not be in impression that Stock Broker will put Rs 1 lakhs or Rs 10 lakhs to earn Rs 20 or Rs 40 in day. Rather they will do Margin Funding or Prop or Investment, if their fund is used.

 

[deba72]

As far as SEBI is concerned, There is no change in Regulation. Regulation from the day Futures and Options were allowed on Exchange Platform is of Upfront Collection of Margin. Those who are giving are in Gross Violation and no one will notice in advance stating that we will not do violation after this date ? Such Intra-day margin is given from other client's funds and securities. Please do not be in impression that Stock Broker will put Rs 1 lakhs or Rs 10 lakhs to earn Rs 20 or Rs 40 in day. Rather they will do Margin Funding or Prop or Investment, if their fund is used.

People trading with high leverage don't necessarily take just one trade a day. Majority of these people are active traders and they take multiple trades in a day. So if a broker is putting aside 3 lakhs ( for 4 lots, with client providing 1 lakh as margin ) and give 4 times leverage i.e allowing the client to do an intraday Nity options selling trade for 25000, his average earning from that client would be at least Rs.300/- per day. ( considering 10 buy and 10 sell orders at Rs.15/- per order ) . Therefore, brokers ROI would be 0.1 % per day which translates to 2.2 % per month, considering 22 trading days. Annualized it would be close to 26% +... So even if the broker is sourcing the fund @ 14-15 % p.a , he would still make a cool 10-11% net return on his capital with very very low risk , if he has good RMS systems in place.

Any business in this world runs on leverage and anyone who thinks otherwise need to have a re-look at his business acumen.

 

[against_tides]

You are wiser and still you are asking us to reply. Please understand that neither NSE nor BSE is giving volume linked incentives . Make money even if they do not charge ? Those who do not do Prop can never use client's funds for exposure in Stock Market even for Intra day. Those who Do ???

@Finvasia ..do you have any comments..??

 

[milkyblack]

@Finvasia ..do you have any comments..??

Finvasia does not do prop trading, few days back they have declared it and was on the newspapers.


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[lemondew]

Looks like they did it till dec 3 2019 and have closed it then.

https://www.theweek.in/wire-updates/business/2019/12/03/pwr28-finvasia.html

Finvasia does not do prop trading, few days back they have declared it and was on the newspapers.


Sent from my iPhone using Tapatalk

 

[lemondew]

The problem with finvasia is their inconsistencies in providing leverage to stocks...... they suddenly move good stocks to d groups and provide 1 x margin for intraday. They are good for futures. ....

Prostock,

Do they provide nest trader and consistently 7- 10 x for all fno stocks?

 

[marimuthu13]

The problem with finvasia is their inconsistencies in providing leverage to stocks...... they suddenly move good stocks to d groups and provide 1 x margin for intraday. They are good for futures. ....

Prostock,

Do they provide nest trader and consistently 7- 10 x for all fno stocks?

yes..suddenly they moved YESBANK to E groups , 1x for intraday... though yesbank becomes penny stock now, still it is in NIFTY 50 index... Finvasia should go with F&O stocks for classification

 

[lemondew]

Even sbin, indusindbank and infosys all big stable shares they have movd to 2x - 1 x bracket. Their logic is strange and hence not suitable for intraday stocks. Their services were good otherwise and would go to them for index futures.

yes..suddenly they moved YESBANK to E groups , 1x for intraday... though yesbank becomes penny stock now, still it is in NIFTY 50 index... Finvasia should go with F&O stocks for classification