Hi Creep,
I appreciate your depth of knowledge and expertise.
Would you mind naming some good brokers keeping in view various parameters like transparency,reliability,financial strength,usability,brokerage etc.?
Thank you,
There is nothing called a good broker, you need to fit into what best meets your requirement.
There is a very interesting idea I am working on after looking at all the confusion on this forum.. Will share it on the forum soon.
I have been pulling up all the balance sheets especially of the so called discount brokers because the first most thing to know when trading with someone is the brokers financial viability.
I have put RTI's in cases where it is not available on MCA or other public domain.
Ensuring the financial viability means:
1. The risk of you losing on your capital sitting with the broker or things like the broker terminal being shut by exchange when markets get volatile and etc.
2. Only if a company is making profits or not losing much will they spend on technology and infrastructure, very critical in today's scenario.
I am putting this up on a blog, since most companies would file their returns latest by oct 31st, this had gotten delayed..
I have seen the episode that you have had with Zerodha, if you are an option writer trust me that no one at the exchanges in India understand how it works. I guess brokers use this as an excuse to not have clear policy, I don't know if you have to blame the broker or the exchange.
I trade with Sharekhan, they don't let me write options if at any point of time my net portfolio is less than 2lks, which is ridiculous.
The discount brokers I don't know what vision they have today are fighting it out in terms of offering lowest brokerage, best margin, I don't know if they can sustain this for long, one bad move in the market could hurt the business..
So in that regard, I have been looking at bunch of balance sheets, so whatever little I have seen, Zerodha is definitely the only profitable discount broker out there as a business as much as some listed players, some of the balance sheets of these guys are pretty scary...
But yeah, I plan to put up this up on a blog soon, give me sometime..
But for now, if you are worried about brokerage and leverage, I guess it has to be Zerodha.... If it has to do with reliability and everything else, Sharekhan...