RKSV - Unlimited Online Trading - Part-2

#21
Re: RKSV - Unlimited Online Trading @ 1947/-

I guess you have paid the brokerage for July month ??
Yes My dear friend!!. i was been charged for 18 days until 31st. tats why Intraday i will continue with RKSV until this month end..

in case of any positions(1-3 ) days i would trade with Zerodha :cool: :cool:

From Aug - All the activity @ ZERODHA :lol::lol:
KP
 

Trader J

Well-Known Member
#22
Re: RKSV - Unlimited Online Trading @ 1947/-

If RKSV will copy and paste ZERODHA RMS system, than RKSV will become No 1 to 10 Broker in India, and ZERODHA will go to No 11 , but they will not do it because there brokerage is limited to 1947 per month.

I would also like to suggest you that dont go for RKSV if you are F&O trader with margin because you may be save Rs 2000-3000 brokerage per month but may be you lost Rs 10000-15000 profit due to margin restriction and MIS system.
Dear RKSV, Do you have any plan in future to capture more market share (more revenue) ?, If you make RMS system same as Zerodha, you can take 2000-3000 ( 40 Lac to 60 Lac per month) Trader from Zerodha
 
#23
Re: RKSV - Unlimited Online Trading @ 1947/-

Dear RKSV, Do you have any plan in future to capture more market share (more revenue) ?, If you make RMS system same as Zerodha, you can take 2000-3000 ( 40 Lac to 60 Lac per month) Trader from Zerodha
Hi Trader J,

Working on other ways to improve our RMS. This exact feature may not be available for a while but I'm sure we can be able to provide you with other benefits on the margin front coming up. Working with the NSE NOW team to resolve this issue in other ways.
 
#24
Re: RKSV - Unlimited Online Trading @ 1947/-

Dear RKSV, Do you have any plan in future to capture more market share (more revenue) ?, If you make RMS system same as Zerodha, you can take 2000-3000 ( 40 Lac to 60 Lac per month) Trader from Zerodha
Difficult to compare discount brokers like that. It could work the other way too... some smart new broker may combine the features of other discount brokers and take away 10000 clients from them combined :D :D

All the brokers have their own distinct features, the customer chooses according to his own convenience. But yes, RMS features can do with improvement (RKSV has already addressed this point).
 

Creep

Active Member
#25
Re: RKSV - Unlimited Online Trading @ 1947/-

What happens if this rule is brought about to your business model?? Economic times 17th july...


Complaints from investors may force Sebi to regulate prepaid plans of brokerages



MUMBAI: Stock brokerages offering prepaid schemes to investors may find their business affected with the Securities & Exchange Board of India (Sebi) discussing plans to regulate such sales.

Increasing investor complaints of misuse and strong-arm tactics employed by brokerages has forced the market regulator to consider plans to regulate, and possibly curb them in some way.

Top Sebi officials told ET the regulator wants to ensure that brokerages don't forfeit investors' money in case the person fails to fully utilise his or her quota for the year under the prepaid plan. The regulator also wants to minimise cases of complaints and harassment, and ensure that investors get a fair play, the officials said.

The proposal was discussed in the regulator's July 5 meeting with market intermediaries, including top exchange officials and investor associations.

Brokerages fear that any curbs could affect their attempts to improve business in a weak economic environment marked by investor apathy and low volumes. Prepaid plans account for a fourth of new businesses for many brokerages, including Angel Broking, Sharekhan, Motilal Oswal and Anand Rathi.

"There are instances where aggrieved clients have raised the matter with the stock exchanges. The regulator will consult broking firms and is expected to issue guidelines or a circular regarding prepaid schemes," said a top official familiar with the situation.

Brokerages Facing Tough Time

"Of the 10,000 new accounts we add every month, about 30% customers opt for these plans. There is no need to meddle with broking schemes as it is a free market," said the senior vice-president (client acquisition) of a domestic brokerage, who did not want to be named as he is not authorised to speak to the media. Brokerages have been facing a tough time in the past few years due to the slump in equity markets. Stock prices of leading firms have fallen by 10-75% in the past three years and profitability of most has nosedived this year.

"Revenues from retail broking have dipped in the past few quarters. More than half of the client accounts are inactive. Around one-fourth of new accounts are for prepaid plans that lure investors to pay upfront and trade heavily. Any clampdown may have an adverse impact on future cash flows of retail-dominated broking firms," said a financial services analyst with a domestic company.

Prepaid plans were launched in 2007, but picked up pace last year. They are aimed at investors who are heavy traders with the ability to do large volumes. Though the schemes differ amongst brokerages, it essentially works like this: An investor is offered a plan where the price per trade is heavily discounted on the payment of a lump sum amount every year. The brokerage gets upfront payment and is assured of continuous business through the transactions. The investor, on the other hand, gets a discount on regular transactions, which he would not have got otherwise. For instance, if a client pays Rs 25,000 advance brokerage, he or she is required to trade stocks worth Rs 75 lakh in a year to use this amount, or Rs 7.5 crore of intra-day or derivatives volume.

The plan varies from brokerage to brokerage. While in some cases, it is refundable, in other cases, it can be refunded only after a certain period but without interest. In some cases, clients can trade only in a particular set of asset class. While some are valid for 'lifetime. in other cases there is a validity period. Further, the discount varies from plan to plan.

This was supposed to work well in theory, but a number of problems have cropped up in practice. Investors who did not make the required number of trades found their lump sum amount forfeited. Brokers blame the problem on the forfeiture of unutilised amount, which happens with only a few firms. Sometimes, this is not mentioned in the fine print.
"If the schemes are not banned in toto, every broker would start offering a new scheme with its own conditions, which will be difficult to monitor," said a person who attended the Sebi meeting. In a recent case, investor Paul John D Cunha, a client of Angel Broking, went to arbitration at the BSE to seek refund of the forfeited amount. The client paid around Rs 25,000 as prepaid brokerage for a year but could utilise only about 10% of the amount. The client disputed the forfeiture and slapped an arbitration case against the company. The case was withdrawn earlier this year after both parties agreed to settle. According to sources, Angel Broking paid Rs 27,389, including an interest of 18%, to the client.

An Angel Broking spokesperson declined comment on the matter. Some brokerages have promised to refund the unused amount. For instance, the validity for ICICIDirect prepaid plan is 15 years. "At the end of 15 years, the unutilised amount will be refunded to the client," said Vineet Arora, executive vice-president and head (product & distribution), ICICI Securities.

Rakesh Somani, president of the Association of National Exchange Members of India, said that so far the regulator has not approached them. "If the regulator is concerned, it is possible that it has seen some practice which could be against investor interest," he said.
 
#26
Re: RKSV - Unlimited Online Trading @ 1947/-

What happens if this rule is brought about to your business model?? Economic times 17th july...


Complaints from investors may force Sebi to regulate prepaid plans of brokerages

....
Hi Creep,

Looks like fixed brokerage schemes have gotten quite a bit of flak in the past. Probably the reason as to why they are being scrutinized may lie on the way the brokers have structured them.

In the examples you mentioned above, brokers ask an upfront fee from the client and give them some sort of quota to trade against. There are zero quotas with RKSV. Other brokers have several schemes that differ on the timeframe and the amount paid upfront. We have just one plan and it is month-to-month. You also get a full refund if you don't trade on a particular month.

We also make it an effort to make our plan information detailed online as much as possible. We don't earn extra whether a client does 1 cr turnover or 10 cr turnover. The purpose is to relieve the trader from thinking of paying brokerage for the current month. Should you have any disputes, we are also making ourselves available through public forums (apart from phones) to show transparency.

Ultimately, our goal is not to deviously extract upfront monies from our clients, and I think that's what this regulation is aimed at putting a stop to. Banning "all prepaid plans" would also hurt the trader who wants to trade without worrying about brokerage and the broker who actually offers a good package.

Anyways, as per our business model, it should be fine. If such a thing does come into effect, we're confident we can mold, adapt and figure something out for you guys :)
 
#27
Re: RKSV - Unlimited Online Trading @ 1947/-

What happens if this rule is brought about to your business model?? Economic times 17th july...

....
Also, on a side note, we have taken your suggestion of faulty phone lines seriously and have added a second phone number. Our phone system has also been upgraded to a better system too. Thanks!
 
#28
Re: RKSV - Unlimited Online Trading @ 1947/-

I do not think it would affect RKSV ,The big shots collect huge amount as advance brokerage.RKSV's is peanut compared to them .In such a case RKSV can get special permission explaining their scheme's advantages .
 
#29
Re: RKSV - Unlimited Online Trading @ 1947/-

Hi Trader J,

Working on other ways to improve our RMS. This exact feature may not be available for a while but I'm sure we can be able to provide you with other benefits on the margin front coming up. Working with the NSE NOW team to resolve this issue in other ways.
Hi RKSV,

We are not expecting to copy exactly same as ZERODHA System. Customers can live with the current product [email protected] as it will be handy after couple of trading days and this shouldn't be your top priority.

I would suggest Please focus on MARGIN EXPOSURE @ INTRADAY UNTIL 3 .. You are very lag in this front.. Please try to implement ASAP...then only you can capture market. Would great if you can give us Approximate time to give new exposure plans @ intraday...:confused::confused:

As other competitor(ZERODHA) is running towards more market capture ...with multiple New features...own single trading platform for multiple exchanges etc.. not expecting you to do all. As RKSV group might have their own plans how to capture the business

If you implement this new exposure plan after 6 months..:thumb: by that time your competitor might come up with new features. All the customer wouldn't come for only brokerage... as other competitor also not charging huge..infarct better than many..:thumb::thumb: and they are also very good at customer service like you.. Once customer has comfort ..no one prefer to change broker unless you show better features!!! than them

You have to run like a cheetah instead of Tortoise :rofl::rofl::rofl:

Thx,
KP
 
Last edited:
#30
Re: RKSV - Unlimited Online Trading @ 1947/-

I am currently trading with ventura using "pointer" application. I can save my order details and net position details to csv. Do NSE Now has this facility?
 

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?