Some Trades are becoming Brokers & Some Brokers are shutting down their business-Why?

whisky

Well-Known Member
#1
Let's share views on “Why Some Trades are becoming Brokers & Some Brokers are shutting down their business-What’s wrong actually?”
 

ryan4ucar

Well-Known Member
#2
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

Let's share views on “Why Some Trades are becoming Brokers & Some Brokers are shutting down their business-What’s wrong actually?”
I guess real traders need of a good broker. Only a real trader understands the needs of these traders .
For example zeroda did something something revolutionary in terms of brokerage , but nothing in terms of a proprietary trading platform (i understand is not easy and cost can escalate). But they have understood it now they are planning to build one. Big Brokers shuttig down is because earlier a big plush office with a anlyst telling you success stories was enough to open accounts , now the general public is smarter and take their own decisions more or less.

these big brokers will be back when a bull market starts.

Nothing is wrong actually its a evolution the old dies and the new grows up
 

whisky

Well-Known Member
#3
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

It’s a bitter truth that around 80-90% traders loose in the market & only 10-20% gain in the market, so mostly the trader loose in the market.
When some traders who lost big money and evaluated their trading records found huge brokerage paid to “Brokers”- who actually gained safely that too with just providing a trading platform, which I would say mostly with poor services, so Traders started jumping into broking business, as Sub-brokers the easiest way, without understanding the complexity of this business.

Broking is “service industry” but brokers actually don’t realize that, it’s a complicated business as majority of their client loose money in the market and brokers are helpless as they have nothing to make sure their client actually make money in the market. It’s most difficult to maintain the clients & even more difficult to bring the new clients to this scary market, the reason of many brokers shutting down business.
Brokers are loosing clients as they themselves eaten away the most of money (huge brokerages, hidden charges etc.) of their clients without providing the basic services which a trader/investor expects, the other big reason of loosing clients.
Actual objective of traders/investors is to make money and no broker actually helped them to make money, so “Brokers” not even met their prime expectation and doing nothing on this.

It’s a big topic to debate and can go on & on.

Keep adding your views
 
#4
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

Brokers are shutting down their business cos their business model is no longer better with the likes of web based budget broking firms with a better cost efficient business models. Also brokers give recommendation with only sole aim of making their brokerage with no consideration in making sure their clients dont lose money.(retail clients) traders and investors are becoming smarter thanks to resouces in the web and news channels like ndtv profit etc where we get better pulse of market.
 

jamit_05

Well-Known Member
#5
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

It is tough for a broker who has charged heavy and earned 150 bucks per lot and now he has to compete with discount brokers charging Rs.10 per lot (and turnover charges).

Not every business person has the mental flexibility to work on low margins after he has seen a hi-fi life. They shut down.
 

whisky

Well-Known Member
#6
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

Brokers are shutting down their business cos their business model is no longer better with the likes of web based budget broking firms with a better cost efficient business models. Also brokers give recommendation with only sole aim of making their brokerage with no consideration in making sure their clients dont lose money.(retail clients) traders and investors are becoming smarter thanks to resouces in the web and news channels like ndtv profit etc where we get better pulse of market.
What about "Traders", why they are jumping into "broking"? your views
 

bunny

Well-Known Member
#7
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

The brokerage businesses run in relation to markey phases. When the market will have been in bull phase for a long time and be forming a top, the retail boom will happen. But most of the bigger brokerage houses are involved in business other than stock brokerage. For example, securities lending and borrowing, debt financing, mutual funds, insurance policies, etc.
 

Mr.G

Well-Known Member
#8
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

news channels like ndtv profit etc where we get better pulse of market.
I can't stop laughing!!
 

jahan

Well-Known Member
#9
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

What about "Traders", why they are jumping into "broking"? your views
Hello,

forgot about Traders what about u are u a mutual fund manager:rofl:...just kidding man ....

here r my few cents....

why traders are failing...........lack of Business plan(if treating trading as a business )....see not all traders becoming brokers.infact i have seen a trader who open his own broking firm for his own trades no single customer from outside....bcoz he doesn't want to give brokerage charges to others.

next when come to brokers ......again its lack of Business plan....they need to drive a separate force to attract more customers as their old customers going away or they need to think about why old customers are leaving or they need to adapt changing market conditions.

see... sharekhan whether he leaved the field no....why due to solid business plan and adapting nature.

when comes to u i don't know why u raised these points ....ask urself what u want to become....and my suggestion go for anything ...but do have a proper business plan.if u start without that then u can guess the end result.

Regards,
 

whisky

Well-Known Member
#10
Re: Some Trades are becoming Brokers & Some Brokers are shutting down their business-

Yeah, it's caused by lack business plan...
They fail becoming broker because they do not have plan and less of knowledge...
So what's your plan
 

Similar threads

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?