Trading for brokerage.

[drvinod_k]

Have been busy lately. However I have submitted all the necessary documents and I expect to start doing business by the mid of next week. Will update soon.

 

[onlinegtrash]

Hi Friends,
I was wondering if there are brokers in the market who are willing to share brokerage on the business done in one's own account. The idea is to target brokerage instead of the profit/loss for the day. It has many advantages firstly one does not have to wait for profit/tgt for a particular trade. One needs to trade for only intraday. Since the aim would be to get to the breakeven point one can get in and come out of a trade relatively early and safer. Multiple trades can be done in a session. At the end of the session you walk out with some money irrespective of where the market or your position heads. Another advantage is that one need not pay capital gains tax on such income except TDS at 10%. I did my research and did speak to some players in the Industry but they are small time players and in this scenario reliability is a big factor. I am looking for some stronger players and bigger brands who allow such business to be carried out. My humble request to all of you out there to kindly update incase you have knowledge of any such broker/entity.

Thanks.

Just for you Ethan Hunt. Consider I have an account XYZ with a certain broker. I enter into an agreement with the broker that he shall share with me a certain % of the brokerage generated by my trading in XYZ account. So in this case I shall trade for generating brokerage and not for profit. Normally if you generate profit in capital markets you have to pay capital gains tax (30% short term and 10% long term). In this case however I have to pay just 10% tax (TDS) on my income. Besides I am assured of money wether my trades go in profit/loss as I shall trade only for generating turnover(brokerage). Since I shall be aiming for breakeven I can close out trades early and put in multiple trades in a session. I hope this makes it amply clear.

Hi Creep,
You can keep your ridiculous appraisal of the situation to yourself. I am extremely sorry that inspite of stating everything so clearly you do not seem to comprehend that this is a safe and profitable venture. So be it. When I say I shall trade for breakeven is it not assumed that it shall cover all the taxes/charges including brokerage for that trade. My aim would be to remain on (no profit no loss or on a very thin profit) margin for the day after deducting everthing. Say I am being charged brokerage of Rs 1000 per crore of turnover and my breakeven comes to Rs 2240 (brokergae + transaction charges) per crore of turnover. I shall aim to keep the transactions close to this figure. At a turnover of 5 Cr per session the brokerage generated would be Rs 5000. I shall be entitled for a 75% of that Rs 5000 brokerage generated. I shall be paying TDS only on this 75% that I will garner. In the above scenario I do not care where the market heads. I shall be happy generating my income. I cannot explain beyond this. If it still confounds anybodys intelligence then it's time for a serious IQ check.

Flat out I agree I am dumb.

now can someone explain how this scheme work like explaining to 10 yr old, please.

When drvinoth says 5000 brokerage is generated out doing a turnover of 5 crore.
From whose pocket does 5k come out? if 75% of that money is shared to drvinoth
who will be paying the brokerage another client? but he says he is trading from his account.
If another client is going to pay the brokerage then he is simply playing a broker nothing fancy there.

I just want to know what ever profits drvinoth is going to earn comes from whose pocket?

If he pays his own brokerage and gets a refund of 75% still he lost 25% of money for brokerage,
how can this generate income!

 

[chandrujimrc]

Simply it is a time pass. I dont know ,what is the ultimate aim of this thread.When you know to make your trade as breakeven trade,why dont you go for a profit and pay the tax on it?Whether it is 1000rs turnover or 100 crore turnover we are going to pay the tax on profit what ever we have earned .If you are able to invest why dont you go for direct Nse membership,you can get 100% refund of brokerage.Ultimately we have to earn in the stock market.Simple Idea,start one franchsee of any one of the broker,and mobilize some good turn over clients and do the opposite trades of your clients trade,Difinitely you will get double benefit.