VPS is the best broker in town

#1
Most of the brokers claiming to be transparent do put brokerage calculator on their sites for new clients to
evaluate their transaction cost. This makes the task of selecting a broker a bit easy for us as far as cost of
transaction is concerned. Beside variance in upfront fee( brokerage fee) one needs to look at STT, Transaction
Charges and Clearing Charges being charged by brokers. One easy way to find is just compare the Service Tax
component in their brokerage calculator. Service tax being charged on Brokerage and Transaction charges will
give you a clear idea about transaction cost. Based on this for I found following –
-------------------------------------
*For Furure Segment Service Tax on 1 cr – Zerodha -60.5, RKSV – 29,Composite -56, Achievers- 48.20, Smart
Trade -29.66, VPS -30.9, Procon-48.20.
*For Option segment – Zerodha -988.8, RKSV -885, Composite – 927, Achievers -927 ,Smart Trade -883, VPS
-772.5 and Procon 865.2.
*For Cash intraday – Zerodha -60.5, RKSV -43, Composite -56,Achievers -43.26 , Smart Trade-43.26,
VPS-41.50 and Procon -64.89.
*For currency service tax component is, Zerodha -55, RKSV-19.76 , Composite -38, Smart Trade-20, VPS
-19.77 and Procon -38.93.
---------------------------------------
calculation -For example ,If I trade 1 cr a day in future segment( total turnover for month is 20-22
Cr) Achievers/Procon – My charges for one month are Rs 500(fix)+ service tax 61.8 + Turnover Charges 390+
service tax-48.20 (20X438.20) =8764. So total amount works out to be -500+61.8+8764 =Rs 9325.8/-.
Same calculation with Zerodha/Composite – Assuming 10 trades a day- (10x20x20) = 4000 Brokerage+ Service
Tax Rs 494.4 + turnover Charges 440 + service Tax 54.38(440+54.38)= 494.38, (20494.38) =9887.6. So total
cost is = 4000+494.4+9887.6 =Rs 14382/-
Calculating same with VPS/RKSV/SMART TRADE – 1700+ service Tax -210.2+turnover Charges -250+ service
tax30.9(280.920)=5618. So total amount that I spend is 1700+210.2+5618= 7528.( saving of Rs 1800 over
Achievers/Procon and saving of over Rs 7000 over Zerodha/Composite)

So on more detailed analysis I would say VPS,RKSV and Tradesmart are best at present.
VPS Comes out to be cheapest as they have good mix of plans
Tradesmart has their own DP services
RKSV good service and competitive pricing.
Zerodha is like good,old,reliable but costly among all discount brokers.
 
#2
DP charges

Zerodha and RKSV Use DP service of IL&FS---AMC charge 400rs
TSO has own DP sevice VNS---AMC charge 300rs
VPS uses Globe Capital as DP---AMC Chrge 200rs

So inspite of having their own DP TSO is charging 300rs while VPS is beating them in this also by providing demat amc charge as 200rs.

Till sometime back TSO was the cheapest with there charges but VPS has beaten them in plans charges and demat charges as well
 
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#3
After all my digging about various brokers I have decided to open account with VPS (earlier i was thinking of TSO)
Why?
My 5 reasons:

1.VPS Plans and charges are cheaper compared to TSO
2.VPS has hybrid plans which is better than seperate plans of TSO as you dont have to worry about brokerage they have actually combined %brokerage+fixed trade+unlimited plans together.
3.DP Annual charges are less 200rs compared to VNS 300rs.
4.VPS providing online trade in commodity also,TSO no commodity trade online
5.VPS is providing SMS alerts,No sms alerts for new customers in TSO

consider these figures for the charges /cr
--------------------VPS(10rs)------------TSO(15rs)--------
1.Equity(Intra)------1658.878 rs--------1886.97---
2.Equity(Deliv.)------10408.878rs-------11436.97--
3.Futures------------813.372rs---------1013..37--
4.Options------------7904.972rs--------9127.45--
5.Curr.Futures-------212.248rs----------429.10--
6.Curr.Option--------5481.932rs---------6985.31--
-----------------------------------------------------

So anyone can see that VPS comes out to be cheaper plus you get additional advantages over TSO as i have mentioned earlier. So why would anyone want to go with TSO when we have better option
 
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Creep

Active Member
#4
Hey Neo,

Small piece of advice, don't be pennywise and pound foolish.. The first suggestion would be to think if it is really required to go to these discount brokers, would the savings offered be really that important for the way you trade.

A discount broker in the US removes all the offline services but provides you the best online trading platform. Presently, most of the guys you have mentioned offer NOW trading platform which is basically like this free engine being shared with everyone. Zerodha I guess is the only one that offers NEST hosted on their servers, but even that seems like 3 generations older than the present trading platforms offered by discount brokers in the US. You need to check out think or swim by TD ameritrade.. So ideally none of these are discount brokers in the true sense because they don't offer an awesome online platform.

Finally the reason for my first quote was that, Delhi has the maximum number of defaulting brokers. Brokers who shut shop and disappeared with clients funds. NSE does a good job of hiding it, you can ask SEBI to give you this list. The reason I am telling you this is that if your broker doesn't make any money, are you not worried about him being in business or not? The reason you need to be worried is because your money is sitting with him and when he goes out of business, you know what happens... Think about it!!!
 
#5
Hey Neo,

Small piece of advice, don't be pennywise and pound foolish.. The first suggestion would be to think if it is really required to go to these discount brokers, would the savings offered be really that important for the way you trade.

A discount broker in the US removes all the offline services but provides you the best online trading platform. Presently, most of the guys you have mentioned offer NOW trading platform which is basically like this free engine being shared with everyone. Zerodha I guess is the only one that offers NEST hosted on their servers, but even that seems like 3 generations older than the present trading platforms offered by discount brokers in the US. You need to check out think or swim by TD ameritrade.. So ideally none of these are discount brokers in the true sense because they don't offer an awesome online platform.

Finally the reason for my first quote was that, Delhi has the maximum number of defaulting brokers. Brokers who shut shop and disappeared with clients funds. NSE does a good job of hiding it, you can ask SEBI to give you this list. The reason I am telling you this is that if your broker doesn't make any money, are you not worried about him being in business or not? The reason you need to be worried is because your money is sitting with him and when he goes out of business, you know what happens... Think about it!!!
Well said creep. I stick with zerodhA and trade smart.
 

sumosanammain

Well-Known Member
#6
Hey Neo,

Small piece of advice, don't be pennywise and pound foolish.. The first suggestion would be to think if it is really required to go to these discount brokers, would the savings offered be really that important for the way you trade.

A discount broker in the US removes all the offline services but provides you the best online trading platform. Presently, most of the guys you have mentioned offer NOW trading platform which is basically like this free engine being shared with everyone. Zerodha I guess is the only one that offers NEST hosted on their servers, but even that seems like 3 generations older than the present trading platforms offered by discount brokers in the US. You need to check out think or swim by TD ameritrade.. So ideally none of these are discount brokers in the true sense because they don't offer an awesome online platform.

Finally the reason for my first quote was that, Delhi has the maximum number of defaulting brokers. Brokers who shut shop and disappeared with clients funds. NSE does a good job of hiding it, you can ask SEBI to give you this list. The reason I am telling you this is that if your broker doesn't make any money, are you not worried about him being in business or not? The reason you need to be worried is because your money is sitting with him and when he goes out of business, you know what happens... Think about it!!!
NSE hiding defaulting brokers?
Can you elaborate? I am surprised that NSE could do such a thing.
Its scary!
 
#7
NSE hiding defaulting brokers?
Can you elaborate? I am surprised that NSE could do such a thing.
Its scary!
What we have heard (all brokers keep saying this) is that the clients deposits / margin with the brokers, is adequately protected by NSE, but not sure if its true, but . . .

Can anyone tell us

  1. How many NSE brokers defaulted and ran away with client's margin money in last one year?


  2. How many NSE brokers defaulted and ran away with client's margin money in last Five year?


Happy :)
 
#8
According to the link given by Ovongus the list at NSE mentions:

Since 9th December 1996 till 02nd September 2008 there were 49 Defaulter members

Since 8th April 1999 till 25th September 2009 there were 62 Expelled members.

Almost 4 members defaulted every year and 6 members expelled per year.
 

TraderRavi

Gayi Bhains Pani Mein
#10

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