Is it safe trading with Discount brokers who are not registered on exchanges directly?
Fellow Trader and Investors,
With the advent of discount brokerage in India, there are many traditional brokerage houses trying their hand at discount broking in a different brand name. The reason for doing this under a different brand name is quite obvious, this low cost plan doesn’t eat into their existing clientele who would probably be paying a much higher brokerage. The query that I see often, is it safe to trade with such entities?
So here is the list of such brokerages:
- Compositedge Composite Investments Private Limited
- Easy Tradez Asit C Mehta
- Rupeeseed Acumen
- MyvalueTrade Mastertrust Capital Services
- Tradewalla Berkeley Securities
- Trade plus Navia Markets
- Tradesmartonline VNS Financials
- Wisdom Capital F6 Finserve (Wisdom is the only one on the list who is a different entity, all the others are owned by the parent brand)
The risk of trading in terms of technology or financial risk with such firms is equal to that of directly trading with the parent brand as all the account opening documents will be executed in name of the parent brand. So there is no increase in risk just because you trade with a brand created by the parent company to promote low cost brokerage.
Empowering retail investors and traders,