RKSV Kalaari capital investment – Insiderview

Fellow traders & investors,

Read the news on RKSV securities raising Rs 27 crores from Kalaari Capital today morning on Economic Times. Being a CA who follows all the brokerages closely, I took some effort to go through the filings, here is quick overview of the deal:

  • Firstly, the news article reads 50,000 clients. It is not correct, it is lesser than 10,000 clients as per the latest list available with the exchange. Check this post with all brokers and their active clients.
  • Rs 27 Crores of investment has lead to dilution of around 18% stake in the business. So RKSV securities has been valued at around Rs 150 crores.
  • The revenue from operations for the last year was around Rs 7.5 crores. The net loss for the business in the last two financial years FY 2014-15 and FY 2013-14, have been Rs 7 Lakhs and Rs 73 Lakhs respectively.

I guess it was the need of the hour for them to raise some capital, with the losses over the last two years. It is very encouraging though that VC investors are now looking at startups in the capital markets. Fundsindia (around Rs 80 crores), Scripbox (Rs 20 crores), Samco/Indian trading league (Rs 20 crores), and now RKSV (Rs 27 crores). Most of these investments were committed before the recent bloodbath on the stock markets. It would be interesting to find out from the investors if they would have committed capital with so much turmoil around.

Wishing the team at RKSV securities all the best. Also hoping that they spend the money wisely and not just blow it all out on advertising like Samco securities.

Don’t forget to visit http://comparebrokerages.in/.

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Empowering Indian retail investors/traders,

Comparebrokerages

Active clients – Broker wise in India

Fellow traders & investors,

Find following the list of active clients of all the brokerage firms in India – this is as of NOV 2015. This list is for equity clients only and is available on NSE website.

Active client = 1 trade in that particular financial year.

Visit our website http://comparebrokerages.in/ to compare the popular ones.

1 ICICI SECURITIES LIMITED 567188
2 HDFC SECURITIES LTD. 384736
3 SHAREKHAN LTD. 341809
4 INDIA INFOLINE LTD. 271383
5 KOTAK SECURITIES LTD. 261482
6 KARVY STOCK BROKING LTD. 170130
7 ANGEL BROKING PRIVATE LIMITED 168344
8 MOTILAL OSWAL SECURITIES LTD. 160831
9 GEOJIT BNP PARIBAS FINANCIAL SERVICES LIMITED 160718
10 AXIS SECURITIES LIMITED 146518
11 RELIGARE SECURITIES LTD. 124826
12 SBICAP SECURITIES LIMITED 122433
13 RELIANCE SECURITIES LIMITED 107613
14 EDELWEISS BROKING LIMITED 75625
15 SMC GLOBAL SECURITIES LTD. 64146
16 NIRMAL BANG SECURITIES PVT. LTD. 60366
17 ANAND RATHI SHARE AND STOCK BROKERS LIMITED 58505
18 VENTURA SECURITIES LTD. 57598
19 ZERODHA 46052
20 INDIABULLS VENTURES LTD. 40631
21 ADITYA BIRLA MONEY LIMITED 40525
22 BMA WEALTH CREATORS LIMITED 36782
23 BONANZA PORTFOLIO LTD. 34015
24 INTEGRATED ENTERPRISES (INDIA) LIMITED 33836
25 MASTER CAPITAL SERVICES LIMITED 33012
26 SHRIRAM INSIGHT SHARE BROKERS LIMITED 31400
27 JM FINANCIAL SERVICES LIMITED 27314
28 NETWORTH STOCK BROKING LTD. 25024
29 EDELWEISS FINANCIAL ADVISORS LIMITED 24512
30 LKP SECURITIES LTD. 22274
31 SHRI PARASRAM HOLDINGS PVT. LTD. 21938
32 IDBI CAPITAL MARKET SERVICES LTD. 21321
33 ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD. 21101
34 GLOBE CAPITAL MARKET LIMITED 20092
35 JHAVERI SECURITIES LIMITED 19996
36 EUREKA STOCK & SHARE BROKING SERVICES LIMITED 18575
37 SUSHIL FINANCIAL SERVICES PRIVATE LIMITED 18209
38 ARIHANT CAPITAL MARKETS LIMITED 17948
39 TRADEBULLS SECURITIES (P) LTD. 17618
40 MONARCH PROJECT & FINMARKETS LIMITED 17062
41 ALANKIT ASSIGNMENTS LTD. 16721
42 TRUSTLINE SECURITIES LIMITED 16459
43 WAY2WEALTH BROKERS PRIVATE LIMITED 15795
44 SWASTIKA INVESTMART LIMITED 15113
45 STEEL CITY SECURITIES LTD. 15038
46 EMKAY GLOBAL FINANCIAL SERVICES LIMITED 14129
47 ASHIKA STOCK BROKING LTD. 14110
48 ISE SECURITIES & SERVICES LIMITED 12437
49 PRABHUDAS LILLADHER PVT. LTD. 12253
50 JAINAM SHARE CONSULTANTS PRIVATE LIMITED 11863
51 ARCADIA SHARE & STOCK BROKERS PRIVATE LIMITED 11672
52 BGSE FINANCIALS LIMITED 11650
53 INDITRADE CAPITAL LIMITED 11333
54 KIFS SECURITIES  PRIVATE LIMITED 11009
55 R K GLOBAL SHARES & SECURITIES LIMITED 10356
56 PCS SECURITIES LTD. 10075
57 RKSV SECURITIES INDIA PRIVATE LIMITED 9842
58 FAIRWEALTH SECURITIES LIMITED 9687
59 GUINESS SECURITIES LIMITED 9642
60 PHILLIPCAPITAL (INDIA) PVT. LTD 9632
61 STANDARD CHARTERED SECURITIES (INDIA) LIMITED 9351
62 DBFS SECURITIES LIMITED 9303
63 VNS FINANCE & CAPITAL SERVICES LTD. 9131
64 SURESH RATHI SECURITIES PRIVATE LIMITED 8946
65 C.D. EQUISEARCH PVT. LTD 8734
66 DESTIMONEY SECURITIES PRIVATE LIMITED 8724
67 HEDGE EQUITIES LIMITED 8689
68 SHREE BAHUBALI INTERNATIONAL LTD. 8531
69 INTIME EQUITIES LIMITED 8508
70 MANSUKH SECURITIES & FINANCE LIMITED 8310
71 ADROIT FINANCIAL SERVICES PRIVATE LIMITED 8173
72 SSJ FINANCE & SECURITIES PVT. LTD. 7942
73 INDIANIVESH SECURITIES PVT. LTD. 7877
74 IFCI FINANCIAL SERVICES LIMITED 7626
75 CAPSTOCKS & SECURITIES (INDIA) PRIVATE LIMITED 7312
76 ASE CAPITAL MARKETS LTD. 7294
77 MICROSEC CAPITAL LIMITED 7012
78 PACE STOCK BROKING SERVICES PRIVATE LIMITED 7000
79 COIMBATORE CAPITAL LIMITED 6926
80 LSE SECURITIES LIMITED 6852
81 TATA SECURITIES LIMITED 6114
82 PRUDENT BROKING SERVICES PRIVATE LIMITED 6030
83 MUTHOOT SECURITIES LTD. 5981
84 CONSORTIUM SECURITIES PRIVATE LTD. 5795
85 INDBANK MERCHANT BANKING SERVICES LTD. 5740
86 PEERLESS SECURITIES LIMITED 5739
87 SAMCO SECURITIES LIMITED 5697
88 SYKES & RAY EQUITIES (I) LTD. 5628
89 SOUTH ASIAN STOCKS LTD. 5617
90 B N RATHI SECURITIES LIMITED 5593
91 SPFL SECURITIES LIMITED 5369
92 ELITE WEALTH ADVISORS LIMITED 5118
93 ATS SHARE BROKERS PRIVATE LIMITED 4942
94 BANSAL FINSTOCK PRIVATE LIMITED 4717
95 CHOLAMANDALAM SECURITIES LIMITED 4587
96 KUNVARJI FINSTOCK PVT. LTD. 4495
97 ACUMEN CAPITAL MARKET (INDIA) LTD 4460
98 SYSTEMATIX SHARES & STOCKS (INDIA) LTD. 4448
99 AMRAPALI AADYA TRADING & INVESTMENT PRIVATE LIMITED 4438
100 SKP SECURITIES LTD. 4424
101 MATALIA STOCK BROKING PVT. LTD. 4336
102 INDIRA SECURITIES PRIVATE LIMITED 4287
103 NAVIA MARKETS LTD. 4060
104 ALICE BLUE SECURITIES 4050
105 EXCLUSIVE SECURITIES LTD. 3911
106 DYNAMIC EQUITIES PRIVATE LIMITED 3808
107 NINE STAR BROKING PRIVATE LIMITED 3735
108 LAKSHMISHREE INVESTMENT & SECURITIES PVT. LTD. 3709
109 VERTEX SECURITIES LTD. 3544
110 ANS PVT. LTD. 3542
111 SW CAPITAL PRIVATE LIMITED 3528
112 VOGUE COMMERCIAL COMPANY LIMITED 3510
113 WEALTH MANTRA LIMITED 3464
114 SATCO CAPITAL MARKETS LIMITED 3321
115 ABHIPRA CAPITAL LTD. 3230
116 JUST TRADE SECURITIES LIMITED 2936
117 INDIA ADVANTAGE SECURITIES PRIVATE LIMITED 2913
118 ITI FINANCIAL SERVICES LTD. 2889
119 DIMENSIONAL SECURITIES PVT. LTD 2863
120 HSE SECURITIES LTD. 2849
121 KAYNET FINANCE LIMITED 2831
122 SUGAL & DAMANI SHARE BROKERS LIMITED 2701
123 SHILPA STOCK BROKER PRIVATE LIMITED 2693
124 CHOICE EQUITY BROKING PRIVATE LIMITED 2653
125 EASTERN FINANCIERS LTD 2632
126 KANTILAL CHHAGANLAL SECURITIES PRIVATE LIMITED 2619
127 NG RATHI INVESTRADES PRIVATED LIMITED 2611
128 MPSE SECURITIES LIMITED 2587
129 ASTHA CREDIT & SECURITIES (P) LTD 2567
130 MANUBHAI MANGALDAS SECURITIES PVT. LTD. 2560
131 DANI SHARES & STOCKS PRIVATE LIMITED 2520
132 INTEGRATED MASTER SECURITIES PVT. LTD. 2453
133 FRR SHARES AND SECURITIES LIMITED 2452
134 ASHLAR SECURITIES PRIVATE LIMITED 2441
135 DB (INTERNATIONAL) STOCK BROKERS LTD. 2394
136 JKB FINANCIAL SERVICES LIMITED 2222
137 RR EQUITY BROKERS PVT. LTD. 2217
138 NORTHEAST BROKING SERVICES LTD. 2107
139 NJ INDIA INVEST PRIVATE LIMITED 2058
140 ORION CAPITAL AND DEBT MARKET 2056
141 TRADESWIFT BROKING PRIVATE LIMITED 2025
142 FORTUNE CAPITAL SERVICES PRIVATE LIMITED 1807
143 ALMONDZ GLOBAL SECURITIES LTD. 1785
144 ORTEM SECURITIES LIMITED 1778
145 GOGIA CAPITAL SERVICES LIMITED 1756
146 TRADEWELL SECURITIES LTD. 1589
147 RAGHUNANDAN CAPITAL PRIVATE LIMITED 1568
148 KALPATARU MULTIPLIER LTD. 1552
149 FORTUNE FISCAL LTD 1541
150 PATERSON SECURITIES PRIVATE LIMITED 1506
151 F6 FINSERVE PRIVATE LIMITED 1481
152 BALJIT SECURITIES PVT. LTD. 1448
153 GREENBUCKS SECURITIES PRIVATE LIMITED 1417
154 ACHIIEVERS EQUITIES LIMITED 1404
155 EDELWEISS SECURITIES LIMITED 1397
156 SKI CAPITAL SERVICES LTD. 1338
157 KARUNA FINANCIAL SERVICES PVT. LTD 1309
158 EAST INDIA SECURITIES LTD. 1302
159 RTG SHARE BROKING LIMITED 1286
160 BEZEL STOCK BROKERS PRIVATE LIMITED 1255
161 BERKELEY SECURITIES LIMITED 1235
162 FAST CAPITAL MARKETS LTD. 1182
163 INDOVISION SECURITIES LIMITED 1175
164 SUNFLOWER BROKING PVT. LTD. 1154
165 FORT SHARE BROKING PRIVATE LIMITED 1151
166 COMPOSITE SECURITIES LTD. 1145
167 PEE AAR SECURITIES LIMITED 1089
168 VGP PORTFOLIO 1066
169 MEHTA EQUITIES LIMITED 1059
170 INDO THAI SECURITIES LTD. 1012
171 TR CAPITAL LIMITED 1008
172 MERITS CAPITAL MARKET SERVICES PVT. LTD. 1007
173 BADJATE STOCK AND SHARES PRIVATE LIMITED 976
174 KUMAR SHARE BROKERS LTD. 925
175 MAXGROWTH CAPITAL PRIVATE LIMITED 912
176 SHREEPATI HOLDINGS & FINANCE PRIVATE LIMITED 890
177 TRANSPARENT SHARES AND SECURITIES PRIVATE LIMITED 882
178 SKUNG TRADELINK LIMITED 793
179 WELLINDIA SECURITIES LIMITED 779
180 URJA INVESTMENT PVT. LTD. 778
181 VEDIKA SECURITIES (P) LTD 764
182 VACHANA INVESTMENTS PRIVATE LIMITED 678
183 PRL STOCK & SHARE BROKERS PVT. LTD. 656
184 ROONGTA RISING STOCK PRIVATE LIMITED 652
185 VISHWAS FINCAP SERVICES PRIVATE LIMITED 594
186 ACTION FINANCIAL SERVICES (INDIA) LIMITED 594
187 COMFORT SECURITIES LIMITED 593
188 BOB CAPITAL MARKETS LIMITED 557
189 FINVASIA SECURITIES PRIVATE LIMITED 524
190 AJMERA ASSOCIATES LTD. 485
191 INTELLECT STOCK BROKING LIMITED 438
192 SHREE TISAI CONSULTANT PRIVATE LIMITED 425
193 FIRST GLOBAL STOCKBROKING PVT.LTD. 419
194 I VENTURES CAPITAL PRIVATE LIMITED 399
195 AXIS CAPITAL LIMITED 395
196 INTERACTIVE BROKERS (INDIA) PRIVATE LIMITED 367
197 MONEYPLEX SECURITIES PRIVATE LIMITED 339
198 PRRSAAR 333
199 KARMIC STOCK BROKING PRIVATE LIMITED 329
200 SHRIAM FINANCIAL PRIVATE LIMITED 321
201 BHAIJEE PORTFOLIO LIMITED 299
202 SAS BROKING PRIVATE LIMITED 279
203 CAPITAL WIZARD STOCK BROKING PVT. LTD. 252
204 MANALI TRADING & HOLDINGS PRIVATE LIMITED 251
205 PADMAKSHI FINANCIAL SERVICES LIMITED 250
206 KEYNOTE CAPITALS LTD. 247
207 DIVYA PORTFOLIO PRIVATE LIMITED 245
208 UBS SECURITIES INDIA PVT. LTD. 232
209 SAMURAI SECURITIES PRIVATE LIMITED 187
210 REFLECTION INVESTMENTS 185
211 FLOURISH FINCAP PVT LTD 176
212 TIME CAPITAL LTD. 160
213 BNK SECURITIES PVT.LTD. 148
214 MOONGIPA INVESTMENTS LIMITED 143
215 INFINITY.COM FINANCIAL SECURITIES LIMITED 124
216 PAN SECURITIES LIMITED 114
217 RELIGARE CAPITAL MARKETS LIMITED 112
218 PARIM FINSERV 104
219 FINCAP PORTFOLIO LIMITED 101
220 COMPUACTION FINANCIAL SERVICES PVT. LTD. 97
221 SAMRIDHI STOCKS PVT. LTD. 68
222 SRM SECURITIES PRIVATE LIMITED 58
223 ENRICH FIN & SECURITIES LTD. 58
224 NIRMAL BANG EQUITIES PRIVATE LIMITED 52
225 NORD FOREX INDIA PVT. LTD. 46
226 GOLDSTREET SECURITIES LIMITED 45
227 DJS STOCK AND SHARES LTD. 35
228 QUANT SECURITIES PRIVATE LIMITED 34
229 BURGEON SECURITIES 31
230 GOOD FORTUNE CAPITALS PRIVATE LIMITED 30
231 ADVENTURES INDIA FINANCIAL SERVICES LIMITED 28
232 KORP SECURITIES LTD 23
233 ANGEL SECURITIES LTD 20
234 OPG SECURITIES PVT. LTD. 19
235 ICICI BANK LTD. 7
236 PASSION STOCK BROKING PRIVATE LIMITED 6
237 CREATIVE GLOBAL STOCK BROKING PRIVATE LIMITED 4
238 ORION STOCKS LIMITED 3
239 KOTAK MAHINDRA BANK LTD. 1
240 TRANSGLOBAL SECURITIES LTD. 1
241 BANSAL SHAREVEST SERVICES LTD 1
242 ICICI SECURITIES PRIMARY DEALERSHIP LIMITED 1
243 UNICON SECURITIES PVT. LTD. 0
244 MAX PLANWEALTH SECURITIES LIMITED 0
245 FIN BRAINS SECURITIES (INDIA) LTD. 0
246 STOCK HOLDING CORPORATION OF INDIA LTD 0
247 DREAMS BROKING PRIVATE LIMITED 0
248 CLICK2TRADE CAPITAL LIMITED 0
249 HDFC BANK LTD. 0
250 ZERODHA SECURITIES PRIVATE LIMITED 0
251 MNS SECURITIES LTD. 0
252 ORIENT CAPITAL MARKETS PVT.LTD. 0
253 ANAND RATHI FINANCIAL SERVICES LIMITED 0
254 ALKA SECURITIES LTD 0
255 AXIS CAPITAL MARKET (INDIA) LIMITED 0
256 IL&FS SECURITIES SERVICES LIMITED 0
257 EDELWEISS CAPITAL LTD. 0
258 BASANT SHARE AND STOCK BROKING PVT. LTD. 0
259 SHREYAS STOCKS PRIVATE LIMITED 0
260 ROYAL INTERNATIONAL SHARES PRIVATE LIMITED 0
261 FULLERTON SECURITIES & WEALTH ADVISORS LIMITED 0
262 INDIABULLS BROKERAGE LIMITED 0
263 MAHESH INVESTMENTS 0
264 ORIENTAL CAPITAL MARKETS LTD. 0
265 KOTAK MAHINDRA SECURITIES LTD. 0
266 ICICI WEB TRADE LTD 0
267 INDIAN FINANCE GUARANTY LTD. 0
268 M G CAPITAL SERVICES LTD. 0

 

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Empowering Indian retail investors/traders,

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Orion broking bankruptcy – lesson to learn!

orion

Fellow traders & investors,

Has been a while since I wrote a post. Writing this to reiterate the lessons to learn while choosing a broker. I had written this post when Unicon securities went bankrupt a while back, saying how we should not go with any broker who seems willingly wanting to violate rules and regulations.

Orion broking had its primary website as : http://www.orionbroking.com/ offering brokerage services in both Equity and Commodity. The company which is based out of Coimbatore, the promoters are currently underground. Cops are investigating the case now, check this news article. 

Have interacted with the promoters a few times, and they for sure are definitely not crooks. Their business model was to entice clients with extreme amounts of leverage. Trade with Rs 2000 for 1 lot of Nifty and Rs 3000 for Bank nifty. In commodities they would give any leverage that you ask for, even let you trade the big gold contract with less than Rs 5000 in the account. The website doesn’t really talk about these leverages anywhere, but if you speak to any of their clients you will know.

On August 20th, Globe capital who is a clearing member of Orion squared off all their positions due to not being able to meet the MTM(marked to market) requirement. Standing now, after the positions were squared off, Orion owes over Rs 40 crores to Globe capital and the exchanges. This is after Orion broking’s personal and client funds which was already debited by the exchange/clearing member to meet obligations. Client funds would have anyways been debited, but what is shocking is that the promoters even liquidated stocks lying in the client demat accounts to meet exchange obligations. So currently all clients of Orion broking who had any money or stock with them are in a soup. Yes, there is Investor protection fund by the exchanges, but it will take its own sweet time.

*An update on Orion Broking Services – The active directors of Orion Broking Services have been arrested on 8th March 2016, on the grounds of the following as per the Indian Penal code –

1. Section 120B (punishment for criminal conspiracy)

2. Section 409 (criminal breach of trust by public servant, or by banker, merchant or agent)

3. 420 (cheating and dishonestly inducing delivery of property)

Kindly go through this article to know more :- http://www.thehindu.com/news/national/tamil-nadu/prime-accused-in-stock-broking-scam-held/article8333481.ece. A further probe is now being instigated against them.

Lesson to Learn? 

This just goes to show that, chasing the broker who provides the highest margin may not be the best thing for you. Leverage is a double edged sword, it can not only wipe out your account in a hurry, but also the broker’s. Ensure that you choose a broker who is not over leveraging themselves and their clients.

 

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Empowering Indian retail investors/traders,

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Best trading platform in India? – Sharekhan Trade Tiger or Zerodha Pi ?

Fellow Traders & Investors,

My vote goes to Zerodha Pi and following is a comparison and my basis for considering Zerodha Pi as the best trading platform in India. There are certain pluses TradeTiger has over Pi, but overall after using both for the last few days, I think Pi is better.

Check this link to compare Sharekhan vs Zerodha in terms of everything else.

There are currently only these two contenders for the top spot. India Bulls was a close contender to be part of the top 3, but considering how disinterested the promoters are towards stock broking I have left them out.

Resource Management

Memory usage : Pi uses 1/3rd of what TT does.

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Memory usage

CPU usage: Pi is generally lesser than TT

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CPU Usage

Bandwidth/Network Usage: Usage of Pi is lesser than TT

blog3
Network usage

Marketwatch

Multiple Marketwatch: TradeTiger has an option to add multiple marketwatches, on Pi the workaround is to use workspaces.

blgo4
Tradetiger multiple marketwatch
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Workspaces on Pi

Adding scrips: Easier to add scrips on Pi vs TT

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Adding scrips on TT
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Adding scrips on Pi

Charting

Intraday data: TT has it only for the last 30 days. On Pi you can pull upto 365 days and more (maximum of 20,000 candles).

Historical data: TT has 10 years whereas Pi has for 5 years.

Time frame settings: TT scores over Pi, you can switch from one time frame to other quite easily. New charts have to be opened in Pi.

Indicators: Pi has 80+, whereas TT has 16+. Pi has more indicators and also has the crosshair function

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30 days intraday data on TT
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upto 20,000 candles – 365 days or more of intraday data.

Trading from the chart: feature available only on Pi.

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Trading from chart on Pi

Number of charts at one time:

TT: Maximum 5 charts

Pi: Maximum 12 charts

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Maximum charts: 5 on TT
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Maximum charts: 13

Option Calculator

TT has it whereas Pi doesn’t as of now.

Price alerts

Straight forward in TT, a little complex on Pi, you have to use expert advisor or scripted alerts. The advantage with Pi though is that the scripted alert/expert advisor can be used not just for price, but for any technical analysis based strategies. You can have multiple expert advisors searching and scouting for trading opportunities. You can also create consensus report using multiple EA’s.

1
Price alert
2
Scripted alert/expert advisor on Pi
3
Consensus report using multiple EA’s

Research calls and reports

Sharekhan has an active advisory desk, which gives out research reports which are accessible on TT.

Since Zerodha doesn’t do any research, you can’t see any fundamental data on Pi.

Overall after using Pi for the last week alongside TT, I think it is better overall. So my vote is definitely with Pi for the best trading platform in India.

Empowering Indian retail investors/traders.

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Samco – Indian Trading League – Review

Fellow Traders and Investors,

All these advertisements by Kapil Dev for Indian trading league spawned my curiosity. I gave them a call which ended at Samco securities, the execution broker for Indian trading league. That is when I realized that this entire initiative is by Samco and Kapil Dev has invested into Samco.

We have already added Samco on our list of 70+ brokers where you can see everything from financials to hidden charges to everything else. Click on this link to check the review about Samco.

Samco seems to have been inspired by Zerodha, not just in terms of their pricing model, but also the Indian trading league being an extension of the Zerodha’s 60 day challenge. They have also gone one step ahead seemingly infringing the copyright violations by copy pasting a few of the pages from Zerodha whose website has been live for the last 4 + years. A couple of examples are given below:

Zerodha.com

zerodha1

Samco.in

Note that even the savings number shown by default matches Zerodha

samco1Zerodha.com

zerodha2

Samco.in

samco2

My verdict on Samco, and should you start a relationship with them? 

1. Samco is erstwhile Samruddhi Securities, and this is their rebranded initiative. The financials of the company even after being in business for a very long time is quite ordinary. If you visit the link on comparebrokerages for Samco, you will see that profits are less than Rs 10lks/year for the last 3 years. The entire balance sheet size for last year (equity and commodity business together) is only around Rs 15 crores, which is the least among all the discount brokers out there. So the question arises if all these prizes – especially Rs 1 crore for the winning trader is actually for real, or just a marketing gimmick to get leads. Yes, they have a new investor in the business, but the question still arises on why would someone invest in a business like this which has quite a bad track record.

2. When this news article was released by ET on May 6th, the website Indiantradingleague.com by mistake was open for public for a few minutes. I guess they realized the folly and shut it down within 5 mins. I was one of the lucky few to have checked out what it was all about even before the launch. They were running a marketing blitz under #eknayileague to give away Rs 1lk to whoever could guess what it was all about. Since I knew what it was, entered into the contest just to see if I am able to win anything( atleast meet Kapil Dev if not for the cash prize). My submission was not even acknowledged forget any prize, the only thing I got from them were spam emails  asking me to open an account with Samco the last two days.

Considering that there are not many reviews available on the trading platform and considering that they seem to be blowing this prize money out of proportion, I think it is best to avoid. Smells a little like the “Hometrade scam” back in 2002 when cricketers and actors started advertising for Hometrade which eventually collapsed and caused losses of over Rs 600 crores to the investors. 

If you are looking at discount brokers, I’d advise you to choose between Zerodha or RKSV

Empowering Indian retail investors/traders,

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IIFL Rs 9.99 per executed order, just a gimmick?

 

IIFL
GIMMICK?

Fellow Traders and Investors,

I guess you must have read the press coverage about how IIFL is reducing the brokerage to as low as just Rs 9.99 per executed order and how Mr Nirmal Jain has claimed that they can go even lower.

In Economic Times

In Live Mint 

Be very careful, because we think true to its tradition and reputation even this scheme from IIFL is conniving to say the least. Here are the reasons why:

  1. They will be providing you only web based platform, there won’t be any option to use the desktop or the mobile version. If you have to use the desktop or the mobile, you will have to shift to their traditional brokerage plan.
  2. They are having hidden charges in the name of exchange transaction charges. Check this post to know about how brokerages charge extra in the name of turnover charges. India Infoline charges 0.038% or Rs 380 per crore for futures, whereas ideally it should be only around 0.0021% or Rs 210 per crore. Similarly much higher for options (0.058%) and commodity (0.0041%).
  3. No option to place call n trade, you will have to move to their traditional plan if you want to do so.

Click here to see all  other details about India Infoline.

So instead of being penny wise and pound foolish, it is best to avoid IIFL and use one of the reputed discount brokerages out there. Use our website Comparebrokerages, to make the best choice.

 

Empowering Indian retail investors/traders,

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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,

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Can I transfer money between equity and commodity account?

Fellow Traders and Investors,

I see many queries online on whether same funds can be used to trade Equity and after 3.30pm be used to trade commodity when trading with the same brokerage firm. There are many brokers who don’t let you do this, but there are a few who let you do this.

I am attaching the SEBI and FMC circulars, which clearly say that a broker is not allowed to transfer funds for a client between equity and commodity accounts. If a person wants to do this, he has to first withdraw the money from equity to his bank account and then transfer it back to the commodity account.

But note that funds which are in your equity account is allowed to be used for both equity and currency trading. It can’t be used for commodity trading.

So if your broker is offering this, beware! He is not being compliant to SEBI/FMC regulations. If he is not compliant to one rule, it is possible that he is not being compliant to other rules as well, which tomorrow might cause harm to the business and in turn affect your trading account with him.

Here is the link to the SEBI circular

Here is the link to FMC circular

25th Dec 2015, SEBI penalizes Greshma Shares and Stocks Limited – Rs 20lks for allowing the same funds to be used for trading equity and commodity. Reiterates everything we had posted earlier. Check this link for the circular. 

2th Jan 2016, SEBI penalizes Anand Rathi for Rs 30 lks for allowing same funds to be used for trading equity and commodity. Check this circular. 

Empowering Indian retail investors/traders

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Tempted by low brokerage advertisements?

Fellow Traders & Investors,

I was just seeing an advertisement on TV of a brokerage (Tradewalla) saying freedom from brokerage, only Rs 20/month or Rs 1950 unlimited/month.

Firstly, ensure that you don’t get carried away by just low cost advertisements, the many you are seeing on TV, google ads, newspapers and more. What you need to ensure is firstly that the brokerage is a financially viable entity, they have good technology backend, have the infrastructure to offer you support and also check for their client reviews, all of which you can see at CompareBrokerages.

Once you are done with your due diligence, ensure to check if the particular brokerage is charging low brokerage and has hidden charges in terms of transaction charges/turnover charges. Do check this blogpost.

We have made it easy for you, following is the list of all the brokerages who charge you less in terms of brokerage, but have big markups in terms of hidden costs. You might think what is the big difference between a transaction charge of 0.055% on options vs 0.08% on options, it could mean you would have to easily pay thousands of rupees extra every month.

1. Easy Tradez

2. Tradewalla

3. Trade Online Plus

4. Trade Smart Online

5. Compositedge

6. SAS Online

7. Wisdom Capital

8. Achiievers

9. Asthatrade

10. My Value Trade

11. Traders Khazana

12. Trade Jini

 

Empowering Indian retail investors/traders

Comparebrokerages

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