what is the investment and documents required to start a new brokerage company ?
If you want to become a member on all the exchanges, deposits of 1.5 cr for NSE, around 30 lks for Bse and 30 for Mcx-sx. For Mcx another 15 lks. Membership fees of around 20 lks for all exchanges combined. If you want to offer equity and commodity trading, you need to have your own platform, around 50lks more for that to begin with along with the back office. So around 2.4 Crores in refundable deposits and cost of around 60 to 70 lks.
But yeah what can really add up to a lot are the continous compliance and technology costs. The brokerage business in India probably has the highest number of regulators.
Documents required are available on NSE site in the new membership section, and they also ask for some relevant experience from people starting the business.
14 Likes
thanks for answering my curious question. Nithin always rocks… 
Hey @nithin how did you start zerodha initially ? you got money from trading , job , loan or inherited ?
The above 3, nothing inherited unfortunately 
9 Likes
Dear @nithin
Is that refundable deposit i.e ₹ 2.4 cr used as margin for trading or it is blocked without any use.
The membership deposits are blocked, can’t be used for anything.
@nithin Apart from 2.4 Crore of refundable deposits and 60-70 lakhs intial setup cost and continuos compliance and technology cost…is there any other continuos cost like paying to exchanges based on turnover or anything ? Please help !!
Yep, you have to pay exchange transaction charges, which has a certain minimum number per year as well.
@mohitmehra can you try figuring the circular and link here?
Had missed this tag. I’ll get the circulars & link them here today.
BSE charges Rs. 1 lakh towards annual membership, of which 50% can be used towards the turnover charges incurred during the year. Circular link.
NSE does not charge an annual subscription. I couldn’t find the circular but this seems to have stopped since 2015/16.