Hi - How do individual members of NSE & BSE earn their living (apart from trading) Eg - Interest on membership fee (which runs into many crores). Also do they have any advantage of insiders information as they are the members of exchange ?
Thanks
There are two reasons individuals take memberships, to save on trading costs and/or to keep their trading/investment activity private.
There is no other way to earn, other than from trading. The deposits given to take membership on exchanges are mostly cash deposits which earn no interest.
As a member on exchange, you get no additional information.
In today’s day and age, where brokerages like us (Zerodha) are offering trading at such low costs, don’t think it makes sense for individuals to take memberships. There is a big compliance cost.
Thanks for the explanation…!!