Recently, I was searching about review of one of the top broker 5 paisa for opening an account as they charge only Rs.10 per order. But multiple reviews mention that they credit a free share on account opening . Eventhough we Indians love freebies , whether this free share credit is done intentionally for a n unknown motive ? What could be the advantage to the broker because of such a move? Eventough single share costs 30 rs only (as per some reviews) , assuming that they get new clients of around 50k average , then the cost will be very substantial (50k * 30 = Rs. 15 lakhs) . Can experienced traders guide on this so that we traders can get a clear picture behind this ?
Many other top brokers also offering free share/etf, this is to increase their active client base, few of those brokers show this data as their market share and raise money claiming they have bigger market share, higher the share higher amounts they can raise and keep their investors happy in short term, This is just another trick to boost their market share.