I really feel if the client is at a loss he should be given exemption for paying the brokerage and other statutory charges. Hope the Indian brokers will think of this system which will automatically increase the volume and retail participation.
Quiet a ridiculous proposition, I must say. Its similar to you asking:
a) Why should I pay road tax? - the road I ride on is full of potholes
b) The Bank should not charge me any interest on any loan that I borrow for business and incur losses.
c) You asking your children’s school to pay back the school fees because your kid flunked the exam.
d) Asking the vegetable vendor to give back the money you spent on tomatoes because the tomato curry you made didn’t taste nice.
Do note that brokerage is a business and the broker’s job is to provide you a platform to trade. Being successful/unsuccessful is in your hands. Is there anything the broker’s done in your being successful/unsuccessful? In this sense, I find your proposition absurd.
On the contrary, are you willing to share a percentage of your profits, if you make any, with your broker?
8 Likes
As a brokerage there is a cost incurred in serving a client, technology, infra, and people cost amongst others. If you are utilizing any of this, I guess the broker has to earn something to cover the cost.
A brokerage like any other business has to earn profits, because only if they earn will money be spent on trying new initiatives - technology or otherwise. If the business doesn’t earn profits, there is not enough incentive for the promoters to keep running the business.
3 Likes
awesome… love the answer ,esoecially, the anologies…
Nithin please to answer for my other two questions.