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ZeBro: Offering Freedom from Brokerage, This Independence Day!

Now that you’re familiar with the benefits of zero brokerage, I bet you’re seeking the best suited model for online trading. Search no more!

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Yes, it’s absolutely true. Wealth Mantra is all set to launch their brand new zero brokerage model called “Wealth ZeBro”. The best part is equity delivery trades are going to be brokerage FREE starting this August. That’s right! There will be no pesky clauses, upfront fees, hidden terms and conditions, minimum/maximum limits on trade volume or underlying contracts!

Other than this, we’ll be charging Rs. 20 flat on F&O, Commodities and Equity intraday orders. Don’t worry; we’re not going to disappoint non-technical people. At an additional cost of Rs. 30/- you can book your orders on phones and through other dealers. We offer same pricing across all major exchanges.

# How Are We Going To Achieve This?

• Wealth with Speed

We’re planning to launch an improved version of our web browser “Wealth with Speed” to make user interface less challenging, clutter-free and more user-friendly for the newbie. This advanced desktop EXE based trading software is powered by comprehensive analysis reports, speedy charts and figures, chat tabs and functional tabs that will cater to all your requirements. Our upgraded HTML platform allows you to place orders while travelling too. It is practically accessible from all web browsers, tablets and mobile phones!

• Wealth on Move

To make life much easier for you, we’re also going to launch “Wealth on Move” mobile app, which is available on Android, iOS and Windows model. You can see detailed downloading instructions on our website. It’s available in both English and Hindi languages. Considering the popularity of our zero brokerage models, we’re working on more languages. In future, we’re hoping to make our system user-friendly by adding regional languages to it.

Moreover, we’re also planning to make it better for you by brining improvements to our other financial programmes. Soon, we’ll be circulating tips and a brand new “educator’s program” to help you learn the basics of online trading.

Scope:

We strongly believe that in order to stabilize the condition of Indian markets globally, we’ve to encourage the youth population to participate in our program. Currently, we’re targeting millions of those people, who know about trading, but are reluctant to invest. With your support, we can create long-term capital for stock market.

We won’t mind an extra hand. Please help us accomplish our task by spreading a word. Meanwhile, keep trading!

Advantages of Zero Brokerage: What Type Of Investors Will Benefit From It?

Most of us already know what Zero Brokerage is and that it is beneficial, but we fail to realize its future prospects. Customers trading with zero brokerage firms like Wealth Mantra shall receive sweet fruits in the form of aforementioned benefits:

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# Zero Brokerage Advantages—

• Low brokerage fees,
• Size and Volume of orders doesn’t affect your pocket since you pay flat fee,
• Transparent payment policies, terms and conditions,
• Investors receive leverage on margin money through intraday facility,
• Similar prices applicable across all the major exchanges in India,
• Funds move swiftly,
• Account opening, demo and trial facilities are usually free of cost,
• It’s easier to operate accounts online,
• Your brokerage firms assures secure transactions and authorized trading,
• You can verify each transaction of calls or mails,
• Services are delivered via free trading software across browsers and mobile apps (like Wealth on Move and Wealth with Speed),
• Information is displayed in form of advanced charts, using proper analytical tools,
• In case you get stuck somewhere, help is a phone call (or mail) away,
• The biggest advantage is there are no brokers or relationship managers pestering you to trade orders (so, they can earn quick bucks).

All brokerage firms provide more or less the same services, with little tweaks here and there.

# What type of investors benefit from it?

Zero brokerage is useful to ‘algo and arbitrage’ traders, proprietary traders, small firms, portfolio management firms and veterans, who’re familiar with market trends, collect or research own data and perform independent transactions, but it’s not a hard nut to crack. Even amateurs (with a little help initially) can get used to it in time.

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# What Is Its Scope?

The immediate effect comes in the form of savings entering your pocket. Other than these, the model definitely brings brokerage firms in positive light. Investors, who’ve initially lost respect for finance industry due to recession, have reverted back to it, full of new hopes.

Even finance companies have turned modern, more vigilant and active, when dealing with customers. This ensures swift and secure transactions, which is necessary to re-build a clean image of brokerage industry.

# Conclusion

Zero brokerage models create no confusions since terms and conditions are fixed and mutually agreed upon both the parties. It is flexible and more profitable for customers therefore, the youth has started signing up for it. It allows customers to trade conveniently from their homes and offices.

In short if you’re looking for low cost structures and swift platform to buy and sell stocks, you must opt for online trading via ‘no brokerage’ schemes. 

Zero Brokerage Vs. Traditional Brokerage: A Comparative Analysis of Both Models

Since you’ve already learnt the basics of stock trading in previous posts, we shall introduce you to a brand new concept that goes by the name of “Zero Brokerage”. It’s a new buzz word you may have heard on finance news. Concluding it down to a single line, ‘Zero Brokerage’ is the perfect solution for dealing with the complexities of brokerage and investments. About a year back, had you asked any brokerage firm if this was possible, they would’ve said a big fat “no”. Nevertheless, innovations in stock market and trading patterns have made this possibility real today.

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To understand how zero brokerage firms work, you’ll have to understand the functioning of traditional brokerage model.

# Traditional Brokerage Model:
Giving shape To Stocks and Shares Since Last 50 Years:

In order to invest in stock and shares earlier, investors approached individual stock brokers large brokerage firms that charged a hefty sum on trading. Brokerage firms naturally provided all finance solutions including equity, derivatives, currency, commodity, future and options (F&O), mutual fund, insurance, fixed income funds, retirement funds, depository, IPO and market research. Brokers approached corporations, did research and provided advice, hence the high fees. 

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Rates charged by traditional brokerage firms can be explained with the following example—

Suppose you buy 2 lots of MRF (most expensive share listed by NSE and BSE), your broker will charge you twice as much the price of one share). Brokerage fee was around 0.25 to 0.5% for retail investors and approximately 0.1% for individuals with high net-worth.

Although it was fruitful for the brokers (since they were the ones handling important issues), yet it doesn’t make sense for customers to pay a large sum out of their fortune, just like this. So, to provide profits mutually to both the parties, traditional brokerage system was replaced by online trading. The added advantage was, there were trading software, brokerage calculator and online trading apps to help customers execute bulk orders.

The Zero Brokerage Model was an added benefit to online trading.

# The Zero Brokerage Model: Example of Creativity at Its Best! 

This model basically exists to cut costs on brokerage by eliminating broker’s hefty share per executed order. It reduces costs and helps you save money in either of the aforementioned ways:

1)      Making equity delivery trades or equity trading absolutely free (which attracts most investors)

2)      By charging a flat fee per executed orders on Futures and Options (F&O), Commodities and Equity executed intraday orders.

This flat fee is a small amount applicable across all exchanges. Even though other charges (like transaction charge, exchange charge, service tax and statutory taxes) are levied on orders, reduction of brokerage fee on the whole makes relieves customer’s pocket.

How is It Savvy?

The Zero Brokerage model imposed on online trading ensures no or a small flat fee is charged per trade, irrespective of the type/size of underlying securities and transaction volume. In short, if your brokerage firm charges Rs. 20/- per trade and you’re buying or selling two stocks per day, you end up paying Rs. 40/- on transactions, which is quite cheap.

Charges are fixed on derivative orders since their size restrictions (minimum lot size should be around Rs. 2 lakhs) and lower ticket transaction costs you either flat fee or 0.01 to 0.05% per order (whichever is lower).

In a Nutshell…

Introduction of zero brokerage model means we save more and pay less. Since ‘money saved is money earned’, you end up being happier and richer!

A Beginner’s Guide To Trading: Things you Need to Know while Opening Trading Account

In order to open an account with brokers, you need to submit your documents (financial data, ID proofs, photos, completed application forms, KYCs etc.) along with minimum amount of money, which depends on the payment policies laid out by your broker. You can either execute this process online or post your documents and applications to the brokerage firm.

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Many providers let you open account for free and have minimum deposit requirements. A few may charge you flat rates on executed orders whereas others may charge from a fraction of your profits. Here are detailed instructions of the proceedings.

Learning the Basics of Stock Market:

You need to understand that stock market is all about learning and experience. You need consistency, observing skills, creativity, research and analysis potential and full dedication in order to come out as a successful trader. You won’t go very far if you’re dependent on other for guidelines. Everyone needs help initially, however you need to create your own strategies with time.

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Stock market is not a scheme or magician that will make your rich overnight. Most of us aren’t aware that stock trading doesn’t require huge capital for start-up. If you’re aware, you will do well with little training and guidance.

Stock Trading:

• ·         Once you register with your brokers and open a trading account, you can buy shares from the market.
• ·         After you place your order, it is electronically transferred to BSE or NSE in a queue.
• ·         Depending on your position on their list, your order gets executed when the desired stock reaches a particular value.
• ·         After your transaction is confirmed by the seller, the shares are listed as “purchased” and a record is made on your demat account.
• ·         Shares are stored in electronic form on your demat account.
• ·         Rolling settlement cycle (RSC) starts as soon as the shares are listed your demat account. As per RSC, each trade executed on a trading day (T) are settled on “T + 2” basis. In other words if you buy shares on Monday, you can see them on your demat account by Thursday. The “2” here denotes 2 working days (Monday to Friday).

·         Same rule is applied in case of selling share. Your job is to buy shares when they’re undervalued and sell them when they attain a higher market value.

This all seems very easy, still people lose money at times. Why? Here is the answer.

Why People Lose Money?

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Trading is risky if you’re unfamiliar with the basics of stock market. It can rob you off your capital if you lack experience, knowledge and trading skills. Many folks give into greed, in hopes of earning high returns on their assets in a short span of time. Thus, they end up losing more than what they already have.

Things To Consider When Trading for the First Time:

• ·         If you’re totally new to this field, you need expert advice. Don’t hesitate to consult your brokers for initial tips.
• 
  
• ·         Determine your resources and abilities. Based on it, form a plan then act. If you wish to be both investor and trader, it is best to start with one thing at a time.
• 
  
• ·         If you can invest only 5 to 8 hours in stock market research and analysis per day, you can consider working as an investor.
•       However, if you can spend the entire day on your computer and you love taking risks, you can opt for trading. Once you gather sufficient experience, you can execute both the activities side by side.
  In short, what you want to be in future totally depends on your dedication, skills and abilities.

Tips For Choosing A Brokerage Firm:

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Beginners are often confused about their choices. If you’re looking for expert advice, it’s best that you go for brokers that:

• ·         Allow online trading
• ·         Charge flat fee or offer discount rates on trading
• ·         Offer alternatives for placing orders (like on desktop, mobiles, through browsers/mobile apps, on phone or via mails) so you can access your account at anytime, anyplace
• ·         Let you access other financial solutions like insurance, mutual funds and bonds.
• ·         Provide an easy-to-use and simple software or brokerage calculator for orders and
• ·         Perform comprehensive research to come up with best market tips.

In short, you can rely on firms like Wealth Mantra because we provide all the services at one place. Go ahead and try us!

The Basics of Online Trading: A List of Technical Terms You May Often Encounter

The stock market is a place where most people seeking quick cash in life arrive. Many of us are already familiar with top-notch stock companies like Reliance, TCS, ONGC, HDFC, SBI, Coal India etc. Purchasing stock from our favourite company can be tempting, but we can’t make decisions based on our personal preferences. We’ve to look for shares in a strong company, based on its market reputation, share prices, management and industry growth.

Here are basic terms that sketch a brief outline of Indian stock market.

1)      Stock and Shares:

People use both ‘stock’ and ‘shares’ as interrelated terms, however, there is some distinction between the two. “Ownership rights of a specific company denote your power over it”, which is known as shares.

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Stock refers to “Ownership certificate pertaining to any company, known at different levels by names like equity, security and derivatives”. A person who owns stock in a company is known as stockholder. People who own maximum stock of a company (at higher levels) exercise more power on it and are designated at different levels as Founder, Managing Director, Chairman etc. They are major stake holders in the company.

2)      Company Board:

The company board constitutes of owners who’ve rights over the company. They may operate as: Sole proprietor (a single owner is in charge of the board), Private Limited (multiple owners are in charge), Public Limited (when ownership is distributed to general public through shares and stocks.). Shares and stocks of a large company are listed on stock exchange. People can access stock exchange data to sell or buy stocks.

Ownership rights of a person are determined by number or percentage of stocks they hold.

3)      Stock Market:

Stock market is a place where people buy and sell stock. It is similar to malls, supermarkets or rather ‘mandi’ in a layman’s words. Trading is guided by the rates listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange of India). Due to availability of internet worldwide, people can trade anywhere via mobiles and computers.

Investors must have a demat account and online trading account to sell and buy stocks.

4)      Share Market:

Share market is bifurcated into two types: Primary and Secondary Market.

In the primary market, companies, corporate groups and government organizations list their own shares and financial solutions under IPO (Initial Public Offer) in order to list them on major stock exchanges. Trading is not allowed here. Once listed in primary market, shares enter secondary market for investments.

Secondary market receives listings from primary market and opens up trading (selling and buying) prospects for investors and traders.

5)      Investors:

Investors are traders who analyse the fundamentals of a company and buy their shares. They hold shares/stocks for a long time (days to years). They may sell them when the prices are right. The process is known as investment.

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6)      Traders/Trading:

Traders buy and sell stock or shares on a short-term basis, known as trading. When people sell and buy stocks on the same day, it is known as intraday trading or day trading. When we hold stocks for some time and sell them after some days, it is known as delivery. Traders are usually not concerned about company’s performance. They perform regular trading with low profit margins.

7)      Investment:

Finance investments can be short-term (offering low profit margins) or long-term (offering bigger margins, depending upon company’s performance). Short term investments are done based on daily news and analysis charts whereas long term investments are done after thorough analysis of company’s fundamentals and market growth. Long-term investors are not affected by ups and downs of daily market.

The main objective of any investment is to buy stocks when share prices are undervalued, but selling them at a point in future when their rates are high.

8)      Brokerage:

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A brokerage (like us) is the middleman between a corporate firm and investors. They perform market analysis, keep tabs on a company’s progress and provide financial advice to their clients. In short, they facilitate the selling and buying of stocks. In return, they obtain a fraction of client’s earnings or charge a flat fee per executed order for their services.

9)      Indices:

A group of stocks, which directs the entire market, is known as Index. High liquidity stocks (present in high volume) and high market capitalization stocks (we get that by multiplying the current stock price with their availability number for companies that have the most expensive and highest number of stocks) constitute stock index.

Stock index represents the ups and downs of stock market. In India, stock market is guided by Bombay Stock Exchange ‘Sensex’ (consisting of 30 stocks) and National Stock Exchange ‘Nifty 50’ (consisting of 50 stocks).

10)  Online Trading Account:

Online trading account is a registered account provided by your broker or company, for conducting trade related transactions. It is used for managing shares that are available for trading on stock exchanges. They’re marked by unique trading IDs. You login to your account using a secret code or password your provider provides you. This account is used for buying and selling stocks and keeping day-to-day market reports.

11)  Demat Account:

Dematerialization of stocks is known as Demat. In this process, an investor receives his shares in depositories (physical certificates are converted into electronic form), which is them maintained in an account with Depository Participant (like brokers, finance agencies and banks). This account is necessary for holding shares. All your purchases shall be displayed on your account in a list format.

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Opening a demat account is easy and hassle free. Many brokerages offer low flat rates for this purpose.

12) Depository:

Depository is like a storage house, responsible for maintaining investor securities (shares, bonds, derivatives or other investments). Data is maintained in electronic form. As of now, two famous depository organizations of India include ‘Central Depository Services Ltd.’ Or CDSL and National Securities Depository Ltd. or NSDL. Agents ask investors to open a demat account under either of these organizations.

SEBI (Securities and Exchange Board of India), which is appointed by Government of India regulates NSE and BSE stock exchanges. This body has made it mandatory for investors to maintain a demat account for listing shares and trading. You can open a demat account with 0 share balance.

Taking Indian Economy to Newer Altitudes: How Financial Firms can Benefit Indian Youth and Markets

2016: The year in which, powerful countries of the world are reaching new pinnacles of economy, but Indian youth is still struggling to make both ends meet. In the current scenario, most of us avoid stock trading in India. Trading stock and shares is considered a taboo in Indian society. Lack of participating is clearly responsible for decline of Indian economy, whereas US economy is progressing by 1.2% every year.

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The Plight of Stock Market, India—

Despite a massive number of over one billion, barely 1.5% of the country’s population invests in stock market as opposed to China and US, where the number as 10% and 18% respectively. Statistics quoted by Sebi in 2010 reveal, only 10% Indian cities contributed to 80% day trading volume. Moreover, where US 45% Americans are investing in equities, just 2% India’s savings contribute to equity and mutual funds.

Majority of Indians are unfamiliar with terms like penny stock, currency trading, day trading and stock quotes.

Uprising Stock Trends—

# Benefits for the Youth

With the BSE (Bombay Stock Exchange) taking a substantial leap of 31% in 2014, the youth may want to open a brokerage account for their mad money. It could easily cover short-term goals (like tuition fee, business start-ups, car loans etc.) and long-term objectives (like insurance, retirement fund, personal savings and real estate investment).

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Availability of online trading account and zero brokerage schemes allow investors to buy and sell stocks, equities, mutual funds, exchange-traded funds and bonds, without paying hefty taxes, in some cases.

Online brokers have made stock trading easier by replacing brokerage fee with flat 2-figure amounts (check out our zero brokerage plan by the name ZeBro for more information) and educational schemes.

# Benefits for Indian Market

With 70% foreign investors dominating Indian markets, there’s a requirement for strong and stable finance industry based on youth participation. In these desperate times, the country needs local funds to avoid macroeconomic gaps, stabilise its position in international stock market and achieve financial inclusion.

Indian household savings (which make up 30% of the total economy), ranking highest in the world, can be channelled to generate resources for the corporate industry. There’s a need to divert funds from unproductive investments in gold, to fruitful investments. In return, company stocks can deliver benefits to sectors lying at the bottom of the socio-economic pyramid.

Conclusion:

The erratic condition of trading in India and lack of support from local markets has resulted in foreign inflow. Therefore, it is important that Indian youth is encouraged to participate in financial drive for progress.

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If you find yourself clueless regarding your ventures and are looking for online brokers, Wealth Mantra will be happy to assist you. We provide equity, derivative, future and options (F&O), currency, commodity, mutual fund, insurance, IPO, depository and online trading services on browser (Wealth with speed) and mobile apps (Wealth on Move).