An Analysis of Share Brokers

I have been dealing in shares since the year 1983.
I was a passive trader as I was working in private companies and I did not have much time.

Dematerialization was introduced towards the end of the last century. I avoided it as long as possible but took a plunge in it as I wanted to sell some shares.

I started dealing (27.05.2000) with Stock Holding Corporation, a government organization which was one of the first to dematerialize the shares. Naturally after demat, I became a bit more active but the process with SHCL was cumbersome. To make any payment or collect any cheque, I had to go all the way to their office in Park Street. They had no provision for online transfer of funds to and from my bank. Every visit there would be a 4 hour job. I gradually reduced my shares with them. Now, I do not have any shares with them.

My next broker was India bulls (22.06.2006). They had an interface which they called Power India bulls (PIB), through which I could trade in real-time and get quotes directly from the exchange. Their software was good only their intraday charts were very slow in loading on the screen However; this problem too has been taken care in the latest version of their PIB. Transfer of funds to and from my bank is done effortlessly.

Simultaneous with India bulls, my son had opened an account with Sharekhan, another online brokerage firm. I liked the speed with which their intraday chart was loaded on the screen and at one point I had thought of shifting my account from India bulls to Sharekhan. However, it had one defect. Every few minutes I had to log in and the password was always causing problems. After a number of attempts, I gave it up. My son too has now shifted to India bulls.

My next broker was Ashika Stock broking (10.05.2007). I chose them as my relationship manager from India bulls had left India bulls and joined them. He advised that it was good. They had software called ODIN. After a number of attempts to get the software loaded on my computer, they gave up. I also gave up the broker. Thankfully, they had not asked for any deposit.

A few days (15.05.2007) after starting and stopping business with Ashika, the Reliance Money people called me up and offered their services. Since India Bulls did not do business in BSE shares, I wanted a broker who dealt in BSE shares. Reliance dealt in them. I started trading through their on line internet based software. Compared to India bulls, their software was third rate and I had written to them a number of times. However, their brokerage was low and so I bore them.

Then they started increasing their brokerage. Initially when they started my account, they had said they charge Rs 500/- for transaction up to Rs 5.0 lakhs in value.

That was reduced to Rs 2.0 lakhs after I took up their account.

Then they started asking for Rs 15/- extra, per transaction, no matter what the value of the Rs 500/- for Rs 2.0 lakhs. This too was accepted by me.

Then they improved their software and I was happy that at last they had listened to me but my pleasure was shortlived.

The final straw came when they discontinued the Rs 500/- for Rs 2.0 lakhs and made the brokerage 0.35% of transaction value.
When India bulls was charging only 0.25% why should I pay more to Reliance.
I have informed Reliance that I am discontinuing their brokerage. Since this takes time, I have started liquidating my shares and transferring my money. No further purchases have been made through Reliance Money.

My next broker was Religare (03.10.2007).
They took Rs 2000/- advance from me which would cover brokerage for one year. However after signing all the papers and giving them my money, they told me to sign a form authorizing my shares to be transferred to their pool account. This I refused. I told them that my shares would be in my account and not in any pool account. I refused to do any business with them although I had paid Rs 2000/- It was better to lose Rs 2000/- than to be cheated in pool accounts,

It was while I was planning to close my account with Reliance that the Angel Broking people came. I thought they were God sent.

They charge 0.1% as brokerage and Rs 30/- per day you traded, no matter what the value. Of course they did not inform me of the additional Rs 30/- when they opened my account. However in spite of that accepted, as this I felt worked out in their favour vis-s-vis Reliance.

Further they gave a 1.0gm gold coin for depositing Rs 1.0 lakhs for starting transactions. I suppose the gold coin and 0.1% brokerage enticed me to accept their service.

However, ever since they have installed their software also called ODIN, I have faced problem. They have a password for entering their site and a back office password which I always seem to get wrong and have to take their help to set right. They have an IT section to whom you always have to go to set things right and every time you have to hand over your computer to them using Teamweaver. I opened my account with them on 30.09.2010 but till date, I have not been able to transfer fund to and from my bank inspiting of writing right up to their MD level.

In my 4 years with India bulls and Reliance, I have never had to handover my computer to them or their IT section.

I finally got fed up and sold off most of the shares (at a loss) I had bought with the Rs 1.0 lakh deposit given to them and withdrew the funds. The balance shares lying with them will also be sold off in due course and my account closed with them.
I will thus be left with only Indiabulls.

My above is my personal experience with the above brokerages and I hope it would help our readers to take a proper decision when selecting brokerages.