Comment on The race to Zero – Can the Indian brokerage industry survive?

Vish commented on 07 Dec 2020, 07:57 PM

Few points
1) Direct DMA by exchange is one which would hamper the brokerage industry further. Preparing an tech ecosystem which could take these hits is important
2) Block chain In year or two May take over settlors role too. Few countries have adopted it and doing fine
3) AI role on RMS will be key to reduce costs
4) AI role in advisory and as mentioned in the article, brokers be able to directly deduct the fee from client account should be Best move. Advisory based services will thrive as level of trust in tripartite will be high.
5) Ideal ecosystem : Brokers should be able to sell the orders to market makers like In the west.
6) Should Increase the API costs, if revenue per client is less than threshold
7) Algo’s market would increase substantially. Having an Ecosystem with a large bunch of self learning algorithms would be a saver for the future.
8) Most of the exchanges around the developed markets are now moving towards 1 day expiry and an hourly expiry. Self learning algorithms makes sense here. India will be there soon !! Brokers with these Kind of restrictions Will be tough to adopt, where volumes are there and costs are mere .Better prepare now !
9) Exchanges have been pushing brokers to the corner with their Senseless models. High time brokers push them to the other corner with IP models.
10) Last but one, you guys are doing great job, there will be a way out soon !!

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