Comment on 60Day Challenge Yearbook and Reduction in Turnover Charges - Sep 17, 2013

Nithin Kamath commented on 18 Sep 2013, 06:53 AM


Thanks for understanding and wishes.

You are looking at it as a client, we as a business feel that unlimited trading per month for a fixed fees is a flawed logic and won’t really workout for the business in the long run. The idea is to have a business that can sustain and be profitable so there could be many other things that can be done.

Discount broking across the world works on a fixed fee per trade, the reason is because in today’s online world, the cost of executing a trade doesn’t go up with the size of the trade. Since the cost doesn’t go up, we charge a fixed fees.

With the unlimited plans, it is like saying that cost of a client doing 10 trades a month and 1000 trades a month is the same. It is a flawed logic and this business model in broking hasn’t worked out anywhere in the world.

Again that is our personal view and you might disagree.

Best of luck.

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