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Online Broking In India

Evolution of broking industry


Pre online Era Online Era Post online Era

PRE ONLINE ERA


Open out cry method

Physical share certificate

NEED TO GO ONLINE
The rapid growth in number, volume and value of securities leading to limitation of handling and dealing in securities in physical / paper mode Harshad mehta scam leading to demateralisation concept

Need to provide better services


market research live quotes relationship management

IPO s

on-line asset allocation

portfolio management tax planning services financial planning

ONLINE ERA
Screen based trading system
NEAT BOLT

In the past investors had to contact their broker to get real time access to market data. Online and net broking enables him to trade on a click of mouse Information easily accessible to both retail big investors.

Advantages
easy and efficient access to more reports and charts smaller organization to compete with multinational organizations

Increased reach as more branches and franchisee come up

individual can exercise it over accounts comprehend what is going on when they trade

& can

one can invest in stock and stock index options, mutual funds, individual government and even insurance.

cheap easy fast and convenient.

A lot of information is online so they keep up-to-date with what is happening in the trading world.

can

absence of broker gives any trader an opportunity to take his/her own decisions without hurry. completing or denying a trade can be performed within a few seconds so it's easier to manage your investments and shorten your losses. They have access to numerous tool to invest and can create their own portfolio.

Disadvantages network crashes leads to problems and delays in order placement Individuals are restricted to first hand financial guidance. This simple means that the individual is he/she alone to. Chances are that one has no idea who one is dealing with on the other end, so it is advisable to gather all the possible information about the party one is dealing with. In short do the home work and be prepared. More transperency to sensitive and confidential data

addicted trader gets carried away online and being to trade for too much which cause losses for him/her. There is a need for more effective communication links over the internet and the ability of the server to deal with a large volume of visitors.

Competitors analysis on the basis of USP

USP of Sharekhan Online trading, user friendly and one doesn't need any software to access. Good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

USP of angel broking User friendly browser-based / application based online trading platform. The auto square off time is at 3:15 and an investor can buy up to 4 times the value in his account. Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank, UTI bank etc. Trading is available in both BSE and NSE.

USP of Religare Religare gives interest on unutilized cash when investor is waiting to make next trade or an online investment. Clients get to earn trade rewards every time they trade in equity or invest in IPOs with them. Online facility of placing After Market Orders is available to investors. Facility of investing in Equities, Derivatives, Currency Futures, Mutual Funds and IPOs through a single login. They provide intraday reports and historical charting. Also provide a variety of fee structures to fulfill the needs of different types of investors

USP of kotak securities Through its web portal company provides a single platform for investments in equities, Mutual Funds and currency derivatives. Available margin can be used for any of the three segments. Saxo's global trading platform provided by the company allows direct access to equities, ETF's and REITS spanning 24 stock exchanges across the USA, Europe, Asia and Australia. In late 2008 company launched an interesting Smart Order feature to its online trading portal. While placing an order to buy or sell stocks at BSE and NSE, customer can choose this option. Once selected, this option offers customers the best available price between BSE and NSE. This option is available to all the customers of the company.

Kotak also provides a Call & Trade facility to its customers wherein they can place and track their orders through phone when they are away from home. Kotak Securities provide daily SMS alerts, market pointers, periodical research reports, stock recommendations etc. Kotak provides exclusive online tool to monitor what is happening in the market and also investor can view gains/losses in real-time.

young management team which consists of very talented and knowledge professionals from different fields. a well capitalized group with net worth of 3500 crores. It means company is armed with proper resources to fight any adverse situation. tremendous research calls to their clients with high success record

Investors are not completely aware of Nirmal Bang, so the brand value of the company not yet created.

The growth of capital market is very high. Investors are now ready to invest their money In this market because the return is much higher compare to other place for investment, So they are ready to bear risk factor associated with it. It means volume will increase year by year in this sector. As Nirmal Bang having its presence in 36 location of the country, so company has good opportunities to extents its branches all over the country.

Company has to face a tough competition from major market leaders, so it will be a difficult task for Nirmal Bang to sustain itself in this cut throat competitions.