Why are savings in trading costs extremely important?


Online Share & Commodity Trading in India - SAMCO

Introduction:

The classical Economics theory says that, “when cost reduces manifestly, profits increases steadfastly”. SAMCO invites to explore, a compelling proposition to “substantially increased profits for both traders and investors alike without any extra efforts”. Surprised!!

Here’s how!!

Over long periods, the money spent on brokerage costs etc., add up to a huge reduction in investible capital of traders and investors alike, thereby creating at the very threshold, the challenge for generating higher returns. The capital forgone in favor of brokers makes a daunting task to consistently generate higher positive returns. The amount forgone towards traditional high % brokerages, we bet, is the entire initial capital. Shocked?? Let’s explore!

For an Investor:

An initial capital of an investor Rs 5,00,000/- if he just churns 3 times during the entire year, his entire capital is consumed by the traditional broker in 12 straight years at just a marginal brokerage slab of 0.35% for delivery plus other statutory levies extra which are not considered as they being Govt. levies, brokers have no control and are more or less same for discount brokers also. Assuming an investor generates 20%p.a. return every year, had he been transacting with the discount broker like SAMCO, in a matter of just 12 years he would have been richer by Rs, 5,00,000. The ending investment corpus would have been Rs 44 lacs if he would have placed orders on a discount broker platform and Rs 39 lacs if transacted with traditional brokers, a whopping Rs 5 lacs lower, giving it away to traditional broker.   Let’s show you how the math works out.

SAMCO Advantage for Investor

Let’s explore further! Now, for a Trader:

An initial capital of the trader Rs. 5,00,000/- he just takes a conservative and prudent leverage position of just 3 times his initial capital at any point in time and therefore trades in 5 lots, assuming 3lacs as the average contract size. He churns his capital 10 times in a month meaning total completed trades 20(buy and sell) multiplied by 5 different contract specifications resulting in 100 trades (5*20) a month. He pays 0.03% as brokerage to traditional broker and Rs 20/- per executed trade to the online broker like SAMCO. The results are mind blowing. Entire initial trading capital of Rs. 5,00,000/- is consumed in 9 straight years. Corpus at the end of 9th year for a trader having traded with discount broker would be Rs. 25.3 lacs and for the trader who traded with traditional broker would be only Rs. 19.6 lacs whopping Rs 5 lacs lower, giving it away to traditional broker. Again, let’s see how the math for this works out.

SAMCO Advantage for Trader

To look from a different perspective, it’s surprising, investors are paying a whopping 275% more all inclusive brokerages and other statutory levies as compare to SAMCO broking tariff for taking delivery of shares worth just Rs. 1,00,000/-, however higher the capital deployed for taking delivery, the increase in over payment percentages rises exponentially. Attached is the table showing scenarios for delivery of shares worth Rs. 1lac, 5lacs, 10lacs. Why should anybody pay higher charges when low cost options are available??

Excess Payment with Traditional Broker

So, the number one reason to embrace SAMCO is substantial savings in cost and which can run up to as high as 98% of all costs ever paid to brokers, it may seem a joke but yes it is possible. If you believe it, SAMCO has it. To satisfy yourself, you can check at the SAMCO Savings calculator.

A Question may arise for SAMCO, that they are pure discount brokers and therefore do not provide any value added services to the clients. In facts it’s the other way round, because of the robustness of the technology platform, we are able to provide far more relevant and immensely useful information to the masses which probably people on the street have not even imagined. It’s a proprietary stock rating process developed by SAMCO team to assess or evaluate the quality of listed stocks on the basis of fundamental parameters like growth, efficiency of operations, industry dynamics, ability to generate free cash flows, corporate governance, promoters pledging etc. There are 20 plus objective rating parameters based on various processes adopted by legendary investors of our times. The outcome leads to stock being rated either AAA or AA or A or BBB or BB or B or C or Penny stock. It helps the user to know the risks involved in the stock and the true quality thereof. The availability of rating at a click is an innovative concept first time introduced in India for investors’ empowerment. We are confident through this information billions will be saved by investors by keeping away from poorly rated stocks. Let’s look at a snapshot of the SAMCO Stock Rating Report.

SAMCO Stock Ratings

SAMCO has prepared a powerful data bank. These are meticulously prepared consolidated financial data as far as possible of all NSE listed stocks giving a comparative view of the financial position of the present and past as many years, so as to understand the broad picture of the performance of the company seen never before in such a user friendly and immensely useful information for taking quick decisions. Such an in depth and decades of consolidated data at a click of the mouse is unprecedented in the history of information available for free to the retail investors in India. Such financial data has so high informative value, we bet, just a glance will tell you the quality of a company. Here is a sample data bank for Amara Raja Batteries, One of India’s Leading battery companies. It’s excellent financial history has resulted in creation of huge wealth for shareholders over the longer term. Market participants can use this tool to track company performance and act in case any red flags pop up. It’s the classic bird eye’s view for any stock market participant.

data bank.1

How can SAMCO offer such a compelling bargain at just Rs. 20 per trade? Are there any hidden costs or catch or manipulation?? Not one. It’s clear and simple Rs. 20/- per trade whether it’s a transaction worth 1lac or 1crore it’s the same for all plus statutory levies extra. SAMCO can offer such ridiculously low rates because frankly speaking, its own cost are negligible too, no branch costs, no dealers costs etc. It is purely technology that has made this low cost platform possible, else the same would honestly, not be feasible. With the advent of technology, entire world is changing and so are we, ready to take a plunge to try and create a difference in the lives of millions of investors and traders of our country by offering them substantial savings in their broking costs and making them better off by putting their hard earned money back into their pockets, thereby causing a paradigm shift in the entire industry.

Conclusion:

The acceptances of “Discount Broker or Online Broker or Flat Fee Broker” are at an unprecedented scale in todays seamlessly inter – connected on-line world. It’s a beginning of a new Era, an era of Discount brokers, wherein broking costs, hence forth, shall be practically, negligible!! We welcome you all to explore the whole new world of securities market at the click. With the rising power of e-commerce and on-line business models, the dynamics are changing rapidly and same is also encompassing the securities markets too. In the always ever evolving world, it’s truly the beginning of the rising power of on-line brokers, and it will consume the entire industry, the sooner you embrace, the ahead shall you be. Welcome to the world of negligible costs!! And substantially increased profits!! Welcome to SAMCO!!!!

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