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Is Online Demat Account opening safe?

In recent years, online demat account opening has gained significant popularity among investors seeking to participate in the stock market. This convenient approach allows individuals to open a dematerialized (demat) account electronically, eliminating the need for physical paperwork.

However, concerns regarding the safety and security of online transactions persist. Here are a few ways how you can mitigate online fraud while making an investment with an online stockbroker.

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Online Trading Account Opening

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Divgi TorqTransfer Systems Limited IPO opens today. Divgi is one of the leading players supplying transfer case systems to automotive OEMs in India. Are you investing? You can invest in IPOs online through mastertrust. Click on the link in bio to apply.

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About mastertrust

Building enduring relationships with investors on the pillars of trust and integrity!

Financial markets are complex. As an investor, it is easy to be confused about where to put your hard-earned money for the best returns at least risk.

All you need is a trusted partner, to help you with the right set of tools, guidance and knowledge. That’s exactly where mastertrust comes in.

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https://www.mastertrust.co.in/trade-login

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Online Trading Platform India - Trade Smart with Mastertrust

Discover the best online trading platform in India with Mastertrust. Access fast, secure trading tools for stocks, futures, and options. Trade smart today!

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mastertrust offers transparent pricing plans for new and existing investors. It offers free trading through its mobile app, mastermobile, applicable on all trades done through the specified platform for a period of 3 months from the date of opening trading account. This is applicable only for accounts opened between 1st March – 31st March.

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Business News | 37 Years of Mastertrust: Contributing to a Common Man's Prosperity

Business News | 37 Years of Mastertrust: Contributing to a Common Man’s Prosperity

New Delhi [India], June 7 (ANI/GPRC): “In a nation where banking was considered a privilege, FinTech changed the lives of the common Indian. Where once to create trust in banks you had to take so much effort, now the world’s 40 per cent digital transactions are happening here in India” said Prime Minister Narendra Modi. Several companies populate the financial services sector, and while both…

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Start investing today with Open Best Paperless Demat/ Trading/ eKYC Account Online from Mastertrust and Get access to the best Internet Based Trading and Offline Trading facility.

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How do Online Trading Platforms make Money?

Online trading platforms have gained a lot of popularity in recent years as more people seek to invest in the stock market. These platforms provide users with the ability to buy and sell stocks, bonds, and other securities from the comfort of their homes. While these platforms offer convenience and accessibility, they are also businesses that need to make money to survive. 

In this blog post, we will explore the various ways that online trading platforms make money.

Commission fees

One of the most common ways that online trading platforms make money is through commission fees. When a user buys or sells a security through the platform, the platform charges a commission fee. The commission fee is usually a percentage of the total trade value, although some platforms charge a flat fee per trade.

While commission fees can vary between platforms, they generally range from $4.95 to $9.99 per trade. This may not sound like a lot, but when you consider the number of trades that are made each day, the fees can quickly add up. 

For example, if a platform charges a $5 commission fee per trade and facilitates 1 million trades per day, it would make $5 million in revenue per day.

Interest on cash balances

Another way that online trading platforms make money is through interest on cash balances. When users deposit money into their trading account, it is held in a cash balance until they use it to buy a security. While the money is sitting in the cash balance, the platform can invest it in low-risk assets such as government bonds.

The interest earned on these investments is then passed on to the platform, which may also charge users a fee for holding cash balances. While the interest earned on cash balances may not be significant, it can still contribute to the platform's overall revenue.

Payment for order flow

Payment for order flow is a controversial practice that some online trading platforms use to make money. Essentially, payment for order flow involves selling customer orders to market makers or other firms who execute the trades on their behalf.

The market makers pay the platform for the right to execute the trades, and in return, they get access to the order flow data, which they can use to make more informed trading decisions. While payment for order flow can be a significant source of revenue for online trading platforms, it has been criticized for potentially leading to inferior execution prices for customers.

Margin interest

Margin trading allows users to borrow money from the trading platform to buy securities. While this can increase the user's buying power, it also comes with interest charges. The trading platform charges interest on borrowed funds, which can be a significant source of revenue.

While margin trading can be a useful tool for experienced traders, it can also be risky, as users can quickly accumulate debt if their trades don't go as planned. As such, trading platforms must carefully manage margin trading to ensure that users don't get in over their heads.

Premium services

Finally, some online trading platforms offer premium services that users can pay for. These services may include access to research reports, advanced trading tools, or personalized investment advice.

While not all users will choose to pay for these services, they can be a significant source of revenue for the platform. However, it's important for platforms to ensure that these services are truly valuable and provide users with tangible benefits, or they risk alienating their user base.

Conclusion

Online trading platforms make money through a variety of different methods, including commission fees, interest on cash balances, payment for order flow, margin interest, and premium services. 

While each of these methods has its pros and cons, they all contribute to the platform's overall revenue and profitability. As more people turn to online trading platforms to invest in the stock market, it will be interesting to see how these platforms evolve and adapt to meet.

Mastertrust Capital is one of the premium financial services companies in India that offers its services to over 1,50,000 clients. With mastertrust, you can trade in both NSE & BSE for equity trade, NCDEX & MCX for commodities & MCX-SX & NSE for currency derivatives.

Kickstart your investment journey with mastertrust today.

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Best Online Share Trading and Investing Broker in India | mastertrust

mastertrust is India's trusted Online Share/Stock Trading & Investment broker company, with 37 years of market experience, offers online stock trading tools and the lowest brokerage fees.

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Uniparts India Limited IPO opens today. Unipart has leading market presence in global off-highway vehicle systems and components segment. Are you investing? You can invest in IPOs online through mastertrust. 

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Unlock Success with Expert Commodity Market Trading Strategies

Discover the art of profitable commodity market trading with MasterTrust. Get expert insights, analysis, and tips for mastering commodity trading. Maximize your returns today!

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Discount Brokers offering cross currency pairs for trading in 2020 in India

image by mohamed hassan on pixabay

RBI and SEBI approved cross-currency trading in India in 2018, and all the three exchanges have begun offering cross currency pair trading in three currency pairs (GBPUSD, USDJPY and EURUSD) in both Futures and Options. It has been almost close to 2 years since these products have been made available to retail traders. But only a few brokers are offering their clients to trade in these assets. This article will list all the brokers in India who are offering cross currency pair trading.

Fyers — It is a discount broker offering to trade in cross currency pair trading. Like most of the discount broker, it charges Flat Fee of Rs 20 for every single trade. Its CEO Tejas Khoday is one of the most efficient CEOs who is always willing to introduce new products on their platform as soon as they are launched in the exchanges. It offers seven currency pairs for trading at the moment (USDINR, GBPINR, EURINR, JPYINR, EURUSD, GBPUSD, USDJPY) in both Futures and options segment. Margin requirement can be checked by visiting the margin link. It also offers algorithmic trading at reasonable price and has tied up with tradingview to provide its client trading platform along with charting tools. This collaboration with tradingview makes it attractive for traders who are algo traders and want to trade in cross currency pairs. Visit the link to brokerage calculator.

Samco — Previously known as Samruddhi Traders, it is a discount broker who charges Rs 20 per trade. Its CEO Jimeet Modi is another crucial figure in the firm and is always redefining the trading experience. The firm has recently introduced StockNote app for mobile and web, which deploys Giga trading platform. Giga Trading platform provides seamless service of AI and analytics to the investors to reach the right decision in-stock selection and trade setup. At the moment, it gives trading in seven currency pairs, and its margin requirement can be found by visiting the margin link. Visit the link to Brokerage calculator. They have also launched their API to promote algo trading, which is available free of cost to the traders.

Prostocks — They are offering several different plans for a variety of traders. For currency trading, they are offering Rs 499/month plan and Flat fee plan of Rs 15 per trade. You can visit their pricing page to check the details of various pricing plans, and brokerage calculator can be checked here. Margin Required for trading in currency futures can be checked here. If you call and trade then they charge Rs 10 for Intraday and FNO. Prostocks have kept their pricing plans and services very transparent. Their site gives you the fine details which every trader expects before selecting a broker. They are offering their own desktop, mobile and web platform for trading. Unfortunately, they are not offering an algo trading facility, which is a setback for algo traders. They are allowing traders to trade in seven currency pairs in both the future and options segment.

5paisa — They have different pricing models and mostly based on the Demat a/c based, i.e., either you pay AMC or opt for fixed monthly or annual brokerage plan. For first-time traders, their pricing models can be a bit confusing and would require some explanation from an expert. However, their basic plan is Rs 20 per trade. Their pricing model can be found by visiting this link. You can also figure out the margin required for trading in currencies by visiting this link. They are offering seven currencies at the moment for trading and have theirs in house trading platform 5paisa mobile, TradeStation (web and desktop). They are also providing the facility of algo trading with their 5 paisa algo trader, and they do not charge any fees for using their APIs, which is a great benefit owing to the cost of maintaining APIs.

TradeSmartOnline — They have two models based on low volume trading and high volume trading. If your trading volume is low, then they charge 0.007% of the total volume as brokerage. For high volume-based trading, they are charging a flat fee of Rs 15 per trade. Brokerage calculator and Margin Calculator will give you the picture of the brokerage and margin required to trade in currencies. They are offering Algo trading through their collaboration with Reliable software which is offering Fox Trader for fees charged by Reliable Software.

Mastertrust — This brokerage house boasts of 35 years of experience in the industry. It offers seven currency pairs for trading in both Future and options segment. They are offering three different brokerage pricing models at the moment. However, the very basic brokerage pricing model is 20:20 model which charges a flat fee of Rs 20/trade. They are also offering Algo trading facility in collaboration with several third party vendors.

Upstox — Considered as a fierce competitor to Zerodha, this brokerage house offers seven currency pairs for the trading in both futures and options segment. It has two brokerage pricing model. Basic brokerage model is Rs 20(or 0.05% whichever is lower). Another pricing model is applicable to the people looking for a higher margin. Both pricing model can be found by visiting the link. It also has the facility of Algo trading and has partnered with several third-party vendors to provide Algo trading. At the moment, it is not accepting new requests for its API’s access.

Tradeplus — Their brokerage plan is quite attractive and is perfect for beginners. They are offering Rs 99/month unlimited trading plan for currency derivatives. The Flexi scheme begins with Rs 9/trade. The detailed pricing model can be found here while a margin calculator can be found here. Unfortunately, they are not offering Algo trading, which might not be attractive for the Algo trader.

Finvasia — They are entirely new in this field and are offering zero brokerage plans which mean they do not charge for any trade. They are allowing trading in seven currency pairs at the moment. They earn through lending, technology costs and offering currency hedging services to the corporates. Their customer support is not upto the mark and are yet to catch big guys in the league. They have partnered with several third party vendors to offers trading platforms for both Algo and Non- Algo traders. Margin calculators and other calculators can be found here.

TradingBells — This brokerage is powered by another trusted brokerage house IIFL securities. They have only one brokerage plan where they charge a flat fee of Rs 20/trade. They are offering seven currency pairs for trading. Unfortunately, they are not providing any Algo trading. The margin calculator can be found here.

Achievers Equities — This brokerage house offers several brokerage pricing plans. The basic plan is per trade plan where they charge Rs 15/trade. At the moment they are offering seven currency pairs for trading. Their margin calculator can be found here while the pricing model can be checked by visiting the link. The broker is offering no Algo trading facility.

Rmoney — This is a decent broker offering all the currency pairs for trading and has two brokerage pricing plan. The brokerage on currency derivative is Rs 18/trade. Their margin calculator can be found here. Unfortunately, they are not offering Algo Trading at the moment.

These are the brokers which at the moment are providing trading in major currency pairs (EURUSD, GBPUSD and USDJPY).