Are there any plans like fyers to refund the brokerage on willing the challenge?
Hi @Pavan, welcome to Dhan.
We had very very few requests for this feature yet, if there are more users wanting this - we will definitely consider.
Some observations on this.
FYERS is the only broker providing this wonderful feature ( Initially started with 25k → reduced to 10k> Now maximum refund is 5K per month)
Do something similar to this
Or may be provide like Equavalent number of free F&O trades for the upcoming month .
Free EQ shares / RAISE ESOP
We had discussed this sometime back with our team members.
As a feature this sounds very very interesting, but then giving out an incentive for trading more is possibly not a right thing to do. Maybe we will look at this from other lens and evaluate this for future.
We just don’t want users to chase incentives that will make them trade more. Good trading is more discipline and less gaming
Clean bold for this @PravinJ
We just don’t want users to chase incentives that will make them trade more
@PravinJ . No need to bring such schemes or challenges. In fact you can invest in Education rather than giving out freebies. The penetration in Equity is low compare to other products.
If u still want to consider then what you can do is give first month i.e., 30days free brokerage after opening an account. This could be fine.
I feel what you are mentioning here as free 30 days is for new users sign up ? Fine but how do you motivate uses who are already in the system ?
Fyers does it differently and read about FYERS - 30 Day Challenge | Trade profitably ( Tejas Khoday reads it in a completely different way) which gives users the ability to know his performance and a small reward for doing fine and when to stop excessive trading
Fyers is not the first who launched the challenge program. I think Zerodha is first., correct me if I am wrong. Second I feel that Dhan shouldn’t follow the footsteps of other brokers like Zerodha and Fyers or Upstox whatever, coz then Dhan will be named as nothing but a copy paste model.
Zerodha started operations in 2010 and today their market share is around 19-20% and Fyers started operations in 2015 and their market share is between 0.30-50% (Not even 1% as on date). See the gap between Zerodha and Fyers even after starting operation 7yrs back. Does technology platform like Tradingview helped Fyers beat the turnover atleast compare to Zerodha. No, because Fyers is the first to launch Tradingview and Tejas proudly mentions it in their website. Zerodha later on introduced Tradingview so technically Zerodha here copied the model but not such features as Fyers have, but still retaining the no.1 position in the market.
See the important question is how many traders know how to use or take advantage of Tradingview. I think %wise its not a satisfactory number. So why would you think that 30 days challenge would help Dhan to attract customers or Traders. I will give a small glimpse about how market works behind the curtain.
Zerodha had initially a very large number of Referral Partners and it helped them to reach the top as it was the time where Full Service Brokers like ICICI, HDFC, Sharekhan and others were dominating the space in this sector. And now they too have become lenient and introduced Rs. 20/- plan for trading. But still they charge heavy for Delivery and other charges. These full service brokers had also large number of sub-brokers and Customers trust someone they know. So the Sub-Broker is the one who retains the customer not broker. Zerodha used its Partners for acquiring the customers and have ditched many of them for just not fulfilling the customer acquisition criteria. And Fyers do have the same policy.
See a Sub-broker joins the company to earn passive income not a salary income. Wherever his home/office is, he should be able to acquire customers in his area and retain them forever. It helped Brokers like Angel Broking, Motilal Oswal and others to retain the customers as well as to create a large number of sub-brokers almost from all tier l, ll ,ll cities. Thus I want to mention here that retaining the customer is important than attracting the customers. 95% of people lose money in the market because of not having a proper knowledge of trading. It’s bitter but this is the fact.
So what I want to tell u here is that the sub-broker/partner is the actual back-bone behind the success of the broker. And I am here definitely sure that Fyer’s Tejas Khoday doesn’t understand this because these are the people with technology mindset. He may have experience in stock market, but does he understand how market works. I mean look at the cars offered by Maruti and Volkswagen. Can u even compare. Volkswagen is much better than Maruti but still Maruti is No.1 not because of technology but because of large dealer network all over India. And if you want an example in this sector, then the name is Uday Kotak. He was a broker first and later on became a Banker.
So I want to mention here is that Dhan should create its own identity. Rather than copying others model, its better to learn from their mistakes. I want Dhan to be a Discount broker with a full service broker mindset. And it will help them to remain in the market for many decades.
What do u Say Pavan, I hope you understood what is the logic behind offering freebies. I want Dhan to compensate their sub-brokers/partners first and it should reward customers of both type i.e., Investors and Traders. Groww recently rewarded their customers with some T-shirts many such other small gifts. It shows that Company do think about their customers. Traders are very less compare to Investors in India. So bringing challenge just to reward traders will be a partiality towards investors, coz just because they don’t trade monthly, but they have investments. They should also be rewarded to retain their investments.
So Pavan join as a Partner for Dhan as I have joined too and together we can make Dhan a one stop destination for all financial needs. I hope @PravinJ will consider this things before introducing new features or schemes in future.
Thanks for the insightful words and I do agree with most of your facts. However, I do not consider the brokerage refund as a freebie. rather I consider it as a supporting tool to bring a sort of discipline on judging their trade for a Serious Traders. It’s not about a refund that matters (particularly to me), what matters is any plans which Dhan can introduce to bring some kind of recognition to who maintains disciplines while trading from which they have got some better outcome.
Plz, do share how to become the partner for Dhan. I am happy to join the same…
Dear Pavan, thanks for agreeing with most of my views. See we all have a way of looking at things differently. And I am not rejecting your views. I mentioned in the post to invest in Education rather giving recognition. See most of the clients fail and they need proper education about trading and investing. Most of them don’t even know what is Fundamental & Technical Analysis. Therefore If the broker invest their time and money in clients education, then in return as a gratitude they may remain invested with the broker or sub-broker. I personally have distributed books, online courses to many people. And truth is that many of them are not even my clients. But before taking any financial advice, they come to me and ask for advice. I help them without any expectation. That’s my nature. So rather giving recognition to someone specific, a broker should recognise everyone who have been invested or trading.
See if a trader generates Rs. 10000/- brokerage in a month, a broker will give Rs.5000/- to him in a cashback form or as a recognition in your words. What is the logic. A Trader has given business of Rs. 10000/- first and later he got back Rs. 5000/-. A broker will set a limit of recognition. And what would happen if a Trader has generated a business or brokerage of Rs. 20000/- in a month. Still he will be rewarded with Rs. 5000/- only. So instead of rewarding trader, a broker should Introduce a prepaid brokerage plans with upto 50% discount. These will be a good product. And this would be beneficial for both Broker and Sub-brokers. What do u think of this. And still if u think that the trader should be rewarded then you can ask @PravinJ to take a further step ahead of Zerodha and Fyers, and create a separate page on Dhan.co website for successful traders of the year or month wise. Its upto them.
See I am both Partner and a client of Dhan, and am not their employee. I have worked for several brokers till date as a Authorised Person (NSE). And here as a client we can express here our views and suggestions. And the management here atleast taking notes of their clients feedback and suggestions and implementing too on it. That’s the main thing I liked about Dhan in my overall experience till date.
About becoming a partner just share your Name and Number to me @ 8983639836. I would be happy to guide you about doing business as a Authorised Partner.