The best and the worst broker in India

There more than hundred broking companies in India offering demat account and trading services. The charges of services varies from broker to broker. Some brokers provide multiple trading platforms like web based trading, trading with terminal software, telephonic trading and also smartphone trading through their apps. In every city of the country so many broking companies are present. Their charges are also quite similar and they offer similar kind of trading platforms. It sometimes become difficult to choose the right broker.

The quality of service depends on how they treat their clients. Lot of customers makes complaint of fraud trades, poor support, hidden charges etc. The number of complaints of brokers received by SEBI can be a good parameter to judge the service quality of brokers.

In the financial year 2014-15 SEBI has received thousand plus complaints of various types against different broking houses from their clients. The list is available at NSE website.

The complaints are categorized as per their nature. Following are the types of complained categorized by SEBI

Type      Description

I               Non-receipt / delay in payment:

I a           Delay in payment

I b           Non-receipt of payment

I c            Delay in refund of margin payment

I d           Non settlement of accounts

II             Non-receipt / delay in securities:

II a          Delay in delivery

II b          Non-receipt of delivery

II c          Delay in refund of margin deposit

II d          Non settlement of accounts

III            Non-receipt of documents:

III a         Contract notes

III b        Bills

III c         Account statements

III d        Agreement copies

IV            Unauthorized trades / misappropriation:

IV a        Unauthorized trades in client account

IV b        mis-appropriation of client?s funds / securities

V             Service related:

V a          Excess brokerage

V b         Non-execution of order

V c          Wrong execution of order

V d         Connectivity / system related problem

V e         Non-receipt of corporate benefits

V f          Other service defaults

VI            Closing out / squaring up:

VI a        Closing off / squaring up position without consent

VI b        Dispute in Auction value / close out value

VII          Non implementation of arbitration award

VIII         IPO related

IX            Others

 Below are the number of compliments made by broker’s clients to SEBI

Broker Number of Complaints
Kotak Securities 21
Karvy Broking 23
Angel Broking 22
ICICI Direct 17
Unicon Investimes 476
Anand Rathi Securities 23
Motilal Oswal Securities 10
Religare 11
Indiainfoline 23
Destimoney Securities 8
Vasant Share 9
BMA 33
Geojit 7
SBI 22
Reliance 7
Venture 5
Guiness 8
Way2Wealth 3
Nirmal 22
Edelwise 7
Arihant 3
Bonanza 7
Birla Money 6
Indibulls 14
ShareKhan 13

Now before you take decision on the bases of above complaint numbers, you need to consider the fact that different brokers have different number of clients. Having complaints is a normal thing and its impossible to satisfy everyone. If a broker having more number of clients is having 10-25 complaints, then it should not be considered as bad. But if a broker is having more complaints when it does not have clients base like big brokers then you should be careful in becoming the client of that broker.

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