findocblog

Category: Investment

  • Join, Retain, and Partner with the Best Trading Firms and Grow as a Professional Trader

    Join, Retain, and Partner with the Best Trading Firms and Grow as a Professional Trader

    The global economy is going through a significant paradigm shift, and people are starting to invest in the stock market more than ever before. Be it the uncertain economic environment or a vision for financial stability, the number of professional traders is rising exponentially. As per the latest data, over 9.6 million active traders exist online, which accounts for 1 in every 780 people.

    For anyone who aspired to start trading, getting associated with a trading firm is advantageous. They let you trade in stocks by providing tailored investment advice based on specific risk levels and goals. Let us dig deeper and explore how these firms can be the ladder to your success in the stock market.

    How do Stock Trading Firms Assist Professional Brokers?

    Trading firms provide education, resources, trading tools, and other crucial services that make trading easier. Big-shot trading firms such as Findoc utilize the Algo trading software to facilitate HFTs (High-Frequency Trading), allowing for more efficient market making and risk management.

    The present-day trading firms offer training, mentoring, and networking opportunities, giving you access to the traders’ community for collective growth. They support multi-market and multi-asset investments, which broadens the investment possibilities. Besides, trading firms capitalize on robust, high-tech automated systems to enrich the trader’s experience and expertise.

    Why is Algo Trading an Important Aspect While Choosing the Stock Trading Firm?

    Since technology is at the forefront of stock market investments, it is no wonder why Algo trading is gaining much traction. It ensures that each trade is executed at the best possible price for the trader and in accordance with his strategy. From trade automation to risk mitigation, Algo trading is a pioneer for beginner and professional traders. The market size for Algo trading is estimated to reach from $2.19 billion in 2023 to a whopping $3.56 billion by 2030.

    Algo trading helps you test the waters despite having zero or little knowledge regarding the investments. Thus, trading firms leveraging the power of Algo trading can skyrocket your trading career through tech-enabled tools, hassle-free automation, and expert guidance.

    What Are the Features a Stock Trading Firm Should Have?

    There are numerous trading firms in the stock market, making it challenging for professional traders to narrow down their choices. There are many things to consider, from front-end trading interface to analytics tools and risk mitigation to order management system. The following are a few innovative features offered by the best trading firms, like Findoc, to help restructure and simplify trading.

    • Customized OSM: Findoc’s order management system is a computerized one that manages the trade execution through Algo trading. It lets professional traders fill orders for diversified securities, assess their progress, and ensure regulatory compliance. One can also monitor the real-time situation of trades, their prices, and demand & supply in the market.
    • Trade Management and Execution Support: With custom trading Algo and AI-backed systems of Findoc, professional traders can conduct portfolio analysis to reap higher returns as per current trends or historical data sets alongside other factors. It provides a systematic and disciplined approach for investments involving a certain risk factor. In addition, Findoc also offers mentorship and excellent support 24/7, with trading veterans and connoisseurs curating the strategies for you.
    • Robust and Efficient APIs: APIs are vital for applying automated strategies for trading. With Findoc, you can utilize third-party applications necessitating access through APIs. Likewise, professional traders can also develop their own systems to garner real-time data and place orders on the go using a single button click. Findoc’s API interfaces are tailored and developed by experts who are well-familiar with APIs’ capabilities.
    • In-House Development & Support: Algo trading requires understanding quantitative analysis, like programming skills and various algorithms you want to utilize. A successful professional trader needs comprehensive expertise concerning currency movements, and Findoc’s guidance plays a vital role here. Thus, you can apply strategies derived from mathematical equations for investments having the potential to generate good returns when tested by dynamic variables. With Findoc’s valuable training, you can become an expert at risk assessment of your trades based on certain factors.
    • Excellent 24/7 Support: Professional traders can contact Findoc’s Algo development & support team before placing their trades to ensure things are done right. Suppose you are a beginner and lack abilities to trade smartly in the market. In that case, the financial experts of Findoc will offer support as per your trade requirements and financial goals.

    How Algo Trading Software Are Beneficial for A Professional Trader?

    Leading trading firms such as Findoc offer a gamut of Algo Trading Software that helps professional traders make better investment decisions. Likewise, they can utilize features such as financial advice & tools, automated risk management, backtesting, portfolio management, and more. Let us explore in-depth and learn how Algo trading software benefits professional traders at a scale.

    • Automated Trading: Algo trading software allows traders to automate their trades and invariably run them. This helps them save time, reduce the risk of making mistakes, and avoid getting overwhelmed by the market.
    • Automated Backtesting: It permits traders to test out strategies before they are actually deployed on the market. Automated backtesting gives them a chance to see which strategies work best for them before they get into real trades with real money on the line.
    • Real-Time Data and Market Information: The Algo trading software provides real-time data, which helps in making accurate decisions. Besides, professional traders also get access to algo trading strategies and advice on what mistakes to avoid. The software can provide alerts about market conditions, which is helpful for those who want to be on top of their game regarding trading.

    Algo Trading Software Variants that Help Simplify and Streamline Your Stock Trading Goals

    The objective of Algo trading software, backed by artificial intelligence and machine learning, is to make your trading journey seamless. Trade software is indispensable for prudent investments, from third-party trade simulations to live backtesting. These are the top nine trading software platforms that top trading firms like Findoc deploy to facilitate sub-brokers and professional traders.

    Softwares Prime Features
    Algobulls Customizable trading algorithms for bespoke investment strategies powered by artificial intelligence.
    Tradetron Assists in automating quant strategies and building scalable algorithms minus any single code, which can be traded for monetization.
    uTrade Best suited for financial enterprises and their end customers, it offers multi-asset trading and single-digit microsecond latency.
    Refinitiv With robust technology, open software solutions & critical data, and expertise, it helps mitigate risk concerning your stock market investments.
    GreekSoft A multitasker software providing comprehensive solutions with the swiftest trading speed powered by a 10G Ethernet network and HFT support.
    Algobaba It is a trade execution platform utilizing its proprietary system STOXXO to offer features like live trading, a trade simulator, and tailor-made investment strategies.
    Multi Trade Extensively scalable software that enables trades of sizable volumes and comprises a user-oriented and straightforward UI design.
    XTS (Symphony) It is an advanced sell-side trading software preferred for its multi-asset and market compatibility and for streamlining enterprise trading.
    Robomatic It blends finance, innovation, and technology into the trading segment and lets you filter and select varied stocks.

    The Ball Is in Your Court Now

    Every professional trader needs a customer-centric, tech-enabled trading platform to begin their investment voyage in the market. While pumping your money into the stocks, a reliable trading firm like Findoc would be a turning point in making your investments profitable. It helps beginners and professional traders to learn the know-how of trading, test and execute trades through varied algorithms.

  • How Does Sub-Broker Franchise Work?

    How Does Sub-Broker Franchise Work?

    A stock market sub-broker franchise is a business opportunity that allows one to invest in the stock market and earn passive income. The stock market is a way of investing in companies. The more shares you own; the more dividends you will receive. Stock market sub-brokers are brokers who trade stocks on behalf of their clients. They can also provide research and other financial services such as portfolio management and tax planning.

    A stock market sub broker franchise is an investment-based business model requiring no upfront capital or inventory but a significant time commitment from the owner/operator. This blog will teach you about the sub-broker franchise cost, operations, and benefits.

    The Functions of a Sub-Broker Franchise

    It is a business model where the franchisee pays a fee to the franchisor to use its brand, and then they operate independently.

    A sub-broker is an individual who works for a stock brokerage firm and acts as an intermediary between clients and the firm. They are responsible for buying or selling shares on behalf of their clients, executing trades, and acting as an intermediary between clients and brokers.

    The primary function of this type of business is to provide stock market services to the public and make money off the spread between the bid and ask price.

    Since many types of businesses can be run as a franchise, there are many different functions that can be included with this type of business. Some standard functions include educational services, trading platforms, and research tools.

    The functions of a stock market sub-broker franchise are not just limited to the company’s business operations. It also includes the following:

    • Providing services such as in-depth research, stock recommendations, and personalized investment advice.
    • Marketing and advertising products and services related to stocks.
    • Creating an online platform for investors to buy stocks with ease.
    • Offering educational programs on investing and financial literacy.
    • Creating a community for investors who want to share their knowledge with others in their network.
    • Selling investment products like mutual funds or ETFs through the website or other channels like telemarketing or print ads.

    Advantages of a Sub-Broker Franchise

    From low sub broker franchise costs to flexible working hours, the advantages of having a franchise are pretty generous. One can also earn a passive income stream from fees generated from investments managed by the franchisee. Below mentioned are the prime benefits of acquiring one.

    • High Income Potential: The sub-broker is entitled to get a higher percentage generated from client brokerage. On the contrary, the franchiser retains a comparatively less brokerage percentage.
    • Pocket-Friendly Investment: The minimum sub broker franchise cost is Rs. 50,000 as an investment expense. Besides, a security deposit has to be incurred by the franchiser to cover the expenditures. However, in some instances, the franchiser does not even ask for a minimum sum for the deposit.
    • Comprehensive Assistance: With an investment in a stock market franchise, you can expect support from marketing and training and access to their database of investors who want to share their experiences with others looking for information on investing in stocks.
    • Excellent Advisory Support: The program provides you with the support that you need to succeed in the stock market business, including training, mentorship, and marketing assistance. It allows people to have an expert who will help them make their investments more profitable without dealing with all the stress and anxiety that comes with it.

    The Final Words

    Work flexibility, lucrative career prospects, and lower sub-broker franchise cost are some of the factors which are contributing to this business’s popularity. This type of franchise is more cost-effective for individuals who are just starting out in the business. It also allows for greater flexibility regarding location and hours of operation.

    A sub-broker franchise can be an excellent opportunity for those who want to work for themselves or are looking for a new career path. To become a successful stock market franchise owner, it is crucial to understand what it takes and what you need to succeed and the risks involved with this type of business venture.

  • Everything You Should Know About Sovereign Gold Bonds (SGBs)

    Everything You Should Know About Sovereign Gold Bonds (SGBs)

    If you buy Gold Coins and Gold Bars as Investment, you are wasting a golden Opportunity to earn some great returns. SBI Gold Bonds are RBI mandated Certificates issued against grams of Gold, allowing the Individuals to invest in Sovereign Gold Bonds (SGBs) without the strain of safekeeping their physical Assets. SGB act as a secure Investment tool among Individuals as the Gold prices are less sensitive to Market fluctuations.

    A SGB is dominated in grams of Gold. One can get multiples of Grams (1gm*X). So, the minimum Investment is 1 Gram. The maximum Gold one can buy through these Gold Bonds is 4 Kgs and a Trust can buy is upto 20 Kgs. Moreover, Nomination facility is also available.

    Why Should One Buy Sgb Rather than Physical Gold?

    The quantity of gold for which the investor pays is protected, since he receives the ongoing Market Price at the time of redemption/ premature redemption. The SGB offers a superior substitute to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest.

    Who Is Eligible to Invest in The Sg Bs?

    Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

    Whether Joint Holding Will Be Allowed?

    Yes, joint holding is allowed.

    Can a Minor Invest in SGB?

    Yes. The application on behalf of the minor must be made by his/her guardian.

    What is the rate of interest and how will the interest be paid?

    The Gold Bond interest rate is 2.50% per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

    When will the customers be issued Holding Certificate?

    The customers will be issued Certificate of Holding on the date of issuance of the SGB.

    At what price the bonds are sold?

    The nominal value of Gold Bonds shall be in Indian Rupees fixed based on simple average of closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription period.

    Can I encash the bond anytime I want? Is premature redemption allowed?

    Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. On the other hand, in the case of online buying of SGBs, one doesn’t have to wait for 5 years for redemption. An online buyer can redeem it on the same day of the issuance of Bonds.

    What are the Tax implications on Interest as well as on Capital Gain?

    Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted.

    Features of Sovereign Gold Bonds

    • SGBs are Government securities denominated in grams of gold (1 unit = 1 gram).
    • A minimum investment equivalent to the price of 1 gram of gold must be made, while the maximum limit is equal to the value of 4kg of gold for individuals.
    • Issued by the Reserve Bank of India on behalf of the Government of India.
    • Gold bonds are issued for a period of 8 years, with premature withdrawal permissible from the 5th year.
    • Individuals willing to cash-in their investment can do so after a mandatory holding period of 5 years.
    • Investors will earn returns linked to gold price.
    • Additionally, fixed interest of 2.75% per annum is associated with the sovereign gold bond scheme, which is disbursed half-yearly to investors.
    • The Sovereign gold bond scheme 2020 can be traded in the secondary market after 14 days from an initial subscription date, subject to a notice published by the RBI.

    Advantages of Investing in SGB

    • The principal aim of such treasury bonds was to reduce the hassles concerned with gold investments, as bullions and other physical forms of investments required proper and secure storage.
    • These Gold Bonds are backed by the Government, as chances of defaults on repayment is zero.
    • Gold prices demonstrate extensive capital appreciation. Rates of growth of such assets are considerably higher than the prevailing inflation rates a country, crucial as an investment avenue.
    • RBI will announce the price before the issue date which will be fixed on the previous week’s simple average of closing price of gold of 999 purity published by India Bullion and Jewelers Association Ltd (IBJA).
    • The tenure of Bond is 8 years with an option to redeem from 5th year onwards on the date on which Interest is payable.
    • SGB can be used as collateral for loans Up to 75% of the market value of such bonds can be availed as a loan from any scheduled financial institution, as stipulated by the RBI’s LTV regulations.
  • What are the different ways to invest in fixed-income securities?

    What are the different ways to invest in fixed-income securities?

    Bank Fixed Deposit

    One of the most preferred investments of all times is a bank fixed deposit in India. This instrument claims to protect the investor’s capital and provide regular income on it. However, the rate of return has become competitive in the last few years, which makes this investment hard to beat inflation.

    Corporate Bonds

    Similar to the bank FDs, investors can lend their capital to the company in return for enhanced interest rates. In this, there are many choices available from AAA rated to junk bonds depending on the quality. It becomes pertinent for the investor to select quality bonds.

    Mutual funds in the form of debt or liquid

    The type of mutual fund which invests in the corporate debt or government securities. They provide a much higher interest rate in comparison with bank FDs. Apart from this, an investor can also gain from the bond price appreciation when interest rates fall.

    For the short time horizon investors, liquid funds make more sense than debt funds. Here, the funds can be parked for the matching period and earn higher returns.

    Arbitrage Funds

    The type of mutual fund which invests in the equity market by locking in any visible arbitrage opportunity. This can be done by locking the spot and future price and realizing the yield either by reversing or rolling over the future position.

    What are the benefits of investing in fixed-income securities?

    Investors can preserve their capital by investing in such securities. This is the low-risk investment where the invested capital is bound to be returned within a specific time horizon.

    These securities also help in creating a steady source of cash flow to the investor. Almost all the products from bank deposits to corporate FDs to debt mutual funds pay a certain amount of fixed return along with dividend rates.

    They are positioned higher in the capital structure of a company. This means, in times of bankruptcy, the bond investor will be paid higher in priority than a preferred stock or common equity investor.

  • Top 9 fixed income securities in India

    Top 9 fixed income securities in India

    The investors vary in market fluctuations and seeking fixed returns are best suited to invest in fixed-income securities. The Indian government along with corporates have been supportive enough to create multiple options of such characteristics to fulfill the required needs. 

    The below-mentioned products are the top 9 investment options available in India for a stronger and safer investment portfolio.

    1. Public Provident Fund: The fund is backed by Government which provides a competitive interest rate. The interest rates, principal amount, and maturity are all exempt from taxes making them very popular among investors.

    2. Sukanya Samriddhi Yojana: This is one of the fantastic investment tools that enhance financial inclusions. With the deposit amount as low as Rs. 250, it provides attractive interest rates for the girl child. 

    3. Senior Citizen Saving Scheme: The older group can invest for a period of 5 years and enjoy a regular flow of income with interest.

    4. Pradhan Mantri Vaya Vandana Yojana: This is a pension plan sort of investment that gives a guaranteed return of 8%p.a for 10 years.

    5. Debt Mutual Funds: The mutual funds that invest in the debts of organizations like Government securities, corporate bonds, commercial paper, treasury bills, etc.

    6. Bank Fixed Deposits: One of the oldest and safest methods to yield a specific rate of return is through bank FDs. However, currently, the rate of return has dropped significantly making this less attractive.

    7. National Saving Certificates: These are 5-year post office saving scheme that offers 6.8% p.a currently. The interest for the first 4 years is reinvested while that of 5th year is taxable.

    8. RBI taxable bonds: These are government-backed bonds that are providing 7.75% p.a currently for a duration of 7 years.