New Delhi, Delhi, India
The last few days have provided some respite to the markets after a terrible start in the New Year. Stock Markets are notoriously fickle, but that shouldn’t discourage investors in it for the long term. After all, the Indian market has provided astounding returns since the turn of the millennium.
Consider this: Had you spread out a sum of less than Rs. 10, 000 in the Indian market in 2001, your investment would have been equal to a freakish Rs. 77, 000 last year. That’s an almost 50% y-o-y growth, and one unheard off from any instrument. Of course, it is an idealized scenario, but one that tells us of the sheer scale of this opportunity.
However, the unfortunate part of this story is that almost the entire country misses out. Less than 0.1% of the Indian population invests actively. As the HNI and the Foreign Investors multiply their wealth, the middle class hears stories about India being the next economic miracle.
MyValueTrade was founded, in part because of a desire to change this situation.
“We wanted individual investors to be a part of India’s growth story,” said Sajeev Sasidharan, Spokesperson of MyValueTrade. “The middle class stays away from the markets because of a combination of inconvenience, complexity, a lack of trust and limited profits. These are issues that technology can solve. That’s what we set out to do with MyValueTrade.”
The team was inspired by the discount broking model followed in developed countries.
Sajeev says “The % based pricing structures are complicated and expensive. They create friction for prospective customers while reducing profit margin in investments. Investors new to the market find it difficult to make money, and this reduced margin makes their job even harder!”
MyValueTrade thus created the fixed-pricing model now popular in the burgeoning discount brokerage sector. Yet, Sajeev claims that there are several things that still set them apart.
“Our pricing is lower than most of our competitors, and without the commitment charges. It is also incredibly easy to understand and allow traders to choose between a per trade, per month and per annum structure based on the frequency of trading,” he said.
A transparent, simple and low price structure goes a long way in building trust, easing friction and improving profit margins. This encourages the investor to continue trading. As he slowly transitions from novice to experienced, he starts to reap the benefits of another one of MyValueTrade’s unique features- that of allowing margins on trading, even in delivery.
“Margin Trading is extremely important for seasoned traders, who often look for exposure to an amount greater than they have currently,” said Sajeev.
But how does MyValueTrade solve what many say is the biggest problem- that of a lack of knowledge? Sajeev claims that this issue is being solved by the Internet, through websites like Investopedia, Youtube channels and MOOCs such as Coursera and Udemy.
“It’s best if we leave the education part to those adept at dealing with it. At our end, we want to focus on what we’re good at- making the trading process as seamless as possible. Only then will more of the country’s population take part in its growth story.”
Some might think that given the current market conditions, it might not be such a good idea. But the experts realize that the current market correction is the inevitable result of temporary global conditions and structural issues in the economy that are being addressed by the government and RBI. There is a lot of room for India to grow yet, and you can bet that Sensex will be rising along with the economy.
MyValueTrade has been leading the democratisation of the broking industry with its revolutionary discount broking plans, allowing its customers get more out of their investments. The company offers a choice between fixed brokerage and per-order charges while its online stock trading platforms and applications allow traders across all segments with a single login and an intuitive user-interface. MyValueTrade have amongst the lowest brokerage, and a growing customer base in all parts of India.