Brokerage Firm for Equity, Commodity and Currency Markets

Opportunity Snapshot

Investment Opportunity

The company will be into trading, advising and broking in Indian and international equity, commodity and currency markets. Amounts will be traded using advanced trading tools for aggressive returns with minimum risk. Capital is required to create infrastructure and to hire traders.

The company will hire traders to trade in various instruments available in various markets across Asia, Europe or the US. Generating huge trading volume with various whose brokerage will be the major source of revenue and also the major part of profit will also go into companies earning and loss will be shared by the traders. The company will also provide advisory solutions to its clients giving them different investment options depending on the risk appetite of the clients though this is not the main business line.

Trading in these markets is considered very risky even though with proper risk management and targeting loopholes sure shot returns can be assured. The returns will not be high in percentage terms but they will be sure and the major task would be to repeatedly capitalizing on those loopholes. Trading will be done only on spreads arbitraging and hedging no naked positions will be allowed till the company becomes debt free.

Considering all the calculations the payback period of cash will not exceed more than a year. However, to be on safe side, the time requested is 1.5 years since the start whose tentative date is March 2012. The company will agree on any method of return that could be biweekly, monthly, quarterly, half yearly or all at a time.

International trading is a very less explored business in India in terms of literate trading methodologies. Trading under one roof in Indian, European and US markets is also very rare. Global trading will be proper diversification of funds to beat any local economic fiasco and also give an option of proper hedging like buying gold in US market and selling in the Indian market can give risk free (minimum risk) return. Also, the traders will be top graduates from front line colleges.

Positives for the investor include that he will be getting a very transparent view of the performance of the company on daily basis and he will be getting the returns as frequently as biweekly or may be even less. We are ready to agree on any method too - either our investor can charge some fix percentage or he can be on sharing basis. Everything will be in front of them and they will be getting the reports on daily to weekly basis. Also, as per the requirement the investor and if the company account permits then the payback amount can be increased. Overall, it will be a flexible mode of understanding between the investor and the company.

The company has registered itself in major Indian exchanges like BSE, NSE, MCX, and NCDEX. The company is trading in markets under association with Reliance Capital ( We are also in conversation with international brokers to provide account and platform for international trading. The business is almost completed; it is just that we need the infrastructure and the manpower to start working.

The company needs funding to lease an office space in a major business centre, develop infrastructure for trading (interior, systems software, etc.), hiring traders through a process though company is in contact with most of them. The company will provide full accommodation to the traders hence their deposit, rent, training costs and initial break-even.

Competitive Advantage

Futures First ( is the biggest player, started in 2006. Rest these days many proprietary firms have opened but their legal sustainability is in big question. We will do everything through following the legal process. The company is planned to start its operations in Pune which will bring geographical advantage of Mumbai, Ahmedabad and Pune itself. Pune is developing at a very furious rate being on top of the list of promising cities.

We have a big advantage over our competitors as we provide a platform for trading in all markets, including Indian, European and US markets. Traders will be able to choose their choice of markets. In Futures First most of the traders despite being good are unsatisfied due to the very less profit sharing and the HR & Risk policies. Our company is in contact with such traders. The company will be flexible to good traders. Moreover, this business is very rare in India and we will get the huge benefit of early start. In a year or two the company envisages huge exponential growth.

If everything is done by plan and discipline the project will show immediate results. Maybe the competitors could well repeat the success because it’s not very difficult to start a global trading under one roof but by the time it gets started we will be well ahead and company will have enough ground to sustain. Since overall competition never ends trading is a global competition.

Rationale for the deal

As day by day the volume in the markets is increasing more and more players will increase the market mobility, hence there is an immense opportunity which is going to expand day by day but one needs to be disciplined to minimize the risk.

Revenue will be made by number of trades punched by the traders, clients and profit made by traders. In addition, the company will charge for advisory services.

Although there are very few legal players, those who are there are making money at huge rates. After the opening of Futures First in India this business is one of the most lucrative in its category.

Use of financing

Investment is needed to lease office space in a leading business centre, which is to be purchased later, as well as for interiors of office, infrastructure, hardware, software, furniture, recruitment of traders through HR consultancy firm, their accommodation, etc.

The reason to finance is that we feel that this is the right time to start - once it’s late it will be difficult to extract return. For example, the return which Futures First enjoyed cannot be done today due to its early start. Hence, according to the calculation company will be debt free in year 1.

The desired instalment schedule is based on monthly payments but we do not have any problem in biweekly instalments too and also any other flexible mutually agreed solutionswill be acceptable. The founding will cooperate if any exception arises.

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