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Why does RKSV not have branches, provide tips or provide advisory services?

in About RKSV
Tags: advisorybranchesrelationship managertips

Why does RKSV not have branches, provide tips or advisory services?

RKSV is an online-only broker. We are often asked whether or not we provide tips and advisory services. Furthermore, customers ask if we have multiple branches and if we don’t, then why.

We will answer these questions one at a time!

No tips:

As a broker, it would be easy for us to give tips to our customers. Most investors and traders in India make their decisions based on tips provided by their relationship managers. This ‘advisory’ business is quite profitable for brokers.But there is a major conflict of interest when a broker provides tips. By providing tips, the relationship manager has two interests at stake: to maximize the profits of the customer, but to also generate brokerage and commissions for the broker. From the customer’s point of view, which side is the RM taking?

To avoid this major conflict of interest, we do not provide advisory services or tips. There are many independent tips providers who do not have tie-ups with brokers. We advise customers to go to them in the case they need recommendations

No Advisory Services:

Along the lines of not providing tips, RKSV does not provide advisory services too. This was a difficult decision for us to make, but it ultimately came down to the same reason as why we don’t give tips: we do not want conflicts of interest.Advisory services are a more generic way to provide tips. An advisor after all, is giving advice on a particular stock to the client. Anytime he is giving his own opinion on something, a conflict of interest arises. That is why we encourage customers, who seek advisory services, to consult independent advisors not affiliated with broker.

No Offline Branches

We quickly found out that they are nothing more than service centers that also happen to have terminals. From a customer’s perspective, having a face-to-face conversation with your broker has some value of importance. However, from a broker’s perspective, we realized that the only way it would make sense is by having terminals setup, where clients could do offline trades and pay high brokerage fees. After all, the brokerage fees paid at offline branches is almost always higher than the brokerage paid through online trades.In order to keep our costs low and keeping unnecessary overhead costs at a minimum, we made the decision to not have branches and to stick to an online-only format. We realized that this enabled us to penetrate smaller tier II and tier III cities with the same ease and efficiency as any major tier I city. By leveraging the internet, doing In-Person Verifications and software demos through the computer, and providing top notch customer service and platform stability, we eliminated the need for offline branches.

That is why we do not provide tips, advisory services, and offline branches.