A decade ago, Deb Mukherjee pioneered the groundbreaking idea of a no-brokerage fee share trading platform and launched Wisdom Capital at a time when all stockbrokers were demanding high brokerage fees. Later, he paired the zero brokerage strategy with the idea of financial market leverage and bagged many clients. Wisdom Capital abandoned the traditional trading approach, ventured into unchartered waters, and rose to prominence in the stock broking sector. With technology integration, he revolutionized online share trading in the country. Wisdom Capital had the first mover advantage by introducing the “Free Trade & Investment Zone” and surfed through the capital markets in a way no one had anticipated. Many well known businesses, particularly premium brokerage and securities firms, followed the same course as that of the Wisdom Capital and benefited from the trend set by the company.
EXPERIENCE THAT MAKES A DIFFERENCE
Recently, SEBI introduced a new set of regulations (Peak Margin Circular 2020) that forbids the use of leverage in India’s Futures and Options market. It has made it difficult to determine the regulator’s preference. Moreover, more and more people are choosing to invest their money in fixed-income securities rather than the stock market. Wisdom Capital predicts that these changes will restrict bulk traders from participating in market trading. Consequently, it will lead to a decrease in volumes, and hence liquidity. It also implicated that one of the most significant effects of the SEBI’s recent activities has been a decrease in retail involvement. It will also make it impossible for most market participants to compete on an even playing field. Therefore, Wisdom Capital thought of another cutting-edge way to draw customers to the financial markets. A fixed deposit (FD) interest rate set by banks will serve as the benchmark for the interest rate Wisdom Capital would pay on the money and assets kept by its customers in trust. In this way, the trading community will get an upper hand and the financial safety net provided by an FD while trading in the stock market.
INNOVATIVE MARKETING TOOLS
Big financial institutions and huge broking companies would monopolize in the future as a direct result of the regulations set by SEBI. Again to cope with the stressful times, Wisdom Capital is leaving no stone unturned to stimulate retail involvement to weaken the monopolistic system supported by the regulator and has developed yet another unconventional solution, Wisdom Tree Private Limited. Despite the enormity of the endeavor Wisdom Tree will concentrate mostly on algorithmic trading-base product baskets. The company currently provides free APIs and other ALGO-based tools that give traders flexibility when creating trading strategies.
Not only this, Wisdom Tree will promote Best ALGO, an ALGO-based website, and Quant Power, a tool that will enable traders to build, back test, fine-tune, and execute trading strategies tailored to the specific requirements of a trader. A handful of the ALGO-related items will be provided to customers without charge, within the regulatory and compliance parameters established by SEBI.
Wisdom Capital, one of the finest discount brokers in India, is assisting the new generation of traders by offering the most ingenious trading tools and technological prowess supported by a progressive technological platform. It is also pulling out all the stops by using the legal process to contest SEBI’s Peak Margin Circular. Undoubtedly, the entrepreneurial and industrious efforts of Wisdom Capital will enable it to chart new territories of success in the sector.