Prepaid Brokerage

When you get your D-mat account opened people some you to pay some of the brokerage in advance in order to reduce your brokerage.
I met a guy whose capital was INR 25,000 in total still he was ready to pay the advance brokerage as INR 5,000.
So that his brokerage may be .03% and .30%.

But for that he was directly cutting down his capital by 20%.

Reducing the brokerage won't effect much on your trade but reducing capital will do.

In my opinion:
Avoid pre brokerage schemes. As soon as you start generating volumes, broking firms automatically reduce your brokerage. I they don't you, can negotiate for that.

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