Profit sharing is not a new type of service for the stock
& commodity market traders but not all traders go for this type of service
as they are not aware of the advantages of entering into a deed for profit
sharing. In this type of service the research analyst provides recommendations
& in return asks the trader to pay a fixed percentage of profit being
earned on specified days, though the settlement requires honesty from both the
parties its overall a safer way to avail research services. Though
recommendations in the form of calls are more prevalent these days but profit
sharing has its own advantages.
The biggest advantage is the earning of profit.
Since the profit of the advisory party is directly associated with profit of
the trader that’s why the advisory pays greater attention & is more focused
in providing recommendations.
Another advantage of profit sharing is that it can be
customized & personalized. For example if a trader is involved in trading
of a particular counter that he can avail services for only that counter. He
need not avail services for all the counters. This way he’ll save his
subscription amount & will get more accurate calls with proper & timely
support.
Profit sharing service ensures huge profits with higher
accuracy. As the trader can have a one to one interaction with the research
analyst, he is likely to be more benefitted as his queries can be resolved as
per his convenience. The panic situations are less in profit sharing as all the
time a research support executive is available for the trader.
Apart from the above mentioned advantages, in profit
sharing service a trader can get market updates & other market relevant
news from the advisory party.
One of the most prominent features of profit sharing is
that the performance of the recommendations being provided can be analyzed on a
weekly basis as the settlement is done every weekend. This ensures that the
whole subscription amount doesn’t get blocked up. It can be said that profit
sharing service is an “earn & pay” scheme and after a trader earns the
profit, he can rotate & diversify the amount with the help of the advisory.
There are many such unsaid advantages in profit sharing
which can be experienced when a trader avails this service.
