Monetisation
  1. Algo Trading
  1. Advisory Services
Fee models, compliance status, and potential revenue paths

by Hemanth Reddy

Agenda
Algo Account Management Models
Automated Advisory Service Models
Compliance Snapshot & Grey‑Area Tactics
TL;DR
Recommended Combination of models
Algo Account Management
Existing Models
PMS
1‑2% AUM + 20% over 8% hurdle; ₹50L+
fully regulated
AIF Cat‑III
2% AUM + 15‑20% carry; ₹1 Cr+ per investor
Brokerage Commission Sharing
AP/IB splits; income proportional to client volume
Tested Models
Copy‑Trading Marketplaces
(example Tradetron)
monthly strategy fees
API‑based Automation SaaS
₹X/month licence; user trades own acct
Informal Profit‑Share (70/30) (Grey)
unlicensed, private agreements
Creative Models
License algorithm to AMC/ETF
earn royalty or % of MF fee
White‑Label engine for brokers
per‑user or rev‑share
Sell software/indicators
one‑time or subscription
Model portfolios (Smallcase style)
low fee, high volume
Advisory Services
SEBI‑Compliant Models

1

2

3

4

1
Subscription Tips (RA)
₹500‑3,500/‑ monthly; no commissions
2
RIA Robo‑Advisory
≤2.5% AUA or flat fee (≤₹1.25L/yr)
3
Broker Embedded Research
low fee; broker earns via volume
4
Model Portfolios (Smallcase)
access or rebalance fee
Multi-Layer models
Potential Add On Services
Education
low ticket + high‑ticket + Mentoring programs
Quant / Algo Consulting
We can help other with improving their algo
Building Algoes for others
for a fee
Lets Avoid
Grey‑Area / Non‑Compliant Tactics
Unauthorized Management (Light Grey)
  • Unauthorized account management / profit‑share
  • Auto‑trading bots via API with one‑click confirm
  • Black‑box indicator sales (₹20‑50K licence)
Unregistered Communication (Dark Grey)
  • Unregistered Telegram/WhatsApp tip groups – ₹2K/mo
  • 'Courses' that include live calls – big one‑time fees
Alternative Schemes (Dark Grey)
  • Broker affiliate schemes in lieu of fees
  • Fantasy trading games & offshore platforms
  • Pump‑and‑dump / front‑running abuses
Thank You

by Hemanth Reddy

Made with