brokerage: % of transaction amount is rip-off vs fixed brokerage

[uasish]

The Statutory charges like STT etc are govt levied & to be paid by all.

 

[THETRADER]

Reliance Money probably offers the lowest brokerage, but their trading platform is not fast and good as I read from other threads here.

One of their brokerage plan is,
Terminal licence fees or something they call, is Rs.2500, 1 year validity for a max of Rs.60 lakhs delivery volume, Rs.6 cr turnover limit.

They have some others for Rs.500, etc., with a lower limit, and, lower validity!, (what else to expect from Reliance?).

1. Brokerage Rs.0.01 per transaction (literally zero brokerage)
2. Other regulatory levies like, STT, Turnover Charges, Stamp Duty, Service Tax on brokerage (that's nothing anyway), I think that's all Or is there anything else?

Which means, in the above plan, if you take the license fee as Brokerage, it works out to 0.0042% one way for non-dely transaction, and, 0.042% for dely based transaction, and, of course the standard Rs.0.01 (1 paisa) per transaction. The zeroes are right!

It appears that big industrial houses are planning to enter the brokerage business soon, which would bring in competition and service will improve. Other brokerages of 0.01% and above, will have to vanish!

 

[ratan jain]

Can you specify which industrial houses are entering?


Religare is one that has entered.

 

[sudhir gupta]

!, (what else to expect from Reliance?)....

My friend, we do expect them at least explain properly the meaning of 1 paisa brokerage to newbies!

It is NOT 1 paisa per transaction but 1 paisa per 100 Rs.

Please put your enthusiam to test for anything from Reliance before recommending the same unless, of-course, if you are their vendor.

 

[THETRADER]

Dear Sudhir Gupta, firstly, I am not their vendor, and, dont intend to be one ever. After all, I am of the opinion franchisees are for doing all the dirty work, and take all the risks for pittens. Also when the brokerage is so low, what will a franchisee get from them. I've also mentioned that their platform is not good and not fast in my msg.

I am just trying to inform the fellow traders about the low brokerage of Reliance as an alternative.

It is Rs.0.01 per transaction, ie., 1 paisa per transaction, and, not 1 paisa in the regular parlance of Rs.0.01 per Rs.100. I have checked this out, and, it appears that their money is in the licence fees. After all, once you've exhausted the limit, you will have to pay this charges again.

The biggest catch with them now is, when you place an order, you will not get a confirmation of the order ! The order will be INPROCESS, and, it could take even till the end of the day! You will not know what the status is, and, your margin will be blocked, etc. etc., which are all BAD to the core for trading, especially in daytrading. So, Reliance Money CANNOT BE USED FOR TRADING as of now. But they are working on...... (for a long time) to sort out these issues.

I wish to state that it is 1 paisa per transaction only.

 

[qmax]

HOWS is RK GLOBAL as broker. Ok they r giving low brokerage but the promoters are some from calcutta. Are thy trust worthy. Its should not happn that one fall and thy r wiped out with our money. CAN ANYBODY TELL ME HOW RELIABLE AND BIG THY R.

 

[THETRADER]

Can you specify which industrial houses are entering?


Religare is one that has entered.

Sorry, I had missed this out. Bajaj is one, and didnt bother to ask about the others.

 

[rubin_stocks]

Hi i am a arbitraguer working with religare and i pay 10 paise delievery and 1 paise fno sure my volumes are very high and for arbitraguers brokerage is also charged less but i think for traders and investors 20 paise delievery and 2paise is the norm and can be reduced to 15 paise and 1.5 paise if volumes are high

 

[THETRADER]

It appears that the "INPROCESS" problem is not appearing with Reliance Money for sometime now. That makes it the lowest brokerage. Licence fee works out to less than 0.005% buying and 0.005% selling, and, of course the statutory levies, like, STT, stamp duty, turnover tax.
But their trading platform is primitive, just close to the entry level java platforms abroad. Some of the problems :
1. Quotes are delayed by atleast 10+ seconds.
2. User interface (or the lack of it!) - is terrible, with redundant multiple screens, spaciously placed cells, requiring you to use the scroll bars.
3. Lack of features - cant even get account statement!
4..., 5.., 6.., ..... the list goes on. Basically, you get the idea about the trading portal. Only + thing is the low brokerage.