HIDDEN CHARGES-What & Why Brokers hide these Charge?

[whisky]

What type of hidden charges brokers charge to your account?
Please share your experience about what type of charges other than brokerage & statutory charges (ie. Govt. levys & taxes) your broker charged to your account.

 

[Happy_Singh]

Brokers normally dislike to talk about "Transaction Charges" as there is a discretionary component in it.

with various discount brokers this TC vary from minimum 190 to around 490 . . .

One of the posters here on TJ has posted a very nice method to find what are the brokers actually charging besides the taxes . . .

As service tax is not levied on taxes,
just multiply the total service tax by 8, to arrive at the actual figure,
that the broker is charging under whatever head that may include . . .

Adding the stamp duty to this equation completes the fuzzy picture

Its good to worry about brokerage . . . but . . .

If you want to be an active trader Slippage on trades is more costly than brokerage

Do work for minimum brokerage, but work harder for minimum slippage on trades :thumb:


Cheers


Happy

 

[whisky]

Brokers normally dislike to talk about "Transaction Charges" as there is a discretionary component in it.

with various discount brokers this TC vary from minimum 190 to around 490 . . .

One of the posters here on TJ has posted a very nice method to find what are the brokers actually charging besides the taxes . . .

As service tax is not levied on taxes,
just multiply the total service tax by 8, to arrive at the actual figure,
that the broker is charging under whatever head that may include . . .

Adding the stamp duty to this equation completes the fuzzy picture

Its good to worry about brokerage . . . but . . .

If you want to be an active trader Slippage on trades is more costly than brokerage

Do work for minimum brokerage, but work harder for minimum slippage on trades :thumb:


Cheers


Happy

Thanks Happy, -Mostly Discount brokers are playing on Transaction Charges.and in name of freedom plan/fixed brokerage/unlimited plan etc. hiding the Transaction charges where they are actually playing.
What about the Clearing Charges?

 

[coolnits]

what are the Transaction charges and clearing charges in ZERODHA and also DP charges ?

 

[whisky]

what are the Transaction charges and clearing charges in ZERODHA and also DP charges ?

Have not complete idea about Zerodha charges, please clarify this from Zerodha-they have their separate thread

 

[umesh12]

Brokers normally dislike to talk about "Transaction Charges" as there is a discretionary component in it.

with various discount brokers this TC vary from minimum 190 to around 490 . . .

One of the posters here on TJ has posted a very nice method to find what are the brokers actually charging besides the taxes . . .

As service tax is not levied on taxes,
just multiply the total service tax by 8, to arrive at the actual figure,
that the broker is charging under whatever head that may include . . .

Adding the stamp duty to this equation completes the fuzzy picture

Its good to worry about brokerage . . . but . . .

If you want to be an active trader Slippage on trades is more costly than brokerage

Do work for minimum brokerage, but work harder for minimum slippage on trades :thumb:

Cheers

Happy

Thanks
But what is this "Slippage on trade" and how can we minimise it.

 

[Mr.G]

"Slippage On Trade" means the trade executed missed the target/hit stop loss ie. Loss in a trade. It can only be minimized by experience or taking help from right Financial Market Analysts or Advisor etc..

Slippage does not mean a losing trade. It is the difference between price of trade initiation and price at which the trade is actually executed. It was common in old analog exchanges, but in digital age it is seen only in times of high volatility or when in large order there is not enough volume for whole trade to execute at single price. It is unavoidable in some circumstances.

 

[Ram Shanker]

What type of hidden charges brokers charge to your account?
Please share your experience about what type of charges other than brokerage & statutory charges (ie. Govt. levys & taxes) your broker charged to your account.

I have experience of trading in PRO account. One sort of DABBA trading No Taxes.

Just google DABBA and you will get it :clapping::clapping:

 

[DSM]

G, you have given the right definition of slippage (difference between the last executed trade and price at which your order is executed) However your assertion that slippage is seen only at time of high volatility or in old exchanges is not right. Slippage happen even now, all the time, moreso where there is not much liquidity in a script or index. For the matter, even in very liquid futures contracts, there can be a slippage of 250-500 rupees or more where the lot size is 250to 8,000 Here the bid price may vary between 1rupee+ to 10-20 paisa. The same applies in cash counters as well. I come across this problem with slippage many times each day, but it is part of doing business.

Slippage does not mean a losing trade. It is the difference between price of trade initiation and price at which the trade is actually executed. It was common in old analog exchanges, but in digital age it is seen only in times of high volatility or when in large order there is not enough volume for whole trade to execute at single price. It is unavoidable in some circumstances.

 

[Mr.G]

I already mentioned it is there when large orders are executed it is still unavoidable.

Read my comment again.