Why is that every broker is charging a different %age as transaction charges?
For example, the transaction charge per lakh on the turnover by MCX is as follows (from their business rules documentation):
So, for a large broker, it can effectively be 1.25rs/Lakh or even 1.00rs/Lakh as transaction/turnover fee. Still we are charged anywhere from 2rs to 5rs/Lakh for this.
Why do we have this kind of discrepancy in the charges? Is the delta part of broker's profit (in addition to brokerage)? Isn't this unfair?
Question: What %age do you pay for your transactions? (Pl. list your charge & broker)
For example, the transaction charge per lakh on the turnover by MCX is as follows (from their business rules documentation):
Transaction fee (per Rs. 1 lac of turnover value) is required to be paid by the members based on their daily turnover in all the futures contracts in all the commodities traded at the Exchange as tabulated below:
Average daily turnover -- Transaction fee rates
Upto Rs. 250.00 crore -- Rs. 2.50
On incremental turnover above Rs. 250.00 crores to Rs. 1000.00 crores -- Rs. 1.25
On incremental turnover above Rs. 1000.00 crores -- Rs. 1.00
Average daily turnover in all the futures contracts in all the commodities will be calculated at the end of every month by way of dividing the total turnover of the Member of the Exchange (including Saturdays) by the total number of trading days (excluding Saturdays).
Average daily turnover -- Transaction fee rates
Upto Rs. 250.00 crore -- Rs. 2.50
On incremental turnover above Rs. 250.00 crores to Rs. 1000.00 crores -- Rs. 1.25
On incremental turnover above Rs. 1000.00 crores -- Rs. 1.00
Average daily turnover in all the futures contracts in all the commodities will be calculated at the end of every month by way of dividing the total turnover of the Member of the Exchange (including Saturdays) by the total number of trading days (excluding Saturdays).
So, for a large broker, it can effectively be 1.25rs/Lakh or even 1.00rs/Lakh as transaction/turnover fee. Still we are charged anywhere from 2rs to 5rs/Lakh for this.
Why do we have this kind of discrepancy in the charges? Is the delta part of broker's profit (in addition to brokerage)? Isn't this unfair?
Question: What %age do you pay for your transactions? (Pl. list your charge & broker)
Last edited: