RKSV - Unlimited Online Trading @ 1947/-

[timepass]

Hi timepass,

Transaction charges are a combination of exchange fees and clearing charges.

Best,

RKSV

See, I understand that STT, service tax, education cess, higher edu. cess and stamp duty are levied by the government, Ok. SEBI charges - obviously levied by SEBI. I know the beneficiaries of these.

Now who is the beneficiary of Transaction charges. Exchange would be NSE (or BSE), and clearing house ?? Which clearing house is involved in Options and Futures.

The reason for asking is that it is the biggest charge in total transaction costs.

 

[RKSV]

See, I understand that STT, service tax, education cess, higher edu. cess and stamp duty are levied by the government, Ok. SEBI charges - obviously levied by SEBI. I know the beneficiaries of these.

Now who is the beneficiary of Transaction charges. Exchange would be NSE (or BSE), and clearing house ?? Which clearing house is involved in Options and Futures.

The reason for asking is that it is the biggest charge in total transaction costs.

Hi timepass,

Yep. It would be NSE & BSE + IL&FS, our clearing house.

Best,

RKSV

 

[timepass]

One thing we quickly realized was that there was a very legitimate concern about our turnover costs. Why are some brokers charging Rs250/cr, others Rs500/cr, and still others upwards to Rs 1000/cr for transactions? How can there be so much variance?

Truth of the matter is, when we started in this business we were advised by others to charge close to 500/Rs to cover the cost of clearing work and exchange fees, even if your total fees were significantly lower than 500/Rs. We were told that this is "standard practice" in the industry. While this is legal in the eyes of SEBI, it's not ethical! Whatever costs a broker incurs in exchange and clearing fees should be put under their brokerage slab- not transaction costs! Transaction costs should strictly be fees that are passed directly to your clearing agents and exchanges, not the broker's pocket.

In effect, we have reduced our futures transaction costs from Rs 520/cr to Rs 230/cr and our equities transaction costs from Rs 520/cr to Rs 350/cr. This is the rate we are getting, so it is only fair to charge you the same rate. To give you an example of how this is good for you, if you were to do 1 cr turnover on nifty (around 20 lots), as a customer, you would be saving Rs. 290.

P.S. This is not an April fools joke!

Hi timepass,

Yep. It would be NSE & BSE + IL&FS, our clearing house.

Best,

RKSV

So, which charges have you reduced ?? I see that a turnover of Rs. 10000 is charged at Rs. 8000 per crore. Who is levying this ? Is this the same across the brokers who have IL&FS as their clearing house ??

Now, 1 lot of nifty futures has Rs. 12 as transaction charges on a turnover of about Rs. 5.30 lakhs. While 1 lot of Nifty option having a turnover of Rs. 15 thousand would have the same transaction charges...

I thought it was levied at Rs. 290 per crore..

 

[RKSV]

So, which charges have you reduced ?? I see that a turnover of Rs. 10000 is charged at Rs. 8000 per crore. Who is levying this ? Is this the same across the brokers who have IL&FS as their clearing house ??

Now, 1 lot of nifty futures has Rs. 12 as transaction charges on a turnover of about Rs. 5.30 lakhs. While 1 lot of Nifty option having a turnover of Rs. 15 thousand would have the same transaction charges...

I thought it was levied at Rs. 290 per crore..

Hi timepass,

We haven't reduced options charges. Only futures and equity. Options have never been Rs. 10,000. It's always been Rs. 8,000. Brokers can give you cheaper turnover costs depending on the deal they have with their clearing firm, cannot do anything to reduce exchange costs.

Best,

RKSV

 

[timepass]

Hi timepass,

We haven't reduced options charges. Only futures and equity. Options have never been Rs. 10,000. It's always been Rs. 8,000. Brokers can give you cheaper turnover costs depending on the deal they have with their clearing firm, cannot do anything to reduce exchange costs.

Best,

RKSV

ok.. I don't remember marking it anywhere in the FAQ, with any of the brokers that I've used. Thanks for clarification.

But it's not that clear either .

Ok.

a) So you send out a single contract note for both Futures and options. Are the transaction charges mentioned separately or lumped together ?? Or is separate contract notes ??

b) In the transaction charges, how much goes to the exchange and how much to the clearing house ?

c) Do different exchanges have different charges ?

d) Why transaction charges on options are so heavy comparatively ?

 

[RKSV]

ok.. I don't remember marking it anywhere in the FAQ, with any of the brokers that I've used. Thanks for clarification.

But it's not that clear either .

Ok.

a) So you send out a single contract note for both Futures and options. Are the transaction charges mentioned separately or lumped together ?? Or is separate contract notes ??

b) In the transaction charges, how much goes to the exchange and how much to the clearing house ?

c) Do different exchanges have different charges ?

d) Why transaction charges on options are so heavy comparatively ?

Hi timepass,

Let me try to make it clear and stop me if I get more confusing

a) Single contract note. We have one for Cash and one for F&O. Transaction charges do come up together on the contract notes for F&O as one line item.

b) Rs. 5000 goes to the NSE on options

c) We only offer NSE F&O. Not really other F&O exchanges in India.

d) Heh, good question. Well technically it's on your premium turnover. For a Rs. 100 option, you have to do a good amount of turnover to pay Rs. 8,000.

Best,

RKSV

 

[DataRam]

@ RKSV,

Do you plan to bring in Commodities trading sometime in near future under same or similar to freedom plan ?

I hope you will !!!!!!

Regards.

 

[terry1234]

Why dont you provide six to ten time limit against cash margin in F&O trade intra-day unlike BEZEL. Itene monthly brokerage me costumer kaa itnaa to hak bantaa hai boss

 

[soft_trader]

Why dont you provide six to ten time limit against cash margin in F&O trade intra-day unlike BEZEL. Itene monthly brokerage me costumer kaa itnaa to hak bantaa hai boss

OMG!!! 6-10 times intraday leverage on F&O? I don't think any one is providing that. It is so dangerous for the trader and the Risk-management team of broker.

Any broker is really providing that?

 

[timepass]

@ RKSV,

Do you plan to bring in Commodities trading sometime in near future under same or similar to freedom plan ?

I hope you will !!!!!!

Regards.

Commodities, currency.. everything that is traded in the money markets...