Zerodha - Number One Discount Broker in India

[Zerodha]

Zerodha- You are the highly professional brokers amongst all discount brokers and you have created a good brand. But as the competition is heating up, can we expect standardized & uniform minimum charges with unlimited plans like Rs.1000 per month from you. You have established trust with your service but discount is also important factor for us, if one get both from you that would be great.

Copy pasting a discussion on the same on Zconnect : http://www.zerodha.com/z-connect/bl...yearbook-and-reduction-in-transaction-charges

You are looking at it as a client, we as a business feel that unlimited trading per month for a fixed fees is a flawed logic and won't really workout for the business in the long run. The idea is to have a business that can sustain and be profitable so there could be many other things that can be done.

Discount broking across the world works on a fixed fee per trade, the reason is because in today's online world, the cost of executing a trade doesn't go up with the size of the trade. Since the cost doesn't go up, we charge a fixed fees.

With the unlimited plans, it is like saying that cost of a client doing 10 trades a month and 1000 trades a month is the same. It is a flawed logic and this business model in broking hasn't worked out anywhere in the world.

Again that is our personal view and you might disagree.

 

[Zerodha]

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Hi, Zerodha,
Please don't mind. I think you don't know the Stamp Duty Rule correctly.
Max Cap Stamp duty advantage is the biggest advantage of Zerodha of you as of now. Don't let it go by not knowing the rule.
I have confirmed the rule from multiple discount broker. Bcoz some state still has max cap stamp duty of Rs 30 or 50 only.

Here is the my conversion with another discount broker



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With Best Wishes to Zerodha.

Hey Pattern,

We don't know stamp duty rule correctly? Phewww!!! we probably know more about it than anyone else now..


We have spent last 3 months talking to best law firms in the country for this, if you look at the image that I have uploaded, that letter is from Inspector General of Registration, the highest authority in the state of TamilNadu.

It is very clearly stated there what the government wants, so do we say the government is wrong or do we follow the rules?

We are obliged to follow the rules especially when we are sent a letter asking us to follow. I am sure most of the other brokers will also get a letter if they haven't already, to follow or not to follow is a decision that brokerage has to make.

So you should show the image I have posted to the other broker that you spoke about and ask his view on it..

Like you have correctly mentioned, we have a big advantage because of this and if we are ready to loose it, you can probably guess that we have given it a serious serious thought..

 

[Price Pattern Recognition]

Hey Pattern,

We don't know stamp duty rule correctly?


We have spent last 3 months talking to best law firms in the country for this, if you look at the image that I have uploaded, that letter is from Inspector General of Registration, the highest authority in the state of TamilNadu.

It is very clearly stated there what the government wants, so do we say the government is wrong or do we follow the rules?

We are obliged to follow the rules especially when we are sent a letter asking us to follow. I am sure most of the other brokers will also get a letter if they haven't already, to follow or not to follow is a decision that brokerage has to make.

So you should show the image I have posted to the other broker that you spoke about and ask his view on it..

Like you have correctly mentioned, we have a big advantage because of this and if we are ready to loose it, you can probably guess that we have given it a serious serious thought..

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Dear, Zerodha,

I have already posted your image long ago in their thread and asked about their legal opinion from VPS again.

But some another big online discount brokers is charging low and fixed Stamp Duty for all clients. They also said they consulted top legal firm (I don't want to name others one by one as it is your thread) and with only one office it is clearly within the Rule. Any state Govt can claim anything but the rule is different.

Why don't you try to open branches also in States like Haryana OR Himachal Pradesh where is also max cap Stamp Duty facility (even lesser than bangalore rate) to help some of your clients?

Hope you find a legal solution to keep your advantages on max cap Stamp Duty.
Best Wishes to Zerodha.

 

[poortrader]

@zerodha , plz reply the following post
http://www.traderji.com/brokers-trading-platforms/89121-zerodha-part-3-a-40.html#post865095

 

[Zerodha]

So is it possible to change our residential address now. Suppose I have registered with you with my address as West Bengal, now I also have a address of Delhi. Is it possible to change to Delhi and be charged at Delhi rates?
zerodha, please try to post the stamp duty applicable in all states of India.

Yep absolutely possible, send a copy of the new address proof asking to change and it gets changed in a jiffy.

The states for which we are charging is on the Zerodha charge list in the download section of our website

 

[Delaroche]

hello,
I have opened a trading account with you guys finally. the proceedure was a breeze.
The Z trader felt good first up.There are a couple of queries which i hope you can elaborate on.
1) Wht is the default no of scrips that can be added in the market watch. Does addition of further scrips make a difference in the speed of the updation of prices,trades etc (This was suggested by your executive).
2) i sensed a general lag in updation of prices.. trades..etc as compared to my previous odin platform when compared side-by-side. Any reasons for this apparent issue? (I was explained in a slight patronising tone abt the workings and efficiency of the z trader by your executive).
No issues otherwise.regards.

 

[castor_t]

Could you post a page listing all the charges for a trade from a client point of you.

I created an excel sheet on my own, in which I can add the buy qty, sell qty, share price and it shows me the net profit that I make. It includes all charges - Brokerage, STT, Turnover charge, Service Tax, Edu Cess, High Edu Cess, SEBI charges and Stamp Duty.

However, when I compare them with the contract note at the end of the day, it always differs by few paisas. It's frustrating.

 

[Zerodha]

hello,
I have opened a trading account with you guys finally. the proceedure was a breeze.
The Z trader felt good first up.There are a couple of queries which i hope you can elaborate on.
1) Wht is the default no of scrips that can be added in the market watch. Does addition of further scrips make a difference in the speed of the updation of prices,trades etc (This was suggested by your executive).
2) i sensed a general lag in updation of prices.. trades..etc as compared to my previous odin platform when compared side-by-side. Any reasons for this apparent issue? (I was explained in a slight patronising tone abt the workings and efficiency of the z trader by your executive).
No issues otherwise.regards.

55 is what can be added, I'd suggest you to have multiple marketwatch instead of having all scrips on marketwatch. Yes it improves the performance.

Where you running multiple platforms at a same time? If so that could be the reason, Ztrader needs more resources than ODIN, I'd suggest you to run this just by itself and check the performance..

 

[Zerodha]

Could you post a page listing all the charges for a trade from a client point of you.

I created an excel sheet on my own, in which I can add the buy qty, sell qty, share price and it shows me the net profit that I make. It includes all charges - Brokerage, STT, Turnover charge, Service Tax, Edu Cess, High Edu Cess, SEBI charges and Stamp Duty.

However, when I compare them with the contract note at the end of the day, it always differs by few paisas. It's frustrating.

We have put up a charge list on download section of our website. Has a list of all charges..

 

[Zerodha]

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Dear, Zerodha,

I have already posted your image long ago in their thread and asked about their legal opinion from VPS again.

But some another big online discount brokers is charging low and fixed Stamp Duty for all clients. They also said they consulted top legal firm (I don't want to name others one by one as it is your thread) and with only one office it is clearly within the Rule. Any state Govt can claim anything but the rule is different.

Why don't you try to open branches also in States like Haryana OR Himachal Pradesh where is also max cap Stamp Duty facility (even lesser than bangalore rate) to help some of your clients?

Hope you find a legal solution to keep your advantages on max cap Stamp Duty.
Best Wishes to Zerodha.

Hey Pattern,

Check this out on NCDEX(National commodity exchange)

http://www.ncdex.com/CustomerServices/FAQ.aspx# and search for stamp duty..here are the answers given by the exchange... I guess all the exchanges should come and put this out in open, but anyways these rules doesn't change from exchange to exchange.. We never saw this section till very recently!!

We were late to implement, but better late than sorry!!!

Here are the things mentioned on that:

Stamp Duty

1 Where can a person verify the percentage of stamp duty applicable on futures contract?
He has to check with the relevant stamp duty authorities in the Stamp duty office of the relevant state.

2 How is stamp duty applicable?
Stamp Duty is applicable on the Value of the Contract note and is calculated on the percentage specified by the stamp duty authority of the relevant state.

3 Can a member pay stamp duty in states other than where the client is registered and trading?
No, He has to pay stamp duty in the state where the client is registered and is trading, irrespective` of the where the registered office of the member is located and contract notes are printed.

4 How is the Stamp Duty to be paid, Is it State Wise?
Yes, it is to be paid state wise as all state govt. has specified certain value of stamp duty to be paid for futures contracts.

5 Can a member pay stamp duty of all his clients at one location?
No, he has to pay in individual states depending on where his client is trading. E.g.: If the Client is trading in Mumbai, and the main office is based in Delhi from where the Contract Notes are printed, then Stamp duty is applicable according the Maharashtra Stamp Duty Act for the particular Client and is to be paid in the State of Maharashtra.

6 If Stamp Duty is applicable in two states, one where the Client is registered and the other i.e. the registered office then, Is he required to pay stamp duty at both places?
No, he has to pay stamp duty whichever is higher and pay in the state which has higher stamp duty.