I am also making an attempt to understand the message behind it
Any broking firm incurrs costs on development it is not something which may be unique to Zerodha and turnover charges is not supposed to be the Heading under which it can be charged
For a broking firm any cost to engage the best of software companies has to come from brokerage
.. Even when Zerodha used NOW ..they were charging 490/crore as Turnover charges...they never reduced it when they had to pay Zero charges on software...so this argument is invalid
another argument is that their earnings/ profit is still the Rs 20 brokerage :
It is the model which Zerodha has decided upon...consciously...charging Rs. 20/order can not be a license to charge extra turnover charges ...
Why not let us know what they pay to IL&FS...and capacity building and software development is a continuous process..not a one off..so that day will never come when it is over and people are charged what is paid as turnover charges
Its not about scope for reduction....its about the technicality legality as well as ethics involved....The only revenue stream for a broker is supposed to be brokerage..this is how this industry functions...and will remain so...Charging extra Turnover charges because you develop software can not be a logical reason...Technically as well as legally I find it incorrect for any broker other than Zerodha also...to charge in excess of what is supposed to be charged...and yes people will move..less said better it would be....People moved to Zerodha because of its brokerage structure and people will again move to other brokers if they get a better deal...:thumb:
I would like calculate trading cost for retail traders. How to choose a broker for cost v/s facility provided by broker.
If you are trading in NIFTY Future, the main cost is STT and Clearing charges (Brokerage is negligible from all discount brokers), and we dont have any control on STT and its same from all broker. If we pay clearing charges Rs 300 to 500 (Zerodha Charging Rs 300), it will cost Rs 20 to 34 per lot of NIFTY (Rs 0.40 to Rs 0.67 per 1 Nifty) including service tax. Some discount broker having clearing charges very low 00 to Rs 160, but they provide only NOW for trading and some they dont provide intraday limit like zerodha have 2.5 times.
Zerodha has 50 telephone lines for 30 Thousand client for back up to offline trading and software Ztrader which is not yet stable. You can easily compare other technical and financial advantage with other discount broker with your requirement. Overall we have many good options for discount brokers.
