Zerodha....
- Thread starter bharath.mang
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- Tags bakwaas now cheapest brokerage nest nest plus new broker zerodha zerodha trader
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Dear Zerodha,
Sunday has gone 5 days back.Till date no FAQ document received. so many customers, so many queries, so many promises. Ofcourse i know fulfilling the promiss is not so easy as making it. when FAQ document will come to email accounts? When charts will be available with backfilling option alongwith indicators to customers?
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Thanks Sunny!!
@option trader,
here is how it works, have been with Zerodha from conception, so am able to answer these questions which most of the relationship managers, V.P's etc don't have a clue about... If you ask them, they probably give you an answer which is a product of their imagination...
You trade options i suppose....
In the Exchange when you trade options, there are a few things that happens at the exchange level..
1. Your trade is executed by the trading member..
2. Your trade is settled by the clearing member, the clearing member makes sure that your trades are settled. Clearing is basically like a backoffice work for your trades..
Today, most of the brokers outsource the clearing job to professional clearing members, the reason they outsource is because clearing is like a very low margin business and only if your volumes are really really high does it make sense to do it....
So ILFS is India's largest clearing member, followed by edelweiss and a few others...Most of the mid sized brokers and a few big brokers have outsourced the clearing. Even Indiabulls outsources their clearing....
You as a client will have no idea on who is clearing your trades, because the broker doesn't have to share that detail with you...
Every trade you do on NSE, NSE is a business it has to make some money right?? So NSE charges what is called as NSE transaction charges, which again reduces as and when the broker's volumes increases on the exchange... So Zerodha which is a newer member will have higher transaction charges to pay the exchange than icici who has huge volumes... Secondly, when you are using a clearing member, the clearing member has to make some money?? again the clearing member keeps reducing his charge as and when the volumes of the broker goes up....
What is the difference?? could be anywhere between Rs 100 to Rs 300 per crore, CRORE!!!
...an icici charges you 0.05% , Rs 5000 per crore.. They self clear their trades, and hence their transaction charges(NSE+clearing) will show the least... But what you need to realize is they are making so much brokerage anways....
Because you trade options let me give you an example...
Assume you buy 10 lots of options premium at 50(nifty options) and sell 10 lots at Rs 51....
Rs 2500 premium per lot, for 10 lots Rs 25000 is what you buy...
Selling premium is Rs 25500...(@51)...
Brokerage with us : Rs 40 (20 +20)
With others: Rs 200 to Rs 1000 ...
Transaction charges: Rs 40 with Zerodha..
With others: Rs 32 to Rs 45 ...
Can you understand how insignificant it looks...
Hopefully I am able to make you happy atleast by this answer......
Cheers...
@option trader,
here is how it works, have been with Zerodha from conception, so am able to answer these questions which most of the relationship managers, V.P's etc don't have a clue about... If you ask them, they probably give you an answer which is a product of their imagination...
You trade options i suppose....
In the Exchange when you trade options, there are a few things that happens at the exchange level..
1. Your trade is executed by the trading member..
2. Your trade is settled by the clearing member, the clearing member makes sure that your trades are settled. Clearing is basically like a backoffice work for your trades..
Today, most of the brokers outsource the clearing job to professional clearing members, the reason they outsource is because clearing is like a very low margin business and only if your volumes are really really high does it make sense to do it....
So ILFS is India's largest clearing member, followed by edelweiss and a few others...Most of the mid sized brokers and a few big brokers have outsourced the clearing. Even Indiabulls outsources their clearing....
You as a client will have no idea on who is clearing your trades, because the broker doesn't have to share that detail with you...
Every trade you do on NSE, NSE is a business it has to make some money right?? So NSE charges what is called as NSE transaction charges, which again reduces as and when the broker's volumes increases on the exchange... So Zerodha which is a newer member will have higher transaction charges to pay the exchange than icici who has huge volumes... Secondly, when you are using a clearing member, the clearing member has to make some money?? again the clearing member keeps reducing his charge as and when the volumes of the broker goes up....
What is the difference?? could be anywhere between Rs 100 to Rs 300 per crore, CRORE!!!
...an icici charges you 0.05% , Rs 5000 per crore.. They self clear their trades, and hence their transaction charges(NSE+clearing) will show the least... But what you need to realize is they are making so much brokerage anways.... Because you trade options let me give you an example...
Assume you buy 10 lots of options premium at 50(nifty options) and sell 10 lots at Rs 51....
Rs 2500 premium per lot, for 10 lots Rs 25000 is what you buy...
Selling premium is Rs 25500...(@51)...
Brokerage with us : Rs 40 (20 +20)
With others: Rs 200 to Rs 1000 ...
Transaction charges: Rs 40 with Zerodha..
With others: Rs 32 to Rs 45 ...
Can you understand how insignificant it looks...
Hopefully I am able to make you happy atleast by this answer...
... Cheers...
all brokers have this difference.
As per zerodha calculator: Transaction charges are:
Options : 0.0008
Futures : 0.000054
Now for turnover of 4.15L Approx.:
Options Turnover Charges: Rs. 330
Futures Turnover Charges: Rs. 22
All other charges : Brokerage: 40, STT Total and Stamp Duty are same for both future/option.
The Service Tax for options case is more due to higher overall brokerage due to this
high transaction cost.
From all the replies you have provided: You have stated, transaction charges is a component charged by NSE based on broker turnover.
Is this difference of turnover charges of futures/options: Mandated by NSE ?
Hi Vijay and everyone else...
I was very clear about when I said about charting that we are working on it... It is a value add we are trying to give.... Every such new initiative has its roadblocks, which can't be shared on an open platform...
For the record, when we are ready with it, we will announce it for everyone... If the question is how long?? I don't really know....
About the faq,there are videos available on youtube, search for askzerodha... If a particular concern of yours is not on that video, call us or email us, we will call you back and sort it out...
Come on guys!! Let's be mature about this, we are not obligated to give this service(datafeed), we were trying it as a value add... You can't keep asking the same question every sheet and I keep telling the same answers...
I hope for now this issue is considered closed, I will post when we are ready with it !!and hopefully no one else will ask me the same question again...
I was very clear about when I said about charting that we are working on it... It is a value add we are trying to give.... Every such new initiative has its roadblocks, which can't be shared on an open platform...
For the record, when we are ready with it, we will announce it for everyone... If the question is how long?? I don't really know....
About the faq,there are videos available on youtube, search for askzerodha... If a particular concern of yours is not on that video, call us or email us, we will call you back and sort it out...
Come on guys!! Let's be mature about this, we are not obligated to give this service(datafeed), we were trying it as a value add... You can't keep asking the same question every sheet and I keep telling the same answers...
I hope for now this issue is considered closed, I will post when we are ready with it !!and hopefully no one else will ask me the same question again...
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