@ Zerodha/Sachin,
On Brokerage,
Hi, I've gone through whole of the thread
fatigue
& it seems like you people at Zerodha are sort of "broking of the traders, by the traders & for the traders" so to speak :clap: You people seem very genuine at what you're doing and it seems that you've done a really grand job of offering a low-cost broking-service along with decent CustomerCare. :clapping:
But you guys should consider merging both of your plans & offer a "0.01% or Rs.20/-" plan, which'd effectively mean that trades below 2 lacs will be charged @0.01% & trades above 2 lacs & above will be Rs.20/-
Right now, I'm looking for a broker (mainly for commodities, although I'm not totally averse to currencies & equities either) & I'd really like to join you guys but if I go for Plan A then I'll be overpaying for my trades below 2 lacs @Rs.20 + 900% higher Stamp Duty (more on that later in the post), considering that I could get a better deal out of the same trade with another broker @0.01% while I'd definitely like to trade with you guys for my trades above 2 lacs or more :cheers:
For ex. I may trade one Crude at ~4 lacs while the next moment I may want to trade SilverMic at ~65000 or buy equities so in this case, if I'm on Your Plan A (which is your biggest USP) then I'll be overpaying for latter trade & if I'm on Plan B then I'll be overpaying for the former so your plans kind of tells the traders that
"if you want to trade big then trade big & if you want to trade small then trade small but you can't do both without overpaying one way or another" so that kind of puts a "rodha"
D) for us traders & as you've said earlier in the thread that plans can only be changed overnight & not during the day (it'd be tedious for everyone anyway), not to mention that you'll be charging for it further down the line
The way your plans are set up right now, most "mid-level" traders who do small & big trades pretty regularly are bound to look for an alternative broker for their smaller trades which aren't worth Rs.20/- (+ high SD) because as you yourself, as a day-trader, would know that often margins can be wafer-thin in day-trading.
SO, my point being that since you people believe in removing all the "rodhas" in traders' path then you should also consider removing this "rodha" that you've in place by having two separate plans, it'll make us traders feel freer as we'll be able to trade at any amount we want rather than pondering over whether we should've Plan A or Plan B for tomorrow's trading session or whether the cost incurred to change the Plan will be worth it, etc & we'll be able to focus on trading-strategies as opposed to wrecking our brains on optimizing our brokerage-strategies to minimize our costs
On Stamp Duty,
Well, this has been discussed many a times in these 400+ pages & you've extolled the "benefits" of you being in Karnataka & the Stamp Duty cap there, etc BUT the question is WHOM does it exactly benefit? Is it EVERYONE all the time? Hmm...
Well, State of Karnatata charges SD @
0.01% ie Rs.1/- for a turnover of
Rs.10,000 while it is @
0.001% ie Rs.1/- for a turnover of
Rs.1,00,000 in Maharashtra as the following article says.
http://articles.economictimes.india...n-stamp-duty-act-regional-commodity-exchanges
So it means that a trader whose
daily turnover is 5 lacs is paying Rs.50/- of Stamp Duty with you while he could be paying Rs.5/- otherwise. Now, loss of Rs.45/- or even smaller losses, although not astronomical, are definitely worth considering & even smaller losses can add up over time, especially so when they're a RECURRING loss as is the case with SD.
The "benefit" of Karnataka's cap is only realized by traders whose
daily turnover is
50 lacs or above, everyone else will be suffering upto Rs.45/- of unnecessary loss on every such day when they trade & their turnover is below 50 lacs.
SO, my question to you is, will it be possible for you guys to set up a NAMESAKE office in Maharashtra (or some other state with similarly low SD) & then charge all the traders who happen to have a turnover of less than 50 lacs for the day as per that state's SD @0.001% while all the traders who've traded 50 lacs or more for the day can still avail the benefit of Karnataka's cap of Rs.50/-
I don't know if this can or can't be done but as you've said earlier in the thread, "A penny saved is a penny earned"
so I thought that I should put forward this suggestion & see if something like this is feasible for you guys. It could save some money for a lot of the traders who don't have a daily turnover of over 50 lacs.
On A/C opening,
As I've said earlier, I'm mostly interested in commodities so let's say if I open an A/C with you now, will that mean that I'll have to pay separately for opening commodities-A/C when you start offering commodities in the near future? Same question for a currencies-A/C? I'm asking this because you've said -
What is the present status of commencement of commodity trading in MCX. We are awaiting for. Is the brokerage is the same Rs 20. per lot?
Hi Ajoy, Not Rs 20 per lot, Rs 20 per executed order(immaterial of the lot size)... We might be also throwing in an inaugural offer for our existing clients...
So what is this "inaugural offer" & will I be eligible for it if I open equity-trading A/C with you now, before you start with commodities?
Further, what'll be the initial & recurring charges of trading in commodities (& currencies) apart from brokerage & regulatory charges/taxes, if any?
What will be your "margin-structure" for commodity-trading? I understand that you may or mayn't be able to offer specific answers at the moment but I'm just expecting you to offer a more general idea of what the "cushion" you guys will be looking for on intraday & overnight positions.
Further, you've said that you'll be offering Odin for commodities, so what about datafeeds & charting? Will it be included in it? I'm not looking for anything fancy at the moment, just basic OHLC charts with volume-info & good time-frames will do.
Will there be any regular charges for usage of particular segments like equity, commodities & currencies like some other brokers have?
Sorry for the ultra-long post :lol:
