Zerodha....

[Zerodha]

Hello

Sorry if this one is already answered, big thread and could not search this query.

I checked the F&O Brokerage Calculator on your site, with this result.

Turnover 		10000000
Brokerage 		40
Stt Total 		850
Total Tran Charge 	540
Service Tax 		58.00
Education Cess 		1.16
Higher Edu Cess 	0.58

1. The brokerage is shown as Rs 40 but the Service Tax which should be just 12% is shown as Rs 58 not sure how this calculation works?

2. What is this "Total Tran Charge" ?

Seems from above the service tax is also applicable on this "Total Tran charge",
shouldn't the service tax be only applicable to the money a client pays to you for your service(i.e. brokerage) ?




Thanks

Hi N,

Yes service tax is 10% of brok + trans charges..

Tran Charges is what is charged by NSE an our clearing member...

ST on tran charge is collected by the broker and NSE collects it from us....

 

[NTrader42]

Tran Charges is what is charged by NSE an our clearing member...

I am still puzzled why we traders have to pay Service Tax on amounts collected as tax, duties and other charges by the exchanges.


Anyway, is this trans charge by NSE different for different brokers?

if we trade with you NSE Trans Charges are 540 / Cr, the contract note from my current broker shows a lesser amount, also the service tax is working out to be less.

Thanks

 

[shabsaif]

.........................
Am travelling shabbir, will try giving you a buzz in the next couple of days... Read the email that you sent to nithin, he should reply back to you on that...

I hope you are in office, I sent email to you, but not yet replied. I am eagerly waiting from you..Thanks

 

[Zerodha]

I am still puzzled why we traders have to pay Service Tax on amounts collected as tax, duties and other charges by the exchanges.


Anyway, is this trans charge by NSE different for different brokers?

if we trade with you NSE Trans Charges are 540 / Cr, the contract note from my current broker shows a lesser amount, also the service tax is working out to be less.

Thanks

Why we have to pay so many taxes??? Hmmm... puzzles me as well...

Yes the transaction charges varies in the range of 300 to 800 based on where you are trading... All the other charges have to be uniform...

 

[Zerodha]

I hope you are in office, I sent email to you, but not yet replied. I am eagerly waiting from you..Thanks

Taking a training, but your issue will be fixed by today...

 

[bangerabs]

We have to pay several types of taxes, because we are Indians. How else, our politicians and their families etc. can be secured?. You are aware that very recently Mayawati spent 685 crores of public money on few Icons (perhaps including hereself). If the fund goes to welfare,defence and other unavoidable administrative expenditure, it is welcome. But unfortunately crores and crores are spent on few goons. Therefore, the Govt. will keep on increasing the types of taxes every day. We can not escape. The system needs change.

Why we have to pay so many taxes??? Hmmm... puzzles me as well...

Yes the transaction charges varies in the range of 300 to 800 based on where you are trading... All the other charges have to be uniform...

 

[tradingcues]

Hi Zerodha..

Cud u pls fix this problem.

NEAT On Web has stopped working.
Problem details are as follows:

Problem signature:
Problem Event Name: APPCRASH
Application Name: NOW.exe
Application Version: 1.5.7.1
Application Timestamp: 4e004d70
Fault Module Name: MFC71.DLL
Fault Module Version: 7.10.3077.0
Fault Module Timestamp: 3e77fdfd
Exception Code: c0000005
Exception Offset: 00034ad0
OS Version: 6.1.7601.2.1.0.256.48
Locale ID: 16393
Additional Information 1: cbbe
Additional Information 2: cbbee0517ba79f8dded0e9f5d5b64d3f
Additional Information 3: 72a6
Additional Information 4: 72a6bbb4a0849d89db116221a2b3cc01

Regards.

 

[Zerodha]

Hi Zerodha (Sachin)

I am a silent observer of this thread and this is my first post here with regard to a query.

I am explaining the situation (which itself is the query) :-

Suppose a trader "X" has only 10500 in his account & he buys one lot Nifty Futures for Intraday purpose. After taking position, he has almost no money left in his account. Now suppose that the market goes against his position and starts to show a loss. As you wrote above (in red color regarding 10% margin etc), PLEASE CLARIFY BY WHAT TIME THE ABOVE LOSS MAKING TRADE WILL BE AUTOMATICALLY SQUARED OFF, because :-

(A) If it comes to 10% as stated above, then it should be squared off automatically (by your team) when the loss is around 1050 Rupees (or only 20 points), but what if the trader "X" has planned to exit when Nifty goes down 30 points.

(B) If it comes to anything beyond 10%, then up to what percentage (or level) can you give time to that trader "X" to take action himself upon this.

(C) In many cases known to me (NOT from Zerodha but from several other brokers), it was tough for any trader to square-off the position himself in Loss (due to lack of margin) because the system rejected their requests. So, please clarify the Terms & Conditions in Zerodha with regard to this square-off thingy. What will happen to a trader (in loss & with no margin), how will he be able to square off his position without needing any help from Zerodha AND in second case, up to which "risk" level Zerodha will wait to square off the position himself so that the trader "X" may not lose much from his capital amount.

(D) If Zerodha is planning to wait until the total capital of this trader "X" erodes, then it is surely a bad decision both for Zerodha AND the trader "X" because the trader will then lose all of his money while Zerodha will lose one of his clients.

(E) I am adding it later but it is an important question too (obviously for all). If after taking a position in Nifty (Long side), suppose Nifty rises around 300 points and hence it makes the margin amount sufficient (due to the recent profit of 15000) to carry the position, what will Zerodha do in such conditions. Will Zerodha still square off his position at 3.10 PM or Zerodha will know that the balance amount in his account is "now" sufficient because of that 300 point rise & the profit earned in Nifty and therefore Zerodha will allow trader "X" to carry over his position overnight.

I think I am clear with my views & queries. Now waiting a suitable reply from your good end.

Cheers

shekhar

Hi Shekar,

a. Once you take a position in intraday with 10500 for 1 lot of nifty... We will square off the position only once you make a 50% loss in your capital...The above scenario is for intraday trading... By intraday trading I mean upto 3pm...

If it is after 3pm, as I had mentioned earlier, we would let you hold even if you are down upto 10% on the margin requirement... So if margin required for overnight is 25k, you can hold it even with 2.5k lesser which is 22.5k in your account..

b. We are pretty lenient on intraday trading especially nifty, because we understand the risk associated... As long as we have a control on the position the risk is limited... With overnight position, you have no control and hence a pretty big risk... So for overnight we are pretty strict on margin requirement...

c. To exit a position that you are holding, you will never be asked for margins... This is an issue with few of the brokers, but you would never face it with us...

e. Our strict risk management has saved a lot of our clients a lot of money... People never realize this, they never look at all the losses a good broker will not let you go through...If you are not disciplined and if the broker is, he acts like your stop loss ...

f. mtm profits are not realized profits.... They realize only tomorrow morning... so if you have 10k and hold it overnight, even if you have made a profit of 15k, according to the new SEBI rule you are short of the stipulated margin and you would have to pay a penalty on the amount you are short by... But as I told you before, we are disciplined brokers and won't let you go through any loss....

 

[shabsaif]

Very useful words- BE CONTENT WITH WHAT IS POSSIBLE....

http://carlfutia.blogspot.com/2011/11/be-content-with-what-is-possible.html

 

[Trader5]

Dear Friends,

Let me ask Zerodha whether they stick with their brokerage charges of 0.01% or Rs 20 whichever is lower for intra-day trade or changed?

If they are charging more than that then I have nothing to say and indeed there is no point to be with Zerodha that I am sure everyone knows.

Of course I am not aware about this sudden hike of brokerage charges that's why got shocked.

I am not sure whether its trade contract mistake or brokerage charge slab increased but in one of the contract it was charged more than Rs 20.

However it should fall under 0.01% not even Rs 20.

Would Zerodha like to give explanation on this?

If Zerodha or any fellow trade wants to see the trade contract note then I can post that here for everyone's viewing.

But before doing this let me request Zerodha to come forward and explain first. Thanks.