Zerodha....
- Thread starter bharath.mang
- Start date
- Tags bakwaas now cheapest brokerage nest nest plus new broker zerodha zerodha trader
- Status
Hello Zerodha RM,
I has seen posts and one sample Contract Note also where you mention that you charge transaction charge as 0.08% on options trading only. Actually the NSE exchange charge is 0.05%, so you are charge 0.03% higher then what is allow. I has seen all brokers charge 0.05% only and not more, only you has charge higher in transaction charge.
I has done a calculation which all member can also do and this high 0.03% transaction charge is approximetly about Rs. 20 for oneside order. So for buy and sell it is Rs. 40.
You said that it is some settlement charges, which other broker are including this in there borkerage and not in transacton charge. SO you should also do it by charge it your brokergae only, why you charge wrong trasaction charge. Insead of advertise Rs. 20 for one order you say Rs. 40 for one order and make the transaction charge 0.05% which is legal charge and not 0.08% which is not right one charge.
This will make you very transparant and totally right broker in the India. Otherwise your competition will start telling that you has hidden and wrong charges in differnt headings. This is what all broker tell about each other and confuse the customer. So you should make this thing right quickly so not broker can say about zerodha is hidden charging.
Thank you.
I has seen posts and one sample Contract Note also where you mention that you charge transaction charge as 0.08% on options trading only. Actually the NSE exchange charge is 0.05%, so you are charge 0.03% higher then what is allow. I has seen all brokers charge 0.05% only and not more, only you has charge higher in transaction charge.
I has done a calculation which all member can also do and this high 0.03% transaction charge is approximetly about Rs. 20 for oneside order. So for buy and sell it is Rs. 40.
You said that it is some settlement charges, which other broker are including this in there borkerage and not in transacton charge. SO you should also do it by charge it your brokergae only, why you charge wrong trasaction charge. Insead of advertise Rs. 20 for one order you say Rs. 40 for one order and make the transaction charge 0.05% which is legal charge and not 0.08% which is not right one charge.
This will make you very transparant and totally right broker in the India. Otherwise your competition will start telling that you has hidden and wrong charges in differnt headings. This is what all broker tell about each other and confuse the customer. So you should make this thing right quickly so not broker can say about zerodha is hidden charging.
Thank you.
Transaction charges include NSE turnover charge and something called clearing charge.. The only big broker who is charging 0.05% is Icici direct and you know why... everyone else from indiabulls to sharekhan, from way2wealth to bma wealth creators charge anywhere between 0.06% to 0.1% as transaction charge, if not under one head than under separate heads.. There is something called a clearing charge associated when you are clearing f&o trades and we are not hiding it.. The clearing charge goes to clear the trades and it keeps reducing for the broker as the volume keeps increasing.. The reason we haven't included it in the brokerage is because as and when our volumes keep going up we will keep reducing it towards 0.06%(the min we will be able to get to )...
I will now tell you the real difference: Assuming you are trading an option of nfity which is at Rs 100. Buying 1 lot the volume is Rs 5000(transaction charge is on the premium and not the turnover), 0.03% of Rs 5000 is Rs 1.5 ... That is how much difference it will make per lot that you trade....
In brief, there is a clearing cost for every broker and it is perfectly legal to charge it as a transaction charge..90% of brokers do it today, if not under transaction charge then as some other charge..There is nothing to hide because we tell this when we open an account and actually give it on a spread sheet..
What is the real difference?? 1.5Rs for 1 lot of nifty option trading at Rs 100.. Hope this clarifies..
Cheers.. Sachin..
I will now tell you the real difference: Assuming you are trading an option of nfity which is at Rs 100. Buying 1 lot the volume is Rs 5000(transaction charge is on the premium and not the turnover), 0.03% of Rs 5000 is Rs 1.5 ... That is how much difference it will make per lot that you trade....
In brief, there is a clearing cost for every broker and it is perfectly legal to charge it as a transaction charge..90% of brokers do it today, if not under transaction charge then as some other charge..There is nothing to hide because we tell this when we open an account and actually give it on a spread sheet..
What is the real difference?? 1.5Rs for 1 lot of nifty option trading at Rs 100.. Hope this clarifies..
Cheers.. Sachin..
Can you provide details of functionality of your backoffice functionality.
a) List of back office features/functionality
b) Taxation Perspective: From taxation perspective, we as traders need to provide data to accountant. What specific format data is avaliable for trades done ? Scrip wise summary, day wise summary, or any other format ? Is it downloadable in
excel format ?
a) List of back office features/functionality
b) Taxation Perspective: From taxation perspective, we as traders need to provide data to accountant. What specific format data is avaliable for trades done ? Scrip wise summary, day wise summary, or any other format ? Is it downloadable in
excel format ?
Hello Mr. Sachin,
Till your before posting I was like your anwers and quarries solutions but now you has given a totally wrong picture because the calculation give by you is not the reality because you has given ONE lot nifty buy exampal. In real thing I think averege trader with you will buy:
10 lots Nifty (500) @ 100 = Rs. 50,000 so Rs. 50,000 x 0.03% (extra clearing charge) = Rs. 15 per order extra
15 lots Nifty (750) @ 100 = Rs. 75,000 so Rs. 75,000 x 0.03% (extra clearing charge) = Rs. 22.50 per order extra
20 lots Nifty (1000) @ 100 = Rs. 1,00,000 so Rs. 1,00,000 x 0.03% (extra clearing charge) = Rs. 30 per order extra
Average Extra charge for clearing of above three tradings is Rs. 22.50.
So in my above postings I has given approximet extra charge of Rs. 20 per order. So when one order is exeucted the charge with your brokerage is more then Rs. 40/order and not Rs. 20 / order (your basic brokerage)
For your information, Reliance Money, Angel Broking, Bajaj Capital, Ventura are charge on 0.05% only so I think all other also cannot charge more than what is legal allow charge by the NSE exchange.
What is also surprise me is at one time you are say that you are not benchmark any broker in the India and now you are saying that all other broker is charging it. So this is not correct thing. Now if you are compare your shelf with other brokers only then you should also charge clearing charges of 0.03% under other heads so you also should put separate headings, one for Transaction Charge 0.05% (which is also mention on NSE letters) and second as Other charges 0.03%. If you think that your want to less this charge because of more business then you can less other charge to 0.02% or 0.01%.
But I think it you are really tranparent in dealings than you should only show govt tax (STT, Service Tax, Stamp Tax) and NSE exchane charge (Transaction Charge 0.05%) only in the Contract Note. All other charge you pay to any other person (and Not Govt and NSE Exchange) has to in your brokerage what before mentioned brokers are doing.
Thank you.
Till your before posting I was like your anwers and quarries solutions but now you has given a totally wrong picture because the calculation give by you is not the reality because you has given ONE lot nifty buy exampal. In real thing I think averege trader with you will buy:
10 lots Nifty (500) @ 100 = Rs. 50,000 so Rs. 50,000 x 0.03% (extra clearing charge) = Rs. 15 per order extra
15 lots Nifty (750) @ 100 = Rs. 75,000 so Rs. 75,000 x 0.03% (extra clearing charge) = Rs. 22.50 per order extra
20 lots Nifty (1000) @ 100 = Rs. 1,00,000 so Rs. 1,00,000 x 0.03% (extra clearing charge) = Rs. 30 per order extra
Average Extra charge for clearing of above three tradings is Rs. 22.50.
So in my above postings I has given approximet extra charge of Rs. 20 per order. So when one order is exeucted the charge with your brokerage is more then Rs. 40/order and not Rs. 20 / order (your basic brokerage)
For your information, Reliance Money, Angel Broking, Bajaj Capital, Ventura are charge on 0.05% only so I think all other also cannot charge more than what is legal allow charge by the NSE exchange.
What is also surprise me is at one time you are say that you are not benchmark any broker in the India and now you are saying that all other broker is charging it. So this is not correct thing. Now if you are compare your shelf with other brokers only then you should also charge clearing charges of 0.03% under other heads so you also should put separate headings, one for Transaction Charge 0.05% (which is also mention on NSE letters) and second as Other charges 0.03%. If you think that your want to less this charge because of more business then you can less other charge to 0.02% or 0.01%.
But I think it you are really tranparent in dealings than you should only show govt tax (STT, Service Tax, Stamp Tax) and NSE exchane charge (Transaction Charge 0.05%) only in the Contract Note. All other charge you pay to any other person (and Not Govt and NSE Exchange) has to in your brokerage what before mentioned brokers are doing.
Thank you.
Last edited:
Ranger,
You have got this whole thing by the wrong end....
Zerodha is correct in their explanation of your initial query... but then to justify your initial point all you have done is increased the lot sizes... but you have forgotten what would be the Brokerage with all the Brokers named by You & have jumped from single lot calculation to multiple lot calculation as a single order.....whereas the impact is still 1.50 per lot and single order flat brokerage is not offered by any of the brokers named by you....
You need to understand lot of charges of the exchanges are incentive based for instance in BSE Transaction charges for a new broker (Member) for certain amount of years are higher than older members who have completed the stipulated number of years... and are enjoying lower Transaction Charge.
SavantGarde
You have got this whole thing by the wrong end....
Zerodha is correct in their explanation of your initial query... but then to justify your initial point all you have done is increased the lot sizes... but you have forgotten what would be the Brokerage with all the Brokers named by You & have jumped from single lot calculation to multiple lot calculation as a single order.....whereas the impact is still 1.50 per lot and single order flat brokerage is not offered by any of the brokers named by you....
You need to understand lot of charges of the exchanges are incentive based for instance in BSE Transaction charges for a new broker (Member) for certain amount of years are higher than older members who have completed the stipulated number of years... and are enjoying lower Transaction Charge.
SavantGarde
Savant Sir,
I has not saying that they are not cheap. They are cheapet today in the market today.
But what I meaning here is that they has them shelf said that TC is 0.05% and Clearing charge is 0.03% paid to Clearing members. So they can show it like that an include the Clearing charge in there brokerage of Rs. 20 / trade like all other broker including this charge in brokerage.
Otherwise fellows will compare their Rs. 20 / trade to say thier current RKG 9 /lot or bezel 10 / lot. So the comparison is wrong. Actually they charge more than Rs. 40 per order (as I gave in my before example)
What I was saying is that they should put transaction charge as 0.05% which is allow as per law and make there offer as Rs. 40 per order. I think you able to understand my meaning.
Thank you.
I has not saying that they are not cheap. They are cheapet today in the market today.
But what I meaning here is that they has them shelf said that TC is 0.05% and Clearing charge is 0.03% paid to Clearing members. So they can show it like that an include the Clearing charge in there brokerage of Rs. 20 / trade like all other broker including this charge in brokerage.
Otherwise fellows will compare their Rs. 20 / trade to say thier current RKG 9 /lot or bezel 10 / lot. So the comparison is wrong. Actually they charge more than Rs. 40 per order (as I gave in my before example)
What I was saying is that they should put transaction charge as 0.05% which is allow as per law and make there offer as Rs. 40 per order. I think you able to understand my meaning.
Thank you.
Ranger,
In my opinion Zerodha is correct because they are being charged extra by the exchange...by virtue of being a new member.....and they are transparent about it.....
Even though I feel your comparison is unfair taking 10, 15 & 20 lots of Options @ 100
Find the illustration below only of the brokerage charged by others while I take into account your unfair calculation of 40 per order with Zerodha... and see if it makes sense
RKG 10x9 = 90 + TC
Bezel 10x10 = 100 + TC
Zerodha 10 Lots (Single Order) = 40 (Your Calculation including TC)
RKG 15x9 = 135 + TC
Bezel 15x10 = 150 +TC
Zerodha 15 Lots (Single Order) = 40 (Your calculation Including TC)
RKG 20x9 = 180 + TC
Bezel 20x10 = 200 + TC
Zerodha 20 Lots (Single Order) = 40 (Your calculation Including TC)
Can you see how ridiculous the argument is....
SavantGarde
In my opinion Zerodha is correct because they are being charged extra by the exchange...by virtue of being a new member.....and they are transparent about it.....
Even though I feel your comparison is unfair taking 10, 15 & 20 lots of Options @ 100
Find the illustration below only of the brokerage charged by others while I take into account your unfair calculation of 40 per order with Zerodha... and see if it makes sense
RKG 10x9 = 90 + TC
Bezel 10x10 = 100 + TC
Zerodha 10 Lots (Single Order) = 40 (Your Calculation including TC)
RKG 15x9 = 135 + TC
Bezel 15x10 = 150 +TC
Zerodha 15 Lots (Single Order) = 40 (Your calculation Including TC)
RKG 20x9 = 180 + TC
Bezel 20x10 = 200 + TC
Zerodha 20 Lots (Single Order) = 40 (Your calculation Including TC)
Can you see how ridiculous the argument is....
SavantGarde
- Status
