I keep seeing Ads for Rs 20 brokerage for 1 lot of F &O
But in practice is seems to be much more
Even when I calculate in Zerodha Brokerage it seems much higher
I tried to replicate 1 lot of F & O and an equivalent 250 shares in cash market
I considered selling and buying at the same cost - Say Reliance at Rs 2500.
So I bought and sold at Rs 2500 producing no Profit or Loss. The only cost is the brokerage
This is my finding about total brokerage (including taxes, etc) :
RELIANCE (Buying and selling 250 shares in cash market - INTRADAY) - Rs 274.09
RELIANCE (Buying and selling 250 shares in cash market - DELIVERY) - Rs 1395.89
RELIANCE (Buying and selling 1 lot of Futures - Rs 154.45
RELIANCE (Buying and selling 1 lot of Option - Buying & Selling at Rs 60) - Rs 74.44
RELIANCE (Buying and selling 1 lot of Option - Buying & Selling at Rs 2500) - Rs 1161.95
(IMAGES BELOW)
…
All are much above Rs 20 (brokerage per lot) as advertised by Zerodha and every other company ?
So can anyone tell me what TOTAL brokerage (Inclusive of taxes, Stamp duty and all other charges I have to pay in the following conditions
NORMAL ORDERS
Buying and selling one lot of Futures
Buying and selling 5 lots of Futures in one single order
Selling (shorting) and Buying back of 1 lot of Option
Selling (shorting) 1 lot of Option and letting it expire worthless
Selling (shorting) and Buying back 5 lots of Option (in 1 order)
Selling (shorting) 5 lots of Option (in 1 order) and letting them expire worthless
Buying (going long) 1 lot of Option and selling it later
Buying (going long) 1 lot of Option and it expires worthless
Buying (going long) 5 lots of Option (in one order) and selling it later (in 1 order)
Buying (going long) 5 lot of Option (in 1 order) and they expires worthless
INTRADAY (MIS) ORDERS & ORDERS ON EXPIRY DAYS
Buying and selling one lot of Futures
Buying and selling 5 lots of Futures in one single order
Selling (shorting) and Buying back of 1 lot of Option
Selling (shorting) 1 lot of Option and letting it expire worthless
Selling (shorting) and Buying back 5 lots of Option (in 1 order)
Selling (shorting) 5 lots of Option (in 1 order) and letting them expire worthless
Buying (going long) 1 lot of Option and selling it later
Buying (going long) 1 lot of Option and it expires worthless
Buying (going long) 5 lots of Option (in one order) and selling it later (in 1 order)
Buying (going long) 5 lot of Option (in 1 order) and they expires worthless
Then what are the charges in Zerodha Borkerage
have attached screenshots above ?
For buying and selling of 1 lot of future is Rs 20 + Rs 20 = Rs 40
But in the brokerage calculator it shows as Rs 153 - Its Rs 113 more
Rs 113 of taxes and other charges ?
And in the calculator is shows that if you increase the lots bought and sold , the brokerage increases.
it doesnt talk about that if it is 1 lot or 100 lots, if its 1 order, then the charge will be Rs 20
There are lot of other charges which zerodha cannot control/decide.
In that brokerage calculator they have clearly mentioned about other charges. (In the table form like STT, stamp duty etc)
so for the customer the total matters.
And the actual total comes to not just a lit bit more than the brokerage but 3X !
Rs 40 becomes Rs 153 !!
This the customer has to know otherwise he or she will have a misconception
(1)I just want to be clear that the cost of selling & buying 1 lot Futures is Rs 153 not Rs 40. Am I right with my understanding ?
(2) And the cost of selling & buying 1 lot Options is Rs 75 not Rs 40. Am I right with my understanding ?
(3) And the brokerage for Options expiring worthless is just Rs 20 (the first leg) . There is no brokerage in the 2nd leg
The actual brokerage is Rs. 20 per order. As buy and sell are two different orders, it will be Rs. 40. Apart from this there are statutory charges, levied as per Govt. rules. You can check out more information on this here:
In fact, this value will change, it’s not a fixed charge. It depends on the price (buy/sell) which is in percentage. Read through the list of charges section to know more.
For me (and maybe for most traders, the break up of the total charges to be paid doesnt matter - whether its brokerage to Zerodha or tax to govt, or stamp duty etc.
I know it Rs 20 for Futures and Options - but if we buy and sell (we cant do only one) , then the actual brokerage by Zerodha is Rs 40. Rs 20 isnt accurate , it should be advertised as Rs 40 brokerage per lot.
And then the total cost incurred is not Rs 20 X2 … the total cost comes to Rs 153 for Futures.
Its like advertising saying the flight ticket is just Rs 1000 , but taxes is Rs 100000 - so the total ticket cost becomes Rs 11,0000. For passenger the total cost matter, not the break up.
So can anyone tell me accurately how much is the TOTAL cost (brokerage + taxes and other charges) for the following
buying and selling 1 Lot of Futures
buying and selling 5 Lot of Futures (but in 1 order)
buying and selling 1 Lot of Options
Selling 1 lot of Options and letting it expire worthless
None of the above being Intraday. i.e. they are not MIS orders.
Atleast let me know approximately, if not exactly
Thank you
Request, just please do not say the brokerage is Rs 20. That is known
For me (and maybe for most traders), the break up of the total charges to be paid doesnt matter - whether its brokerage to Zerodha or tax to govt, or stamp duty etc.
So can anyone tell me accurately how much is the TOTAL cost (brokerage + taxes and other charges) for the following
buying and selling 1 Lot of Futures
buying and selling 5 Lot of Futures (but in 1 order)
buying and selling 1 Lot of Options
Selling 1 lot of Options and letting it expire worthless
None of the above being Intraday. i.e. they are not MIS orders.
Atleast let me know approximately, if not exactly
Request, just please do not say the brokerage is Rs 20. That is known
And please do not refer me to a page in Zerodha
I calculated all that - I just want a confirmation
And just want to get one single number
If not known , then let it be.
Thank you for your help
Unfortunately, No brokers can control the taxes so they don’t advertise it. As there can be nothing new/special done. What they can change is only brokerage which is 20rs per order.
You can easily calculate all the charges using brokerage calculator.
Brokerage and charges will be applicable when you sell the option. On the second leg there will be no brokerage and other charges as Option will expire worthless. On brokerage calculator, you can keep the buy side column blank to get the estimate.
I did it and it seemed a lot more than I expected
I have posted screenshots too
For 1 lot of futures, for instance Reliance (or any other stock) the charges come upto Rs 153.45 - which is a lot, as compared to the advertised cost of Rs 20 (brokerage).
First the brokerage should be mentioned as Rs 40 (Rs 20 X 2) - all transaction have two legs. Sp giving brokerage for one leg is not just meaningless, its misleading.
Second they should also let us know the other charges (Taxes. stamp duty, other charges etc) add up to Rs 110.45 !!
Its like advertising that plane tickets are available for Rs 1000, while the taxes maybe more than Rs 9000 which know one tells you. So the total cost becomes Rs 10,000. You only get to know only while buying the ticket.
