Are option/futures traders highest tax payers to the governments?

Hi @nithin,

I am Scalp trader, while checking the contract note there are over 7 charges being paid on the profits/Loss

On a 10,000 profit made as a scalper after deduction of all charges coming to RS1,500

Do you have any plans of no brokerage for Scalp traders?

  1. Sebi Turnover charge

  2. Exchange charge

  3. CM charges (Zero for Zerodha), But some brokerage houses are charging

  4. Brokerage charges

  5. STT/CTT

  6. GST

  7. Stamp Duty

I think no where in the world had this many charges on single sevice, As a leading Brokerage firm any recommendations to Finace Ministry to reduce the over all charges?


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No. Every trade carries a risk, so not charging to cover for the risk doesn’t make any business sense.

We had recently shared this

Dependency on day trading and F&O community for revenue

We continue to charge no brokerage fees from investors, which means that we depend on intraday equity and F&O traders for revenue. This comes with a few risks.
Powering leveraged trades as a broker comes with a risk; it is almost like running an insurance business. You charge a small fee and allow a customer to trade with leverage, but every once in a while, there will be a black swan event when a group of customers can lose more than their capital, which can become a liability if the customer doesn’t bring in funds. For example, in April 2020, when crude oil prices settled at -$37, a negative value, which no risk management system worldwide had planned. We lost ~₹30 crores that day, and many international brokers lost tens of millions of dollars. Quite a bit of brokerage we had generated from Crude oil since the start of our business was lost that day. There have been many such events on individual scrips, the most recent being GBPINR moving ~4% in a day when margin requirement was ~2%. There is no way around this risk, and we could wake up any day with a large event that moves the entire market or individual scrips by more than 20% lower or higher, leading to liability on the broker if the client defaults. We have been allocating 10% of our profits to a war chest from the start of our business as a contingency to cover for whenever there is a black swan.

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If you are worried about cost there are two components of the cost that is in your control - brokerage and gst on brokerage. You can open an account and trade with a broker offering zero brokerage and save on both.

To save everything. Better to stop trading. :joy:

100% save on both taxes charges and CAPTIAL