I’ve added screenshot of both P/L report and charges breakdown please check the images you’ll understand.
Can someone please explain me these charges, i took 2 intraday trades, the first one was a loss of 80 rupees (50 shares) and the second was a profit of 110 rupees (100 shares) so my profit would be 30 but the brokerage charges i got is 69.45.
i would like to know why securities transaction charge is 16 rupees. and why such huge charges so if it is like this then if i buy 500 shares then my charges will be huge.
AND CAN SOME EXPERIENCED TRADERS PLEASE SUGGEST ME SOME METHODS TO AVOID THESE HUGE CHARGES OR TO AT LEAST MAINTAIN THE CHARGES TO THE MINIMUM. (I dont usually take more than 2 trades, i learnt that the hard way but nowadays i take only 1 or 2 trades max)
Brokerage here for both trades is Rs. 39.27, while STT, Exchange Transaction Charges, GST, Stamp Duty are all charged by the Exchange and Gov.
Please understand step by step. Every trade you hit has some charge, with an example xyz company at 100 Buy and you sell at 101. On this transaction of 1 share, you made 1 rupee profit. From this, 0.9 paisa zerodha will deduct as a whole, From that 0.09, 0.03 Zerodha brokerage will deduct, 0.6 are charges levied on stamp duty, gst, stt, etc etc.
So if you increase to 500 Quantity, All other charges will increase too but ZERODHA BROKERAGE WILL BE LIMITED TO 40, Irrespective of 500 or 5000 or 50000 shares. So when you trade big, Yes you get a huge benefit of brokerage. When you trade small. It hits a bit. Thought it’s not a brokerage to be worried. Its a good or bad trade which everyone will be effected with
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Top of that, Obviously, every quantity you increase, that 0.09 charges approximately charged. Which you use zerodha brokerage calculator @Cosmic_Soul
so if i buy 500 shares, 0.9 paisa will be deducted from each and every share??
That’s correct! 0.09 Is just an approximate example. 0.09 is for 100 Rs Stock price. If your stock price is 200, Charges will be 0.18 for every stock, If its 300 0.27. To check exactly You need to use zerodha brokerage calculator. With an example. Go and check as
BUY 50 Sell 50
BUY 100 Sell 100
BUY 200 sell 200. This is price. Quantity use 1 always. With this example you will get an idea Different stock as different brokerage charges. According to Price. @Cosmic_Soul
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Brokerage is charged on turnover, suppose you buy 500 shares at 100, turnover will be 50000 so brokerage will be charged on 50000 * 0.03 / 100 = 15, now if your turnover exceeds 66,667 then lower of the two (0.03% or Rs. 20) which will be Rs. 20 is charged per order.
so the brokerage will not go above 20/- per executed order excluding govt charges right??
20 buy 20 Sell. Total of 40. Only brokerage. All other will keep increas as quantity increases.
@anon99108009 ok got it. i.e 20/- for the buy side and 20/- for the sell side so total of 40/- for that particular trade excluding govt charges which will increase as per the number of shares right??
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Well my friend, don’t get into the trading business. You cannot outsmart the algos built by top institutions with P.Hds they like to boast about.
So my friend, work smart. Make money. when you are trading even God can’t protect your principal. But only my advice can. Don’t outsmart the systems rather find ways to go over them.
Yes! Everything will keep increasing as quantity increases. But Brokerage will stop once it reaches max of 40. For every trade. Keep this in mind. Lets say, You took 1000 shares of Sun Pharma 500. Brokerage alone will be 40. You bought and sold this 10 Times a day, So total of 10*40=400 Brokerage alone. Other charges you should use calculator or use approax values.
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@Raymond_Reddington ya you are right and im well aware of the algos and other institutional traders so MY PLAN IS NOT TO OUTSMART THEM BUT GO ALONG WITH THEM i mean when the big players are moving the price up i go along with them and vice versa.
@Cosmic_Soul. I see you have axis shares as well, If your price moved to 436 Probably you would have ended with 80 P&L. So it’s not the brokerage you should be worried. A Green Trade or Red trade.
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@anon99108009 ya right, im a beginner so im still learning with every trade. i know it will take some time as there is a learning curve for everything. i hope my entries and exit get better with time.
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Yeah! Takes time. Keep moving.
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Is it really worth to trade with Discount brokers for inrtaday trades if I make 50 trades a day is it worth to pay 1000₹ as brokerage? Isn’t it worth to go with broker who allows plan with 0.05% irrespective of no of trades? Can you zerodha guys explain
do trades in large quantities or else charges will eat your money. for that you need bigger capital and bigger RRR. also buy multiple lots together to jump on charges otherwise …
