I tried to research on what are the rates of various brokers in our country and this is the summary of brokerage rates across the top brokers in our country,
Brokerage firm
Equity delivery
Equity intraday
Futures
Options
ZERODHA
Zero
Rs. 20 or 0.03% (whichever is lower)
Rs. 20 or 0.03% (whichever is lower)
Rs. 20 per order
UPSTOX
Rs. 20 or 2.50% (whichever is lower)
Rs. 20 or 0.05% (whichever is lower)
Rs. 20 or 0.05% (whichever is lower)
Rs. 20 per order
ANGEL BROKING
Zero
Rs. 20 or 0.25% (whichever is lower)
Rs. 20 or 0.25% (whichever is lower)
Rs. 20 or 0.25% (whichever is lower)
ICICI SECURITIES
0.55%
Neo plan - Rs 20 per order I-secure plan - 0.275%
Neo - zero I-secure - 0.05%
Neo - Rs 20 per order I-secure - Rs 95 per lot
GROWW
Rs. 20 or 0.05% (whichever is lower)
Rs. 20 or 0.05% (whichever is lower)
Rs. 20 per order
Rs. 20 per order
5PAISA
Rs. 20 per order
Rs. 20 per order
Rs. 20 per order
Rs. 20 per order
HDFC SECURITIES
0.50% or min Rs.25/- or ceiling of 2.5% on transaction value
0.05% or min Rs.25/- or ceiling of 2.5% on transaction value
0.05% or min Rs.25/- or ceiling of 2.5% of transaction value
Higher of 1% of the premium amount or Rs.100 per lot
KOTAK SECURITIES
Ranging from 0.25% to 0.39%
Ranging from 0 to 0.039%
Ranging from 0 to 0.039%
Ranging from 0 to Rs. 39 per lot
SHAREKHAN
0.50% or 10 paise per share or Rs 16 per scrip whichever is higher
0.10% (only on the buy side)
0.10% (only on the first leg and 0.10% more if squared off on any other day)
2.50% or Rs 250 per lot on the premium (whichever is higher)
MOTILAL OSWAL
0.50%
0.05%
0.05%
Rs 100 per lot
I hope that this information is helpful to tradingqna community. please add any points if I missed something
Just to add, on equity delivery, there is GST of 18% on top of brokerage.
So while Zerodha remains zero, brokerage in ICICI direct almost reaches 0.65% with GST.
Zerodha seems to be best in terms of simplicity, kite app, online interface, low fees, basket orders, reports, back office support etc etc. fyers comes second for online interface… although not a big fan of their mobile app.
Only issue with Zerodha is open interest restrictions on strike range for buying far otm options as a hedge and margin benefit… although selling first and buying far otm later solves the issue if you have sufficient margins in the first place.
Am actually hearing pretty good things about FYERS from my active trader friends. There is a slight getting used to their interface if we are moving from Zerodha though.
If you mean monthly brokerage plans, we are unlikely ever to offer this. I guess that even if there are brokers who are offering this, they will probably shift out of it, given some of the regulatory changes.
Every derivative trade brings along some risk for the broker, so a person making 1000 trades a month is much riskier to the broker than the person making ten trades. If the risk is higher, so should the revenue generated. Broking of risky products is almost like running an insurance business, the premium you earn should somehow be commensurate with the risk taken.
Risk = client losing more money than what is available. Every once in a while, there is a black swan event when a bunch of clients lose more money than what is in the account. The last big one was when Crude oil went negative; we lost Rs 30 crores that day. It didn’t hurt us because we had generated revenue to cover it. You never know which day you get up and markets are either limit up or down for some global event.
With the upfront margin penalty now on the broker, even with the current pricing, brokers could be losing more money than making from customers.
Also, check this
For the reasons mentioned above, I think brokerage rates across the industry, if anything, will only go up. Also, Rs 20/order when the average contract value is Rs 7lks if trading 1 lot (Rs20 is 0.003% of Rs 7lks), but usually Rs 21 lks (Rs 20 is 0.001%) as most people average trade 3 lots. If Rs 20/order is bothering you, my guess is that you are most likely overtrading, lowering brokerage isn’t going to help.
Thanks @nithin for an elaborate explanation. Yes 20Rs per order is very reasonable. And yes i am proud to be a customer of Zerodha! excellent service sir!
This is well balanced financially corrected answer.
For safety of client, survival of brokers is necessary, otherwise another karvy can happen if anyone finds any loop hole in system.
personally i don’t think any broker has written off this loss, almost all loss has been recovered by clients by all brokers, may be i’m wrong, pls correct me if you or any broker written off this that loss or declared as bad debt in balance sheet.
issue of brokerage is big for overtrading, but it isn’t a big if traders has good strategy & working with lower trades with higher performance.
We are planning to write it off this financial year. Within three years of the debt, you have to do something. Also, if a customer hasn’t transferred money within the first few months, the chances are very low that he/she will after that, have the experience of the last 12 years of doing this business. Of course, the chances of recovery is higher if we use hard ways, which we don’t.
Thanks for reply,
i read some court order/judgments of other brokers in crude oil case about recovery of amount, & read some traders discussions somewhere,so thought that zerodha also recovered the amount fully.
(I didn’t understand that why MCX hasn’t beared that loss from investor protection fund).
