@nithin Will zerodha reduce it’s brokerage of intraday of ₹20 per order or in simple ₹40 per set of orders , as kotak securities introduced a new plan where just pay ₹999 for a year and take as much as trade you can without limit , though they will charge a nominal fees of 1 paisa per order.
Broking industry is facing throat cutting competition. Zerodha was a pioneer in discount broking . And now it has stablished itself . After Zerodha now there are at least more than a dozen discount brokers but none of them is having even 10% of business compared to Zerodha.
Keeping all things in consideration it is certainly evident now Zerodha is not going to budge .
Brokers like kotak securities need such plans otherwise they will be out of game soon.
I think people would care about their broker rates once the Secondary Broker stops charging their exorbitant brokerage
When the secondary broker is charging more than 10 times of Zerodha or Kotak, i dont see why people would care much between them.
Ofcourse new person will take decision based on it, but someone already on Zerodha wont care to waste time to go to any other for saving few rupees per trade.
By secondary broker i mean Indian government ofcourse.
Recently i opened an acc in finvasia free of cost and they charging no brokerage! zerodha must reduced brokerage soon or later otherwise customer shift other places. 40 rs per squared off order matter lots for Trader. Below attached my today cn.
But how they will survive without any brokerage. I think they may fly by taking our money
No brokerage farm can fly taking our money. Ask nitin. They don’t charges any brokerage and their basic trading platform is free but they charges when you use advanced trading platform. That’s their revenue sources.
Seriously i don’t see the point of any less Brokerage than what Zerodha charges as because the actual and the huge charges are demanded by that STT, Exchange taxes, SEBI, GST and what not.
All of these are the Real charges which a trader needs to pay out of his trades. And the problem is that these charges can get large very easily as there is no maximum limit on it. Like Zerodha will charge no more than 40 no matter how large a trade is done.
So unless a trader is scalping and 40 rs more or less means life and death situation for him i don’t see any point of any reduction in brokerage charges. Them government should reduce the charges very seriously.
look at this cn
Total charges 606
Brokerage 440 and gst on it 88 i.e total 528.
If brokerage become zero then this 528 comes to me . Only charges left 78 that’s not big, i think so.
Thats why i opened an acc in finvasia.
How is Brokerage greater than STT? Are you doing lot of option trades?
Edit - Noticed the FNO on top. Yes in options, the 20 (minimum) can be a nuisance, agree with you
I remember whenever i used to accumulate PE options i used to realise i am spending 20 on brokerage on each small accumulation
I trade multiple times per day. I mostly trade in BANKNIFTY option. Set a target of 2 to 5 point depending on trade . Most of the time target hit within 1 or 2 minutes. But when target not hit i exit in market order. It cost me lots sometimes 10 to 15 points. So 40 rs mean lots to me.
Pretty much the same with me. INR per squared off order is a bit too much.
I hope you are not putting stop loss.
No i put very small target ( for 100 rs option 2 point 200 rs option 3 to 4 point for 250+ option 5 points) but not sl when price move against me i exit in market order.
I think the charges by Zerodha are fair and they don’t need to revise it.
Initially my trading style was like you @gopchem .But later realised that it didnt have favourable risk-reward ratio .I used to make money in few trades , and lose all my gains in one trade . Like 2-2 pts in 5successful trades and one 10pt unsuccessful trade .