I noticed that two of the large brokerages in India has started to charge for delivery. If Zerodha also starts charging I believe it is end of an era in Indian brokerage industry because others are going to follow these larger players. I also noticed a tweet from @nithin about same not sure what exactly he meant. But I am assuming all the players are considering some changes in brokerage structure. Actually I do not mind paying some charge. But I noticed that one of the two players are charging 20 or .05% which ever is lower and other one is charging 20 0r 2.5% whichever is lower. I just hope if Zerodha ever starts charging for delivery it will not be inline with second brokerage, which will make small SIP investments like 1K 2K etc extremely costly. I just hope it will be a reasonable percentage based value.
Equity delivery trades constitute around 1% of total volume on the exchange. F&O and intraday equity trades form the rest. Charging these would be fine for the brokerage house to survive.
Besides we have zero brokerage houses like Finvasia already around. Check it out.
Hey, no plans as of now to charge any equity delivery brokerage. This was just a marketing exercise of sorts
There is one serious proposition though:
For off-market transactions it is 0.03% and probably debated somewhere here but just ponder over FLAT FEE for off-market charges specifically WITHIN Zerodha.
ie. Z cdsl to another Z cdsl a/c
Never really bothered over brokerage charges but this one is quite expensive especially when it is frequent and all accounts with Z
It is a flat fee for off-market transfer, the 0.03% is to cover very low value transfers as charging Rs 25 will be too much.
@nithin sir, you have only quoted ( whichever is higher )
Recently did some move off-market adjustments and the bill was 0.03% on ledger.
Every few months we do lateral movement for tax, pledge requirements, borrow from family to fund or return borrowing etc and it does pinch.
There is no real monetary gain moving units around but a couple of trips back and forth and you can see cost pile up.
Per 10L transfer its coming upto 300+tax. All this done via CDSL Easiest, no physical DIS etc Just a couple of click for “DP AUTH”
ah damn. Let me speak and check on this with our team. Off-market is a painful and risky process, but should we have some cap, will check on it.
Oh That is great to hear. If Zerodha charges I think everyone will follow. I do not have issue with .03-.05% kind of charges. Just that I do not understand minimum 20 or 30 adopted by some companies . May be there was some logic to same in predigital era where it was logical to charge based on minimum human effort required to execute transaction. Now with computerized transactions it should be limited to financial risk based on transaction value or so. Effectively minimum 20/-Plus makes direct SIP in stocks not feasible.If someone invests 1000/per month in 5 stocks to built long term position he has to pay 2% plus on buy side brokerage alone.
It’s not over yet. I believe each broker has a different business model but one thing that’s common is that they all want to expand their customer base. If we look around, brokers like finvasia are still charging zero brokerage. In spite of being in the market for so long they haven’t deviated from that. All I want to say is that, not all brokers simply follow the lead of others.
@nithin sir any news on off-mkt charges ? Thanks
Hey Chirag, this comes with higher operational risk and hence the charges are higher. No plans to change this, spoke to the team.