Low brokerage leads to people overtrading

[Ashwin_kumar1]

@viswaram

Poor need not be literal. It here means the cost of doing business.

If person1 is making a profit of 1 lakh by spending 35k & person2 is making a profit of 0.8 lakh by spending 10k - who is poorer ?

What?
What does rich/poor have to do with cost of business?

[Jason_Castelino]

@Ashwin_kumar1

Of all the stupid shit that sebi and nse introduce, this is of least concern.

You feel it that way because your trade quantity is probably below 1800 quantity. You do not know the difference in brokerage that we have to bear.

[Ashwin_kumar1]

@Jason_Castelino

You feel it that way because your trade quantity is probably below 1800 quantity. You do not know the difference in brokerage that we have to bear.

It’s higher. Refer to my first post on this thread, I just think the other charges are way more bloated than brokerage.

[viswaram]

@Ashwin_kumar1

What does rich/poor have to do with cost of business?

Only full time traders will truly understand this!

Having a high brokerage will automatically increase other costs as well, eg: the GST is on the brokerage. STT & stamp duty are higher but not as high as brokerage.

If you are trading in FnO - just calculate the % brokerage you paid last year vs the revenue you made.

[Ashwin_kumar1]

14% of net profit to charges of which, only 3.25% is brokerage. I do trade full time😅

Infact, the real damage only comes after all this… while paying itr😅

[Jason_Castelino]

@Ashwin_kumar1

just think the other charges are way more bloated than brokerage.

For the month of Jan in one of my accounts. Total charges are 7390. Out of this brokerage is 5040

This is the screenshot of the same.

If I consider all my accounts I have paid total charges of around 30k. Out of this around 22k is just brokerage. Now if there was no quantity freeze easily I would have saved 15k. This is just in one month.

Your other charges are more because you probably trading in ATM or ITM. AGAIN, just guessing from what you have said above.

[Ashwin_kumar1]

I trade itm,otm&atm. Yes, i can see how brokerage can become high. There are ways to use your capital more efficiently to reduce brokerage. Although, nothing can be done about the other charges.

[viswaram]

@Ashwin_kumar1

14% of net profit

now thats really great. Your trading is highly efficient.

With zerodha, our average % charges are 25 to 30% on the revenue made.

[Jason_Castelino]

@Ashwin_kumar1

There are ways to use your capital more efficiently to reduce brokerage.

No boss. There aren’t. For what I do, there aren’t.
Not necessarily everybody does the same thing as you.
Other charges remaining constant I would at least want my brokerage and gst to come down.

This is like you tell me you have a problem and I tell you our soldiers are dying on the border and you are talking about your problems.
(Read after transacting in Hindi.)

[Ashwin_kumar1]

@Jason_Castelino

No boss. There aren’t. For what I do, there aren’t.
Not necessarily everybody does the same thing as you.
Other charges remaining constant I would at least want my brokerage and gst to come down.

This is like you tell me you have a problem and I tell you our soldiers are dying on the border and you are talking about your problems.
(Read after transacting in Hindi.)

I don’t know about dying soldiers but I’m quiet sure that small tweaks to your system will drastically reduce brokerage and probably even reduce exposure.

[Jason_Castelino]

We can both hold on to our opinion. Cheers.

[Jason_Castelino]

@viswaram

our average % charges are 25 to 30% on the revenue made.

Just did my math. My charges are 3.4 percent of net profit. Out of the total charges 80 percent is just brokerage and gst

[Shiva_Das]

Sure, by the same logic, hiking fuel prices, road taxes, registration charges, etc. will lead to less road accidents I guess.

[VijayNair]

@Shiva_Das

Sure, by the same logic, hiking fuel prices, road taxes, registration charges, etc. will lead to less road accidents I guess.

More downtime leads to lesser losses too