Request to relook at the brokerage on option trades

@nithin Now that the number of option traders have been increasing every year and API trading is becoming more widespread. I request you to take a relook on the brokerage on option trades and have listed a few suggestions below. You had mentioned in a reply to a post on tradingqna recently that trades placed via API are about 1% of the total trades. However, those who use API’s are more likely to be more seasoned traders who trade more frequently and place higher number of orders relatively to non api traders. With number of orders often crossing 100 per day, zerodha does not seem as attractive compared to competitors in terms of the brokerage and is losing some potential high revenue clients to competitors.

Pls reduce the brokerage on options to one of the following:
20 per order or 0.25% of premium (whichever is lower).
10 per order on options and increase brokerage on equity delivery to 10 per order
5 per order on intraday options and 20 for carry forward option trades.

Since the gst is also charged on top of brokerage, the impact of reduction in brokerage could be a net positive due to increase in no of users who would come back from other competitors.
I also request you to reduce the API charges as it is currently the highest amongst competitors.

Traders (rather than investors) have always played a large part in the success story of zerodha and making the company more attractive to this category of customers will surely contribute to the continuing success of zerodha in the times to come.

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You think Nithin is taking notes?
I am not holding my breath in anticipation :upside_down_face:

I don’t think brokerages will go lower, especially given all the regulatory changes that have happened last two years and will happen in the future. We are currently in the middle of a lot of trading activity; a mean reversion is bound to happen soon. Broking industry move in cycles. We can’t try to time this by increasing and reducing brokerages based on expected market activity.

With talk around ASBA-like mechanism for trades, if anything, the brokerage will maybe only go up in the future.
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