Let me start by saying that as a beginner and customer of Zerodha, I love what Team Zerodha are doing.
OK, to the point… I received this email ad from ICICIDirect today claiming to offer free brokerage for clients when they don’t make profits. Customers pay brokerage only when they make profits. Is this offer too good to be true or can Zerodha do better than this? Just being curious.
Oh my, they have like a zillion brokerage plans!
Eitherway, let’s look at their brokerage charges for Futures:
They charge a % brokerage for every trade, and lesser the turnover per month, higher the brokerage! This is the tariff across all their plans.
If the monthly turnover is less than 5cr, then the brokerage is 0.05% per entry trade for intraday and a flat Rs.50 for the exit trade. So if you trade one lot in futures for intraday with a transaction value of Rs.10 lacs and make a loss, then the brokerage for this trade is Rs.550.
Suppose you make 10 intraday trades(buy+sell), and 9 of them were profitable for which you don’t pay a brokerage, the 10th loss trade will still cost you a brokerage of Rs.550. And if you are trading positional and make a loss trade, then this would mean a brokerage of Rs.1000 per trade.
At Zerodha, it’s Rs.20 a trade! So for 10 buy trades and 10 sell trades, you are charged a total brokerage of Rs.400 only. And if you take part in the 60-day challenge and win, then you get back your brokerage of up to Rs.6k.
Also, if you run after profits, then losses will run after you. Either way, ICICI stands to benefit.
Thanks for the detail breakdown of their gimmick. By the way, if I buy and sell one stock, Zerodha will charge Rs 20+Rs 20 =40? Is this 40 additional to what we see in the brokerage calculator?
I’m full of questions 
Not additional, this is the same 40 in the brokerage calculator.
Thanks you sir for clearing my queries. It is helping me a lot.
Recommendations they give is excellent…its more valuable than brokerage. I am making consistent profit with their positional reccomondation.
