How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs. 800?

B

bashu123

New Member
#1
#1
Kotak charges Rs. 500 on profit of Rs.800. How to make day trading work?

Hi,

I need your help in understanding if I am being charged correctly and how to make day trading work.

I recently purchased 100 shares of 'Bank of Baroda' at 730.5 and sold them 738.67. I thought I made a cool Rs. 800 minus a few rupees as Broker's fees.
It turned out that the broker's fees took a bite of over Rs. 500. and I received only Rs. 300 for taking all the risk!!

Step 1: Bought 100 shares of 'Bank of Baroda' at Rs. 730.5:
============================================================
Gross Rate: 730.5000
Brokerage rate per security: 1.4610
Net rate per security: 731.9610
Gross Value: 73050.00
Brokerage value: 146.10
Net settlement value: 73196.10

Other charges:
--------------
SERVICE TAX ON BROKERAGE 15.05
SERVICE TAX ON OTHER CHGS 0.75
STAMP & OTHER CHARGES 14.64
STT 91.00
----------
Final cost: 73317.54



Step 1: Sold 100 shares of 'Bank of Baroda' at Rs. 730.5:
===========================================================


(


Gross Rate: 738.6750
Brokerage rate per security: 1.4773
Net rate per security: 737.1977
Gross Value: 73867.50
Brokerage value: 147.73
Net settlement value: 73719.77

Other charges:
--------------
SERVICE TAX ON BROKERAGE 15.22
SERVICE TAX ON OTHER CHGS 0.76
STAMP & OTHER CHARGES 14.74
STT 92.00
----------
Final cost: 73597.05



Net profit: Rs. 279 Instead of theoretical Rs.800.



So I take risk of over Rs.70,000, make theroretical profit of Rs. 800 and The broker keeps Rs. 300, I lose another Rs.200 in taxes and other charges. And get to keep only Rs. 300.

How can I make this work?
 
M

munnabhai208

Active Member
#2
#2
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

HI, Go for RKGLOBAL'S monthly 999 fixed brokerage scheme..
 
S

spiritunit

Well-Known Member
#3
#3
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

Please do not open multiple threads on same topic!!
 
D

d_s_ramesh

Well-Known Member
#4
#4
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

Commissions make a good part of the trading expense along with slippages, and stop losses. Day trading stocks, you need to be careful that you make sufficient gains to offset all these, going for cheap brokerages means sacrificing on quality. There are various problems related to trading platforms, bigger companies like kotak, indiainfoline and icicibank address them well and keep it user friendly, you will not know of these efficiencies until you meet with an issue requiring such needs.

Cash market trades are better traded for daily instead of intra day, where we are much inclined to see small profits as gains only to know later after receiving the brokerage statement that we have seriously worked for the broker and not for us.

Do good analysis select those stocks that would have a long trend even if it is on the intra day charts, so that you make a profit at least equivalent to your commissions from which both you and your broker can share the gains. But this is not advisable on all your positions. You need to take care of loosing trades & slippages too. So better select a trending stock to give good returns.

Stock selections should be made in such a way that including all the expenses your returns should be 3 times your risk. This is minimum, if the stock does not show this much potential, better look for other stocks. Market is abundant with opportunities, a trained eye can spot the jewels early.
 
nac

nac

Well-Known Member
#5
#5
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

bashu123 said:
Kotak charges Rs. 500 on profit of Rs.800. How to make day trading work?

Hi,

I need your help in understanding if I am being charged correctly and how to make day trading work.

I recently purchased 100 shares of 'Bank of Baroda' at 730.5 and sold them 738.67. I thought I made a cool Rs. 800 minus a few rupees as Broker's fees.
It turned out that the broker's fees took a bite of over Rs. 500. and I received only Rs. 300 for taking all the risk!!

Step 1: Bought 100 shares of 'Bank of Baroda' at Rs. 730.5:
============================================================
Gross Rate: 730.5000
Brokerage rate per security: 1.4610
Net rate per security: 731.9610
Gross Value: 73050.00
Brokerage value: 146.10
Net settlement value: 73196.10

Other charges:
--------------
SERVICE TAX ON BROKERAGE 15.05
SERVICE TAX ON OTHER CHGS 0.75
STAMP & OTHER CHARGES 14.64
STT 91.00
----------
Final cost: 73317.54



Step 1: Sold 100 shares of 'Bank of Baroda' at Rs. 730.5:
===========================================================


(


Gross Rate: 738.6750
Brokerage rate per security: 1.4773
Net rate per security: 737.1977
Gross Value: 73867.50
Brokerage value: 147.73
Net settlement value: 73719.77

Other charges:
--------------
SERVICE TAX ON BROKERAGE 15.22
SERVICE TAX ON OTHER CHGS 0.76
STAMP & OTHER CHARGES 14.74
STT 92.00
----------
Final cost: 73597.05



Net profit: Rs. 279 Instead of theoretical Rs.800.



So I take risk of over Rs.70,000, make theroretical profit of Rs. 800 and The broker keeps Rs. 300, I lose another Rs.200 in taxes and other charges. And get to keep only Rs. 300.

How can I make this work?
Click to expand...
First line seems like you are doing day trading. But charges are for delivery. Are you sure you did intra-day? If you did intra-day and they charged for delivery, make a complaint and get back the amount.
 
Last edited:
MarketRider

MarketRider

Active Member
#6
#6
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

nac said:
First line seems like you are doing day trading. But charges are for delivery. Are you sure you did intra-day? If you did intra-day and they charged for delivery, make a complaint and get back the amount.

Even for delivery kotak charges heavily. I think they can call ICICI to compete with this hefty brokerage. 0.2% for delivery is tooooooo much.
Click to expand...
standard delivery brokerage is 0.5%......so 0.2% is way below it..;)
 
D

dharmu444

New Member
#8
#8
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

whic is the best trading demat account in terms of service and maintenance charges-ICICI direct, hdfc, geojit bnp paribas?
 
amitrandive

amitrandive

Well-Known Member
#9
#9
Re: How to make Day tradin work when broker (Kotak) charges Rs. 500 on profit of Rs.

Hi

A better way would be to deal in futures , where the intrady brokerage margins are less compared to cash market and margin exposure is less.
But it is also associated with high risks.

Amit
 
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