Flat Brokerage

reg kotak and other "flat rate" brokers : please read the fine print.

brokerage is per trade (transaction). what happens if an order is executed in multiple trades ? For example, if a sell order for 1000 shares is executed in mutiple trades (each of which is considered a separate trade for purpose of transaction charges by stock exchanges) ?

will kotak charge Rs.9 per order or per trade ? i called them up on 7th Aug. for an answer, till date there is no reply.

I think this will be more suitable for nifty future traders. 2 lots of nifty future will minimum cost 150 rs ( as per geojit, Rs. 75 per trade). Instead you pay Rs.40 per trade ( I donot know whether they will charge Rs. 20 for 1 lot of nifty future, if so, I think its OK). So you can break even within 2 points
Otherwise, it doesn't make sense, not for cash segment.
Another query from Kotak account owners, does not bank transfer work for Kotak? Why pay cheque?

Sarit

Had met the Kotak executive and had a lengthy discussion with him. Details r as follows:

1. The product largely seems to be useful for large/medium traders. For the product to actually work, we as clients need to be giving more than Rs 500 per month as brokearge to our present broker.
In my case, I do approx 1-2 nifty transactions in a day (intra day or carried forward). Each Nifty size @ Rs 3.3 lakhs i.e approx 66 lakhs of derivatives in a month....according to my present price of 0.025% (IB) and 0.030% (MOST) , I would pay approx Rs 1650/- to Rs 1980 in a month. In Kotak, under this scheme I will pay Rs 1188/- (6600000/50000*9)......does seem cheaper. I also do approx 3 lakhs of monthly delivery volumes @ 0.30% = Rs 900/-....in Kotak I pay Rs 540/- (300000/5000*9)
Hence, with my regular broker, I pay monthly Rs 1650/- + Rs 900/- = Rs 2550/- and in KOtak I pay Rs 1188/- + 540/- + Rs 500/- (Monthly fee) = Rs 2228/- (10-15% cheaper) I am sure I can negotiate the same with my present broker and he will definitely come down below this

2. For the query asked by jinny, the Kotak exec said that if we place an order for Rs 100000 for intraday and it gets executed in 10 trades, then the brokearge charged is 100000/50000*9 = Rs 18/-. The per trade concept is based on per order placed and traded and not the classical term of per trade as is prevalent in the US markets.

3. The executive also helped me make things simpler by stating that
delivery charges of Rs 9 for a Rs 5000/- trade translates into 0.18% as brokearge (against 0.30% paid by me)
cash intraday and derivatives charge of Rs 9 for a Rs 50000/- trade translates into 0.018% as %age broekarge (against 0.025% paid by me)

4. Also he spoke about a high saver scheme, where for a 6 month period, I can pay Rs 2000/- instead of Rs 3000/- (500*6 months monthly fee) i.e I save Rs 1000/- but I have to commit Rs 2000/- upfront.

In any case, I decided to open the account. More for the Sales Executive than for the scheme, but I am sure that brokearge rates will come down (even from Kotak) as competition heats up. Cheers to clients like us :-)

Sarit,

Cheques are only required to open the account. After that the client can transact with any of their 4 banks - HDFC, Kotak,Citi and UTI through the payment gateway

From Systemtrader's clarification, I find that my understanding was incorrect. Thanks for pointing the same.

Sarit

Systemtrader, thanks for your detailed explanation.
Are you paying commission 0.025% per side or per round-trip (buy+sell)?

I think they are charging for the screen extra under the flat plan...

Do they provide online terminal without any extra charges?

please take note of following "conditions" which also "apply" before signing for Kotak:

1. Physical copies @ Rs. 50 each time they are requested :

Does it mean Rs.50 daily for daily contract note for day-trading? That too, after a formal request.

2. No BNSTG facility available - what is that ?

3.There is no credit given for delivery selling i.e If you sell stocks worth Rs. 25,000/- today then you will be able to buy against this Rs. 25,000 on T+3rd day - THIS IS MOST IMPORTANT DRAWBACK.

4.No exposure allowed against stock in your Demat account :

i have no words to address this condition. Does it mean that i can not take credit for my own stock in my own demat purchsed by my own money!

This broker probably thinks that we, the 'hoi polloi' , will drool at Rs.9 flat offer
and make a beeline.

But for traders thge Kotak Securities Flat will be Best. If he trades in great turn overs it will be best.

Haha! Its a con! Read on the site : "Brokerage charged would be double if the order is placed through Call N Trade i.e. In case the Brokerage is Rs. 9/- for Call and Trade it would be Rs. 18/-"

Also trading terminal is Rs 300 per month.

And Rs 9 is not Rs. 9, we have to pay service tax, transaction tax, sebi tax and STT.