Why on Quantity Basis

why do brokerage houses like HSBC Inv and Angel charge brokerage on quantity basis below 100 rupees priced shares?

whats their logic about charging brokerage on quantity basis?

Hi, I was informed by the sub-broker of Angel that minimum brokerage is levied not only by Angel but also by other broking houses such as MOSL, SHAREKHAN, ICICI Direct & HDFC SECURITIES. Angel has recently introduced this policy whereby clients will be levied minimum brokerage on the trades executed on a particular day with a maximum cap of Rs. 30 or 2.5%, whichever is lower. This means that, if a client is unable to generate a brokerage of Rs. 30 then he/she will be levied an additional brokerage up to Rs. 30 or 2.5% whichever is lower in a particular segment. Cheers!

at .01% intraday first leg brokerage

Angel new delhi RSO is charging Rs. 100 brokerage for Rs10/- share for 10000 quantity

and only brokerage Rs.10 for Rs100/- share for 1000 quantity ?

aren't they doing a fraudulent act?

i think they are

they will soon see consumer court action for PAN India brokerage fraud!!

They charge in this manner :
0.01% of your Transaction Value OR 1 paisa per share whichever is higher.
i.e. If u trade in shares less than Rs.100 u r paying more than 0.01%.

mr. bannerjee

Rs.10/- share into 10000 shares is 100000/- buy amount and brokerage is 100 rupees

rs.100/- share into 1000 shares is also 100000/- buy amount but brokerage is only 10 rupees

@.01% first leg

now do you get it or not :annoyed:

Yes, u didn't understood what I said.
I said 0.01% of Investment OR 1p/share whichever is higher will be applicable.

In first case, u bought 10,000 shares @ Rs.10 each, i.e. Investment = 1 lakh
Then calculating brokerage at 0.01% becomes Rs.10
and calculating at 1 paisa/share it becomes Rs.100.
As Rs.100 > Rs.10, you will be charged Rs.100.

Now in second case, u bought 1,000 shares @ Rs.100 each, i.e. Investment = 1 lakh
Then calculating brokerage at 0.01% becomes Rs.10
and calculating at 1 paisa/share it becomes Rs.10 again.
So u r charged Rs. 10.

Again, suppose u bought 100 share @ Rs.1000 each, i.e. Investment = 1 lakh
Then calculating brokerage at 0.01% becomes Rs.10
and calculating at 1 paisa/share it becomes Re.1
Then as Rs.10 > Re.1, you will be charged Rs.10.

In short, if u trade in below Rs.100 scrips, u calculate brokerage at 1 paisa / share.
And if it is above Rs.100 then calculate at 0.01% of your total worth of shares.

what is the need for Angel Broking to do that when the value of the transaction is ONE LAKHS anyways,

whats so exclusive about trading rs.10/- share compared to a rs.100/- share

how is fundamentally trading a rs.10/- share and a rs.100/- different when the total first leg amount is ONE LAKH in each case.


who has made this rule

and why ?

what happens when my first leg shoots to rs.50 lakhs

that means am i supposed to pay ten times more brokerage

just because the share price is rs.10/-

given the fact that on first leg alone the brokerage on the basis of % is rs.500/-

where as on your given logic i will be paying rs.5000/- brokerage to angel broking even when my first leg volume is 50 lakhs

why is angel supposed to be getting rs.5000/- instead of rs.500/-

why rs.4500/- more?

if you are standing in front of a court judge how will you justify this action by Angel Broking ???

I'm not justifying it. I'm not angel owner, angel employee, angel franchisee, etc... :rofl:
But that's the way every broking house acts.
Suppose u buy 50 lakh shares of Re. 1 each. Your brokerage will be Rs. 50,000 instead of Rs. 500 !!!!
This is the reason I'm thinking to open a/c with RK Global. I'm trading only FnO with them for now.