Discount Broker Comparison

bpr

Well-Known Member
#25
Ok now moving from Zerodha to any other Discount Broker we will save money on the brokerage leg, save money on the turnover charge assuming it is less than Zerodha.
But in stamp duty leg we might make loss.

Lets understand the stamp duty difference.
Most of the other brokers charge 0.002% stamp duty.No other discount broker has replicated the stamp duty model that Zerodha has.

For futures positions stamp duty comparison looks like this.
I have started with 5 lakh as turnover because if you buy&sell 1 lot nifty your turnover will be around apprx 5 lakh. So the minimum is 5 lakh.

Point to note unless your daily average turnover is more than 25 lakh you are loosing money on stamp duty on Zerodha and vice versa. This is true for swing traders who makes 1 or 2 trades every now and then.
But the overall impact is less.
This probably is the reason why Zerodha is not reducing their turnover charges.


Similarly for Options turnover comparison we will have the same chart but we will have to start with a smaller turnover value to keep it in the context.

AS you can see again unless your daily turnover is more than 25 lakh you are loosing money with Zerodha. In option 25 lakh turnover is significant unlike futures.



Conclusion:
Zerodha's 0.01% is five times higher than 0.002%.
For inactive traders or traders with less volume will benifit if they move to other discount brokerage. This is especially valid in case of option rather than futures.
For active traders zerodha's Stamp duty cap is a boon.
 
#27
@ Stamp Duty

Most of the brokers including Zerodha are moving/will move to stamp duty based on the State of the client.

So this advantage of Zerodha is lost,

But now the comparison becomes easier, as we need to consider only brokerage and transaction charges. . . .


:) Happy
 

saakk

Well-Known Member
#28
Ok now moving from Zerodha to any other Discount Broker we will save money on the brokerage leg, save money on the turnover charge assuming it is less than Zerodha.
But in stamp duty leg we might make loss.

Lets understand the stamp duty difference.
Most of the other brokers charge 0.002% stamp duty.No other discount broker has replicated the stamp duty model that Zerodha has.

For futures positions stamp duty comparison looks like this.
I have started with 5 lakh as turnover because if you buy&sell 1 lot nifty your turnover will be around apprx 5 lakh. So the minimum is 5 lakh.

Point to note unless your daily average turnover is more than 25 lakh you are loosing money on stamp duty on Zerodha and vice versa. This is true for swing traders who makes 1 or 2 trades every now and then.
But the overall impact is less.
This probably is the reason why Zerodha is not reducing their turnover charges.


Similarly for Options turnover comparison we will have the same chart but we will have to start with a smaller turnover value to keep it in the context.

AS you can see again unless your daily turnover is more than 25 lakh you are loosing money with Zerodha. In option 25 lakh turnover is significant unlike futures.



Conclusion:
Zerodha's 0.01% is five times higher than 0.002%.
For inactive traders or traders with less volume will benifit if they move to other discount brokerage. This is especially valid in case of option rather than futures.
For active traders zerodha's Stamp duty cap is a boon.
@ stamp duty ZERODHA,

50rs or 0.01% whichever is lower- is per contract and not 50@ per trade irrespective of size.
 

bpr

Well-Known Member
#29
@ Stamp Duty

Most of the brokers including Zerodha are moving/will move to stamp duty based on the State of the client.

So this advantage of Zerodha is lost,

But now the comparison becomes easier, as we need to consider only brokerage and transaction charges. . . .


:) Happy
I think it is too early. it will take a lot of time for this to happen across the board.

Anybody who has a list of state wise stamp duty data(latest) please share?
 

bpr

Well-Known Member
#30
@ stamp duty zerodha,

50rs or 0.01% whichever is lower- is per contract and not 50@ per trade irrespective of size.
This has been taken into consideration if you look closely.

The table is based on your daily turnover. Based on your daily turnover you fall on one single row and you pay that much for that day.
 
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