Clarity on disparity of turnover charges beetween different brokers

A

ANAANDAAAAA

New Member
#1
#1
Costs such as STT,CTT,Education Cess, Higher Education Cess,SEBI charges and service tax is same for all brokers but what baffles me is the difference of turnover charge. Turnover charge I believe includes transaction charge and clearing charge. In some case broker himself is clearing agent which reduces cost for them.Transaction charge from exchange reduces if the broker has greater turnover.

NOW MY QUESTION IS WHY A BROKER LIKE ZERODHA CHARGES MORE CHARGES AS COMPARED TO OTHERS WHEN THEY HAVE MORE TURNOVER AS COMPARED TO SOME NEW BROKER.WHY THERE IS NO CLARITY ABOUT THIS.DO THEY COLLECT MONEY FROM US AS SAID CHARGE AND GOES ACCOUNTED AS THEIR PROFIT? I REQUEST THE SENIORS OR CONCERNED PEOPLE TO REPLY THIS.
 
T

Trade2Learn

Member
#3
#3
ANAANDAAAAA said:
Costs such as STT,CTT,Education Cess, Higher Education Cess,SEBI charges and service tax is same for all brokers but what baffles me is the difference of turnover charge. Turnover charge I believe includes transaction charge and clearing charge. In some case broker himself is clearing agent which reduces cost for them.Transaction charge from exchange reduces if the broker has greater turnover.

NOW MY QUESTION IS WHY A BROKER LIKE ZERODHA CHARGES MORE CHARGES AS COMPARED TO OTHERS WHEN THEY HAVE MORE TURNOVER AS COMPARED TO SOME NEW BROKER.WHY THERE IS NO CLARITY ABOUT THIS.DO THEY COLLECT MONEY FROM US AS SAID CHARGE AND GOES ACCOUNTED AS THEIR PROFIT? I REQUEST THE SENIORS OR CONCERNED PEOPLE TO REPLY THIS.
Click to expand...
Hi,
i m not a senior here but to my knowledge broker earns from brokerage and turonver charges.
I have spoken and seen the tax file of hundreds of brokers and all of them have different turnover charges.Clearing charges also depends on broker to broker.Those broker who have are clearing agent normally don't charge anything but i have seen files of brokers charges ranging from Rs 50 per crore to Rs 250 per crore.I don't know that their clearing agent charges that from them or they are making profit from it,but what i can understand that from turonver charges they are definitely making profit.
Hope this info helps.
Regards
 
Last edited:
bpr

bpr

Well-Known Member
#4
#4
Do you really think brokers like zerodha can survive on Rs 20 a trade??
Their main brokerage is from Transaction charge.
Just to clarify all the discount brokers keep profit share in their transaction charge. The difference between what they incur vs what they charge to their clients is their profit.
Total Transaction Charge =NSE/MCX transaction Charge +Clearing transaction charge.

New discount brokers reducing this gap to get more market share. Zerodha is unwilling let go this profit margin easily so they are trying to create differentiating factors such as margin,span calculator and better trading platform ( in the pipeline ) to justify their price.
 
A

ANAANDAAAAA

New Member
#5
#5
Thanks to both of you for your reply.I realized that over the last 15 years in my trading journey I have generated a lot of profit to brokers starting to elephant icicidirect to the newbee ZERODHA.Its very unethical for them to have those hidden way to eat our profits.Of present there are many discount brokers as BPR rightly said filling this gap.I am shifting from ZERODHA to one of the brokers and see how it goes.:thumb:
 
S

SKU

Banned
#6
#6
ANAANDAAAAA said:
Thanks to both of you for your reply.I realized that over the last 15 years in my trading journey I have generated a lot of profit to brokers starting to elephant icicidirect to the newbee ZERODHA.Its very unethical for them to have those hidden way to eat our profits.Of present there are many discount brokers as BPR rightly said filling this gap.I am shifting from ZERODHA to one of the brokers and see how it goes.:thumb:
Click to expand...
All are animals some are elephants like ICICI & others discount brokers are cunning foxes no one ethical, a big gap still exist & everyone is just hiding in their way. It seems we are working for their profits.
 
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