Motilal Oswal Brokerage Charges are huge for penny stocks

Discussion in 'Investors Grievances' started by coolchat2me, Jul 30, 2009.

  1. coolchat2me

    coolchat2me New Member

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    Hi Guys,

    I am a victim of Motilal Oswal. I am paying 14% brokerage charges for buying & selling.

    Acutally I purchased 6300 shares of Cals Refinery of Rs. 0.72/share. It costs me Rs. 4536.
    Motilal Oswal charged Rs. 315 as brokerage for this transaction considering Rs. 0.05 per share instead of total amount paid for this transaction.

    This brokerage comes 7.0% means I have to pay 14% for buying & selling this shares.

    I am really shocked...and don't know what to do.

    Please suggest, how to get my money back.

    Regards,
    Cool
     
  2. jdm

    jdm Well-Known Member

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    the law of the land states that maximum brokerage that a broker can charge is 2.5%. but then who cares about the law. certainly not the brokers. nobody will help you unless you help yourself. and you can help yourself by lodging a compain with nse or sebi. but before that do write to motilal.
     
  3. magnet

    magnet Active Member

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    Though if u see % wise ofcourse i agree its higher....

    But wht u r missing is u are paying 2 paise brokerage on a share.....if u deals in penny...than even a penny increase will be higher in %

    Though i m not saying they are right....
    But i will still say its not bad..atleast u are allowed to deal in such shares.......I myself want to deal in such stock since i know if a price of stock goes from 1 to 2..u get 100% profit...plus u can easily get such price if the stocks operate in low volume.....But hdfc doesnt allow me to trade in stock below 10 rupees..so i m playing with 10-20 rupees stock..and have to b happy with 30-40or at max 50% profit

    But still ill say its not that bad.....u can easily strike off the % with increasing the selling price by 2 paise...rather than wasting your time....

    Btw why u dealing in stock which is near 0 dont u luv your money??
     
    Last edited: Jul 30, 2009
  4. jdm

    jdm Well-Known Member

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    in stock market point is irrelevant. what matters is basis points.

    they are wrong. its as simple as this if one goes by the rule of the land.
     
  5. hills_5000

    hills_5000 Well-Known Member

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    hi,

    even i have an a/c with MOSL .. it works like this with them..

    for volumes above 3500 shares...they charge brokerage per share wise... if you want ur brokerage to go down ...speak to them... and shoot a mail... they will reduce it if ur turnover in a month is large.( ask them the value required) else it is standard 0.5% for delivery and 0.15 % for intra day.... if u incraese ur turnover it comes down to 0.3% for delivery and 0.05% for intra day. Howver, if ur trading low value stocks then anything above 3500 shares traded / bought , they charge per share ...

    cheers...

    they arent bad trust me..have been dealing with them for 4 years now... very fair... even though their intra day calls arent very good...but futures calls are very good...

     
  6. SavantGarde

    SavantGarde Well-Known Member

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    Guys,

    So Far In This Discussion Everybody Has Got It Wrong.

    If You Were Charged 0.05 Paise That Is Because Your Minimum Brokerage Is 5 Paise, Which Means If Any Scrip That Is Bought By You & As Per The Percentage Brokerage When Calculated Per Share Works Out Less Than 5 Paise, You Will Be Charged 5 Paise Per Share In That Case.

    Minimum Charges Is Quite Normal, But Can Be Negotiated.


    Happy & Safer Investing

    SavantGarde

     

  7. jdm

    jdm Well-Known Member

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    but dosent it violates the rule of the land which says maximum brokerage which a broker can charge is 2.5% of turnover.

    http://www.sebi.gov.in/faq/smdfaq.html
     
    Last edited: Jul 31, 2009
    prasadam and SavantGarde like this.
  8. SavantGarde

    SavantGarde Well-Known Member

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    Hi JDM,

    Frankly, I Do Not Know Whether This Practice Of Minimum Charges Are Allowed Or Not, Just Merely Stated A Fact That I Have Observed With Most Brokers, So That The Person Would Understand The Calculation Of His Contract Note.

    I Think Exchange's Grievance Cell Would Be In A Better Position To Clarify The Point Raised By You.


    Happy & Safer Investing

    SavantGarde

     
  9. jdm

    jdm Well-Known Member

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    Savant,
    minimum charges are allowed as long as it doesnt crosses the maximum threshold of 2.5%.

    the problem is the amount is so small (in hundreds) that nobody complains. the problem is with the regulators. they need to be proactive rather than wait for someone to seek redressal.

    cheers.
     
  10. rajeabc

    rajeabc Well-Known Member

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    I bought 10k @ .97 and paid only 81 Rs as brokrage with ICICI Direct.
     
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