Why on Quantity Basis

[stocksplacement]

well they only give 6 times exposure intraday :annoyed:

I agree that brokers should not be charging difference brokerage for stocks below Rs.100/- and Trade to Trade Stocks and Z Category Stocks.

I had called up Angel, here is what i got.

They offered me a delivery rate of 0.20%
When I checked with them for brokerages for stocks below Rs.80/-(please note that when they first told me the rates they did not inform that stocks below Rs.80/- there will be a different brokerage for intraday as well as delivery, but being in this field for the past few years and knowledge given by learned members of this forum helped me).

They reverted stating that for stocks below Rs.80/- i will be charged 0.04 for intraday as well as delivery.

I checked with them again asking whether is it 0.04 per Rs.100/-. The executive who answered informed to me that it was 0.04 per Rs.100/-. Upon which I asked him to confirm it once again because this was lower than the delivery rate of 0.20%. Twice he confirmed that what i said and what he confirmed is correct. Then i told him the following calculation to show that he is not correct and to check with his seniors.

If i buy a stock of Rs.1.00 and the quantity i purchase for delivery is say 10000. In this case if the delivery brokerage is based on 0.20% it would be Rs.20.00

Since for stocks below Rs.80/-, he is saying that it is 0.04 per Rs.100/- then for Rs.1000/- it would be 0.40 and for Rs.10000/- it would be Rs.4.00

It was after i explained that the executive of Angel Broking checked with his Manager who called me up to say that it is not like that but they will be charging 0.04 paise per share which would mean that if i buy 10000 shares as above, i would be paying Rs.400/- which is 20 times more than the delivery rate of Rs.0.20%.

I asked him if that i am trading for making money and if he thinks that i make money to give it to Angel as brokerage than he is wrong. i would rather not do the trading.

I just want to know whether NSE or BSE is having such a clause for brokerages like Angel or not. If there is not then what right Angel or other brokerages has to charge from us.

Alternatively, we should ask NSE or BSE to charge Angel or other brokerages same as they are charge from clients like us. Or should we report to NSE, BSE or SEBI about these.

 

[stocksplacement]

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?

Accentindia, their logic is to earn money at any cost.

NSE or BSE does not impose such charges to Angel or HSBC Inv for stocks priced below Rs.100/-, it is same.

We should may be complain to BSE, NSE or SEBI about such differencial charges and ask their opinion.

or best would be to write to Finance Ministry to impose extra tax on such earnings by Angel or HSBC Inv. - Just joking on this line.

On a serious note, this is the issue on which i too have taken up with Angel because i would not want to earn money and then just give to brokerages.

There are lots of hidden charges which are not explained to investors/traders while opening account, it is only after continous prodding that the brokerages gives a reply and that reply to is full of double meaning like one i was given when i asked Angel if there is any extra. They just reply it is 0.04 for intraday and delivery for stocks below Rs.80/-. Now can a layman understand what it means is it 0.04% or 0.04 for Rs.100/- or 0.04 paisa per share.

 

[stocksplacement]

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?

Accentindia, their logic is to earn money at any cost.

NSE or BSE does not impose such charges to Angel or HSBC Inv for stocks priced below Rs.100/-, it is same.

We should may be complain to BSE, NSE or SEBI about such differencial charges and ask their opinion.

or best would be to write to Finance Ministry to impose extra tax on such earnings by Angel or HSBC Inv. - Just joking on this line.

On a serious note, this is the issue on which i too have taken up with Angel because i would not want to earn money and then just give to brokerages.

There are lots of hidden charges which are not explained to investors/traders while opening account, it is only after continous prodding that the brokerages gives a reply and that reply to is full of double meaning like one i was given when i asked Angel if there is any extra. They just reply it is 0.04 for intraday and delivery for stocks below Rs.80/-. Now can a layman understand what it means is it 0.04% or 0.04 for Rs.100/- or 0.04 paisa per share. Later on they charge and the investor is not in a position to do anything