why nifty option brokerage is so high with every broker ?

H

hummer007

New Member
#1
#1
I have just opened the trading account with Angel.
They are offering following brokerage for nifty options.

Rs 30.00 per lot flat each side

That means if buy 1000 (5500 Call options) it would be Rs 600.00 (30*20 lots)
While the actual value of 5500 Call options as on today is Rs 21000.00 (21.00 * 1000)


So I buy today & sale tomorrow it would be Rs 1200.00 brokerage !!!

I know it would be still low brokerage compared with many other good reputed brokers.

What is logic behind flat charges on options rather than percentage broking system ?
 
S

santanu80

New Member
#2
#2
Many brokers charge more than Rs. 30 per lot. In some cases, it will be 2.5% of the option premium or Rs. 100. whichever is higher. They earn their bread in expense of our money!!!

I am very much surprised about most of the Indian brokers. Apart from the higher rate of brokerage, they block unnecessarily lots of margin amount. For example, some brokers (read Ventura Sec) they do not understand spread that way. So whenever you are buying a spread, they block huge margin (equal to future margin) for the short OTM call/put. Which is ridiculous.
Also, if you want to write a spread then also where the downside is limited, they block entire margin for one lot of future.

This becomes more painful when they block two times future margin when you write a straddle/strangle. My doubt is that what is the guideline provided by the Indian market regulators for these option strategies?

Also, members please suggest a broker with a good track record, who do not block this much huge margin with flat brokerage. I heard RK Global blocks lesser margin. Is there any other broker?
How much Angel take margin for these strategies?

Thanks,
Santanu
 
munde_77

munde_77

Banned
#3
#3
santanu80 said:
Many brokers charge more than Rs. 30 per lot. In some cases, it will be 2.5% of the option premium or Rs. 100. whichever is higher. They earn their bread in expense of our money!!!

I am very much surprised about most of the Indian brokers. Apart from the higher rate of brokerage, they block unnecessarily lots of margin amount. For example, some brokers (read Ventura Sec) they do not understand spread that way. So whenever you are buying a spread, they block huge margin (equal to future margin) for the short OTM call/put. Which is ridiculous.
Also, if you want to write a spread then also where the downside is limited, they block entire margin for one lot of future.

This becomes more painful when they block two times future margin when you write a straddle/strangle. My doubt is that what is the guideline provided by the Indian market regulators for these option strategies?

Also, members please suggest a broker with a good track record, who do not block this much huge margin with flat brokerage. I heard RK Global blocks lesser margin. Is there any other broker?
How much Angel take margin for these strategies?

Thanks,
Santanu
Click to expand...
:thumb:........................................
 
alroyraj

alroyraj

Well-Known Member
#4
#4
I heard the Zerodha which is the new kid on the block has something called the spread margin. Check it out...Finally bangalore has something to boast of!
 
M

MaxX

Well-Known Member
#5
#5
Yes.. all brokers including zerodha charge excessive margin for hedged option strategies.. something to do with nse span margins as I have been told.
 
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