Zerodha Part 2

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Trader J

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#1,952
#1,952
soft_trader said:
The extra charge you are talking about is known as clearing charge. Say for options it is Rs.5000 per crore but Zerodha is charging Rs.8000 per crore. The extra Rs.3000 per crore is the clearing charges. Every broker will charge you some clearing charges, and it varies from broker to broker. At Zerodha this is on the higher side.
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Clearing charges from various clearing members are 50 to 100 per Crore for Future and 250 to 750 for Options.....Now Zerodha having good volume as per Facebook Status....we hope they will reduce clearing charges soon..............
 
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timepass

timepass

Moderator
#1,957
#1,957
Zerodha said:
We've enabled SL-M for you and also your Cover Order facility. Enjoy your trading.

More information on Cover Orders is here. :)
http://www.zerodha.com/Test/connect/blog/2012/10/cover-orders-for-higher-leverage
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From the above link : About exiting a SL order from a cover order :



At what price will it exit ? Market price or the SL price defined ? Suppose I place a cover order to buy 1 lot at market price and define a SL of 5885. Suppose the purchase is executed at 5900 and later when the CMP is 5910, I want to exit the trade. If I exit the SL order, it will exit at what price ?
 
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shekharz

Active Member
#1,959
#1,959
amudha said:
Regarding brokerage, agreed, it is cheapest. But they have put up some hidden cost which nobody seems to be aware. The turnover tax levied by Nse ranges from Rs.1.75 to Rs.1.90 per lakh turnover for Futures (Ref Nse Circular NO. NSE/F&A/13029 dated 7-9-2009). Even assuming that Zerodha pays at the maximum rate, it should not be more than Rs.1.9 per lakh (i.e. Rs.190 per crore) for futures.But Zerodha charges clients @ Rs.490/crore. So more than 50% of Nse transaction charges collected by Zerodha is kept with them . Similarly for Options segment, Nse charges a flat rate of 0.05% of premium which comes to Rs.5000 per crore. But Zerodha charges Rs.8000 per crore. They could have simply charged the clients the correct NSE transaction charges and increased the brokerage, if they wanted to be transparent. Hiding such vital info is not in the best interest of a growing organisation. I have nothing againt Zerodha. I only wanted to share with members that the brokerages advertised by them is not to be taken at face value only.
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I want to know, HOW DOES ZERODHA DEDUCT THIS AMOUNT FROM ONE'S ACCOUNT, examples are as below :-

(1) After every trading day, Zerodha calculates everything described above and then deducts the balance amount from one's account (for example, if one has a traded value of around 75 Lac (below 1 Crore) on a specific day, then Zerodha will deduct the required amount (around 75%) from him/her that day itself OR Zerodha will wait for 1 Crore to reach and then it will do the deduction, whether it reaches the next day or in next couple of days.

(2) Zerodha calculates these transactions on a Weekly or Monthly or Yearly basis and deducts the amount after everything is settled.

I think that Option (1) suits best here but an answer from some experienced persons would be much better.
 
V

vagabound_s

New Member
#1,960
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amudha said:
Regarding brokerage, agreed, it is cheapest. But they have put up some hidden cost which nobody seems to be aware. The turnover tax levied by Nse ranges from Rs.1.75 to Rs.1.90 per lakh turnover for Futures (Ref Nse Circular NO. NSE/F&A/13029 dated 7-9-2009). Even assuming that Zerodha pays at the maximum rate, it should not be more than Rs.1.9 per lakh (i.e. Rs.190 per crore) for futures.But Zerodha charges clients @ Rs.490/crore. So more than 50% of Nse transaction charges collected by Zerodha is kept with them . Similarly for Options segment, Nse charges a flat rate of 0.05% of premium which comes to Rs.5000 per crore. But Zerodha charges Rs.8000 per crore. They could have simply charged the clients the correct NSE transaction charges and increased the brokerage, if they wanted to be transparent. Hiding such vital info is not in the best interest of a growing organisation. I have nothing againt Zerodha. I only wanted to share with members that the brokerages advertised by them is not to be taken at face value only.
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I don't think it is possible for Zerodha to deduct money in the name of NSE charges and make revenue out of it, it would be illegal. I think the circular you are referring might be old one.
 
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