Discount Broker Comparison
I don't know if there has been a discussion here with regards to margin blocked for the hedged position among brokers. Finvasia seems to be blocking more than Zerodha. For eg: With a capital of 1 lakh you can trade BN Futures naked long/short with Zerodha (92.5k) but not with Finvasia (little over 1 lakh). With naked futures position the difference is about 8%, but it's much higher with option spreads positions.
If there has been, please direct me to that discussison as I couldn't find using search option.
If there has been, please direct me to that discussison as I couldn't find using search option.
you have to scroll back many pages, bcos even i posted.
Finvasia is the highest margin blocker and they also highest haircut. Before, in Liquid funds they will have haircut of 25% whereas everyone was at 10%. After alot of criticism, they have reduced haircut but usually margin is higher than others.
Finvasia is the highest margin blocker and they also highest haircut. Before, in Liquid funds they will have haircut of 25% whereas everyone was at 10%. After alot of criticism, they have reduced haircut but usually margin is higher than others.
m.stock: when i checked it was long back and they didnt have many things in place. In over a year much would have changed so someone needs to update. back then they didnt even have e-dis, you need physical slip and need to courier to Mumbai only. I dropped idea of having a/c there.
flattrade: Personally my account are old and has POA so i dont know how this new system works. I dont see reason to revoke it and hodlings are with bigger broker.
restricted POA shouldnt be a problem.
for 0 brokerage i think Finvasia is still best out there. That one big mishap of ghost trade incident to be honest has happened with others too but they did refund losses and issue was handled eventually.
Finvasia being a CC means they should have a large backing and compliance.
flattrade: Personally my account are old and has POA so i dont know how this new system works. I dont see reason to revoke it and hodlings are with bigger broker.
restricted POA shouldnt be a problem.
for 0 brokerage i think Finvasia is still best out there. That one big mishap of ghost trade incident to be honest has happened with others too but they did refund losses and issue was handled eventually.
Finvasia being a CC means they should have a large backing and compliance.
I checked the last 20 pages, there were few posts in this regard including yours.
Futures about 8% difference
Futures with hedged option leg ranging from 5 - 15%
Two leg option spreads:
- Initial margin about 12% difference
- Final margin over 25% difference
Took initial margin difference and calculated, with 5 lakhs capital one can take two more lots with Zerodha. Let's say one trades both Nifty and Banknifty and capital is split evenly into two.
These are the numbers I used to find breakeven.
Only two leg option trades are considered.
Average Profit per trade (per unit) for BN is 5.4/-; For Nifty 50% of that.
Average option price for BN is 220/-; For Nifty 65/-
With split capital of 2.5 lakhs, in Zerodha one can take 9 BN lots and 8 Nifty lots; With Finvasia 1 less lot for both BN and Nifty
25 trades for each Index per month, so a total of 50 trades.
If anyone's average profit per trade is higher than the above, then they will be making more with Zerodha. If less than that, then they will be saving more with Finvasia. Increasing no. of trades to 50 or 100 per index doesn't change result much. But increasing capital to 10 lakhs gives result in favour of Zerodha.
With 10 lakhs capital, quantity will increase and leaving everything else same, one would be making 0.5% (of capital) more with Zerodha. And increasing the trade numbers now to 50 and 100 per index will result in 1% and 2% respectively more with Zerodha.
Increasing the capital to 20 lakhs, one will be making 0.75% (25 trades), 1.5% (50 trades) and 3% (100 trades) more with Zerodha.
Increasing the capital further will likely hit quantity freeze, that means more orders for Zerodha and brokerage fee for that.
Will check the margin requirement tomorrow on live market to see if there is any huge difference than what I am seeing today.
Futures about 8% difference
Futures with hedged option leg ranging from 5 - 15%
Two leg option spreads:
- Initial margin about 12% difference
- Final margin over 25% difference
Took initial margin difference and calculated, with 5 lakhs capital one can take two more lots with Zerodha. Let's say one trades both Nifty and Banknifty and capital is split evenly into two.
These are the numbers I used to find breakeven.
Only two leg option trades are considered.
Average Profit per trade (per unit) for BN is 5.4/-; For Nifty 50% of that.
Average option price for BN is 220/-; For Nifty 65/-
With split capital of 2.5 lakhs, in Zerodha one can take 9 BN lots and 8 Nifty lots; With Finvasia 1 less lot for both BN and Nifty
25 trades for each Index per month, so a total of 50 trades.
If anyone's average profit per trade is higher than the above, then they will be making more with Zerodha. If less than that, then they will be saving more with Finvasia. Increasing no. of trades to 50 or 100 per index doesn't change result much. But increasing capital to 10 lakhs gives result in favour of Zerodha.
With 10 lakhs capital, quantity will increase and leaving everything else same, one would be making 0.5% (of capital) more with Zerodha. And increasing the trade numbers now to 50 and 100 per index will result in 1% and 2% respectively more with Zerodha.
Increasing the capital to 20 lakhs, one will be making 0.75% (25 trades), 1.5% (50 trades) and 3% (100 trades) more with Zerodha.
Increasing the capital further will likely hit quantity freeze, that means more orders for Zerodha and brokerage fee for that.
Will check the margin requirement tomorrow on live market to see if there is any huge difference than what I am seeing today.
awesome assessment, back then we just did a few checks and they were way off.
As written earlier, when you have higher margin even of 5% and 15% less collateral especially CASH, then it is a deal breaker for Option writing / Futures just to save Inr 20/- per trade brokerage
Z has been most stable for last 3-4 years and is #1 choice, couple of years before that was very bad.
They still suffer only due to OI limits, but usually there will be some short positions for most blocked-BUY strikes to go through but maybe not for full position size.
The Z-ORBIS workaround also has limitations like EQ buying etc so for peace you need #2 a/c purely to BUY options for OI limited strikes.
As written earlier, when you have higher margin even of 5% and 15% less collateral especially CASH, then it is a deal breaker for Option writing / Futures just to save Inr 20/- per trade brokerage
Z has been most stable for last 3-4 years and is #1 choice, couple of years before that was very bad.
They still suffer only due to OI limits, but usually there will be some short positions for most blocked-BUY strikes to go through but maybe not for full position size.
The Z-ORBIS workaround also has limitations like EQ buying etc so for peace you need #2 a/c purely to BUY options for OI limited strikes.
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