India infoline brokerage fee

[aravindps]

also they use a very dangerous formula to calculate the brokerage they calculate .5% of the total amount and then add this amount to the each share you traded so that the actual brokerage increases more that .5%.(this formula is generally used with lifetime 555 accounts)

Hi, They are using 'Whichever Is Higher Formula'. I'll give two examples.

1. If you buy/sell 1000 shares of FSL @ Rs. 30 per share, then your brokerage will be calculated as :
a)1000 (No. of shares) x 0.05 (brokerage) = Rs.50/-
b) 0.05% (brokerage) of Rs. 30,000 (Total Amount) = Rs.15/-
As the former is higher, It will be charged.

2 If you buy/sell 50 shares of Reliance @ Rs.2000 per share, then your brokerage will be :
a) 50 (No. of shares) x 0.05 (brokerage) = Rs.2.50/-
b) 0.05% (brokerage) of Rs.1,00,000 (Total Amount) = Rs.50/-
As the later is higher, It will be charged

Hope this clears the suspicion on brokerage

 

[bijuknambiar]

ooh...i didnt think abt that...thanks for intimating it aravind

 

[Kojak]

How does India Infoline calculate the brokerage for in the case of options ?

I have been dealing with Reliance Money and the have a concept of "Limit Card" which is based on your turnover. A Rs 5000 card gives and exposure of Rs 7 crores of turnover (Rs 70lakhs as delivery and Rs 6.3 crores as margin or leveraged turnover).

In the case of options the turnover is calculated as (Strike price +option price) * Quantity. For each transaction a transaction fee of Rs 15 also charged.

If I buy a one Nifty Call option FV Rs 4500 at Rs 50 and sell it at Rs 55 then the brokerage /charges is calculated as follows for the buy side:
Limit Card Charges = {[ (FV + Option Price)* Quantity] / ( Sanctioned Limit )}*Limit Card

={[(4500+50)*50 ] /(7,00,00,000)}*5000
=16.25
On the sales =[(4500+55)*50 ] /(7,00,00,000)}*5000
=16.26
Total Limit Card Charges= 16.25+16.26= 33.51

There is a charge of Rs 15 on each leg = 15 +15 =30

Total brokerage (apart from STT etc) = 33.51+30=66.51

Brokerage as a percentage = 66.51/4500 =1.47%

This is a very high brokerage.

How does India Infoline calculate the brokerage?

( Caveat: if one goes for the Rs 10,000 package which gives and exposure of Rs 20 croes the effective brokerage gets reduced to approximately 1/3rd. It still is around 0.5%)

 

[Kojak]

How does India Infoline calculate the brokerage for in the case of options ?

I have been dealing with Reliance Money and the have a concept of "Limit Card" which is based on your turnover. A Rs 5000 card gives and exposure of Rs 7 crores of turnover (Rs 70lakhs as delivery and Rs 6.3 crores as margin or leveraged turnover).

In the case of options the turnover is calculated as (Strike price +option price) * Quantity. For each transaction a transaction fee of Rs 15 also charged.

With a limit Card costing Rs 5000, If I buy a one Nifty Call option FV Rs 4500 at Rs 50 and sell it at Rs 55 then the brokerage /charges is calculated as follows for the buy side:
Limit Card Charges = {[ (FV + Option Price)* Quantity] / ( Sanctioned Limit )}*Limit Card Limit

={[(4500+50)*50 ] /(7,00,00,000)}*5000
=16.25
On the sales =[(4500+55)*50 ] /(7,00,00,000)}*5000
=16.26
Total Limit Card Charges= 16.25+16.26= 33.51

There is a charge of Rs 15 on each leg = 15 +15 =30

Total brokerage (apart from STT etc) = 33.51+30=66.51

Cost of one lot of 4500 FV call at Rs 50 = Price * Qty = Rs 50*50 =2500

Brokerage as a percentage of investment= 66.51/2500 =2.6%

This is a very high effective brokerage.

( Caveat: if one goes for the Rs 10,000 package which gives and exposure of Rs 20 croes the effective brokerage gets reduced to approximately 1/3rd. It still is around 0.75%)

How does India Infoline calculate the brokerage for options?

 

[Kojak]

Oops..the last post was a correction of the earlier post....

 

[sumit.agarwal]

Hi, They are using 'Whichever Is Higher Formula'. I'll give two examples.

1. If you buy/sell 1000 shares of FSL @ Rs. 30 per share, then your brokerage will be calculated as :
a)1000 (No. of shares) x 0.05 (brokerage) = Rs.50/-
b) 0.05% (brokerage) of Rs. 30,000 (Total Amount) = Rs.15/-
As the former is higher, It will be charged.

2 If you buy/sell 50 shares of Reliance @ Rs.2000 per share, then your brokerage will be :
a) 50 (No. of shares) x 0.05 (brokerage) = Rs.2.50/-
b) 0.05% (brokerage) of Rs.1,00,000 (Total Amount) = Rs.50/-
As the later is higher, It will be charged

Hope this clears the suspicion on brokerage

do other brokerage house apply such a same rule. If yes , which please list them.

It's dangerous.

Should follow only 1 rule , 2 different rules ? aise lagta hai loot rahe hai

 

[munde_77]

http://www.traderji.com/brokers-trading-platforms/31549-india-infoline.html#post352857

 

[munde_77]

http://www.traderji.com/brokers-trading-platforms/31549-india-infoline.html#post352857

Check this site. My indiainfoline brokerage is .005%

 

[rkm66_in]

what does it mean by Regu.charge

 

[dhc]

@biju : do you still use india info onlin?