Least Brokerage on Online Trading

#1
Hi All,

I have traded through many brokers in past few years.All, have different brokerage rates, different way to charge their clients :),I always tried to find a better solution for it and get the least brokerage charged on my transactions. Finally I have got a very good brokerage deal from one of the Online Broker.

rk
 
#3
rkmaskara said:
Hi All,

I have traded through many brokers in past few years.All, have different brokerage rates, different way to charge their clients :),I always tried to find a better solution for it and get the least brokerage charged on my transactions. Finally I have got a very good brokerage deal from one of the Online Broker.

rk
Actually many brokers follow that, but I will not agree with you that all of them practice the same thing. And one more thing if a broker is charging on a higher side then you can demand such service also. (if you have a big turnover)
 

Traderji

Super Moderator
#4
rkmaskara said:
Hi All,

I have traded through many brokers in past few years.All, have different brokerage rates, different way to charge their clients :),I always tried to find a better solution for it and get the least brokerage charged on my transactions. Finally I have got a very good brokerage deal from one of the Online Broker.

rk
If you can mention some names it would be extremely helpful for other members as well.
 

milind

Active Member
#5
How about the spreads - do they vary from broker to broker? Lot of cheapo discount brokers in US advertize very low commisions like $7, but they make up for that by asking for market orders and giving slightly worse spread (difference between bid and asked)

-- Milind
 

Traderji

Super Moderator
#6
milind said:
How about the spreads - do they vary from broker to broker? Lot of cheapo discount brokers in US advertize very low commisions like $7, but they make up for that by asking for market orders and giving slightly worse spread (difference between bid and asked)

-- Milind
I don't think that applies to India as we have a order driven system here.
 
#7
I doubt any broker in India is offering the sort of flat rate commissions that are common in the US.
Index options can be traded for 1-2$ apiece there. Here it is always a percentage of the underlying value and the cost works out to be extremely expensive. Here commission for an at the money option can cost 10% of the trade value while in the US it is negligible.
 
#8
True arprtrd, indian option brokers take us for a ride as far as brokerage goes, we are paying thro our nose without realising it, hope competition brings some fairness soon :)
 

Traderji

Super Moderator
#9
The reason why we pay such high brokerages on futures & options is because of the tax structure in our country. We have a transaction tax, a turnover tax, a service tax, etc which are all calculated as % of the total contract value.
 
#10
Traderji said:
The reason why we pay such high brokerages on futures & options is because of the tax structure in our country. We have a transaction tax, a turnover tax, a service tax, etc which are all calculated as % of the total contract value.


Transaction tax is a recent phenomenon and is very low for derivatives.
Service tax tax is 10 % of brokerage and not underlying trade value.

I don't know about turnover tax rate.

Anyway I think, the brokerage is way too high even net of taxes.
 

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