Maximum exposure/leverage by brokers

[nac]

I would like to know about broking firm which gives maximum exposure/leverage (say 20 or 25 or even more) with lesser brokerage like ventura/just trade/reliance etc (.01% or even less)

If no one is giving 20times, what could be possible and how much could be the brokerage?

Note: Is there any law says that brokers should give X times as exposure/leverage and should not give more than that......

 

[bunny]

For intraday, I heard that ICICI DIRECT has a product called "margin plus" which gives your 20 times exposure. I am not sure what the brokerage structure is like.

The lowest brokerage for intraday I have heard on this forum is Rs. 800 per crore of turnover.

 

[alroyraj]

Actually on Religare website they have a banner ad advertising upto 20 times leverage which was more than Indiabulls offered. So I thought the boasting rights goes to them. However it involves margin of 1 lakh i read somewhere,which is not much. Do not know whether it involves any interest rate on this.

Here is a snippet from their FAQs
"Q. What are MAXTRADE and DELPLUS?
A. Maxtrade is a product under which clients are provided with 20 times of Exposure against
their deposit in NSE and BSE, this is extra leveraged intraday products for jobbers & day
traders.
Under Delplus, clients are provided with 4 times of exposure on their total deposit on delivery
trades."

 

[rajeabc]

For intraday, I heard that ICICI DIRECT has a product called "margin plus" which gives your 20 times exposure. I am not sure what the brokerage structure is like.

The lowest brokerage for intraday I have heard on this forum is Rs. 800 per crore of turnover.

Bunny , here is the brokerage structure(I-secure) for ICICIDirect





To select from the offered brokerage plans login to customer service page and click on "Select Brokerage Plan".


Brokerage In Cash

Total Eligible Turnover (Per calendar Quarter) Brokerage (%)

Second Leg Of Trades

Effective Brokerage on Intraday Squareoff

Irrespective of turnover

0.55%

Nil

0.275%

Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges ,Transaction Charges (inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows:

Service Tax (ST) will be charged at 10.30% on total value of brokerage

Securities Transaction Tax (STT) at 0.125% on turnover

SEBI turnover charges at 0.0001% on turnover

Transaction Charges will be charged @ 0.0031% for NSE and 0.0035% for BSE on turnover. Applicable Service Tax would be charged over & above Transaction charges

Applicable State wise Stamp Duty charges as per delivery and non-delivery would be levied on turnover

The minimum trade value accepted is Rs. 500

The minimum brokerage for transactions upto Rs. 4,545 is Rs. 25 or 2.5% whichever is lower. All statuary charges would be levied over and above minimum brokerage

Brokerage rate mentioned above would be levied for trade value exceeding Rs. 4,545

Second leg of intra day square off transaction in cash will not be charged any brokerage.



Brokerage in Margin & Margin Plus
Total Eligible Turnover per month Brokerage (%)
Above Rs. 20 Crores 0.030
Rs.10 Crores to 20 Crores 0.035
Rs. 5 Crores to Rs. 10 Crores 0.040
Less Than Rs. 5 Crores 0.050
Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges, Transaction Charges (inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows:

Service Tax (ST)will be charges at 10.30% on total value of brokerage

Securities Transaction Tax (STT) at 0.025% on turnover (Sell transactions only)

SEBI turnover charges at 0.0001% on turnover

Transaction Charges will be charged @ 0.0031% for NSE and 0.0035% for BSE on turnover. Applicable Service Tax would be charged over & above Transaction charges

Applicable State wise Stamp Duty would be levied on turnover

All Margin positions pending for delivery would be levied brokerage equivalent to Cash segment

Any Margin position converted to delivery would attract brokerage equivalent to Cash segment

The minimum trade value accepted is Rs. 500

The minimum brokerage for transactions upto Rs. 30,000 is Rs. 15 or 1.5% whichever is lower. All statuary charges would be levied over and above minimum brokerage

Brokerage rate mentioned above would be levied for trade value exceeding Rs. 30,000


Brokerage in Future & Future Plus
For Equity/Currency Futures

Equity Future and Future Plus Currency Futures
Total Eligible Turnover per month Brokerage (%) *Brokerage on Second leg of Intraday square off (per lot) *Brokerage on Second leg of Intraday square off (per lot)
Above Rs. 20 Crores 0.030 Rs.15/- Rs.10/-
Rs.10 Crores to Rs. 20 Crores 0.035 Rs.15/- Rs.10/-
Rs. 5 Crores to Rs. 10 Crores 0.040 Rs.15/- Rs.10/-
Less Than Rs. 5 Crores 0.050 Rs.15/- Rs.10/-
Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges ,Transaction Charges (inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows:

For Equity Futures:
Service Tax (ST) will be charges at 10.30% on total value of brokerage

Securities Transaction Tax (STT) at 0.017% on turnover (Sell trades only)

SEBI turnover charges at 0.0001% on turnover

Transaction Charges will be charged @ 0.00185%on turnover. Applicable Service Tax would be charged over & above Transaction charges

Applicable State wise Stamp Duty would be levied on turnover

For Currency Futures:

Service Tax (ST) will be charges at 10.30% on total value of brokerage

Securities Transaction Tax (STT) and Transaction charges are NIL

SEBI turnover charges at 0.0001% on Notional value for Exercise/Assignment

Applicable State wise Stamp Duty would be levied, Stamp Duty will be charged at the rate of Rs. 200 per crore or 0.002% (turnover including expiry)

0.05% Brokerage for contracts squared-off due to Expiry/Closed out in Currency Futures

* If you buy and sell the same contracts on the same trading day, the second leg brokerage will be charged on either buy side or sell side of the trading leg based on the aggregate value of the buy or sell transaction whichever is lower
Brokerage in Options
Total Eligible Premium Value per month Flat brokerage per contract lot (Rs.) Brokerage on Second leg of Intraday square off (per lot)
Above Rs. 20 lacs 65 Rs.15/-
Rs. 10 Lacs - Rs. 20 lacs 70 Rs.15/-
Rs. 5 lacs - Rs. 10 lacs 75 Rs.15/-
Rs. 2 lacs to Rs. 5 lacs 85 Rs.15/-
Less than Rs. 2 Lac 95 Rs.15/-
Service Tax (ST), Securities Transaction Tax (STT), SEBI turnover charges ,Transaction Charges (inclusive of Service tax) and Stamp duty will be charged in addition to brokerage as follows

Service Tax (ST)will be charges at 10.30% on total value of brokerage

Securities Transaction Tax (STT) at 0.017% on Option premium in case of Sell Trades and 0.125% on settlement value where Option contracts are exercised

SEBI turnover charges at 0.0001% on Premium and Notional value for Exercise/Assignment

Transaction Charges will be charged @ 0.05% on Premium. Applicable Service Tax would be charged over & above Transaction charges. Effective Transaction Charges would be 0.0551%.The transaction charge is calculated on per share basis and rounded off to four decimal

Applicable State wise Stamp Duty would be levied on Premium and Notional value for Exercise/Assignment

 

[highonlife]

20 TIMES?
is anyone mad to actually lever up that much? That means a move of 5% will wipe out your stock value. Its like playing russian roulette. you have 5 empty barrels in the gun, and you feel confident....but the one time the bullet is in the slot...you die.
Basic rule of sound investing. Dont allow any single position to decrese by more than 8-10 % before you take a stop loss. if you are levered 20 times, all the basic stock needs to change by is 0.5%. That can happen in a single tick.

 

[nac]

20 TIMES?
is anyone mad to actually lever up that much? That means a move of 5% will wipe out your stock value. Its like playing russian roulette. you have 5 empty barrels in the gun, and you feel confident....but the one time the bullet is in the slot...you die.
Basic rule of sound investing. Dont allow any single position to decrese by more than 8-10 % before you take a stop loss. if you are levered 20 times, all the basic stock needs to change by is 0.5%. That can happen in a single tick.

What will be your response when you hear that the leverage can go upto 1000 times...

 

[highonlife]

What will be your response when you hear that the leverage can go upto 1000 times...

That would be in the forex markets. But the thing about forex is, that you usually dont have moves of over 0.3% a day.
If you tried levering up that much in the indian stock markets..... god bless you.
we have 1% moves daily. That would equate to a move 10 times your stocks worth. Wonder how fast people will bankrupt themselves.

 

[highonlife]

Which is actually the point i wanted to make. Leverage is all well and good. It amplifies your gain, but it also amplifies your losses. The more volatile a traded item (currency pair, stock, commodity) , the lesser leverage you want to use.
So in Indian stock markets, you definitely dont want to lever up 20 times. Imagine levering up 20 times, on a 10 times levered index future
equating to a 200 times leverage..... a move of 0.5% wiping out your entire capital. That is a move of 25 points on the nifty

 

[alroyraj]

Which is actually the point i wanted to make. Leverage is all well and good. It amplifies your gain, but it also amplifies your losses. The more volatile a traded item (currency pair, stock, commodity) , the lesser leverage you want to use.
So in Indian stock markets, you definitely dont want to lever up 20 times. Imagine levering up 20 times, on a 10 times levered index future
equating to a 200 times leverage..... a move of 0.5% wiping out your entire capital. That is a move of 25 points on the nifty

Usually when it is stated 20 times leverage it applies to equity,for futures it is usually 2 times leverage (yes on a 10 times levered index future ) Brokers always want to see the money

 

[anuragmunjal]

Sir,

we give upto 400 times intraday limit, highest in india, with brokerage of min. 2 paisa, if you want application form, kindly contact me

ek hi din me kaat doge kya client ko????????