Nifty futures trading to expensive

#1
I was thinking about trading for NSE through interactive brokers but when I miscalculated the trading costs so I remained in shock.
1 lot nifty futures index value 5400 contract value 270000 INR
/IB) commission =< 50 crore 0,012% 32,40INR only by 1 leg they dont charge by closing if you close it same day
Exchange, Transaction Charges- 0.0019% 10,26INR for both legs
SEBI Turnover Charges 0,0001% 0,54INR for both legs
Stamp Duty (Maharashtra) 0,002% 10,80INR for both legs
Securities
Transaction Tax 0,017% 45,90INR only when you sell
Service tax 12,36% its commisions+ exchange charge 32,40+10,26/100x12,36 its 5,27 INR total costs for 1 trade 105,17INR. I am a day trader if I would risk about 5,50 poit per 1 trade ist 275INR for profit of 550 INR this mean for each profit trade I would pay 19,12%. Iam from europe by trading on eurex or on cme my costs for 1 trade total are between 1,5%-4% and by Nifty 19,12% for me its untradable this market.CME also offer this product but there is no liquidity E-Mini S&P CNX Nifty 50 (Futures) 1 full point has value 10usd risk per trade would be 55usd for profit of 110 usd and commisions by my broker would be 3,32usd for RT cost for 1 trade 3,01% but no liquidity. Guys WHY ITS SO EXPENSIVE IN INDIA TO TRADE NIFTY? The market has good liquidity I was planning to trade your market but now I am disappointed.
 
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sanjosedesi

Well-Known Member
#2
You can not reduce the government charges (STT, stamp duty etc), but you can find brokerages which are cheap.

Check the zerodha page on this site itself ... I think zerodha gives same brokerage whether you trade 1 contract or 10 (it is per transaction, not as a percentage), so it works much better with volumes.

Also check out RKSV ... flat monthly fee irrespective of trade volume.

Things are not as bad !
 
#3
I think that the foreigners (individuals) are not allowed to trade directly in Indian markets as per existing laws. Do check with your broker about it.
 

SexyTrader

Well-Known Member
#4
I was thinking about trading for NSE through interactive brokers but when I miscalculated the trading costs so I remained in shock.
1 lot nifty futures index value 5400 contract value 270000 INR
/IB) commission =< 50 crore 0,012% 32,40INR only by 1 leg they dont charge by closing if you close it same day
Exchange, Transaction Charges- 0.0019% 10,26INR for both legs
SEBI Turnover Charges 0,0001% 0,54INR for both legs
Stamp Duty (Maharashtra) 0,002% 10,80INR for both legs
Securities
Transaction Tax 0,017% 45,90INR only when you sell
Service tax 12,36% its commisions+ exchange charge 32,40+10,26/100x12,36 its 5,27 INR total costs for 1 trade 105,17INR. I am a day trader if I would risk about 5,50 poit per 1 trade ist 275INR for profit of 550 INR this mean for each profit trade I would pay 19,12%. Iam from europe by trading on eurex or on cme my costs for 1 trade total are between 1,5%-4% and by Nifty 19,12% for me its untradable this market.CME also offer this product but there is no liquidity E-Mini S&P CNX Nifty 50 (Futures) 1 full point has value 10usd risk per trade would be 55usd for profit of 110 usd and commisions by my broker would be 3,32usd for RT cost for 1 trade 3,01% but no liquidity. Guys WHY ITS SO EXPENSIVE IN INDIA TO TRADE NIFTY? The market has good liquidity I was planning to trade your market but now I am disappointed.
Just trade select Indian Stock-Futures on margins offered by some Forex brokers....That should work for you even if you abroad :thumb:
 
#6
Its still to expensive to trade also on SGX commisions by my broker I have 3,94usd for RT it would be cost me to pay from every proft trade 15% the best would be to trade on CME(no liquidity) the e mini Nifty with tick value 5usd full point 10usd cost 3,01% again 19,17% what I would pay if I would trade via IB. I will look on mini nikkei traded on ose for now.Costs for every trade would be 82 yen for RT costs 2,73%. Maybe in futures if liquidity will be ok on CME or if costs will be reduced for trading direct on NSE I will be back and I will be trading the Nifty
 
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#7
I completely agree to your point. Day trading in indian market is very expensive and brokerage is only one part of it. The taxes and other charges are very high. Consider the emini s&p market. Highly liquid, and profits are not eaten away so much by brokerage and other charges. I wish I could trade other markets from India. Are there any options?
 
#8
From India one can tarde other markets via Interactive Brokers Indian account I think or directly open an account with overseas brokers ( RBI allows 200,000 USd per person per year to be transfered to overseas for "Investment" purposes however can u trade derivatives is another question
 
#9
From India one can tarde other markets via Interactive Brokers Indian account I think or directly open an account with overseas brokers ( RBI allows 200,000 USd per person per year to be transfered to overseas for "Investment" purposes however can u trade derivatives is another question
you cant trade derivatives.
 

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