Options brokerage is expensive

#1
Hello Friends,
I am new to Options trading. I wanted to find the brokerage charges for trading an Option.

Since I have an account with Zerodha, I went to their brokerage calculator and input the details (Please check the image).

I was shocked to find that brokerage for options is very expensive when compared to Futures. For a 20point move in Nifty, the points to breakeven is 2.32 in Futures, whereas in Options, it is 19.99.

Could somebody confirm that this is true, or am I missing something?

Thank you.
 

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#3
Hello Friends,
I am new to Options trading. I wanted to find the brokerage charges for trading an Option.

Since I have an account with Zerodha, I went to their brokerage calculator and input the details (Please check the image).

I was shocked to find that brokerage for options is very expensive when compared to Futures. For a 20point move in Nifty, the points to breakeven is 2.32 in Futures, whereas in Options, it is 19.99.

Could somebody confirm that this is true, or am I missing something?

Thank you.
Why have you put Future prices in option-boxes? When you trade options, you buy/sell at options' own prices, not at Future prices, Future prices are merely used as a reference-point. Options are one of the hardest instruments to trade, so please consider learning as much as you can about options before jumping in. Good luck.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#5
Hello Friends,
I am new to Options trading. I wanted to find the brokerage charges for trading an Option.

Since I have an account with Zerodha, I went to their brokerage calculator and input the details (Please check the image).

I was shocked to find that brokerage for options is very expensive when compared to Futures. For a 20point move in Nifty, the points to breakeven is 2.32 in Futures, whereas in Options, it is 19.99.

Could somebody confirm that this is true, or am I missing something?

Thank you.
Is ₹20/- per executed order really that expensive?

As a broker, I can tell you that providing service for 20 bucks is crazy low! In comparison to Futures, it is relatively the same because the contract values of futures contracts make it hit the upper cap of ₹20/- unless you're trading in currencies or Crude Mini / Silver Mini / Silver Micro etc. This message in our own defense and in defense of Zerodha :).

You expect a lot from a broker but you hesitate & think 20 bucks is too much. Not reasonable IMO.
Look at the value a broker has to offer as opposed to the price alone. Remember, the law of diminishing marginal utility.

All the Best & Happy Trading!

Disclaimer: I have a vested interested in replying to this post as I represent FYERS and our own pricing is flat ₹20/- for options. I encourage the viewers to make their own informed decisions.
 

cinderblock

Well-Known Member
#6
Considering the revenues (and profit) it does seem like there's room for the brokerage to go down :)

Unless you know something about revenues that we don't.
 
#7
Is ₹20/- per executed order really that expensive?

As a broker, I can tell you that providing service for 20 bucks is crazy low! In comparison to Futures, it is relatively the same because the contract values of futures contracts make it hit the upper cap of ₹20/- unless you're trading in currencies or Crude Mini / Silver Mini / Silver Micro etc. This message in our own defense and in defense of Zerodha :).

You expect a lot from a broker but you hesitate & think 20 bucks is too much. Not reasonable IMO.
Look at the value a broker has to offer as opposed to the price alone. Remember, the law of diminishing marginal utility.

All the Best & Happy Trading!

Disclaimer: I have a vested interested in replying to this post as I represent FYERS and our own pricing is flat ₹20/- for options. I encourage the viewers to make their own informed decisions.
I don't think she was talking about Rs.20 being too much, she was talking about vastly varying breakeven-points that she was seeing for Futures & Options (due to the fact that she'd put wrong buy/sell values for options).
 
#8
Hello Friends,
I am new to Options trading. I wanted to find the brokerage charges for trading an Option.

Since I have an account with Zerodha, I went to their brokerage calculator and input the details (Please check the image).

I was shocked to find that brokerage for options is very expensive when compared to Futures. For a 20point move in Nifty, the points to breakeven is 2.32 in Futures, whereas in Options, it is 19.99.

Could somebody confirm that this is true, or am I missing something?

Thank you.
Hi you entered option price wrongly. Option strike Price is 200 Or something. You have entered the nifty future price there.
 

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