Comment on Stop Loss orders - Limit/Market

Harry commented on 26 Jan 2014, 12:29 AM

Nithin,

Thanks for your quick response !!

Now your business model makes more sense to me, as you use a third party ILFS service, hence the transaction (read turnover) charges are also where you are actually making some bugs, apart from the minimal brokerage charge (40 per round trade – buy and sell).

As per MCX circular (http://www.mcx-sx.com/downloads/Circulars/CircularDownloads/Circular_1006.pdf), the max transaction charges (if monthly traded volume < 1000 cr) are Rs. 400 per crore + 49 (@12.36% taxes) = max Rs. 450 per cr.

Note – Rs.450 is the max turnover charge any brokering house is charging currently.

The transaction (or turnover) charges that Zerodha is charging is Rs. 440 per crore + 54 (@12.36% taxes) = around Rs. 494 per cr.

So overall in % brokerage terms, Zerodha comes out to be offering the brokerage of 0.0035% or Rs.350 per crore of volume. This may not be the least brokerage in the market but is certainly an amazing discount offer to any newie trader.

Hats off to you for providing a brilliant opportunity to all traders!!

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