Do you know how much brokerage you are paying per year?

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Do you know how much brokerage you are paying per year?

Well there is a small exercise for you
  • Are You are a Trader and Trade Daily
  • You lose say Rs 100 in a year.
  • Check your Brokerage.I bet Its Rs 80/-. So you lost only Rs 20/- to markets
  • So if your broker refunds even half of that (Rs 40/- why will he)you would end up a profit of Rs 20/- to markets

Ramesh & Suresh both are traders, Ramesh working with his old broker just because he has local existence, giving 4 - 5 times leverage, giving physical contract notes & where his broker charging him Rs. 0.30 to 0.40 brokerage per Rs.100 Trade, At the same time Suresh has change the broker to Zerodha or RKSV, and trade in a range of Nil brokerage to Rs 20/- per trade.

See the below calculation, how individual earn more returns at the end of the year 

Ramesh’s Statement                                                    Suresh’s Statement

 

 

Traditional Brokers

 

Zerodha / RKSV

Reco. Type

BTST

Futures (2lots)

Reco. Type

BTST

Futures (2lots)

Invested Capital

200000

500000

Invested Capital

200000

500000

Brokerage

0.2

0.01

Brokerage

0

20

Brokerage per Trade

400

200

Brokerage per Trade

0

40

No. of Stocks Reco. Per Month

15

15

No. of Stocks Reco. Per Month

15

15

No. of Trade per Month

30

15

No. of Trade per Month

30

30

Total Brokerage per Month

12000

3000

Total Brokerage per Month

0

1200

Total Brokerage paid per year

144000

36000

Total Brokerage paid per year

0

14400

In BTST You saved Rs.1,44,000 In Futures Advisory you saved Rs. 21,600

We call it Cash Back,So who you want to be Ramesh or Suresh?

What are you waiting for,

Give us a missed call on 022 3348 8105 and we will help you!

So how does Zerodha/RKSV make money then?

  • F&O and intraday equity trades are still charged at flat Rs.20 per executed order as before.
  • They will soon be starting margin lending for equity delivery where we will earn Interest.
  • They have launchedKite trading APIs for institutions who will in turn subsidize their retail investors
  • They want to grow their client base and business with the help of this initiative.

 

Disclaimer :

The above note is an attempt to increase knowledge and awareness among our clients and help them make big savings on Brokerage which they may not be aware of. This even compliments our Advisory returns as it increases the Overall returns for our clients on an overall basis. We have no association commercial/non-commercial whatsoever with the said entities.The details shared above are all available in public domain and on their respective website.Any service related issues will be sole responsibility of Zerodha or RKSV as the case may be and client will have to direct their queries to them directly only