Very high brokerage charges – F&O – Trading Q&A by Zerodha

Hi All,
I recently started trading in options and I was under the impression that I was doing well until today when I want out that my demat brokerage firm has been charging 16x commission( rs 4 per quantity) which I know for sure is very high. My mistake here is that I didn’t go through the contract note regularly. Qns 1. Is there a SEBI rule which prohibits brokerage firms to charge such high fees? Qns 2. SHould I keep the hope of getting back the excess brokerage fees ?

There is a max limit, but its set high. As per the BSE & NSE Bye Laws, a broker cannot charge more than 2.5% brokerage from his clients.

If the broker has stated his charges upfront, he hasnt done anything wrong, there is nothing more you can do other than not dealing with the said broker again.

Did you join any full house brokerage like HDFC, SBI , ICICI
etc…
if so you will be facing this issue.

If you would have joined in discounted brokers like zerodha 5 paisa fyers alice blue etc…
There is only one way they charge hell like that. That one way is “financial influencers”. Joining discounted brokerage via financial influencers link/referral may lead to per lot brokerage than normal 20Rs per trade brokerage.

So beware of joining via any financial influencers(Youtube,instagram freaks)

Since the name of icici was mentioned, i am commenting. The charges are predetermined and as per my brokerage plan, i will be charged. My broker is icici direct. Till date what is contracted is charged.
Maybe its different when u trade. I buy sell in cash segment

Even I buy/sell in cash only. The likes of ICICI, hdfc, kotak are doing daylight robbery. The may be good for f&o but definitely not for cash.
How much brokerage you are paying at ICICI for delivery buy/sell transaction

Thankyou all for sharing your views. I highly appreciate it.
I’d like to narrate the entire story and try to gather any relevant information which will help me to recoup at least a certain percentage of the excessive brokerage charges charged by Motilal Oswal.
Here it goes:
My grandfather opened this account in early 90’s and I’m not sure what were the rules and obligations for trading.
Very recently-April’23 I started doing options trading and I can confidently say that 80% of my trades were profitable. However, the amount in my portfolio kept on going down. On 2nd June, I went to the regional office of Motilal Oswal and discovered that they are charging out-of-the-world brokerage charges. I have lost Rs 4,30,000 in the last few months.
I would be forever grateful if you could help me devise a strategy through which I can put forward a case in front of MO to refund a certain percentage of the excessive brokerage charges.

I’m asking for a lot but please please please help me out here. Thankyou

please clarify this amount outgo is just for brokerage?

Try,

Zerodha: Best UI, cheap brokerage. but problem is cant trade in all strike because of OI limit from exchange. there is trick to trade banned strike by taking short then buying banned strike but this will greatly increase brokerage.

ICICIdirect with Neo plan(299/yr): UI Sucks. same brokerage as zerodha for FnO on neo plan. and can trade in all strikes as their OI dont reach max.

I can safely say 85% of that is brokerage fees. I can share screenshots of the contract note if it proves my point.

Joe thanks for the advise. I really want to continue with Zerodha but the challenge here is that all my money is looted by Motilal Oswal. I have a meeting with them on Tuesday and I really hope to build a formidable case before then.

will keep watching this space on how you are going to handle the case.

Earlier on the brokerage rates were very high, I used to trade in geojit at 2.5% commission back in 2010. Then they revised it to Rs75 per lot.

If you said you are continuing your family account from 90s then obviously the brokerage would be higher, you are equally responsible not to have read their terms in detail.

Motilal only charges per lot not per order.