This isn’t a question about why we have 20 rupees brokerage or such high brokerage.
I am placing an order, if that order executes I pay ₹20 per order to broker. If I cancel, or the order gets rejected, the brokerage is not charged while the broker system is consumed for such resources. Why is that?
Also, just an open discussion, in intraday why both transaction sides, BUY and SELL brokerage is required? If someone is buying(or selling) they have to exit right, so why double charge? I know it’s industry standard but this is nonsense.
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Could be to divide the charges by halve between buyer and seller. But 40/- per trade is so so high.
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Actually, a lot of resources are used after the trade too. Settlement of funds and shares is also there, which is only when orders are executed.
To maintain uniformity. Having different fees for buy/sell would be confusing. What if you are shorting first. Fees on sell or buy?
Also, you can be locked in a circuit intraday. I think it’s converted to delivery then, or goes to auction
I think it would be better , If Exchange itself do the job of executing the orders without Brokers
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You have a valid point. A contract needs to be charged only once. The person who buys has to sell, so the brokerage should be there only for sell side.
Try convincing the Govt. first to abandon the duties, transaction charges etc on the buy orders.
its just 20 rupees. stop complaining.
That’s not that huge, they too need money to offer us the best class service.
Let me tell you an incident. Almost a year back I invested in a startup and when I redeemed it the platform charged another 2% plus gst making a total cost 4% plus gst that too on the turnover (buy+sell). Also they charge the same rate from the other party as well. Imagine how costly it became.
In stocks whether you invest 1 lakh or 1 crore you pay only 20 in brokerage which is penny in front of the capital invested.
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This will happen , even if it is just 20 rupees