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Moneylife » Investing » Investor Interest » MCX-SX says Zerodha offering Rs0 per trade on its own

MCX-SX says Zerodha offering Rs0 per trade on its own

Moneylife Digital Team | 14/02/2013 04:47 PM | 

Zerodha is offering a brokerage of Rs0 per trade till March end on MCX-SX. However, MCX-SX clarified that the broker may be offering the discount from its own pocket and the bourse has nothing to do with the offer

MCX Stock Exchange, (MCX-SX), the newest bourse, has clarified that it has not entered into any arrangement with either Zerodha or any other member for offering trading facility for free or without any charges.

 

Zerodha, which calls itself a “discount stock broker” and claims to have 15,000 trading customers, has been offering brokerage of Rs0 per trade for equity and derivatives trading on the MCX-SX till 31 March 2013.

 

In an email reply, a MCX-SX spokesperson, said, “We wish to clarify that MCX-SX has not entered into any arrangement, whatsoever, with either Zerodha or any other member. MCX-SX is giving out incentives to all members, as per the circular No. MCX-SX/MEM/973/2013 on 29 January 2013.”

 

The sibling of India's largest commodity exchange by market share, Multi-Commodity Exchange (MCX), said as per its offer, members who would register (upload) all their clients in the equity and futures and options (F&O) segments on MCX-SX before 15th February, would get an incentive based on the number of client codes uploaded.

 

Registered Clients 

Incentive Amount (Rs)

100 – 999 

10,000

1000 – 4999                

25,000

5000 – 7499 

50,000

7500 – 9999 

75,000

> 10,000 

1,00,000

           

In addition, MCX-SX is offering Rs100 per client to its members for every client who trades in both equity and F&O segments during February 2013. The Exchange has allocated Rs10 crore for disbursement under the scheme and said in case more than one lakh clients trade during the month, then the payout would adjusted on pro rata basis.

 

Coming back to Zerodha, it says that as a discount broker it offers fixed price brokerage of Rs20 per trade. It also claims that it is the first discount broker in India which launched the cheapest flat rate brokerage in August 2010. Zerodha says it offers fixed price brokerage without any monthly fees or additional charges like software usage charge.

 

In other words, if the client trades one lot of Nifty options, he would pay brokerage of Rs20 for buying and Rs20 for selling. Even if the client trades in 10 lots of Nifty options, he would pay the same brokerage of Rs20 for buying and Rs20 for selling the lots.

 

Zerodha also claims that as of August 2012, it was making an average daily turnover of Rs2,000 crore on the National Stock Exchange (NSE). Zerodha has tied up with ILFS Securities Services for providing demat services to its customers, which has its own charges for its DP services.


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1 Comment
Krupal

Krupal 1 year ago

Spreading the Speculation
Killing the Investment cult

RESULT: PRESENT MARKET SITUATION OF NO RETAIL INVESTORS IN MARKET

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