Features of Super 9 compared with zerodha’s 20-20:
- Rs. 9 per Executed Order: I think it is per one-leg. For both buy and sell orders it may be 9 + 9 which is Rs.18. Compare this zerodha which is Rs.40.
- Leverage: RK offers about 6 times exposure while zerodha offers almost 9 times.
- Software maintenance: Zerodha has no charges for software while RK charges Rs.99 for web version and Rs.299 for ODIN.
- Service Tax, STT: Both charge the same as its levied by Govt.
Example: We have Rs.1,000 in our account. In RK we can buy shares worth 6,000 (6 times) while in Zerodha we can buy shares worth Rs.10,000 (10 times). Suppose, a share is Rs.100, then in RK we will buy 60 shares and in Zerodha we will buy 100 shares.
If the share price increases by 10 paise which is Rs.100.10, then in RK we will make Rs.6 (60 shares x Rs.0.10) and in Zerodha we will make Rs.10. (100 shares x Rs.0.10). RK P/L will be -12 (6-18) and Zerodha P/L will be -30 (10-40) In both cases we will incur loss but RK loss is less when compared to Zerodha.
If the share price increases by 30 paise which is Rs.100.30, then in RK we will make Rs.18 (60 shares x Rs.0.30) and in Zerodha we will make Rs.30. (100 shares x Rs.0.10). RK P/L will be be 0 (18 – 18) and Zerodha P/L will be -10 (30 – 40). RK breaks even faster than Zerodha at 30 paise profit which is 0.3%.
If the share price increases by 40 paise which is Rs.100.40, then in RK we will make Rs.24 (60 shares x Rs.0.40) and in Zerodha we will make Rs. 40 (100 shares x Rs.0.40). RK P/L will be Rs.6 (24 – 18) and Zerodha P/L will be 0 (40 – 40). This means by the time zerodha breaks even, RK moves faster into making profit. In other words, at 0.4% change in share price, RK gives you profit while zerodha is still at break even.
In conclusion, Zerodha’s leverage of 10 times is not so useful. RK’s leverage and Super 9 are good.