'Indian derivatives market complete scam': Shankar Sharma backs shift to US options

Ace investor Shankar Sharma has called India’s derivatives market a “complete scam,” lashing out at high trading costs that, he says, leave retail investors with nothing while brokers, exchanges, and the government “loot” the system.

Reacting to an X post by options trader Ananda Sarkar, who announced shifting major capital to U.S. markets, Sharma didn’t hold back. “I’ve said this for the longest time: US is super cheap,” he wrote. “Indian derivatives market is a complete scam by way of ultra high costs which eat away Returns massively. ONLY BROKERS, EXCHANGES & GOVERNMENT make money. Baki sab, than than gopal. Kya loota in teeno ney…”

Sarkar, an amateur options trader, had praised the Chicago Board Options Exchange (CBOE) for its liquidity, low trading costs, and access to 0DTE (zero days to expiry) options. He added that trading through Interactive Brokers from the UAE also means zero income tax.

While the Indian market has long touted accessibility via ₹20 flat-fee discount brokers, actual trading costs stack up quickly. Fees and taxes—including GST, STT/CTT, SEBI charges, and stamp duty—can significantly eat into profits, particularly for high-frequency traders. Unlike the U.S., where per-contract fees are often as low as $0.50, India’s layered costs compound, especially for those running small-margin strategies.

Critics argue that India’s derivatives market favors institutions and intermediaries. Retail traders bear all the risk while the government, brokers, and exchanges profit from every transaction—win or lose.

Sharma’s outburst underscores a growing sentiment among Indian traders and investors who feel squeezed by a system that benefits from their activity without guaranteeing them fair odds.