“ZERO” – a number that makes a great difference and really counts, especially when it comes to paying brokerage. Is the zero placed at the righteous and desired place in your transaction in the stock market? Are you satisfied with the brokerage amount you pay? Are you looking forward to BROKERAGE-FREE TRADING?
Get Ready To Enjoy The Zero Brokerage Experience!
What does zero brokerage mean?
With the rising interest of traders in Indian share bazaar, the concept of Zero Brokerage came into being and attracted curiosity from all investors. It is a well-planned concept where discount brokers charge no brokerage for any kind of trade.
What does ‘discount broker’ mean?
A stockbroker who carries out buying and selling of orders at a reduced commission rate is a discount broker. Unlike a full-service broker, they provide no investment advice but they just execute orders for their clients. There was a time when affording a broker was a big deal and a matter of concern only for wealthy people. But now, as technology has been very much a part of trading, it has eliminated that wealthy pinch. The Internet has brought an unforeseen shift in the whole trading scenario, empowering individuals with smaller capital to trade at a smaller fee, with a smooth pushover to access the stock market.
Does zero brokerage make a difference?
Traditional trading in stockbroker involves paying brokerage on trades. Brokerage is charged by the broker in % on the turnover value of the trade. This business model of brokers made the calculation of brokerage a major concern and a part of trading habit for the investors. Reason being, the brokerage amount paid reduced their profits from trades. Though disappointing, paying brokerage was an accepted part of the trading game until zero brokerage came into existence.
Let’s understand this with an example.
An XYZ broker is charging 2 paisa brokerage on both buying and selling on intraday equity trades.
Let us assume you place the following two trades
BUY 1000 shares of TCS equity at Rs.600.
SELL the same at Rs. 610.
In this case, the brokerage charged would be
120 + 122 = Rs. 242 brokerage charges.
Now, if the broker is offering a brokerage plan with flat Rs.20/- per executed order, in this case, your total fees for the same two executed trades is just Rs.40/-.
Many brokers even have a one-time monthly brokerage plan. In that case, you have to pay the monthly amount with no worries about turnover or number of orders placed in that month.
What are the benefits of zero brokerage?
- You don’t need to worry about the size of your trade.
- Flat monthly fee concept in zero brokerage releases you from the worry about the number of monthly trades executed.
- Zero brokerage increases the probability of profitable trades, as your break-even point is lower.
Share Bazaar is a huge market with numerous hidden opportunities. It just needs perfect timing to trade on perfect stocks to earn a profit. As an investor in share and commodity market, you must consult a share trading specialist to help you stay away from losses and gain profits. While there are many brokers providing profitable trades, they are also enjoying the benefits by taking a cut from the investor’s profits. Investors focus on the perfect timing to get pleasing returns. But they are left with mere disappointment as majority significant share of their profits have to be paid as the brokerage.
Keeping the calculation of brokerage in mind, traders are often reluctant to place trades. This leads to missing potential trades and missing the opportunity of creating profits.
Zero Brokerage Trading therefore provides a perfect plan for transparency that helps you celebrate trading and avoiding any unwanted and unpleasant charges on trades.