Tips to Choose the Lowest Brokerage Charges in India

The Indian market is complex when it comes to stock trading, let alone when one is trying to figure out, the best brokerage charges for trading in India. Every investor has an eye on his or her potential profits, and to achieve this he or she has to reduce costs related to the broker. In this blog post, we’ll be sharing with you some five tips when selecting lowest brokerage charges in India to ensure you have relatively lower rates thereby saving more of your money earned.

1.     Compare Flat Fee Structures

In choosing a broker, it is important to select one that charges a flat fee for its services. This model levies a fee based on the kind of trade regardless of the values of the trade. When used by active traders this comes about to be very cheap than for instance the percentage-based fees. Some representatives start commissions at only ₹10 per trade, this is an appealingly inexpensive rate for frequent trading.

2.     Consider Discount Brokers

In the Indian stock market, discount brokers have emerged as new movers that offer incredibly low brokerage rates when compared with full-service providers. These online platforms cover the fundamental trading services on the web with little extras as reports or recommendations. They are also able to cut cost and therefore offer more affordable fees to their customers.

3.     Evaluate Free Trading Days

There are often brokers who provide free trading days as a part of their advertising campaigns. These days let you enter and exit trades without having to spend on your brokerage firm. Though it wouldn’t be the best reason on itself, it could be quite beneficial if used properly in your trading plans. Other things being equal, seek out those brokers who offer free trading days daily or on certain specified trading volume targets.

4.     Assess Value-Added Services

Low brokerage charges should not be the one to look at when using the services of a broker since the other services provided also count. Some of them have enhanced charting features, live quotes, or tutorials for free of charge. These features can in one way or the other improve your trade experience and may help in improving your investment decisions.

5.     Check for Hidden Charges

When choosing the broker, it is advisable to carefully research any possible additional costs that the broker might charge. Since the collapse of Bears Stearns, some brokers restructured their fee method where they offer low brokerage fees but will charge you highly in other areas. Some of the charges may include account opening fees, annual maintenance charges and for other services are for example demat account facilities.

Conclusion

It is important to understand how brokerage is calculated when making a decision about who to use as a broker. Majority of the brokers in India either charge a fixed percentage or a fixed amount of fees. The percentage model covers a fixed percentage of the trade value; on the other hand, the flat fee model comes with a flat fee for each transaction.