A Broad Overview on the Brokerage Charges of Online Stock Trading

Apart from the ease and convenience of trading,Futures and Options are the most popular derivative
online stock trading offers numerous benefits such astransactions in stock trading. The rates for trading in
access to real time financial information, live streamingFutures vary from 0.02% to 0.10% depending upon
quotes, live charts, technical analysis tools, multiplethe volume of transactions, higher the turnover,
market watch windows, and fully integrated Backlower the rates. Some brokers charge brokerage on
Office. In India, all the major stock trading brokersboth the legs buy and sell whereas some charge
offer online trading in stocks and derivative. HDFCbrokerage only on one leg if you square off the
Securities, ICICI Direct, Kotak Securities, Religareposition on the same day. When it comes to Options
Securities, Asit C Mehta Investmentz.com, India Bulls,Trading, most of the brokers charge a flat fee in the
Geojit, Angel Broking, Motilal Oswal Securities, Indiarange of Rs.50 to Rs.100 per lot per leg, that is, on
Infoline and Reliance Money are few of the big andeach side buy and sell.
reputed names on the realm of Online Stock Trading.4. What are the Charges other than Brokerage?
Here is a broad overview on the prevailing brokerageMinimum Brokerage (usually a flat fee per trade or
rates in India.per share), account opening charges, demat charges,
1. Brokerage Rates for Delivery Tradessoftware license fees, (one-time or recurring), and
If you buy a stock with a view to hold on to it forStatutory Charges such as STT (Securities
short to long term, the transaction is referred to asTransaction Tax), Service Tax and Education Cess,
Delivery Trade. Brokerage rates for Delivery TradesExchange Transaction Charges, Stamp Duty and SEBI
vary from 0.10% to 0.60% depending upon theTurnover Tax
volume of transactions, higher the turnover, lowerIn the End:
the rates.In most of the cases, brokerage rates are negotiable
2. Brokerage Rates for Margin Trades or Day Tradingand therefore, you should check out with the
When you buy a stock for day trading, that is,brokers to find out the exact structure of brokerage
square off the position on the same day, therates. Nowadays, many brokers offer advance
transaction is charged brokerage at much lower ratesbrokerage schemes, limit card schemes, or fixed
than delivery trades. The rates for Day-Trading orsubscription plans. However, unless you are an
Intra-Day Trading vary from 0.02% to 0.10%aggressive trader, you will end up paying substantial
depending upon the volume of transactions, highercharges by way of monthly commitment or
the turnover, lower the rates. Some brokers chargesubscription fees instead of saving the money on
brokerage on both the legs buy and sell whereasbrokerage charges. Most of such schemes are
some charge brokerage only on one leg.nothing but marketing gimmicks to attract the clients.
3. Brokerage Rates for Futures and Options