Choosing Best Trading Platform (Brokers)
Many people in this market ignore or never think about brokerage or commission they are paying to their brokers and end up paying huge commissions without realizing how it is affecting their trades, breakeven points, profits and losses. TRADING COST includes Brokerage, Security Transaction Charges (STT), Turnover charges, Stamp duty, Service tax and Education cess. However the major portion is Brokerage where you have a control to reduce by selecting a best broker based on your trading style and the other components Basically Stock or Commodity or Currency brokers are broadly two types,
1. Traditional Brokers.
2. Discount Brokers.
1. Traditional Brokers
Traditional Brokers normally have their Research division and so provides Investment and Trading recommendations along with regular Trading and Demat services. Traditional brokers charge very high brokerage, and sometimes they will slightly lower the brokerage based on the negotiation and commission you can agree to pay upfront within agreed duration. This means you have to commit a minimum brokerage for next 3, 6 or 12 months, etc. to get some reduction from their high brokerage charges.
2. Discount Brokers
Discount Brokers are the ones who provide Trading and Demat services with extremely low brokerage charges mostly a flat rate brokerage per executed order irrespective of quantity you are buying or selling. These brokers make their revenue out of volumes. Some of these discount brokerages provide these services along with very high quality services which includes cutting edge Desktop, Web and Mobile app based trading platforms and charting software, Call and Trade facility, Excellent reporting of daily contract notes and margin statements, Profit & Loss statements, ledger reports and Data Analytics for your trades or investments.
Which broker you should choose
If you are a very long term investor and normally buy the stocks once in six months, i.e. with an investment horizon of minimum 3 to 5 years, then it is okay for you to have your trading and demat account either with Traditional broker or Discount broker. However, We still recommend to choose quality discount broker as you can cut down your investment costs and get access to best charting software for free which helps you in taking a right investment decision, which in turn results in best returns on your investments.
If you are a Trader, i.e. regularly take positions (Buy or Sell trades) in Stocks, F&O, ETFs, Commodities and Currency segments with a time horizon of few months, weeks, days and Intraday then you MUST have your Trading or Demat account with Discount Broker. Otherwise you end up paying a lot of money towards trading costs which is absolutely waste, and one SHOULD avoid such wastage to maintain the edge in the trading. Also, this is all without committing to pay any upfront brokerage amount, imagine how good it is.
Please see below Commission or Brokerage comparator table which we are sure you will be convinced why you should have a Trading and/or Demat account with quality Discount broker.
Open FREE trading account with ZERODHA through us by leaving your contact details below and avail amazing SPECIAL OFFERS, which includes Free training on Technical Analysis, 2 months Premium Advisory service for FREE and lot more
Open Free Trading Account
Zero commission on stock investments. Rs.20 flat per order for F&O, Equity intraday, Commodity and Currency trades. Open FREE trading account with ZERODHA through us by leaving your contact details below and avail amazing SPECIAL OFFERS, which includes Free training on Technical Analysis, 2 months Premium Advisory service for FREE and lot more.