Best Stock Market Brokerage Calculator Online in India
Before we start trading, we often feel the need to know about the fee and commission that we need to pay. There are a lot of charges that we need to pay while trading in stocks. Calculating these commissions and fee helps the investors to analyse how much money they would be investing and how much return they would get on their investment.
Calculating the brokerage charged by the brokers along with different types of taxes might prove to be quite confusing specifically for the beginners who are just starting to invest their money in the stock market.
Further, there’re different types of taxes and charges which are levied by the stock brokers at various stages of stock trading. Mostly, the sales executives of the stock brokers do not mention explicitly about these charges and fees. Because of this gap, the investors are often left with a lot of surprises when they see the cuts done by the stock broker. These cuts take away the profits from the investors.
For simplifying this particular process, and to leave no room for confusion, stock market brokerage calculator has been introduced. While developing this calculator, the makers kept different types of charges and fee into consideration. Thus, all the charges and fees are calculated as well as displayed for making it very convenient for the investors to take the decision of choosing a stock broker for their investment purposes.
Different types of brokerages and charges include:
- Security and transaction tax which is also known as STT
- Transaction charges
- Stamp duty
- GST or Goods and Services Tax
- SEBI fee
You just have to enter some field value and the brokerage algorithm calculator would perform all calculations quickly and give you all values. These fields comprise of:
- Buying price
- Selling price
- Number of shares
- Your state for calculating the stamp duty
- Lot size in case of options trading
Also, the best online brokerage calculator would also help you in calculating the brokerage fee and the other charges across various segments of trading, i.e.
- Equity Intraday
- Equity delivery
- Derivatives (Options and futures)
Now, as you have the understanding of how and why you should use a brokerage calculator, you may go ahead and use the brokerage calculator online in India on the basis of your personal preferences that you may have for a stock broker. These brokers can be segregated into discount brokers and full service brokers so that it is easy for you to select a broker on the basis of your requirement.
Different types of Demat account charges
Apart from the brokerage charges, there are different types of fee which are usually levied by stock brokers:
- Account opening fee
For beginning your trade journey, you need to first open a Demat account for which you need to pay some specific charges for opening the account. This could vary from Rs.0 to Rs. 1200 on the basis of the stock broker.
2. Demat Annual maintenance charges
Once your Demat account has been opened, most of the brokers charge a particular maintenance fee which is charged on yearly basis. This might vary from Rs. 0 to Rs. 1000 on the basis of the stock broker. These charges are levied for maintaining different admin work related to the Demat account. For performing different operations in backend, the stock broker charges AMC.
3. Trading account opening charges
Just like the charges for opening a Demat account, most of the stock brokers charge a few for opening the trading account also. This might vary from Rs. 0 to Rs. 1500 on the basis of the broker.
4. Transaction charges
SEBI also charges a particular percentage on every trading that is one in the stocks market. Even though, it’s a small percentage but in all it becomes a big number looking at daily turnover of the market across all the stock brokers.
5. Trade platform usage charges
Even though most of the trade platforms that you employ are free of cost, some of the stock brokers also take a license of 3rd party software like NEST and other develop top notch apps by themselves. For using this software, the brokers charge a fixed amount regularly from the investors.
Different types of stock brokers
Bank based stock brokers
The bank based stock brokers charge a very high fee. Whether it is the maintenance fee, account opening charges or the brokerage fee, any bank based stock broker would basically be the one with highest rate.
In return of this fee, these stock brokers offer a sense of trust, efficient customer service and various trading products even though most of the bank based brokers don’t permit commodity trading.
Full service stock brokers
Just like bank-based stock brokers, the full services stock brokers also come in the high charges bracket. However, it even depends on the trading capital and the overall turnover of the stock market. With high initial capital, you get the opportunity to get relatively low brokerage rate even though the maintenance charges and the account opening charges are quite high.
Also, the full service stock broker is the mainstream stock broking firm which offers a wide range of services including strong customer support, free of cost research, high performance trading platform, recommendations as well as tips for going along with the multiple segments of trading.
Discount stock brokers
As the term suggests, the discount stock brokers provide stock trading services at cheap brokerage rates across different trading segments. Some of the brokerage houses even offer brokerage rate of Rs. 9 or Rs. 10, while rest of them charge maximum of Rs. 20 irrespective of the trading value. In simple words, whether you are trading for Rs. 10,000 or Rs. 1 cr, your brokerage would be within the range of Rs. 9 to Rs. 10.
Apart from a low brokerage, the discount stock broker even offer a low cost of opening as well as maintenance fee, a decent platform for performing trading, multiple investing and trading products, reasonable exposure, etc.