If you are an investor (not the trader) and especially the first-timer, I am sure that you will find it tough to take
the right decision. I would suggest you to keep in mind the following most important points related with stock broking
charges if you want to open an online stock trading account.
1. Most of the brokers will charge you one-time account opening fees varying from Rs. 200-800
2. As per SEBI guidelines, a broker can charge maximum 2.5% brokerage, regradless of intra-day, delivery or F&O
3. As a retail investor, you will generally be interested in trades involving delivery, therefore look for the lowest
delivery brokerage.
4. In most of the cases, average rate for delivery brokerage is around 0.5%.
5. Although many brokers offer variable brokerage (higher the turnover, lower the brokerage rate) but to be able to
claim substantially lower rates (around 0.25%), you might have to do a trading turnover of more than one crore every
year, which I doubt if any of you must be doing.
6. In addition to the brokerage, you have to pay various statutory charges connected with stock trading and you have
to pay demat transaction charges. You may also refer my article ?Statutory Charges Payable on Equity and Derivative
Trading? and ?An overview on Demat Charges?
7. Unless and until you thoroughly understand the intricacies of various brokerage plans, limit card plans, advance
brokerage plans, brokerage rebate plans, annual subscription plans or any other plans, by whatever name they are called,
you should stay away from such fancy-sounding trading accounts. Such accounts are generally suitable only for the sub-
brokers, franchisees and HNI (high networth investors) traders.
8. Apart from lower brokerage rates, look out for the account that gives you lowest or zero fixed charges. That is,
you do not have to pay any charges or fees other than the brokerage charge as and when you carry out any trades.
9. Go for the trading account in which you do not have to commit certain fixed turnover (trading volume) every day, month or year.
New To stock market,trading and shares?
New To stock market,trading and shares?
Almost all the brokers offer free web based online trading applications but for trading through sophisticated online trading software, you may have to pay one-time or recurring license fees or subscription charges.
India Bulls has an online trading platform, known as Power India Bulls, in addition to a web-based application. I am not aware about the current practice but when I had opened my account with them sometimes in 2006, they had levied a one-time fee of Rs.1000.
HDFC Securities offers simplest web based online trading, which would suit best to the investors and casual traders. Asit Mehta (Investmentz.com) has two trading systems web based (free) and application based (with some charges or commitments). Sharekhan, Angel Broking, Religare, IL&FS (Invetsmart), and Geojit, among others, offer different types of online trading applications, chargeable and free both, depending upon the turnover, brokerage commitments and other parameters.
For instance, R Money has recently introduced Super Trade, an online software platform, for which they are charging a subscription fee of Rs.500 per quarter, though initially they had offered it free for some time. At present, R Money offers online trading through four different systems – Easy Trade, Fast Trade and Insta Trade (web based), which are free and Super Trade, which is chargeable.
Like R Money, India Infoline had initially offered free online trading platforms but subsequently, they had introduced some schemes and advance brokerage in order to be able to trade through online trading platforms. I am not aware about the latest status of India Infoline and therefore you should check out yourself.
India Bulls has an online trading platform, known as Power India Bulls, in addition to a web-based application. I am not aware about the current practice but when I had opened my account with them sometimes in 2006, they had levied a one-time fee of Rs.1000.
HDFC Securities offers simplest web based online trading, which would suit best to the investors and casual traders. Asit Mehta (Investmentz.com) has two trading systems web based (free) and application based (with some charges or commitments). Sharekhan, Angel Broking, Religare, IL&FS (Invetsmart), and Geojit, among others, offer different types of online trading applications, chargeable and free both, depending upon the turnover, brokerage commitments and other parameters.
For instance, R Money has recently introduced Super Trade, an online software platform, for which they are charging a subscription fee of Rs.500 per quarter, though initially they had offered it free for some time. At present, R Money offers online trading through four different systems – Easy Trade, Fast Trade and Insta Trade (web based), which are free and Super Trade, which is chargeable.
Like R Money, India Infoline had initially offered free online trading platforms but subsequently, they had introduced some schemes and advance brokerage in order to be able to trade through online trading platforms. I am not aware about the latest status of India Infoline and therefore you should check out yourself.
New To stock market,trading and shares?
hope the info is useful to new guys!
-
meera krishna
- Posts: 6
- Joined: Mon Mar 08, 2010 1:32 pm
New To stock market,trading and shares?
awesome info marshal..where do you get all these?thanks anyways!
here are few of my tips for new traders and why do they need to have a trading plan!
Why trading plan is is so important?
If you know how to make out the markets, you are agreeing the verity that you may be erroneous. You are starting to admit conscientiousness and liability. When you note down by which way you are going to penetrate a trade, on condition that definite procedures emerge, you eradicate any opportunity of culpability the market. In other words, if you resolute that definite optimistic cipher shows up in your market then you enter into a long position. If these aforementioned events take place, and you did not enter the trade, that breakdown is your blunder.
The apparatus of Your Trading Plan:
A trading plan has set components. Actually, there are three major components within any trading plan and they are entry, exits and money management rules:
1. Tested Entry Rules: Prior to you enter a trade these rules are an exact set of rules that an implement must overtake. These entry rules should be effortless, undeviating.
2. Off the record Money Management Rules: The ability to manage risk is possibly the most important and least addressed aspect of trading. A lucrative trader is one who has the aptitude to supervise the peril related with trading. A trading system should identify precisely how much money you are prepared to lose on any given trade.
3. Tested Exits Rules: If you do not be acquainted with when to exit a spot then your entering a share is of no benefit. To define your exit is similarly essential as one that defines your entry.
When you spend time to note down your trading rules, you renovate your psychological authenticity to a substantial reality. You cannot avoid taking responsibility or falsify the numbers. By putting pen to paper your tactic, you are forcing yourself to produce a sequence of verdict support on how you see the markets.
here are few of my tips for new traders and why do they need to have a trading plan!
Why trading plan is is so important?
If you know how to make out the markets, you are agreeing the verity that you may be erroneous. You are starting to admit conscientiousness and liability. When you note down by which way you are going to penetrate a trade, on condition that definite procedures emerge, you eradicate any opportunity of culpability the market. In other words, if you resolute that definite optimistic cipher shows up in your market then you enter into a long position. If these aforementioned events take place, and you did not enter the trade, that breakdown is your blunder.
The apparatus of Your Trading Plan:
A trading plan has set components. Actually, there are three major components within any trading plan and they are entry, exits and money management rules:
1. Tested Entry Rules: Prior to you enter a trade these rules are an exact set of rules that an implement must overtake. These entry rules should be effortless, undeviating.
2. Off the record Money Management Rules: The ability to manage risk is possibly the most important and least addressed aspect of trading. A lucrative trader is one who has the aptitude to supervise the peril related with trading. A trading system should identify precisely how much money you are prepared to lose on any given trade.
3. Tested Exits Rules: If you do not be acquainted with when to exit a spot then your entering a share is of no benefit. To define your exit is similarly essential as one that defines your entry.
When you spend time to note down your trading rules, you renovate your psychological authenticity to a substantial reality. You cannot avoid taking responsibility or falsify the numbers. By putting pen to paper your tactic, you are forcing yourself to produce a sequence of verdict support on how you see the markets.
New To stock market,trading and shares?
Caution:
pawankumar = Meera Krishna = Marshall
Meera Krishna and Marshall uses the same computer, probably they are same person.
I dont understand why they have to use this website to talk to each other.
The ip address : 69.162.130.xx
Meera, Marshall,
Do you want to explain what your intentions are ? Or silently disappear from this website ?
pawankumar = Meera Krishna = Marshall
Meera Krishna and Marshall uses the same computer, probably they are same person.
I dont understand why they have to use this website to talk to each other.
The ip address : 69.162.130.xx
Meera, Marshall,
Do you want to explain what your intentions are ? Or silently disappear from this website ?