To trade in financial markets means buying and selling of securities. The moment you invest in shares you are purchasing a small part of the company and for profit you sell it at a higher price. Numerous brokers are there in the stock market that provides you with valuable advice on stock trading. For the services they provide the brokers are known to levy certain fees.
But of late a lot of firms have come up in the market that provides discounted brokerage. This has gone a step ahead in terms of zero brokerage. Now who is offering zero brokerage in India there are plenty of companies. Once this concept has come into existence, the business of broking is touching new milestones. This helps to increase the monthly return of the traders. A point of consideration was that even the returns were affected because of the high brokerage charges levied by the users.
The scheme
Since December 2015, the various types of investment trading undertaken with the leading brokerage houses were devoid of brokerage. The main reason for starting zero brokerage was to facilitate more people into trading. Currently in the market there are around 1 million traders that are small in a country like India where nearly 65 % of the population is below 35. This concept was drawn into attract young investors.
In order to attract more investors the need of the hour not only works out to be zero brokerage modules, but to make the entire process of trading easy and hassle free. This works out to be the right time for an investment culture to flourish.
But the prominence of zero brokerage on equity basis is provided to individual investors. All other firms including the corporate or partnership firms are required to levy the normal rate of 0.1% or Rs 20 per order which one is the lower among the two. This concept is expected to aid the investors at large to save money and gain momentum in the long run.
The features associated with zero brokerage
- The benefits of zero brokerage can be availed for an indefinite period of time
- This scheme possesses lifetime warranty with no restriction on the trade front.
- Once you avail the option of zero brokerage there is no need to be worrying about the size of your trade
- When you adopt this model the breakeven point works out to be lower. This does increase the chance of the trade to be profitable. In this manner there is no need to be worried about how large your trade size might be
By now you might be aware the power of zero brokerage. Do not hesitate to ask your broker the amount of money you are paying in the form of commission. The possibility exists that you might be considering availing a broker who provides zero brokerage. Do a systematic research before you choose one as there are various brokers in the market who are not true to their words.