When investing in the Indian stock market, it’s smart to keep an eye on brokerage charges. As a wise investor, prioritising the lowest brokerage charges is essential, as they directly influence your returns. Choosing the right lowest brokerage charges app is key.
In this article, we will discuss the key factors to consider when selecting the lowest brokerage charges demat account in India.
- What are Brokerage Charges?
- How are Brokerage Charges Calculated in India?
- Importance of Lowest Brokerage Charges
- Factors to Consider While Choosing Lowest Brokerage Charges App
- Overview of Shoonya| Lowest Brokerage Charges App in India
- Benefits of Choosing Shoonya| Lowest Brokerage Charges Demat Account in India
- Why Should You Choose Shoonya?
- FAQs| Lowest Brokerage Charges in India for Trading App
What are Brokerage Charges?
Brokerage charges are fees that you pay to a broker to facilitate your trades in the stock market.
When you want to buy or sell stocks (which represent ownership in a company), you usually do it through a broker. This broker acts as a middleman between you and the stock exchange. They help you place your orders and execute them.
For this service, brokers charge a fee called brokerage. It’s typically a percentage of the total value of your trade.
So, if you’re buying or selling stocks worth Rs. 10,000 and the brokerage fee is 0.1%, you’d pay Rs. 10 as brokerage.
Now, in real estate, brokerage charges work similarly but are applied when you’re buying or selling property.
For example, if you sell a property for Rs. 50 lakhs, and the broker’s commission is 2%; you’d pay them Rs. 1 lakh as brokerage.
In both cases, the lowest brokerage charge is indeed favourable.
How are Brokerage Charges Calculated in India?
Brokerage fees in India are typically calculated based on the volume or value of the trade. However, brokerage rates can vary among brokerage firms.
The two most common ways of calculating brokerage charges include:
- Percentage-based Fee: Brokers charge a percentage of the trade value.
For example, some platforms offer very low rates, like 0.01%, which almost feels like having no brokerage costs at all.
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- Flat Fee Per Trade: Alternatively, some brokers charge a flat fee per trade, usually ranging from Rs. 15 to Rs. 20.
This flat fee structure is great for those seeking to minimise brokerage costs.
What is the maximum brokerage charge that a broker can charge in India?
As per SEBI guidelines:
- Capital Market Segment: Brokers can charge a maximum of 2.5% of the contract price for trades in the capital market segment, excluding any statutory fees.
If the value of a share is Rs.10 or less, the maximum brokerage per share is capped at 25 paise.
- Futures Contracts: For trades executed on the stock exchange in the futures segment, brokers can charge a maximum of 2.5% of the contract value, excluding statutory levies.
- Option Contracts: Brokers charge brokerage on option contracts based on the premium amount at which the contract was bought or sold, not the strike price.
The brokerage on options cannot exceed 2.5% of the premium amount or Rs.100 per lot, whichever is higher.
- Derivatives Segment: Brokers can only charge brokerage for trades executed on the stock exchange in the derivatives segment.
They cannot levy brokerage on the expiry, exercise, or assignment of contracts.
Different Components of Brokerage Fees and Charges
Brokerage charges and fees comprise of these:
a. Securities Transaction Tax (STT): A tax levied on the purchase and sale of securities in India.
b. SEBI Turnover Fees: Fees imposed by the Securities and Exchange Board of India (SEBI) on the turnover generated by stock market transactions.
c. GST: Goods and Services Tax applicable to brokerage services.
d. Intraday/Delivery Trading Charges: Distinct charges based on the type of trade.
E. Points to Breakeven and Total Cost for Every Trade: These calculations are essential for traders to assess the profitability of their trades.
Importance of Lowest Brokerage Charges
If you choose the lowest brokerage charges in India for trading app, you benefit from the following:
- Lower brokerage charge helps retain more profits.
- High brokerage fees can quickly accumulate for frequent traders or those dealing in large volumes, reducing overall returns.
The lowest possible charges can significantly affect long-term financial outcomes. - The lowest brokerage charges allow investors to explore various strategies, including frequent buying and selling, without worrying about high transaction costs.
Factors to Consider While Choosing Lowest Brokerage Charges App
By prioritising the quest for the lowest brokerage charges, traders can optimise their trading strategies, minimise costs, and ultimately enhance their overall profitability in the stock market.
Here is a checklist that will help you choose the best trading app with low brokerage:
- The Brokerage Fee Structure varies. The flat fees suit large-volume trades, while a percentage model might be economical for others.
- You must keep an eye on additional costs. This includes annual maintenance charges (AMC) and transaction fees, which can significantly impact overall expenses.
- Consider the range of Services Offered. The discount brokers offer lower fees but limited services. On the other hand, full-service brokers provide comprehensive support at higher costs.
- Efficient customer support is vital for resolving queries and providing prompt assistance.
- Integration with Bank and Demat Accounts facilitates convenience and faster transactions.
Why does Shoonya stand out among the lowest brokerage charges apps in India?
Shoonya is an online trading platform that offers zero brokerage on mutual funds, IPOs, bonds, etc.
You can invest in all the segments across all four major stock exchanges in India.
It stands out due to:
- Commission free investing
- Zero demat accounts, zero AMC charges, and much more!
Let us walk you through these unique features.
Overview of Shoonya| Lowest Brokerage Charges App in India
Shoonya is popular for its innovative approach towards the idea of the lowest brokerage charges in India for trading apps.
Here’s why!
- .Shoonya by Finvasia offers zero brokerage charges across various trading segments, including equity delivery, mutual funds, ETFs (delivery trades), bonds, and IPOs
- With Shoonya, traders can invest hassle-free with zero hidden costs.
- It offers zero account opening charges, zero annual maintenance fees, and no charges for call and trade services.
- You can use advanced trading tools such as TradingView charts, order slicing, bracket orders, basket orders, and option chains for precise trading strategies.
- Shoonya, being unique among lowest brokerage charges providers in India, is accessible on desktop, web, and mobile devices (Android and iOS).
- The platform offers a various investment products and services. This includes equities, commodities, currencies, futures, options, mutual funds, IPOs, bonds, and ETFs.
- Along with the lowest brokerage charges, it also ensures security with advanced login features and a multi-layered security system.
Shoonya Brokerage Charges
- Zero brokerage on equity delivery
- Zero brokerage on mutual funds
- Zero brokerage on ETFs (delivery trades) and bonds
- Zero brokerage on IPOs
- Zero account opening charges
- Zero AMC (Annual Maintenance Charges)
- Zero call and trade charges
- Zero hidden charges
- Zero trading platform charges
- Zero auto-squared-off charges
- Zero volume commitment
- Zero clearing charges (NSE & BSE)
- Zero charges on APIs and Algo trading
- Zero Upfront charges
Benefits of Choosing Shoonya| Lowest Brokerage Charges Demat Account in India
Shoonya offers multiple advantages to traders:
- Enjoy zero brokerage charges across various trading segments, maximising returns without hidden costs.
- Experience hassle-free investing with no account opening charges or annual maintenance fees.
- Access cutting-edge features like TradingView charts, bracket orders, and option chains for precise trading strategies.
- Benefit from prompt assistance via phone, email, live chat, or ticketing system for any trading queries.
- Enjoy a free demat and trading account to make buy or sell trades across all four exchanges in India.
- AI-powered stock market predictions and signals for up to 1500 Indian scripts.
- Access to educational resources, including blogs, news, FAQs, and a YouTube channel. These help improve trading skills and knowledge.
Why Should You Choose Shoonya?
Reliability, service quality, and the tools provided are equally important for a successful investment experience.
Shoonya has won several awards, including Best Discount Broker in 2022, Entrepreneur of the Year in Trading Business at the 13th Entrepreneur Awards in 2023, and the esteemed Benzinga Global Fintech Award in 2017.
These reflect its easy and smooth investing process.
If you’re new to online trading in India, Shoonya is a great app to start with because it offers beginner-friendly resources.
FAQs| Lowest Brokerage Charges in India for Trading App
Brokerage fees are charges levied by a broker for executing transactions or providing specialised services.
Brokerage charges are calculated based on factors like transaction value, type of service, and broker’s fee structure, often using the formula: Brokerage Charge = Transaction Value × Brokerage Rate.
While most brokers charge brokerage fees, some offer zero brokerage for specific trades or services as a competitive advantage.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.