There is no need to jump up from your
seats as I tell you about the zero brokerage model. It is not that you will be
spared from paying the brokerage to your broker but yes, if you prefer to
choose a zero brokerage trading plan, you are sure to pay a brokerage which is
very low or almost negligible when you compare it with other brokers or your
trading value. Let me tell you how it works. Usually brokers charge their
brokerage based on your trading value or number of trading transaction that you do. However, if you select the zero
brokerage model, you are charged a flat fee per month. So, you are free
to trade as many times as you want but pay only a certain limited amount for
the same. Similarly, there are some brokers who don’t charge anything up till
certain trading lot or certain time period.
Thus, the brokerage is this case is
actually zero for some time or trading value. There are quite a number of
brokerage houses that have started offering zero brokerage trading plans to clients. Different brokers provide
different benefits under their zero
brokerage plan. For example, there are some who do not even charge a single
paisa for a certain time period, say a month. Clients are free to do unlimited
online trading across cash and derivative segments for one month. That means
even if clients trade 1 lot, 10 lots or 100 lots, such do not take a penny. Here,
zero brokerage applies to NSE Cash,
NSE Futures, NSE Options and as clients continue after that time period, then
they are charged accordingly. One of the advantages of a zero brokerage plan is that clients save on the government taxes
like service tax applied to brokerage. Opt for it once and see if it suits you.
