Zero brokerage features and benefits

Trading in financial markets stands for buying and selling of shares. When you buy shares, you purchase a small part of a company and sell at higher prices for profit. There are brokers in the stock market who help in trading and give advice for profitable trading. The brokers charge a particular brokerage for the services they provide.

However, there are many firms in the market which have come up with the revolutionary scheme of discounted brokerage. And the revolution has now been taken ahead to Zero brokerage trading.

There are a few companies in the market that offer zero brokerage also. With zero brokerage coming into the picture, the broking business is reaching new milestones. It can efficiently help in increasing the monthly returns of the traders. Earlier, the returns used to get affected significantly, because of high brokerage charged by brokers.

The scheme:

From December 2015, all types of investments with some leading broking houses became brokerage free. The zero brokerage was started by these companies as an initiative to encourage more trading in India. Presently the market has limited depth with only 1 million investors, which is quite small in a country like India where as much as 65% of the population is below the age of 35. The initiative is supposed to attract the young investors.

To attract more investors, it is the need of the hour not only to introduce zero brokerage schemes but also make the entire experience of trading hassle-free and user-friendly. It is the right time for the investment culture to flourish.

However, the zero brokerage schemes on the trade of equity are confined only to individual investors. The corporate firms, Partnerships firms and others are supposed to pay the usual rate of 0.1% or Rs. 20/order, the lower of the two.

The zero brokerage plans are expected to aid the investors at large in saving their money and gain maximum possible returns.

Features of ZERO Brokerage:

- One can avail benefits of zero brokerage for unlimited period

- The scheme has lifetime validity with no confinement on trade

- There are no strings attached to the plan like appropriate quantity of trade or the capital amount.

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If a trader has a turnover of 20 lakhs/year on delivery based trade at the brokerage rate of 25 paise, the amount sums up to Rs. 25000. With zero brokerage, the sum will be reduced to 0.00, which will help in earning an increased return of 2%/ month.