Unlimited Trading Plans (Fixed Monthly Plans)

Posted on 9th Jan 2015
by TopShareBrokers.com team


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Why to choose unlimited trading plans /Fixed Monthly trading Plan?

Let me explain it with a very simple example, a real life experience. When we go to fair with kids, buying tickets for rides leaves us with 2 choices, either pay per ride or buy a fixed price ticket for unlimited rides. In the beginning, we think pay per ride is better option as we are not sure how many rides kids are going to do. So we usually choose pay per ride. As it goes, we pay per ride and kids though may not want to take all the rides but like to take their favorite rides again and again, we end up paying more as compared to fixed price ticket.

From above scenario, it is easy to understand that for those executing multiple trades across all segments or high-volume trader - who performs bulk trades or Penny stock trader executing frequent trades in penny stocks, Unlimited Trading zero brokerage plans per month is the best suit.

Why investors prefer NO brokerage/Zero brokerage/unlimited trading plan?

Investors may choose the flat rate brokerage option for many reasons:
  • It is a low risk model.
  • Budget lock - To insure against the possibility of large bills due to over consumption.
  • Due to the inconvenience associated with choosing the correct plan.
  • More flexibility to do higher-frequency trading.
  • Reduce transaction charges and has to pay no service tax on brokerage.

The fixed brokerage unlimited trading plans India are good for active investors, where they do average 20+ trading per day, in this case you will recover your money in 2 trading session and after that you will enjoy "zero brokerage unlimited trading" completely free. By using fixed brokerage unlimited trading plans investor can do more trade in small movemement of market. Other charges like STT, stamp duty, transaction charges, GST and so on still need to be paid by investor.

Which discount brokerage pricing model suits me?

The pricing model that works for one type of investor may not work for another. It is also possible that a pricing model that suits one broker may not suit another.Selecting a perfect online discount broker depends on type of trader you are- active trader, high-volume trader or penny stock trader, short term investor or long term investor.

    Active Trader

    Active traders make multiple trades throughout the day. They attempt to profit from the daily price fluctuation of a particular stock and usually don’t hold the securities for long term.

    As frequency of trade is much higher, active trader always look for low brokerage online trading account in India. Active trader prefer strong and reliable trading platform and lowest brokerage charges for online trading in India. Maximum full service and discount brokers are providing online trading platform with cutting edge technologies, so competition is coming towards lowest brokerage. Discount brokers in India are providing low brokerage trading account in two ways –

    • Flat fee brokerage
    • Zero brokerage unlimited trading plan.

    For Active trader, zero brokerage unlimited trading plan is the best, where they need to pay fix monthly brokerage and get unlimited trading after minimum monthly fee.

    Long Term Investor

    Long Term Investor invest and hold portfolio of stocks, mutual funds, bonds and other investment instruments over an extended period of time to create wealth in long run. In long term holding you need not to pay lofty short-term capital gains taxes.

    For Long Term Investor we suggest “zero brokerage trading India“ which are offered by Zerodha, Upstox where investors don’t have to pay any brokerage for equity delivery trading and invest money for long term.

Top 5 brokers by monthly plans in India

What are the best unlimited trading plans available with Indian discount share brokers?

The flat monthly fee charged by discount brokers can be either in just one segment or one flat fee to trade in all segments depending from broker to broker.

Here we are providing the details of best discount online brokers with their unlimited trading plans.
  1. ProStocks unlimited trading plans >>More
    • Rs 899 Equity Plan/PM for unlimited trading in NSE Cash, NSE F&O or BSE Cash,BSE F&O segment
    • Rs 499 Currency Plan for unlimited trading in currency derivatives(NSE/BSE)
    • Rs 8999 Equity Plan/PY for unlimited trading in NSE Cash, NSE F&O or BSE Cash,BSE F&O segment
    • Rs 4999 Currency Plan/PY for unlimited trading in currency derivatives(NSE/BSE)
    • Free 2 months unlimited trading with Yearly Plan
    • Lowest Transaction Charges with NO PCM FEE

    • Broker Ad
  2. SAS Online's unlimited trading plans >>More
    • Rs 999 Equity Plan for unlimited trading in NSE Cash, BSE Cash and NSE F & O segment
    • Rs 499 Currency Plan for unlimited trading in currency derivatives.
    • Rs 999 MCX Plan for unlimited trading in commodities
  3. Trade Smart Online unlimited trading plans >>More
    • NSE Cash, BSE Cash and NSE F&O @ Rs 3999 per month.
    • Currency @ Rs 1999 per month.
    • Commodity @ Rs 3999 per month.
  4. TradePlus unlimited trading plans >>More
    • Tradeplus offers unlimited trading plans:
    • Unlimited equity option trading @ Rs 99 per month (refundable).
    • Unlimited currency future and option trading @ Rs 99 per month (refundable)
    • Unlimited MCX commodity trading @ Rs 99 per month (refundable)
    • Unlimited Equity Future Trading @ Rs 799 per month ( refundable)
  5. R K Global unlimited trading plans >>More
    • India trades @ Rs 999 for unlimited trade in NSE/BSE cash market per month.
  6. My Value Trade's unlimited trading plans >>More
    • My Value Trade's fixed monthly Rs 1000 plan offers unlimited trading in all segments like equity, derivatives, currency, and commodity.
    • My Value Trade's have unique plan which offers YEARLY unlimited trade in equity, derivatives, currency, and commodity just for Rs 10,000.

How unlimited trading plan works?

As per SEBI guidelines, broker are allowed to charges brokerage only on trading, so brokers who are providing unlimited trading plan will not charge brokerage upfront. In unlimited trading plan, broker takes maximum brokerage allowed by SEBI which is 2.5% till he recover monthly/yearly plan money, and after that he will not charge any brokerage or 1 paisa brokerage for remaining of your trades.

Example: If on day-1 you have done trading of Rs 10,000 @ 2.5%, your brokerage will be Rs 250. If you have Rs 899 Monthly plan, broker is going to charge 250 as brokerage. Assume on day-2 you have done trading of Rs 50,000 @ 2.5% your brokerage is Rs 1250. So you are going to be charged 899-250 =Rs 649 as your brokerage. From day 3rdonwards you are going to charge .01 Rs (1 Paisa) which is negligible as your brokerage till the calendar month end.

If I am opening an account in middle of month, do I need to pay for full month or pro-date basis?

When you join unlimited trading plan in middle of month or any day of month, you need to pay max 2.5% brokerage for your initial trade till you reach the amount of your defined plan brokerage and after that 1 paisa brokerage (which is negligible) amount. There is no prorated brokerage concept in unlimited trading plans.

If I have opted unlimited trading plan and not done any trading in calendar month, do I still need to pay my trading fee?

No, as defined in previous question, broker is allowed to charge brokerage only when you do trading, so in case of any given calendar month if you have not done any trading, you don’t have to pay any brokerage.

How GST is calculated on Unlimited Trading Plan?

Client need to pay GST on brokerage. With unlimited plan, you need to pay GST on the amount you get charge as brokerage i.e. if you have Rs 899 per month plan, you need to pay GST on Rs 899. As of July-2017, you need to pay 18% GST on your brokerage.

Is there any contract and do we need to pay any early termination fee for unlimited broker plan?

With growing competition, there is no contract with any plan and no termination fee. Users can switch the plan as per their convenience. But still you have to check with the broker you choose.

Does Zerodha have unlimited trading plans?

No,Zerodha doesn't have unlimited trading plans, but zerodha support free delivery base trading.Zerodha's trading plans

Does unlimited monthly plan start and end with the calendar month?

Yes, but still you have to check with the broker you choose.

Why discount brokers offer such low fixed price plan and how they afford it?

In fixed monthly plan, brokers receive a fixed payment regardless of whether services are actually rendered. Fix pricebBrokerage revenues are predictable and timely, and thus are less risky than revenues from conventional pay per transaction methodologies that are tied to volume. Let's take a scenario of buffet restaurants where you can eat unlimited food by paying one fixed price. You can eat as much food as you can at no additional charge. Restaurant owners may be able to do so under competitive pricing pressure that leads them to cook more food at zero marginal cost of production. Thus in a flat rate context, increasing consumption decreases the per unit price. Same way discount brokers by cutting down their profit margin and minimize their transaction costs by restricting services like relationship management and offering online trading platform are able to offer services at such unbelievably low rates.

Switch to Discount brokers and Save up to 70% on your brokerage fees.....

Conclusion:

Fixed price models or unlimited trading plans allow customers to pay a fixed price for services that are agreed upon by both the parties. It should help in arriving at a price that is competitive yet profitable, flexible, simple and easy to apply. It should be representative of business realities and maximize benefits for both the parties. That's why, it is essential to do due diligence of each broker offerings before deciding on the best fit pricing model for you.

SAVE 70% ON YOUR BROKERAGE

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User Comments

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17. Kumar M  Jan 30, 2016 5:00:05 PM IST Reply
Why RKSV has stopped there unlimited trading plans?
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17.1. Rajan  Feb 20, 2016 7:54:22 AM IST
This is because of competition with Zerodha, They are following Zerodha in Plans.But other brokers are still offering Monthly Plans Like SAS Online.
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17.2. Mohd Zain  Feb 24, 2016 8:31:08 AM IST
SAS offering unlimited plan
Plan 1: Unlimited trading @ Rs.999 per month NSE / F&O / BSE / MCX
Plan 2: Unlimited Trading @ Rs.499 per month in “ CURRENCY ”
Plan 3: Trade @ Rs.9/- Per Order or (0.01% for intraday or 0.1% for delivery whichever is lower it means brokerage will not charge more than Rs.9/- Per Order maximum brokerage will charge Rs.9/- Per Order or less.)

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16. Vijay Balan  Feb 20, 2016 7:56:50 AM IST Reply
Whats TradePlus hidden charges as no broker can provide rs 99 PM plans?
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15. Balaji  Mar 28, 2016 7:21:45 AM IST Reply
Which one is the best brokers to go ahead with Unlimited trading plan? Till now i was only using ICICIDirect and they have only % base plan. Please guide me.
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15.3. Anupam  Mar 28, 2016 3:08:16 PM IST
SAS Online is doing great in unlimited trading plans segment. They are providing good service and great user experience.
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14. Sandeep B  Dec 13, 2016 6:26:09 AM IST Reply
ProStocks is providing unlimited trading in Rs 899 with lowest transaction charges. Is it reliable broker?
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13. AJAY SURENDRA JHA  Jan 14, 2017 11:56:39 PM IST Reply
In unlimited trading plans how the service tax is calculated.
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13.4. TSB Team  Jan 15, 2017 1:24:44 AM IST
Client need to pay service tax on his brokerage, so in case of unlimited plan you need to pay service tax on the amount you get charge on brokerage. I.e if you have 899 Rs per month plan, you need to pay service tax on 899 Rs. As of Jan-2017 you need to pat 15% Service Tax on your brokerage.
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13.5. ProStocks Team  Jan 15, 2017 1:37:04 AM IST
ProStocks is most reliable brokers, you can visit prostocks com for more details.

Company is registered with SEBI,NSE,BSE and CDSL
No PropTrading
Lowest transaction charges compare to all discount brokers - Review ProStocks Comparison page
Review brokerage calculator for more details about the individual charges, including Stamp Duty.

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12. bhasker jee  Feb 23, 2017 6:36:10 PM IST Reply
everytime we have to pay service tax on monthly plan....like if i do 20 times trade in a day so 20 times i have to pay 15% service tax on 899??????bcz if it is then its too much.....please clear this ......
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12.6. TSB team  Feb 23, 2017 7:06:45 PM IST
No, Service tax for Rs 899 is going to be one time. You need to pay service tax on other charges.
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11. Namrata  May 2, 2017 9:13:44 AM IST Reply
"From day 3rdonwards you are going to 1 Paisa) which is negligible as your brokerage till the calendar month end."

From your example, it is not clear 1 paisa will changed (per order/per trade/per 100 rs turnover)???
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10. Sudheer  May 2, 2017 3:36:06 PM IST Reply
Which of these offers maximum margin amount for intraday trading.?
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9. prateek  May 19, 2017 2:18:05 AM IST Reply
i am newbie in market currently am zerodha customer bt i want unlimited trading pack just becaof frequency of trades. so suggest me which one is best bt i compare brokarage calculator of zerodha and prostocks unlimited intraday and i just 2rs on the name of unlimited trade. and in my contract note i see 2.44 for stamp in zerodha and 12.19 in prostock
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8. venkatesh  May 27, 2017 3:56:14 PM IST Reply
Hi, Those who do day trading with more orders daily, it is best to go with unlimited Trading plan and do not go with per trader of Rs 20 or 15 becasuppose you have done 40 buy + 40 sell and total 80 trades in a day, then the brokarage per trader charge) = 1600 that is in a day and if you have done a Turnover on that day of suppose of 1 crore then the STT/NSE charges are 1800 Rs, so total has become 1800+1600=3400 Rs in a day, which is huge, so better go for unlimited plan and your money. Eventhough for us only 20 RS but when we do more orders it is RS 1600 per day, so better switch to 899/999 plan per month is better.
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7. Sumit  Aug 6, 2017 8:42:26 AM IST Reply
Tradeplus is good or not

Guaranteed Save 60% to 90% Brokerage + Taxes

ProStocks, The Flat Rate Discount Stock Broker

Fix Price - Rs 15 Per Trade


Rs 899/Month,8999/Year for
Equity Cash and F&O

Rs 499/Month,4999/Year for
Currency Derivatives

Lowest Transaction Charge
Lowest Call & Trade Fee
Lowest Stamp Duty

Get FREE Trading + Demat Acct

Zerodha  Zerodha

Free Delivery trading

Max Rs 20 Per Trade for F&O

zerodha

Sharekhan

Beginner, seasoned investor, active trader or HNI. Get customised solutions.

Rs 0 account opening fee on Online Trading and a Demat Account
(Rs 1150 waived)

sharekhan

angel-broking  Angel Broking

Free Equity Delivery Trades
Flat 20% discount on online transaction

angel-broking



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