An Intraday Trading is when you buy and sell stocks on the same day. An Intraday trading is not for investment. It is to earn profit by harnessing the movement of stock/indices.
While doing Intraday trading, you need to specify the orders as Intraday. You need to close your position before market close, else the orders will square off by RMS team.
Intra-day traders capitalize on small moves in the value of the stocks by using "leverage" or "margin", which basically means borrowing money. Day trading/intra-day trading is at the top of the risk spectrum.
The Buy and Sell of the stock should be done on the same exchange of the same trading day.
To choose which broker works best for you, you should keep following points in your mind. Like trading cost per trade, average number of trades per day, considering per trade plan or unlimited trading plans, stamp duty - depend on your state of residency brokers charge different stamp duty, your requirement on margin/exposure and of course trading terminal and reliability of the trading platform.
This is a very important point for day traders. As the Intraday trader play in volume as well as number of trades, so the best scenario for Intraday trader are with fix brokerage or flat fee brokers who charges fixed amount per transaction. In such case if you trade for 5 Lac or 1 Crore, no need to worry about the brokerage.
If a day trader knows that doing trading is your full time job and if each day you do min 20+ trades, then finding a discount broker with a fixed monthly plan is the second best choice.
We tried to put on name of few brokers that are best for day traders on cost point of view:
Second Plan is Rs 15 Per Trade, this option is also good if your number of trades are bit lower. You know your max brokerage is Rs 30 + Service Tax for both side i.e. Buy and sell.
Other Key Cost components with ProStocks are:
Other Key Cost components with Zerodha are:
Other Key Cost components with Upstox are:
Second Plan is Rs 9 Per Trade, this option is also good if your number of trades are bit lower. You know your max brokerage is Rs 18 + GST for both side i.e. Buy and sell.
Other Key Cost components with SAS Online are:
Other key cost components with Sharekhan are:
Other key cost components with Kotak Securities are:
|ProStocks||Zerodha/Upstox||SASOnline||Sharekhan||ICICI Direct||Axis Direct||Angel Broking||Kotak Securities|
|Brokerage Plan||Rs 15 Per Trade||Rs 20 Per Trade||Rs 9 Per Trade||Per Basic - .1%||Per Basic - .07%||Per Basic - .05%||Per Basic - .04%||Free-Rs 999 PA|
|SEBI Turnover Fee||15||15||15||15||15||15||15||15|
|Total Brokerage + Tax||1696.40||1708.20||1682.24||13461.00||9921.00||7561.00||6381.00||1661.28|
|Stamp Duty||50 to 200 Rs||By State||By State||By State||By State||By State||By State||By State|
As we know by virtue of margins, you can take positions much bigger than the capital available; this is called “Leverage”. Different brokers offer different leverage may be 4 times (4X) to 8 times (8X). With Cover Orders (CO) some brokers give 20 times (20X) exposure on selected scripts. All broking companies have set of rules regarding giving Intraday exposure to day traders. A reputed NSE/BSE stock broker or share trading company gives 4 times to 20 times exposure.
Intraday Exposure is beneficial for both stock broking companies as well as day traders. Stock broking companies get more brokerage and day traders can use a much lesser amount to enter into a relatively large transaction.
Intraday traders should not forget that they have to close all open positions before some time to market close. This exact timing will be decided by the broking company. It could be 03.00 pm i.e 30 minutes prior to market close @ 03:30. Some broking companies also stretch to 03:15 pm.
As you are getting extra exposure only for day trading, you can’t forward your positions for the next trading session. Intraday traders should square off their position before the decided time by your stock broker. Stock broking companies will close your position at market rate without taking any permission from Day Traders after square off timing. The exposure given by different Stock Brokers for Intraday trading
When doing day trading, choose a broker with reliable trading platform. You should have multiple options to execute your trade, should not depend on one trading platform. You should have access to trading terminal, web portal and mobile app as well as call & trade service. In case you have issue with one trading platform you can quickly switch to another trading platform.
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Last updated on 17th May 2019