Posted on 7th Jun 2018
When it comes to trading, the brokerage amount is a significant component in the list of expenses that an active trader has and when brokerage is calculated on percentage of trades, it turns out to be even more considerable. Free trading is not a myth anymore. With growing competition in Indian brokerage industry, few brokers have reduced their brokerage to zero on equity delivery trading.
After the stunning success of Robinhood with its free delivery mobile trading app in US, some discount brokers in India also started zero brokerage trading in delivery segment. Discount broker like Zerodha and Upstox lets you buy and sell individual stocks in cash segment at Rs 0 per trade. The idea behind it is to introduce beginners to trade in stock market with free equity delivery trades and as they become used to with trading, they will more likely to do intraday and derivative trading which is not free.
As per market analysis, very few investors invest money in delivery trading, it’s great marketing strategy to provide free brokerage in one segment.
Second form of free brokerage trading is monthly or yearly plans – brokers like Prostocks, SAS Online is providing Equity delivery and equity derivative monthly plan in just Rs 899/999 per month. This plan is almost like free trading for active investor who performs daily high volume trade in equity segment.
If you are active trader and perform average 40 to 60 trades per day and if you pay Rs 20 per trade, it sum up to Rs 800 to 1200 per day as brokerage charges. In such case broker like Prostocks is providing free trade or almost like free trade after paying monthly fee of Rs 899.
Rs 899 or Rs 499 are recovered by levying brokerage in contract note @ 2.5% as and when trades are done by the client in any particular month after that they charge .01 Rs (1 Paisa per trade) as brokerage which is kind of free trading.
Finvasia Brokerage: Zero Brokerage in all segments. Yes, Free trading in all segments - Equity Cash, Delivery, F&O, Currency and Commodities.
Finvasia Call and Trade: Free Call&Trade facility with Finvasia.
Few Trading tools are chargable like OMNESYS NEST. Inhouse trading tools are free like Scalpert.
Zerodha - A discount broker is the one who came with unique idea to start free share trading in India financial market. Zerodha is giving best deal for long term investors who just want to invest and hold stocks in portfolio.
Upstox - A discount broker, is following Zerodha and start offering free share trading in India financial market.For long term investors or casual traders who just want to invest and hold stocks in portfolio, free equity delivery trading is what they are looking for. In case you are professional trader or active trader, still max Rs 20 per trade is also very low brokerage share trading with compare to % base share trading.
TradePlusOnline - A discount broker, is giving competiton to Zerodha, Upstox, Finvasia & Fyers with offering free delivery trading in India financial market. The company also offer attractive Monthly plans for active traders and have strong hold in NRI segment.
Fyers - A discount broker, is following Zerodha & Upstox path and started offering free delivery trading. Max Rs 20 for other segment make Fyers in competation with major discount brokers, In built trading terminal is one of the key positive ad-on with Fyers.
SAS Online - A discount broker, providing monthly unlimited trading plan @999 Rs PM for active traders or professional trader.SAS Online offer Zero % brokerage which mean you need to pay a fixed price per executed order or a fixed monthly price to carry out unlimited number of trades.
Prostocks - A discount broker, is not providing directly free trading but for active traders or professional trader providing monthly plan which is almost like free trading after few trading session. Yes, Prostocks is providing monthly unlimited trading plan for 899 in equity cash and derivatives, for frequent trader after 20 trades compare to Zerodha, Upstocks client enjoy free trading for full calendar month.
As per financial experts, broker’s revenue mostly comes from intraday and derivative traders. Brokers do not generate huge income from delivery trading. Delivery based trading is very less, also to invest in delivery trading, investor need to pay 100% amount in cash. Brokers who are providing zero brokerage trading, main source of income for them is interest on your money which is left unused in your account, as well as some brokers also do prop trading from the fund which is left out in their account.
Answer to this question is yes, brokers like Zerodha, Upstox, ProStocks,SAS Online are 100% reliable brokers. They are regulated by SEBI and are registered members of NSE, BSE, MCX.
There are no hidden charges in brokerage for Zerodha, Upstox, Prostocks, SAS Online. Other charges like transaction charges, STT, SEBI turnover fees, GST, stamp duty, demat charges are extra from brokerage and you need to pay as per broker’s policy. There are no other charges charged by broker like minimum brokerage or any hidden charges.