Stocks trading is one of the most popular ways of making money, and there are a few charges that you need to pay to trade. The most predominant among these is the brokerage fee that the investor pays to facilitate trade with the broker. Brokers play a very significant role in the world of stock market trading. Even in today’s era of trading apps, you need to connect with a stockbroker to open Demat account to begin your online stock trading.
What is Brokerage?
Brokerage is the cost that a stockbroker charges you for their services. This fee is deducted from your portfolio whenever you make a trade in the stock market. It is calculated as a certain percentage of your transaction size. You can easily calculate it before placing a trade using an online brokerage calculator.
What is a Brokerage Calculator?
A brokerage calculator is an online tool provided by brokers and online platforms to help you estimate the brokerage fee that you will be charged for making a trade of a particular value. It also enables you to calculate transaction fees, duty charges, Securities Transaction Tax (STT), SEBI turnover fee, and GST levied on you for the transaction.
Benefits of Using a Brokerage Calculator
You can enjoy the following benefits while doing online stock trading if you use an online brokerage calculator.
- Free and Easy Online Tool
An online brokerage calculator is an absolutely free tool. Moreover, it is effortless to use. You need to enter values for the stock’s buy/sell price and the number of shares you intend to transact. You also need to specify the category to which the shares belong – equity, currency, or commodity and the type of delivery you want, and you get your brokerage fee calculation!
- Helps You Know All Trading Costs At Once
Apart from brokerage charges, it is also helpful in calculating other expenses involved with online stock trading like transaction charges, Securities Transaction Tax, SEBI turnover charges, Stamp Duty, and GST. When you use an brokerage calculator, you get all these estimates in a single click.
- Accurate and Instant Results
The results of an brokerage calculator are instant as well as accurate. Since the software does the calculations, there is no room for miscalculations. Moreover, you don’t have to do the calculations manually.
- Helps You Compare Different Brokerages
Another benefit of an brokerage charges calculator is that it lets you compare the brokerage fee charged by different brokers and thus helps you choose the one that best meets your budget requirements. However, it is wise to weigh the brokerage fee of different brokers and their services. Choose the one that offers the optimal solution for both the brokerage fee and the benefits.
An online brokerage calculator is a modern solution for your stock market trading problems. It helps you make an informed trading decision by telling you beforehand the charges you will incur for placing a trade in the stock market.