Guest Post: How to Save On Brokerage While Trading Online?
|Save Brokerage, Save Money|
For all those people who trust their instincts and know the stock market inside out, making money out of it is very easy. More than that, the processes of investing and of liquidating ones’ investments have become very easy ever since the facilities of online trading have been introduced. There are many advantages of stock trading online and one of the biggest is the financial benefit that you enjoy when you save a lot of money on brokerage.
If you too are concerned about the high amount of brokerage that is being charged to the customers by various share trading companies, you should take a note of the few tips discussed below that could come in handy in helping you save on brokerage on your online trades.
Using Brokerage Calculators
One common mistake that people often make is to not calculate the brokerage on their own. Essentially, most people still think that calculating brokerage is very difficult and they should hence leave it to the professionals only. But these days there are many stock brokerage calculators in India that you can use to calculate the brokerage. Use any search engine to find such brokerage calculators and you are sure to get a long list of calculators that are very easy to use. This is one great way to draw a comparison between the different rates that are levied over your trades by different brokers and then choosing the broker that saves you on brokerage.
Choosing The Right Brokerage Firm
Each and every investment that you make in the share market these days is directly under vigilance. It thus pays to not fall prey to any of the dishonest trading firms or the unscrupulous trade brokers, as they can be cheaters who can run away with your money or charge you a huge amount as brokerage or as advisory fees for stock advice. So choose a company very carefully and prefer a firm that is well known in the market for its reputation and client friendly solutions.
You can always calculate the brokerage on NSE brokerage calculators but another thing that can save you a pretty penny is to contact these brokerage firms and negotiate your deal on brokerage. Since the trading styles of every trader are different, there is always scope for the brokers to offer you deals that would be custom drafted for you. So try contacting them directly through the contact numbers listed on their website and get right into the negotiations. There are high chances that they may offer you deals that make your trading significantly pocket-friendly.
As a trader, you should ideally have certain trading strategies. These strategies would help you stick to what you want and then the rates levied on you would, of course, be uniform. So first formulate your strategy of trading and once you’re done with that, proceed with the brokerage inquiries for plans suitable to you and your strategy. This will simplify the process for you as a trader and thus keep the expense low for you.
Bypassing Additional Fees
Many brokerage firms have additional clauses in their contracts. These clauses explain the additional charges or surcharges that most of us hardly ask an explanation for. Being a sentient investor, you should know exactly how and why certain fees are charged to you. Ask for clear explanations of these fees and if you find anything to be unnecessary get it stroked off the list.
If you are someone who has a trading account online but still needs the help of your relationship manager to place the trade requests, you obviously have to pay some extra fees. But the user interfaces of most trading platforms are highly simplified these days, so using them is no longer the rocket science it used to be. So instead of paying high fees to your trading company and the additional commission to your relationship manager, why not learn to place the orders on your own and save some money?
There are different types of orders that you can place while trading in stocks and since all of these orders are different, brokerage charged for them is of course, different as well. You should always keep a check on how much you are charged as brokerage and how it is calculated. If a particular type of order is bleeding your brokerage, try finding an alternative trade to achieve the same outcome at a lower brokerage.
We hope that all the points discussed above prove to be helpful in saving on your brokerage fees while still trading smoothly.
About the Author –
Vijayalakshmi is a Consultant at Alice Blue Securities Pvt Ltd, a company that is enabling young and new traders to enter the Indian stock market. Alice Blue offers a host of services to both young and seasoned traders to trade in the stock market, commodity market and the forex market.