What does zero brokerage mean? We are seldom confused with what zero brokerage means. Zero Brokerage is a plan where a broker does not charge a single dime for any kind of trade. This concept was introduced with the thought of rising the number of traders in the Indian share market. Be aware of brokers who claim to offer zero brokerage but charge you for it.
Here is a small example to further help you understand the concept of zero brokerage plan:
If you choose a zero-brokerage plan, you will not be paying any fee to the brokers and you would not have to worry about the turnover or how many orders you place in that month. But if you choose a normal brokerage plan you would have to pay more based on the number of orders you place and many more conditions. You will also be paying a fixed sum as brokerage, for example, if you make a profit of INR 970, you would be paying INR 193 as brokerage fees. Who wants to trade and give away their profits to brokers? Many of the in best share broker in India have started introducing the concept of zero brokerage.
Now, let’s take a look at the advantages of the zero-brokerage concept:
1. In this concept, you will not have to worry about the volume of your trade. You will not be restricted to the size of your trade or to the number of times you have to trade. You will be allowed to trade as many times as you want and the quantity is left to you.
2. you are not restricted to stick to the number of times you trade. As normal brokers usually do, they charge you a specific amount when you choose to trade ten times. But in the zero-brokerage concept, you will be not be giving away any part of your profit. Sounds amazing?
3. Your break-even point is lower which means the profitability of your trade increases. When you reduce your break-even point, the chances of your trade being profitable also increases.
These being the benefits, let us see the additional features of this concept:
1. There is no limited time period. You can avail of this benefit for an unlimited period.
2. This concept also offers lifetime validity with no restrictions on trade.
3. A no strings attached concept. You will not have to be worried about any small conditions that will stab you in the back in the future.
To sum up
With these benefits and features, the number of traders in India is increasing on a large scale. Without the fear of paying lump-sums to your brokers, the traders are benefiting more and also grabbing more profits. Restrictions are what hindered the traders of India to step forward. But, with a no restriction scheme, an increasing number of traders are coming forward and this concept Is gaining popularity every day. Investors have a bright future ahead.
