What is brokerage?
A Broker is a firm who arranges transactions between the parties when the deal is done.
In other words we can say that a fee of commission charged between a transaction by a broker.
But many beginners are in doubt because they don’t have knowledge about fees and more things about brokerage.
Brokerage Works in Trading and There are two type of trading:-
What is Intraday Trading?
We will understand it by taking an example,,
If a person named “Amit” buys and Sells shares in Same day is called Intraday Trading.
In Intraday brokering charge starts from .1% to .10%
WHAT IS DELIVERY BASED TRADING?
If a person Buys and sells their shares after 2 days, 1 week 2 months or 6 months is called delivery based trading.
In delivery based trading brokering charge starts from .3% to .6%
Note:- The brokering charge will be the same on the buying or selling side.
STT IN BROKERAGE
STT Stands for:- Security Transaction Tax, Before 2004 People weren’t able to declare their profit but after 2004 the government launched STT ( Security transaction tax) when you buy any share.
Intraday STT Is 0.25% and Delivery base is 1%.
In the Market there are Many Brokerage firms providing the best products and services everyday.
TYPES OF BROKERAGE Companies :-
There are three types of Brokerage Companies available in the market let’s go and know about brokerages.
Full Service Brokerage
Auto Robot Advisors
1) Full Service Brokerages
A full service brokerage company will give you an advisor which manages all things and takes the right decisions Such as:- Investment, Data, Advises 24 hours contact support and more but this option is Expensive but this is legal and right.
2) Discount brokerages
What is A Discount Broker?
A stock broker which helps you to Carries out many things at the right price.
But the discount broker will not give you any advice regarding investment but sure they will help you to get in touch in emergency situations.
But now in Online platforms companies are taking 0% Commission in trading.
3) Auto Robo Advisors
The auto robo advisors are automatic advisors and give you investment they offer Services with 0% fees and commission and the starting rate is just 5$ – 10$.
Final Words about What is Brokerage?
We suggest that if you want to do trading then it is important to learn about the taxes, commissions and fees Such as:-
SEBI TURNOVER CHARGES
Thanks for reading..