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Unlimited brokerage plan in India Stock Market (Monthly Trading Plan)

Posted on Saturday, July 12, 2014

Modified on Saturday, October 1, 2016

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Unlimited Trades & Unlimited Volumes (Fixed Monthly Fee Model)

'Online stock trading' has changed the trading experience at India Stock Markets for forever. It made trading convenient, fast, inexpensive and reduced the faulty trade orders placed by brokers on phone.

The revolution made by online share trading was capitalized by almost all brokers to reduce the cost of trading. But almost none of these brokers passed the profits to the customers.

In year 2010-11; few young entrepreneurs decided to challenge the traditional brokers by offering discount brokerage plans to customer interned to reduce the brokerage bills from 60% to 80%.

Concept of 'unlimited brokerage plan' was an innovative plan came from discount brokers and become very popular in last couple of years.

What is Unlimited Brokerage Plan (fixed monthly brokerage)?

It's a brokerage plan (for trading in segments like equity, commodity and currency derivatives); where broker charges fixed monthly for unlimited trading, literally unlimited by volume or size of trade in a month.

The flat monthly fee is charged per segment. This mean you pay a flat fee of Rs 2000 (example) for unlimited trading at equity segment (including equity cash, delivery, future & options) or Rs 1000(example) for unlimited currency derivative trading.

The monthly brokerage charged per month depends on broker to broker.

Unlimited trading plan; who is it suitable for?

  • Active traders executing multiple trades across segments including equity, commodity and currency.
  • High-volume traders; who performing volume trades manually or through algorithms.
  • Penny stock traders executing frequent trades in penny stocks.

The easiest way to find out if unlimited trading plans are suitable to you is looking at your trading history and your future trading plans. Check the monthly fees below and see if you are paying more than this. If your answer is 'yes' then it make lot of sense to move to discount broker for unlimited trading plans.

List of brokers offering unlimited brokerage plan:

 

Broker Plan / Schemes Segment Exchange Monthly Fee Catch
ProStocks Monthly Plan Equities & Derivatives BSE, NSE Rs 899  
  Monthly Plan Currency Derivatives BSE, NSE Rs 499  
  Yearly Plan Equities & Derivatives BSE, NSE Rs 8999  
  Yearly Plan Currency Derivatives BSE, NSE Rs 4999  
SAS Online Equity Plan Equities & Derivatives BSE,NSE Rs 999  
  Commodity Plan Commodity MCX Rs 999  
  Currency Plan Currency Derivatives NSE Rs 499 NSE Only
Trade Smart Online Infinity Plan Equities & Derivatives BSE, NSE Rs 3999  
  Infinity Plan Commodity MCX Rs 3999  
  Infinity Plan Currency Derivatives NSE Rs 1999  

 

Does an unlimited plan really offer unlimited trading?

Yes, these plan offers literally unlimited trades in given segments and month. You just don't have to worry about number of trades or size of trades as they offer unlimited trades and unlimited volumes for the fixed monthly fee.

With fixed monthly fee model you don't have to worry about how many trades you place during a particular month. Also you never need to worry about how large or small your trade size is.

Does unlimited trading plan comes with lot of hidden charges?

This is partially true and that's the reason it's important to choose the right broker. With ProStocks unlimited trading plans; except taxes; you don't have to pay any other charges.

Even though I am not planning to trade this month; do I still have to pay the monthly fee?

Once again it depends on broker to broker. Discount broker like ProStocks doesn't charge the monthly fee if you don't make any trade in the given calendar month; even though you are register to unlimited trading plan.

How taxes are calculated on my brokerage account when I use unlimited monthly plan?

The biggest saving with these plans is the saving on taxes. The service tax and other taxes are only charged on the monthly fees you pay (i.e. service tax only on monthly fee i.e. on Rs 899)).

For example:

ProStocks charges flat monthly fee + 15% service tax. If you take Monthly Equity Plan for unlimited Equities & Derivatives Trading; the cost of plan is Rs 899 and additionally Rs 134.85 is charged as tax on fixed brokerage.

 

Benefits of flat fee brokerage plan (monthly brokerage plans)

Some of the benefits discount brokers offering through monthly flat fee brokerage plans in India are listed as below. Please note that these features may vary by broker to broker.

  • No brokerage charge on trade. Broker only charges flat monthly fee for unlimited trades.
  • No service tax on brokerage. Service tax of around 15% is charged only on monthly fee paid by customer (i.e. on Rs 899 for ProStocks unlimited brokerage plan for equity trading)
  • No software uses charges (Free trading terminals / Free online web-based trading / Free mobile trading software )
  • Zero annual maintenance fee for trading account.
  • No minimum balance required
  • No commitment for turnover
  • Some brokers have features like monthly fee is refunded if you do not trade in particular month.
  • Facility to move to flat 'per trade' fee plans in the beginning of the month. i.e. if you have a 'monthly plan' with ProStocks for Rs 899 unlimited equity trading and next month you think you may not do lot trading; you can move to Rs 15 per trade plan.

 

Challenges with discount brokers

  • Like traditional brokers; you still have to pay account opening fee and annual maintenance fee for "demat account". The brokerage account annual maintenance fee is free with almost all discount brokers.
  • One time account opening charges are applicable. The charges vary from Rs 250 to Rs 750.
  • Margins or exposures are not as high as neighborhood traditional broker.
  • Call & trade and physical copy of contract note cost extra.

Why all brokers do not offer unlimited trading?

Each broker is different in terms of offering and pricing plans. Here is some detail about popular brokers:

  • RKSV Unlimited Plan was discontinued in year 2015. They do not offer RKSV Monthly Trading anymore. RKSV's new brand also do not offer UpStox Flat Rate Trading Plans.
  • Zerodha, the popular discount broker also do not offer Zerodha Fixed Monthly Plan. For Zerodha customers, Zerodha Unlimited Trading is not an option.

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User Comment

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2. Ajay  Jul 22, 2015 5:49:33 PM IST Reply
Good article...but after reviewing your website I found that Achiievers is charging Rs.50/- per day for unlimited trade...is it so???
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1. siv  Apr 17, 2015 10:27:14 PM IST Reply
very nice article giving all info.....
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