Posted on Saturday, July 12, 2014
Modified on Saturday, October 1, 2016
We can help you find the right broker for your trading needs.
'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.
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?
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.
|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|
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.
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.
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.
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)).
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.
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.
Each broker is different in terms of offering and pricing plans. Here is some detail about popular brokers:
Rs 899 Unlimited Equity
Rs 499 Unlimited Curr
or Rs 15 per Trade
Lowest Transaction Charge
Lowest Call & Trade Fee
Lowest Stamp Duty
Flat Rs 20 Per Trade
Free Equity Delivery Trades
Rs 100 off on account opening* + 100% brokerage refund if in 60 days you have made net profits
(* on online account opening)