Published on Saturday, July 12, 2014 by Chittorgarh.com Team | Modified on Saturday, December 22, 2018
Online stock trading has changed the trading experience 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 brokers to reduce the cost of trading at their end. But none of these brokers passed the profits to the customers.
Unlimited Trades & Unlimited Volumes (Fixed Monthly Fee Model)
In the year 2010-11; few young entrepreneurs decided to challenge the traditional brokers. They started offering discount brokerage plans to reduce the brokerage bills up to 90% by leveraging the technology. The concept of 'unlimited brokerage plan' was an innovative plan came from discount brokers.
It's a brokerage plan (for trading in equity, commodity and currency); where broker charges fixed monthly fee for unlimited trading. It offers literally unlimited trades by volume or size of the trade in a month. Unlimited trading plans are like a monthly pass given to the traders for what every they want to do in the stock market.
In this plan, the flat monthly fee is charged per segment. This means you pay a flat fee of ₹2000 (example) for unlimited trading at equity segment (including equity cash, delivery, future & options) or ₹1000(example) for unlimited currency derivative trading.
The monthly brokerage charged per month depends on the broker to broker.
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 makes a lot of sense to move to a discount broker for unlimited trading plans.
|Broker||Plan / Schemes||Segment||Exchange||Monthly Fee||Catch|
|ProStocks||Monthly Plan||Equities & Derivatives||BSE, NSE||₹899|
|Monthly Plan||Currency Derivatives||BSE, NSE||₹499|
|Yearly Plan||Equities & Derivatives||BSE, NSE||₹8999|
|Yearly Plan||Currency Derivatives||BSE, NSE||₹4999|
|SAS Online||Equity Plan||Equities & Derivatives||BSE,NSE||₹999|
|Currency Plan||Currency Derivatives||NSE||₹499||NSE Only|
|Trade Smart Online||Infinity Plan||Equities & Derivatives||BSE, NSE||₹3999|
|Infinity Plan||Currency Derivatives||NSE||₹1999|
|Tradeplus||F&O Plan||Equities & Derivatives||BSE, NSE||₹799* (Futures), ₹99* (Options)|
|Commodity Trading||Commodity||MCX||₹99*(Futures), ₹99*(Options)|
|Currency Trading||Currency Derivatives||NSE||₹99*(Futures), ₹99*(Options)|
Note: * Tradeplus offers multiple trading platforms. While NSE NOW and Nest Trader are available for free, for INFINI Trading Platform, Tradeplus charges additional software uses fee for Equity Trading @ ₹499 per month, Commodity Trading at MCX @ ₹249 per month and Call & Trade @ ₹1000 per month. Other discount brokers listed above offer the trading software for free.
Yes, these plan offers literally unlimited trades in given segments and month. You just don't have to worry about the 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 the broker to broker. A 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 registered to an unlimited trading plan.
The biggest saving with these plans is the saving on taxes. The GST and other taxes are only charged on the monthly fees you pay (i.e. service tax only on monthly fee i.e. on ₹899)).
ProStocks charges flat monthly fee + 18% GST. If you take Monthly Equity Plan for unlimited Equities & Derivatives Trading; the cost of the plan is ₹899 and additionally ₹161.82 is charged as the 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 the broker to broker.
Each broker is different in terms of offering and pricing plans. Here is some detail about popular brokers:
Stock Broker ComparisonCompare Share Brokers Side-by-Side Comparison List of Stock Brokers Broker Complaints Monitor Articles / Tutorials Glossary
Discount BrokersZerodha (Flat ₹20) ProStocks (₹15 per trade) Upstox RKSV (Flat ₹20) 5paisa Trade Smart Online More Discount Brokers >>
Full Service BrokersICICI Direct Sharekhan HDFC Securities Ventura Securities Kotak Securities More Full-Service Brokers >>
More About BrokersSpecial Offers Broker Reports Top 10 Discount Brokers Top 10 Full-Service Brokers Top 20 Share Brokers
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