The flat brokerage plan offers trading at a fixed per trade rate irrespective of the size or segment of the trade.
For example, Zerodha, the leading stock broker in India offers Rs 20 per trade flat rate brokerage for trading in any segment (except Eq delivery which is free).
Both online discount brokers and full-service brokers offer a fixed brokerage plan.
In a flat brokerage plan, stock brokers will charge you a fixed brokerage per executed order irrespective of the trade value. This is against the conventional % based brokerage wherein you are charged a % of the value of the trade.
For example, Say a stockbroker charges 0.50% brokerage. The brokerage fee for a trade of value Rs 1 lakh would be Rs 500. In the case flat-rate brokerage, Zerodha charges flat Rs 20 per executed order whereas 5Paisa flat brokerage charge is Rs 10 per order.
A flat or fixed brokerage plan is suitable for all types of traders.
Note: In addition to brokerage, customers pay for taxes, exchange turnover charges, demat charges, SEBI charges and stamp duty on all the transactions.
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