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https://www.samco.in/knowledge-center/articles/what-are-brokerage-charges/ Brokerage is a fee paid for every transaction for trading in the Stock and Commodity Markets. Brokerage forms the largest part of trading expenses.
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What is Brokerage Charges? • While all Traders & Investors transact on Stock Exchanges in India such as Bombay Stock Exchange, National Stock Exchange or on Commodity Exchanges such as Multi Commodity Exchange, they cannot do so directly. • Let’s take an example: Mr.Ram is a new Investor. He wishes to buy shares of Reliance. He calls up the National Stock Exchange & requests them to buy shares. However they ask him to contact a SEBI Registered Broker to transact on. He is left confused & asks his experienced friend, Mr. Shyam about the same. Shyam explains that a Broker is someone who acts as an intermediary between Clients such as Ram & the Stock Exchange. • In order to transact on the stock exchanges, the Trader or Investor needs to open a Stock Brokerage Account.
Brokerage Charges Calculation • For every Transaction that the trader or investor initiates, the broker charges a fee. This fee is called Brokerage. Brokerage forms one of the largest components of trading expenses in the stock markets. Other expenses for trading include STT, taxes and other transaction related fees. • You can calculate your brokerage for trading stocks, commodities and other derivatives in India on the Online Brokerage Calculator. • To know more about Securities Transaction Tax (STT) : https://www.samco.in/knowledge-center/articles/what-is-stt-securities-transaction-tax/
Types of Brokerage Services • Full Service Brokerage: These are expensive for traders as they charge brokerage as a percentage of the Transaction size. They may offer advisory services. Their brokerage rates differ for the type of trading done i.e. Intraday or Positional & these charges can eat up a substantial chunk of Capital & profits of the Traders. • Flat Fee Brokers or Discount Brokers: Discount brokers are primarily online brokerages – a relatively new concept in India, these Brokers offer a value proposition for traders as they charge a low fixed fee per trade, regardless of trade size or style. • At SAMCO, we provide a flat Fee Brokerage of Rs.20 per Order regardless of the Trade size or segment. So whether you transact in the Cash Segment or Futures & Options, Intraday or Positional, you would pay Rs.20 per Order. Calculate your own savings on our SAMCO Brokerage Savings Calculator.
Contact US • SAMCO Securities Limited / Indian Trading League1004 - A, 10th Floor, Naman Midtown - A Wing, SenapatiBapatMarg, Elphinstone Road, Mumbai - 400 013, Maharashtra, India.02261699000 / 02222227777www.samco.inwww.indiantradingleague.com 916 Devpath Building, Behind Lal Bungalows,Off C.G Road, Navrangpura,Ahmedabad– 380009Contact - 7405159636