Every investment aims to get as much profit as possible. Compounding returns on securities trading in share markets are such potential options. Data shows investors today prefer to invest in assets such as equity, currency, futures, options, etc. they view them as good investment destinations. However, it is important to note depository participants (DP) facilitate investing in share markets. They generally charge some fee on the value of securities transacted.
Brokerage applies to every transaction one carries. Therefore, to get maximum profits on investments, one must know the number of brokerage charges. It is where a brokerage calculator becomes useful. It is a tool to calculate brokerage easily. Many brokerage calculators are available online.
The best calculator online gives results in seconds. However, before moving on to how they work, it is crucial to understand brokerage charges.
The Overview of Brokerage Charges
Stockbrokers charge you for the services they provide. Brokerage firms charge these fees to cover the costs incurred to facilitate proper transactions of their customers. The charges can be a percentage of a particular trade or a fixed amount. Brokerages are applicable for both the purchase and sale of securities.
Brokerage involves several charges. These include transaction fees, stamp duty charges, GST charges, Security transactions tax (STT), SEBI turnover fee, etc. The best calculator online allows you to calculate all these charges instantly. Further, some factors determine the brokerage calculations.
They include the following.
Trade value
The trade value is the price at which one buys or sells a unit of an asset such as a share. Brokerage charges are directly proportional to the prices of assets. Therefore, an increase in the price of a security increases brokerage charges.
Transaction volume
Several units of security are referred to as transaction volume. If you transact for more units, you will have to pay a higher brokerage fee. Conversely, charges reduce if you lower the volume.
Types of brokerage firms
Two types of brokerage firms exist. First, full-service stockbrokers provide various other facilities apart from just trading. These include financial reports, stock recommendations, etc.
They provide these services online too. For example, institutions like Kotak Securities provide a Demat app for android and ios. It contains all information related to brokerage charges. Then, there are discount brokers who only provide investing facilities.
How to Use an Online Brokerage Calculator?
Let us now find out how you can use an online calculator. Several financial institutions provide online brokerage calculators. Since you are concerned with intraday, the calculator of Kotak Securities will be the best brokerage calculator online for you. Not only intraday trading, the calculator effectively shows brokerage charges for most assets like commodities, options, futures, etc. The calculator is pretty user-friendly with a simple interface. To use a brokerage calculator, you need to keep certain information ready. It includes the following.
- Price at which an asset is currently trading
- Number of units of a security
- Asset segment
- Trade type
- Stock exchange details
The steps to calculate brokerage charges using the calculator are as follows.
- Firstly, find the Kotak securities online brokerage calculator on Google. Visit the page to start the process.
- Now, select the type of asset you want to place your order. Choose from equity delivery or intraday, currency, future
- In the case of an intraday order, you will have to specify the company or stock whose shares you wish to buy or sell.
- Upon completing the above step, mention whether you want to purchase the asset or sell it. Next, you will see an option to select order type. Here click on your desired preference.
- Next, enter the price you want to buy or sell the asset.
- At last, click on calculate to check the brokerage charges levied on the particular transaction. You shall get the results in a very short interval of time. It may hardly take some seconds to show the exact cost of a transaction.
An Online Brokerage Calculator – A Handy Tool
Investors should avail the advantage offered by these online brokerage calculators. They are very useful tools to figure costs of a transaction. There are multiple benefits as listed below.
- They are highly dependable as they provide accurate results.
- They are time savers. They provide all details regarding transaction costs in real-time. It saves time as calculating brokerages manually can be an enormous task.
- Online brokerage calculators provide information on brokerage fees of most stockbrokers. Hence, one can compare various competitors to choose the most affordable one. For instance, if you open your Demat account using the Kotak Securities Demat app for android, you can execute trades at low brokerage charges.
As you are now well aware of the best brokerage calculator online, try it instantly. Then, find the exact brokerage charges before trading in your favorite assets.