For the regular investors of the share market in India, it is really great to have zero brokerage trading account. This seems perfect for them because they do not need to pay huge money as the brokerage charge to their trading brokers each time they place an order. When there is no need to pay the brokerage, then their returns level will become higher than ever automatically.
However, the term “zero brokerage service” seems very interesting, but you need to know the real meaning of the same. You should understand the term and the “services” you can obtain from your broker at zero brokerage before you open zero brokerage trading account.
Why Brokerage Charges are Taken
The share trading firms offer you a platform to trade, which is safe, secure and effective. There are professional and experienced brokers, who are ready to offer their expertise, place your buy and sell orders as per your instruction during the trading hours. They can also give you suggestions regarding the trading when you cannot take the decision alone, or there are high chances of having a big loss in a certain deal.
For all these services they claim a charge from each of their clients, which are known as the brokerage charge. You have to give them a specific amount as their brokerage charge each time you place a buy or sell order on your account.
How Can It Be ZERO
Well, this completely depends on the trading firm how much they charge for their brokerage or would they take any charge at all or not. The service will become free when you do not take any additional service from them. In general, the owners of the online zero brokerage trading accounts do not need any additional support. They can operate their trading account from any computer or Smartphone or other mobile devices anytime they want. They have all the details of their account and trading. Hence, they can easily understand how much money they can earn returns or get as a bonus after every deal. That means they do not need any expert advice or ask the brokers to operate their daily trading.
This is the time when the firms offer zero brokerage service. Since they do not need to offer any specialized service to their clients; hence they can make their brokerage charge zero and let their clients enjoy some more returns.
Is It Good or Bad
If you have a plan to trade in this market daily, then nothing can be better than having zero brokerage account. For the daily or regular investors, it is tough to earn huge returns because they need to pay a good amount of money as the brokerage charge to their brokers. When there is no brokerage, then they can enjoy the total amount of their returns. Even if the deal is a loss then also they do not need to pay anything for the same.
However, some investors think that it is better to look for lower brokerage services rather than zero brokerage because the first option can offer you some expert assistance in time of need.
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