• Tuesday 30 January 2018

    Zero brokerage – Is it real?

    Zero brokerage is a hot word in the present stock market and most of the investors and traders are attracted to this word and feel distressed in the end with a good total of brokerage fee. This is a catchy word used by most of the firms and hence never make a quick jump. Take sufficient time to understand about zero brokerage before you open the account. When studied in detail you can come across certain words like nearly zero brokerage, almost zero brokerage etc. This means that service is not completely free and carries some cost. 

    Zero brokerage account 

    This can go true in most of the cases. Zero brokerage account doesn't mean all of the transactions are provided at free of cost. There is reputed brokerage firm to provide you with zero brokerage account opening. But account opening is just a beginning and you have to check the cost of other services including account maintenance cost, trading fee etc. These all come at certain brokerage cost. Brokerage firms can't provide all of the services at free of cost since it affects the existence.

    Limited and unlimited transactions 

    You can select the plan for limited and unlimited transactions. Firms say that when the brokerage fee is calculated in accordance with the number of transactions, the fee seems to be free. Brokerage fee for limited and unlimited transactions vary a lot and hence consider the expected trading transactions per month to select the right type of plan to enjoy the benefit zero brokerage in a practical sense.

    Zero brokerage transaction 

    Reputed brokerage firms provide zero brokerage for some of the segments. These are the best techniques to attract a good volume of the investors and traders to the stock brokerage firm. They can provide the trader with several plans including zero brokerage plans to build a good relationship with the investors. As a trader or investors, you can make use of these opportunities to enjoy trading at zero brokerage fee as per terms and conditions.

    Maintenance charge

    Discount brokerage firms provide you with an online account to engage in trading at any time you wish. You can manage, maintain and use the account anytime and any numbers through multiple devices. Brokerage firms charge an amount as maintenance charge for these accounts. These are collected yearly or for a time period prescribed in the agreement. You have to compare the charges provided by different firms to get trading services at really low rates. 
    Online benefits 

    At present, everything including opening the account to trading has gone online. There is no need for the brokerage firms to meet the investors or traders in person to open the account and to engage in transactions. This has resulted in great savings on the operational cost of brokerage firms. This is how brokerage rates are reduced to almost zero limits. 

    Now get the list of top ten brokerage firms of the country to make a good comparison and to select the firm who can provide you with entire services at zero brokerage when calculated in terms of transactions and benefits.

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