Investing in the Indian stock market is proving to be one of the best ways for regular people to compound their wealth. As more people learn about the benefits of investing their wealth, more people flock to the Stock Markets. As each day passes, more people want to invest in shares. Some people are taking it a notch up and are trying to make a living by trading shares in the stock market. However, trading is not an easy task. To become a successful trader, you need to be able to analyse stocks and time your trades. For that, you need to build a proper trading strategy and need to have discipline.
People new to the stock markets, especially those trying their luck at trading, may initially find it very difficult to find success. Thankfully, you have stockbrokers like Kotak Securities to help both traders and investors in the initial stages of their stock market journey. With one of the best mobile trading app, Kotak Securi has plenty of tools and features to assist beginners as well as seasoned investors in the stock market. In this article, we will cover the brokerage calculator that is one of the many investing tools offered by Kotak Securities. We will learn how to use the brokerage calculator to calculate the brokerage of different securities.
What is a Brokerage Calculator?
When you buy shares and sell shares, on transaction there are some charges imposed. One of the most popular fees imposed is the brokerage fee. Brokerage is the fee the stockbrokers charges to execute your transactions. Along with brokerage there are other fees and taxes like STT and Sebi turnover charges. These fees may seem insignificant for an investor. However, a trader needs to take these charges into account while placing their trades. This is because these charges influence the breakeven point. And by principle, a trader should always strive to minimise their losses. These brokerage and other additional charges may vary from broker to broker since all stockbrokers have different policies. However, a brokerage calculator can help calculate all the following charges.
- Brokerage
- STT (Securities Transaction Tax)
- SEBI turnover charges
- Exchange Transaction Charges
- GST
- Stamp Duty
Using the Brokerage Calculator on Different Securities
In the stock market, as a beginner you may start trading stocks. However, stocks are not the only securities traded. Besides stocks, you can trade equity derivatives like futures and options. You could also trade in other completely different segments that includes the commodity segment and the currency segment. In these two segments, you also have futures and options contracts to trade. The brokerage and other charges associated with each segment is different. Using the brokerage calculator you can find the brokerage and other associated charges for all segments.
You can access Kotak’s Brokerage Calculator on your phone, laptop, tablet and PC. To use the brokerage calculator, you first select one of the following segment:
- Equity
- Currency
- Commodity
For equities and currency, you can then either choose NSE or BSE. Whereas commodity segment by default trades on the MCX. For every segment you have to enter four values. Those values are your
- Buy Price
- Sell Price
- Quantity
- Order Type
The order type also influences the brokerage and other charges. Intraday and delivery are the two types of orders. If you open a demat account with Kotak Securities, the brokerage on intraday trades is zero. However, you still do not want to ignore other charges like the STT. After you enter these four values, you instantly get to know the brokerage, STT, GST and and other charges involved in the transaction. You even get to know the profit or losses you make by buying and selling securities for that specific value.
Advantages of Using a Brokerage Calculator
First and foremost, by using Kotak’s brokerage calculator you get precise figures regarding the brokerage and other charges associated with your transaction.
These precise results can help you find the true breakeven, since many novice traders may fail to include brokerage the other charges when they think about the breakeven price. Using the brokerage calculator, you can run a number of scenarios, and construct different trading plans. Kotak’s brokerage calculator will also save a lot of your time. Manually calculating all these costs would be very tedious and time consuming. And lastly, as a responsible investor or a trader, you should be aware of these associated costs. You can get started with Kotak Securities by opening a demat account for free. You can then download the Kotak Stock Trader App, which is the best mobile trading app to suit all your needs.
