(8) Pay Flat Or Fixed Brokerage Per Transaction Irrespective To F&O Lot Size
It is one of the most popular tricks to trade shares at a fixed brokerage rate. Traditional stock brokers prefer to charge commission on share trading on percentage basis.
It typically ranges anywhere from 1% to 2% depending on the total value of the transaction. In such a case, brokerage charge increases along with an increase in the traded value.
However, due to rising competition, several brokers started charging flat or fixed brokerage rate irrespective to the transaction value. This flat brokerage is usually much cheaper as compared to traditional brokerage rate.
Thus, it will be the best brokerage plan for active traders who prefer to trade in huge amount.
(9) Pay Brokerage Only When Your Trades Are Profitable
It is one of the most cost-effective tricks to buy and sell shares without paying brokerage. Every stock transaction is accompanied with some form of brokerage commission.
It is usually charged irrespective to whether trader is making profit or loss in a given transaction. But, some brokers now started providing free brokerage on trade transactions that are resulting losses to traders.
There brokerage commission is limited to profitable trades only. This strategy helps traders to cut their loss making trades quickly. Therefore, you don’t have worry about brokerage in a loss making trade.
For example, ICICI Direct is offering such brokerage service through I-Gain brokerage plan. You just need to pay only when you earn from a trade else not.
However, it is applicable for intraday derivative trades. Thus, investors are advised to read the terms & conditions of such brokerage plan before initiating a trade.
- Trading Tricks At Reduced Brokerage: Shutterstock