Brokerage Calculator: A Guide
As an online tool, a brokerage calculator helps calculate the brokerage fee. By transaction, it includes both buying as well as selling. They accurately give us the information for comparing which broker charges how much. Calculation of charges like CTT (Commodity Transaction Tax), DP (Depository Participant), GST (Goods and Services Tax), STT (Securities Transaction Tax), SEBI, Stamp Duty and Transaction charges. The above-said charges are irrespective of the brokerage.
Types of Brokerage Calculators
There are different types of sections for calculating the brokerage fees of Equity, F&O, Commodity and Currency brokerage fees.
Equity
For equity intraday and delivery equity, the equity calculator is used. Equity intraday is when you buy and sell stocks on the same day. Delivery equity is when the buyer does not square off his purchase on the same day. The brokers charge delivery equity and intraday equity brokerage at different rates. Usually, intraday brokerage is cheaper than delivery.
F&O
The F&O (Futures and Options) brokerage calculator calculates the brokerage fees for transactions in the F&O market. F&O comes under derivative products in the stock market. The buyer and seller agree to buy or sell the product on a fixed date at an agreed price.
Currency
The currency market trades come under the currency brokerage calculator. The currency market is also known as the name foreign exchange market, a place where currencies of different countries can be bought and sold by people worldwide. The currency market involves speculators, traders, arbitrageurs, banks/FI, investors and corporations and hedgers.
Commodity
The commodity market brokerage calculator calculates the fee for trades in the commodity market. A Commodity market is where the trader purely acts on their instincts and further bets on the movement of a market. The transactions of commodities charge the CTT (Commodities Transaction Tax) from the client. This tax is imposed on both the seller as well as the buyer.
Best Brokerage Calculator Must-haves
- Brokerage calculators must have a user-friendly interface.
- The brokerage charges have to be regularly updated on the calculator.
- Only accurate information has to be given to the customers.
- Customizable options are what a person looks for when they look for their brokerage fee.
- The value customers put in the calculator would be solely for their reference.
- They would not want to know the cost of selling 1000 shares of a stock, when all they have with them is 70.
- The accessibility of brokerage calculators being compatible with mobile is an essential feature.
- Mostly these services provided by them are free, be it any company
Charges Showed on Brokerage Calculators
CTT/STT charges
STT (Securities Transaction Tax) is the tax charged directly by the government during the transaction of your securities like Futures & Options, Equity and Mutual Funds in the stock market. CTT (Commodity Transaction Tax) applies to the types of transactions recognized as investments made into commodity exchanges (domestic). Exemptions are made on foreign commodity exchanges carried out in foreign currencies.
SEBI Charges
The market participants pay a certain fee to SEBI (Securities and Exchange Board of India). The broker initially collects the charges and
Stamp Duty
The trader has to pay stamp duty for trading in currency derivatives, commodities and stocks in India. They are imposed as per the Indian Stamp Act of 1899. It is to be noted that the stamp duty charges are different for each Indian state.
DP charges
DP charges or the Depository Participant charges are levied by the depository and the depository participant(broker). The DP charges are supposed to be paid for each number of transactions, regardless of the numbers of shares sold.
Conclusion
The benefits of a brokerage calculator, types of brokerage calculator and the various charges assigned by the government and the brokerage firms have been discussed. Goodwill gives you the best brokerage calculator. So why wait? Hurry and register with the best equity broker in India. Goodwill also provides accurate and updated brokerage calculator for your trading.
