Intraday trading or day trading, as the name suggests, refers to the buying and selling of stocks on the same day. Many beginners in the stock market find this style of trading to be an attractive proposition to jump in and make a few extra bucks. However, they lack the expertise and knowledge required to earn good returns on their investments.
This is when brokerage comes into the picture. Intraday trading brokerage is the commission charged by the broker who aids in trading. All trading platforms charge brokerage to provide a portal to the investors. Thereafter, a certain percentage is charged on every transaction facilitated through this platform. For instance, if the volume and value of your trade is huge, your brokerage fee will also be heavy and vice-versa.
Brokerage charges may vary from one broker to another. Some brokers may charge you 0.10 % while others may levy a hefty amount of 0.55% per transaction.
This ultimately impacts the intraday trader’s overall profits to a large extent. So if need be, the cost of brokerage can be reduced to increase the trader’s profits. For this, you can enable a simple solution called free intraday trading.
Unlike the brokerage fee that is charged as a percentage on the value and volume of the transactions made, free intraday trading is charged at a flat fee. A very affordable amount of Rs. 999 is applied for a year, which is less than Rs. 4 per day. This not only gives traders the chance to keep a maximum percentage of their profits, but also gives them the freedom to take buy-sell decisions for themselves.
Other benefits of free intraday trading are as follows:
- Unlimited access to equity and other important reports by a team of experts.
- Up-to-date account information.
- Live-streaming stock market data and information on top gainers and losers.
- Availability to make your personal watch list and keep a track of certain stocks of your choice.
- Options to create graphs and charts tracking your past and future performance.
- Receive stock recommendations that assist in making informed decisions.
One must remember that free intraday trading is only for self-traders who would like to trade from the platform directly. If a trader would like to trade with the help of a dealer or broker, charges may vary.
A flat brokerage amount encourages huge savings for intraday traders. It also helps maximize their return. Moreover, this freedom allows intraday traders to make better decisions and earn more profits.
Intraday trading acquired a bad reputation in the early 1990s. This was primarily because many traders jumped onto the new online trading platform without applying any tested strategies. This unplanned move obviously resulted in adverse results, and traders’ typically incurred huge losses.
So, before you invest your time and money into this trading program, ensure you have the right knowledge and assistance that is required. Once you learn the rules and get a hang of the strategies needed for anticipating market moves, you will be able to make good profits in the future. However, remember, patience and discipline is the key to success in intraday trading.