Brokerage Charges: Lowest Brokerage Charges Simplified Online | Espresso

Low Brokerage and Low-Cost Discount Brokerage

In this article, we are going to talk about stock trading brokerage. When you buy an online trading account to start trading in shares, you choose a brokerage plan based on the way you intend to trade.


Published on 12 January 2022

In the stock market, you cannot place an order to buy or sell a stock directly. SEBI has mandated that all trades need to be placed through a stockbroker registered with the stock exchange where the trade is being executed. Stockbrokers charge brokerage to extend their services.

Since it is a cost to the trader, there is always a demand for a low brokerage online trading account. With discount brokers, there are many low brokerage trading account options available to you.

Who are Discount brokers?

The traditional stockbroker offered a range of services like entering orders on the exchange, offering investment advisory, providing access to research reports, etc. The brokerage included charges for all these services. As traders started getting conversant with the internet and using various tools to research and analyze stocks themselves, many stockbrokers started offering basic stock trading services minus the added features. This allowed them to reduce costs and charge a low brokerage.

However, brokerage was traditionally charged as a small percentage of the value of the order. This meant that for high-value orders, the brokerage was a substantial sum. As a result, many stockbrokers started charging a flat fee per order to offer low-cost discount brokerage services to people. In these plans, the trader had to pay a fixed amount as brokerage regardless of the size of the order. This helped them ascertain trading costs and plan their trades accordingly.
Also Read: Lowest Brokerage Charges for Online Trading in India

Lowest brokerage charges in India

The stock trading industry is highly dynamic, with stockbrokers offering new plans regularly to keep traders interested and participating in the stock markets. While a discount broker charging a flat fee was a relief to many traders, the stock markets were getting increasingly competitive and traders started expecting lower brokerage plans. Hence, some brokers started offering zero brokerage plans with unlimited trading.

In these plans, stockbrokers charged a fixed amount to traders per month and allowed them to enter unlimited trades during the month. This helped active traders as they could fix their monthly trading costs and plan their breakeven point with ease.

However, the lowest brokerage charges in India were offered by stockbrokers who released trading plans where the traders were not charged brokerage on loss-making trades. Allow us to explain:

When you place an intraday order, you need to square it off before the end of the day. So, the first order you place is a regular order where brokerage is charged. However, when you square it off, you will either book a profit or suffer a loss. In the zero brokerage on loss-making trades plan, the broker does not levy any brokerage charge on a loss-making square-off trade. Hence, your losses are reduced and the breakeven point is lower.


If you are looking for a low brokerage online trading account or a low-cost discount brokerage plan, then ensure that you assess your trading style. This will help you choose a trading account with a brokerage plan that offers the right platform to earn profits in the highly competitive stock markets.

Also, remember that there are various other charges associated with stock trading like STT, transaction charges, SEBI charges, Stamp Duty, and GST on certain charges. There will also be charges associated with your Demat account. Therefore, make sure that you understand all the charges before signing the dotted line.

Chandresh Khona
Team Espresso

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