Online trading brokerage charges comparison and contrast


Naturally, the price at which you buy a stock directly affects the potential profits you'll make from its sale. So it makes sense to buy the stock at a price you believe is reasonable. While you hold the stock, it's also important to watch for signs that your investment isn't going the direction you planned—for example, if the company regularly misses its earnings targets, or if developments in the industry turn bleaker.

Sometimes you'll decide, after reviewing the company's fundamentals, that it's worthwhile to ride out a slump in price and wait for a stock to recover. Other times, you may decide you'll have better returns if you sell your holding and invest elsewhere. Either way, it's important to stay on top of the stocks you own by paying attention to news that could affect their value.

Buy and Hold The goal of most investors generally is to buy low and sell high. In exchange for your loan, the issuer agrees to pay you regular interest and eventually pay back the entire loan amount by a specific date. Maybe you're thinking about handcrafting your portfolio. Before you do, make sure you understand the costs. All examples below are hypothetical.

Though sector ETFs have the potential to grow, you should be equally prepared for potentially large losses. The manager of an actively managed fund is hired by the fund to use his or her expertise to try to beat the market—or, more specifically, to beat the fund's benchmark. A personal financial advisor, on the other hand, is hired by you to manage your personal investments, which could include actively managed funds, index funds, and other investments.

How "actively" your advisor monitors your accounts or buys and sells investments—daily, weekly, monthly, etc. A fee that a broker or brokerage company charges every time you buy or sell a security, like an ETF or individual stock. The current, real-time price at which an ETF can be bought or sold.

More specifically, the market price represents the most recent price someone paid for that ETF. You'll pay the full market price every time you buy more shares. Unlike an ETF's or a mutual fund's net asset value NAV —which is only calculated at the end of each trading day—an ETF's market price can be expected to change throughout the day.

A mutual fund doesn't have a market price because it isn't repriced throughout the day. Simply multiply the current market price by the number of shares you intend to buy or sell. With a mutual fund, you buy and sell based on dollars, not market price or shares. With an ETF, you buy and sell based on market price—and you can only trade full shares.

So you're more likely to see a dollars-and-cents amount, rather than a round figure. The amount of money you'll need to make your first investment in a specific mutual fund. ETFs don't have minimum initial investment requirements beyond the price of 1 share. Represents the value of all of the securities and other assets held in an ETF or a mutual fund, minus its liabilities, divided by the number of outstanding shares. However, unlike an ETF's market price—which can be expected to change throughout the day—an ETF's or a mutual fund's NAV is only calculated once per day, at the end of the trading day.

Just like an individual stock, the price of an ETF can change from minute to minute throughout any trading day. The price you pay or receive can therefore change based on exactly what time you place your order. This is sometimes referred to as "intraday" pricing. On the other hand, a mutual fund is priced only at the end of the trading day. Regardless of what time you place your trade, you and everyone else who places a trade on the same day before the market closes that day receives the same price, whether you're buying or selling shares.

When buying and selling ETFs, you can typically choose from 4 order types—just like you would when trading individual stocks:. An order to buy or sell an ETF at the best price currently available.

In most circumstances, the trade will be completed almost immediately at a price that's close to the current quoted market price. An optional service that lets you pick a frequency—monthly, quarterly, or annually—along with a date and a dollar amount to move into or out of a specific investment on a repeat basis.

Think of this as a "set it and forget it" way to make consistent investments. For example, some investors want to make sure they max out their IRA contributions every year. But they prefer to spread the contributions over the course of the year, and they don't want to forget a transaction by accident.

So instead of putting all the money in at once, they set up monthly or quarterly purchases that happen automatically—no logon or phone call required. An index fund buys all or a representative sample of the bonds or stocks in the index that it tracks.

An ETF or a mutual fund that attempts to beat the market—or, more specifically, to outperform the fund's benchmark. While an index fund is attempting to track a specific index, an actively managed fund employs a professional fund manager to hand-select the specific bonds or stocks that will be included in the fund in an attempt to outperform an index.

So the manager's research, forecasting, expertise, and experience are critical to the fund's performance. However, an actively managed fund can just as easily underperform its benchmark, meaning you could lose money on your investment.

An ETF or a mutual fund that invests in U. Total market funds typically follow an indexing strategy—choosing a broad market index that tracks the entire bond or stock market and investing in all or a representative sample of the bonds or stocks in that index. A financial advisor is hired by you to manage your personal investments, which could include ETFs, mutual funds, individual securities, or other investments.

Some Vanguard funds have higher minimums to protect the funds from short-term trading activity. Fund-specific details are provided in each fund profile. If you are looking for the broker advice then Kotak broker also provide daily alerts, economic reports and customizable Research Reports to its clients. Sharekhan is one of the leading online brokerage company having more than 12 lakh customer base.

Presently company has providing service from more than offices across cities. This account has the features like multiple watch lists, real-time portfolio tracking with price alerts and integrated banking. Motilal oswal financial services is at the third position in the list of best demat accounts in India.

Presently the company has more than business locations with over 7. Zerodha is one of the largest discount broker having more than Over 1. Zerodha is best for the small investors because there is no minimum charges of brokerage per trade. The brokerage rate is 0. This will lead you in saving on brokerage. Their main business review comes from derivatives, hence they have decided to charge zero brokerage on delivery. Zerodha also offers a 60 Day Challenge.

If a trader is net profitable in a 60 day period, all the brokerage charged to him will be refunded. Maximum brokerage reversal is capped at Rs per challenge. You should not open Zerodha account just because it offers lowest rates.

I do not have any account with Zerodha because I am not a trader. You should open Zerodha if your trade volume is more than 1Cr per year. Ventura is a full service broking company which provides service to clients to invest in equity, equity derivatives, commodities, mutual funds, fixed income products and currency futures. I am Ventura customer for a long time. Their windows based trading platform is also good. You will need a little trading before starting your trading on their platform.

Ventura charge different brokerage rate depends upon the plan that you will choose. You have to pay the plan amount at the account opening time. Your brokerage will be adjusted against deposit throughout the year. ICICI direct is one the largest share brokerage company having more than 20 lakh customers. A variable percentage of brokerage is charged on basis of quarterly turnover. Higher the turnover, lesser will be the brokerage. A fixed percentage of brokerage is charged on turnover.

There is no turnover based slab rates like I- saver plan. You have to pay prepaid brokerage under this plan. The brokerage rate is lesser as compare to the other two plan. HDFC securities provides 3-in-1 account which integrate your saving account, trading account and demat account.

I tried to collect all required information in a single article. I would like to know which account you liked. Kindly let me know in the comments. For high volume trading, the first preference should be 5Paisa. AngelBroking , that provide you reliable trading platforms and awesome customer support. Avoid the common mistakes that I also did in the past and lost my money.