There are so many tools in the present time to help you in investing in the right share. You can carry out your stock marketing endeavours with utmost effectivity once you have the right approach. Since there are tools and instruments like calculator, you have to make sure that you use them.
Have you ever heard about Brokerage Calculator, it is time that you take a detailed peep into this calculator? You should know how it works, how a prospect cans makes use of it to compare brokerage & other charges charged by various stock brokers.
What is this calculator?
A calculator utility helps in computing not just the brokerage chargeable but even other costs that are charged apart from the brokerage while undertaking trading transaction in the stock marketing. The usefulness computes the complete cost that one would incur while performing or undertaking the trade transaction.
What are the Inputs that are required by a Calculator?
The inputs needed would be absolutely basic details i.e. buy price of the stock, the sell cost, number of shares and the state in which the account gets held. Based on these details, the calculator tool shall compute the brokerage payable and the other charges allocated which form part of the price base for the trader. Some of these charges or costs are even separately disclosed in the contract note whereas some of them could be simply added to the other charges. You have to be really careful about these.
Different Charges computed by this Calculator
The utility computes the brokerage, transaction charges, SEBI turnover fee, stamp duty (each state owns a different rate of duty and hence it is one of the input fields), securities transaction tax and that of GST.
Why is this calculator important for an investor?
The calculator utility is of utmost importance and relevant for any trader. It not just helps him computes the cost involved but even helps the investor minimise the price and maximise the net profit. Have a look at some perspectives on this. Below:
Most important of all, the utility is going to help a trader/Investor in comparing brokerage rates of all brokers and analyse which broker caters the most favourable rates to satisfy the trader’s strategy. For instance, in case the trader is a novice and does not want to trade in high quantities, he or she may choose a broker who caters brokerage based on quantity hence helping in keeping a least cost base for the trader.
Similarly, in case a trader holds trading/DEMAT account with manifold brokers, then he can examine that which broker firm would charge him or her lesser for his their planned trade transaction. Thus, the calculator utility can assist the trader or the investor in evaluating the finest suitable broker.
It is needless to say that the calculator is a useful tool for the traders and investors. It is because it helps them in having a proper understanding of the approximate cost that they might incur for a certain potential transaction.
Thus, you should try out this calculator if you want to measure the costs and find out the best rates for your dealings.