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Watch your brokerage as it can hamper your profits

Gone are the days when trading used to be a herculean task, with the onset of technological innovations new things have come up and they are shaping the future of trading. The advent of technology has enhanced user experience by providing a personal trading platform to customers. Now people have the freedom to access their Demat account and set up trades on the national stock exchange.

People can now manage their own portfolios and make active trades unlike earlier times where investors were at the mercy of the broker. A broker at is not able to get you the price that you wanted as he is setting up trades for a lot of people which leaves your intraday profits in jeopardy. When you are just managing one account the chances to you getting the right price are considerably high than you broker who is setting up trades for many people at the same time.

 A before hand knowledge of the amount of investment and its expected returns and brokerage charges is essential as taxes incurred while performing a trade are also a good part of the transaction and it is to be checked that you don’t overtrade. Brokerage calculators of different types are available in the market which helps you estimate an approximate idea of the returns from your investment. Some of them are as follows:

  • Futures Brokerage Calculator
  • Options Brokerage Calculator
  • Commodity Brokerage Calculator
  • Intraday Brokerage Calculator
  • Delivery Brokerage Calculator
  • Currency Brokerage Calculator

In the union budget of 2013, changes were introduced in the Commodity Brokerage Calculator and it was updated with commodity transaction tax. Three more tabs were added into the commodity calculator- common commodity calculation, NCDEX commodity calculator, MCX commodity calculation. Only non agricultural commodities are applicable for CTT (Commodity Transaction Tax).

Delivery Brokerage calculators calculate the total profit by subtracting the sell price from the buy price, net loss or profit after deducting the taxes and brokerage. It keeps a tab on the breakeven calculation to monitor the price movement for reaching the breakeven point. This distinctive feature of this calculator is that it helps the short term investors to keep a check on the breakeven point.

Brokerage always needs to be checked so that your profits are not minimised. As stated earlier there are different types of brokerage charges calculator which help you estimate the brokerage that you will need to pay in buying a stock or a commodity at x price and selling it at y price. Often people ignore this fact and as a result when they calculate the final profits or loss; brokerage is a major chunk of the entire transaction which they could have otherwise managed by keeping a check on it.

Stock market offers great opportunities at the same time it can be very risky too. One should carefully plan an investment or tie up which a investment consultancy company who offer advice on managing funds. If money is invested in the right way, you can millions and also if it is not invested wisely it can lose millions so you should really think and invest your hard earn money.

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