Trading stocks has become a common practice today since people have started considering it to be quite exciting and risky at the same time, which is the ultimate factor that can help you earn huge profits at some point of time too. But when you trade stocks, there are certain charges that are levied on all your transactions, the amount for which depends on the total value of your transactions at the end. Usually, these charges include the brokerage fee (money charged by your broker for making the transaction for you), taxes, and other nominal fees. For someone who is new to the field of trading, calculating this brokerage amount may be difficult, since It can be a complicated affair, but there is a perfect solution to their problem, and that is a brokerage calculator. It is an online calculator, that helps in calculating the total amount of brokerage that you will be charged on all your trading transactions so that you can be prepared beforehand about the expenses that you will incur in the future. Following are some of the benefits associated with the use of a brokerage calculator:
- Is completely free of cost and can be accessed by anyone: The best part about brokerage calculator is that anybody can use it and that too at any point of the day, all thanks to its online availability. You don’t need to spend your hard-earned money to know the total brokerage fees that you might need to incur, because a brokerage calculator will do the same for you, but without even spending a single penny of yours. You just need to fill in some details regarding your transactions, and the calculator will automatically provide you with the right brokerage amount.
- Can also help with comparison of competitive brokerage rates: A brokerage calculator allows you to compare brokerage rates offered by different trading websites, so that you can make the wise decision of going with the one who charges you minimum and gives you more flexibility. It’s very important to keep an update about all the brokers available to you, because you need to be aware about the benefits that all of them are giving to you and what is the fee, they are charging from you for providing those services. Avoid paying unnecessary brokerage fees by using the brokerage calculator in the right way.
- Also helps with calculation of other trading charges: The ultimate goal of a brokerage calculator is not only to provide you with the brokerage amount, but also make you aware regarding the other charges and fees that you will be charged on your trading transactions, which generally include GST, Custom duty, securities transaction tax, etc. It automatically helps you in being clear with all the money that you need to spend on paying your transaction fees only, so that you can make the right decision easily.
In order to know about the exact amount of money that you need to maintain an investment portfolio of stocks, commodities, derivatives, options, etc., you should consider using a margin calculator once.