Zero Brokerage unlimited trading or fixed monthly plans

Can you imagine trading at zero brokerage cost if you only pay a fixed monthly fee? The answer is undoubtedly no but in today’s time, it is possible as there are some brokers who charge you absolutely no brokerage fees for trading in any segment by simply charging a fixed fee on a monthly basis. Here we present you the top brokers that offer you zero brokerage unlimited trading plans in India.

Brokerage fees are a key concern for any trader because higher brokerage costs minimize the ultimate trading profit. In such a landscape, unlimited trading plans or fixed monthly brokerage plans are a real boon for day traders. As the name suggests, the unlimited trading plans allow traders to place an unlimited number of trades across segments without any brokerage fees. You don’t have to pay brokerage for each trade executed.

Read more about unlimited fixed monthly brokerage plans including a full review of how it works, best brokers with zero brokerage trading accounts, pros and cons, and more.

What is Unlimited Trading Plan or Fixed Monthly Brokerage Plan?

• Fixed monthly brokerage plans are trading plans that come with a fixed flat monthly fee regardless of the number of times you trade across segments. Thus, the brokerage will always remain fixed and you can place an unlimited number of trading orders in that particular month at zero cost. The unlimited zero brokerage trading plan does not charge you an upfront brokerage fee on each executed trade.

How does unlimited zero brokerage trading plan work?

Let’s understand how a monthly unlimited trading plan works with an example. Suppose a broker has two plans; a flat Rs 20 brokerage plan and a fixed monthly plan of Rs 499/per month for trading in equities and equity derivatives. Now calculate the cost of brokerage for each scenario.

1. Rs 20 Flat Brokerage Plan: Suppose you have placed 50 trading orders in a month. Then, the brokerage cost incurred will be 50 multiplied by Rs 20 brokerage/per executed order, which is Rs 1,000.
2. Unlimited Trading Plan: If you have subscribed to the Rs 499 fixed monthly plan then irrespective of the trading volume or the number of orders be it 50 or 100, the brokerage will be the same as Rs 499 per month. In this example, you can save up to 50% on the brokerage fee. So, frequent day traders can save a lot of brokerage fees by opting for monthly trading plans with no brokerage.

Note: Unlimited brokerage plans charge you zero brokerage but other charges such as STT, exchange transaction charges, stamp duty, and GST still will be there.

Unlimited Trading Plans: What are the segments available?

• Whether you are an equity intraday trader or F&O trader, unlimited monthly trading plans are available for all segments (Equity, commodities, and currencies). However, the brokers may offer different plans for different segments.

  For instance, Prostocks has separate unlimited monthly brokerage plans for equity and equity derivatives trading as well as currency trading segments on NSE and BSE. Another discount broking house, SAS Online has different monthly plans for every segment such as equity, currency, and commodity (MCX) trading. Trade Plus has a Flat Pro plan for derivative traders to place any number or volume of trades in any segment at a fixed monthly fee.

Advantages of Zero Brokerage Unlimited trading plans

Choosing a monthly unlimited trading plan brings you the following benefits or advantages;

• Brokerage-free trading each executed trade order.
• Fixed brokerage fee regardless of the number of trade orders.
• Some brokers also offer you a refund if you do not place any trade orders in a given month.
• Tax savings as GST is levied on the monthly fee.

Disadvantages of Zero Brokerage Unlimited trading plans

• If you are a low-volume trader or investor, unlimited trading plans are not suitable.
• Compared to the other brokerage plans, the low margin is available in unlimited plans.
• Advanced orders such as bracket orders (BO) and cover orders (CO) are not offered or, if available, are subject to an additional brokerage fee.
• Brokers offering zero brokerage trading plans may charge fees for other services such as trading platform charges or may have other hidden charges.

Who should opt for zero brokerage trading account?

Zero brokerage unlimited trading plan is an ideal choice for the following type of traders and/or investors;

• Active traders or frequent traders: Traders who place and execute multiple trades in stocks, derivatives, commodities, and currencies every day must opt for monthly zero brokerage trading plans. This is because frequent traders end up paying high brokerage fees even at a flat pricing model due to the large number of orders they place per month
• High-volume traders: If you are the one who does high-volume trades must choose the unlimited trading plans because the cost of brokerage fees would be really high in a percentage-based pricing model.
• Penny stock traders: Traders who frequently trade in penny stocks in multiple segments such as stocks, commodities, and currencies, or have a high volume of trades per month must opt for a zero brokerage trading account.

Summing Up

The zero brokerage unlimited trading plan is the best-suited plan for frequent traders to save huge on monthly brokerage costs. It provides unlimited trading opportunities to intraday traders to make profits from small price movements without worrying to cover the brokerage payment.

An unlimited trading plan does not offer you good margins so before opening an account, ensure to check all the aspects carefully and select the right broker with the right plan that matches your profile. Top discount stock brokers like Zerodha, Upstox, 5paisa, etc. do not offer unlimited monthly trading plans.

However, if you are an occasional trader then never opt for monthly brokerage plans, instead, it is recommended to trade at a flat brokerage fee.