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Which discount brokerage pricing model suits me?

The pricing model that works for one type of investor may not work for another. It is also possible that a pricing model that suits one broker may not suit another. Selecting a perfect online discount broker depends on the type of trader you are. i.e. - active trader, high-volume trader or penny stock trader, short term investor or long term investor.

    Active Trader

    Active traders make many trades throughout the day. They attempt to profit from the daily price fluctuation of a particular stock. Usually Active Traders don't hold the securities for the long term.

    As the frequency of trade is much higher, active trader always looks for low brokerage online trading account. Active trader prefer strong & reliable trading platform, lowest brokerage charges for online trading. Most brokers are providing online trading platform with cutting edge technologies. In such case only competition is in lowest brokerage. Discount brokers in India are providing low brokerage trading account in two ways -

    • Flat fee brokerage
    • Zero brokerage unlimited trading plan.

    For Active trader, "zero brokerage unlimited trading plan" is the best. Where they need to pay fixed monthly brokerage and get unlimited trading.

    You can check the best brokers in India to provide monthly plans in this article-Top 5 brokers by monthly plans in India

    Long Term Investor

    Long Term Investor invests and hold equity over an extended period of time to create wealth in the long run. In long term holding you need not to pay lofty short-term capital gains taxes.

    For Long Term Investor zero brokerage trading is best. Brokers like Zerodha, Upstox, Fyers offers Zero Delivery Brokerage. They can hold the script for long term or can BTST to get overnight price movement.

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