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Why do you need a brokerage calculator?

by Dinanath Singh

Why do you need a brokerage calculator?

 

If you are a person who likes trading, then you must be knowing about calculating brokerage for every transaction. Calculating the brokerage is important to know how much money is being charged for the trade and transactions you make. This can now be made easy with the help of an online brokerage calculator which helps in calculating the accurate amount of brokerage. There are many sites that are curated just for your assistance with several aspects of trade. 5paisa is one such site which is known for its assistance that it provides to the customers. Not just brokerage, but a brokerage calculator also helps in calculating the stamp duty charges, transaction fees, SEBI turnover fee, GST, and Securities Transaction Tax (STT) so that when you are trading you can manage your finances properly.

So let us first understand how does the brokerage calculator works.

It is a tool available online that agents and different investment platforms give at the disposal of traders to work with financier computation ahead of completing an exchange. A brokerage calculator helps in calculating more than just brokerage. A brokerage calculator helps in eradicating any hidden terms and conditions if present in the transaction or trade.

There is a regulated formula that is used to calculate the net trading charges which is necessary to calculate while trading.

Trading cost = Brokerage + Securities transaction tax + Stamp duty + other charges.

Brokerage charges are of different types and you need to be aware of those to understand how brokerage is calculated. a brokerage charges calculator works on the way toward ascertaining the expense of exchange fundamentally. An individual would have to include the accompanying data in an online brokerage calculator to figure their expense of exchanging – Purchase/price tag of a stock, Deal cost of a stock, Number of offers to be purchased/sold, State (for stamp obligation), Size of a lot (for Options exchanging). Different aspects of trade can be calculated easily with a brokerage calculator.

When you need to calculate the brokerage there are different information that you need to provide to get the brokerage calculated accurately.

Here is the list of information you need to provide for calculation:

  1. Stock price – Buy/Sell Price
  2. Quantity – Number of shares
  3. Segment – Equity, Commodity OR Currency
  4. Product – Cash, Futures OR options
  5. Mode of trade – Intraday OR Delivery

Once you provide this information you will get details about the charges that will be levied, net P/L and the actual brokerage. The calculation of brokerage with 5paisa is that easy and you can do it within no time.

5paisa calculates the brokerage with the following formula and it does it with minimum hassles.

Brokerage = Number of bought/sold shares x Price of one unit of stock x brokerage percentage.

When you contact 5paisa, you get different benefits and you can use it for different aspects. With other options and ways to get help with the trading and stock market guidance, the work is easy and reliable. Get started with 5paisa today.

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