The following points are to be considered for selecting broker.
1.BROKERAGE
for service brokers the brokerage charges are around 0.3% on buy and sell
with 15% service tax we get around (0.3+.045+0.3+0.045 + 0.1 STT on buy and 0.1 STT on sell)So total around 0.9% charges: i have assumed that we purchase 100 shares of infosys and sell when the price increases by Rs10
points to breakeven is 9.14. This means that if we buy a stock for Rs1000 , then we have to sell only above rs 1009.14. If we sell below Rs1009.14 then we will get loss. IF we buy at 1000 and sell at 1010 then 9.14 will be taken as charges and reamaining 86 paise (approx) is the profit...
In discount broker our Profit is Rs 9
2. Call and Trade Facility
Brokers like GEOJIT, IIFL do not charge if we place order via phone....
But brokers like zerodha charge rs 20.
3. MARGIN
service brokers like geojit offer very good margin for BTST Trades. But discount broker like ZERODHA do not offer this feature directly.
ZERODHA - To get margin we have to place an online request to pledge our stocks. after processing the request we will get margin after few hours or on next day. But in ZERODHA, we cannot use the margin money to BUY STOCKS FOR DELIVERY, BUY OPTIONS. We can do only intraday trades and use margin for option selling and futures. In 5paisa, the margin for BTST trades will be credited and we can use the same to buy intraday trades. The margin amount can be used for 5 days. Beyond 5 days in 5paisa, we can extend to get more than 1 week grace times.
4. LIST OF STOCKS for MARIN and the margin value
The list of stocks will vary from broker to broker.
HOLDING MARGIN - This margin is given based on holdings.example - Let us say we have 10 shares of rs1000 worth rs10000 of INFY. then Margin of Rs8000 will be again credited. The margin will be based on the category of stocks. The stock category are E, A B C D
CASH MARGIN - THis margin is based on the cash available for trading. Based on the the category of stock we can buy. example the the stock is E category, then we can buy 6 times (delivery) and 15 times for intraday. FOr example if we have Rs10000, then we can buy upto Rs 60000 worth stocks for delivery and hold for 5 days or we can buy upto Rs 150000 worth stocks for intraday .
Some broker offer cash margin . Most of the brokers offer holding margin. But the no of days we can use the margin and the CHARGES of margin varies. This charges are applicable on holidays and the interest rate is around 18% p.a to 21%p.a ( 50 paisa per Rs1000 for 1 day)
5. RECOMMENDATION for buy and sell - Generally service brokers like GEOJIT , IIFL, ICICI DIRECT, HFDC Securities offer very good recommendation to get profit for short term holdings and medium term hodings. But discount brokers do not offer any recommendation. 5paisa is discount broker who offers research recommendation through live chat.
6. FEATURES -
TRAILING STOP LOSS Order - this order we can set our target and trailing stoploss.which stop loss automatically moves with the target. example Bharatfin is at 814 , we decide to buy expecting some increase my target is 824 and stop loss is 810. If I placed a fixed stoploss and if Bharatfin goes to 810 and comes back up to 824, the stop at 810 will stay, and even though I might have seen profit on this trade, might end up making a loss since Bharatfin hits my stop. If we use trailing stop loss as 1 then for evert 1 rupee movement the stop loss will also move up by 1 . So if I had used a trailing SL, when Bharatfin went to 820 my SL would now have been 816 which would get executed on the way up and maximise the profits.
Trailing stoploss order very few discount broker like zerodha offer. Service broker like geojit , iifl, hdfc do not have this offer. But ICICI Direct has price improvement order