What Does Zero Brokerage Mean? | m.Stock (2024)

Brokers play a vital role in the stock market by facilitating buy and sell transactions on behalf of their clients. In exchange for their services, brokers charge a fee which is usually referred to as brokerage. While the terms ‘fixed fee brokerage’ and ‘flat brokerage’ are quite common and known among investors, the term ‘zero brokerage’ is also gaining momentum as investors aim to save every penny behind their trades. But what exactly does zero brokerage mean? Let’s find out.

What is zero brokerage?

Brokers generally charge brokerage as a fee for facilitating buying and selling stocks on behalf of the client. However, with new and modern trading techniques, some brokers have introduced the concept of zero brokerage to acquire clients. As the name suggests, in Zero Brokerage Demat accounts, no brokerage is charged on trades, intraday or delivery. m.Stock by Mirae Asset is a pioneer of the ‘Zero Brokerage’ proposition in India. With m.Stock’s Zero Brokerage Account, you can get the benefits of zero brokerage for life by paying a minimal one-time fee.

There are two stock broking models, traditional and discount broking. Zero brokerage is a part of the discount broking model. Let us look at the following example to understand zero brokerage.

Rajeev is a keen investor and trader investing with a full-service broker charging 0.50% on the total trading value. Suppose Rajeev purchases 1,000 shares of Reliance Industries Ltd. trading at Rs. 2,500. With the 0.50% brokerage model, Rajeev will have to pay a brokerage of Rs.12,500 on the total trade value of Rs. 25 Lakhs. But there is a way Rajeev can reduce his brokerage payable from Rs. 12,500 to zero! By opening a zero brokerage Demat account with m.Stock, Rajeev will pay zero brokerage across all products for life.

Read Also: How can I trade with zero brokerage?

Read Also: What All is Free in Zero Brokerage

Advantages of Zero Brokerage

m.Stock has emerged as one of the leading choices of Indian investors in the zero-brokerage segment. Let us look at the advantages of zero brokerage trading to understand its growing popularity.

• No charge on holdings of stocks

  Unlike intraday traders, long-term investors are most likely to purchase stocks of different companies and hold them for the long-term. So, if you are looking for a profitable stock investment, zero brokerage is the way to go. With a much lower break-even point (courtesy zero brokerage), your profit margins tend to be much higher.

  See Also

  Exness Zero Spread Account - ✔️ Pros and ⛔ ConsBest Zero Spread Forex Brokers in the UK - Investing.com UKXM zero account vs standardForex pairs with lowest spreads

• e-Sign and Digi-Locker

  With m.Stock’s zero brokerage trading account, the application process is made seamless and easy thanks to the e-Sign facility, enabling you to open a Demat account from the comfort of your home. In addition to this, thanks to the Digi-Locker, your documents are pre-verified, making the process super-fast.

• Save money, trade more

  By saving the brokerage paid to your broker, you are increasing your effective ROI on investments.

• Wide Variety of Options

  While other brokers offer zero brokerage on only delivery trades, m.Stock’s zero brokerage is valid across all products (except MTF trades). Apart from this, you also get world-class trading app (m.Stock app) to invest at your fingertips.

Read Also: Advantages of Zero Brokerage Trading

How to Choose the Ideal Zero Brokerage Trading Account

Selecting the right zero brokerage trading account is crucial for optimising your investment strategy. Zero brokerage accounts offer significant cost savings, especially for frequent traders. Here are some key factors to consider when choosing the right one for your needs:

• Platform Usability:

  Ensure the trading platform is user-friendly, with intuitive navigation and features that suit your trading style. A good platform should provide real-time data, advanced charting tools, and easy access to research and analysis.

• Hidden Charges:

  While the brokerage fee might be zero, check for any hidden costs such as account maintenance charges, transaction fees, or withdrawal fees. Transparency in pricing is essential to avoid unexpected expenses.

• Range of Services:

  Look for additional services like research reports, advisory services, and educational resources. A comprehensive range of services can enhance your trading experience and help you make informed decisions.

• Customer Support:

  Reliable customer support is vital. Ensure the broker offers timely assistance through various channels like phone, email, and live chat. Good support can help resolve issues quickly and efficiently.

• Account Opening Process:

  The account opening process should be straightforward and hassle-free. Online account opening with quick verification and minimal paperwork is ideal.

• Security Features:

  Your trading account should have robust security features to protect your investments and personal information. Look for brokers that offer two-factor authentication, encryption, and regular security updates.

• Mobile Trading:

  A robust mobile trading app is essential for traders who need to manage their investments on the go. Ensure the app is well-rated, offers full functionality, and is compatible with your device.

• Reputation and Reviews:

  Read reviews and testimonials from other traders to understand the broker's reputation. A broker with positive feedback and a strong track record is more likely to offer reliable services.

• Margin and Leverage Options:

  If you plan to trade on margin, check the broker’s margin and leverage policies. Understanding these terms can help you manage risks better and make informed trading decisions.

• Integration with Banking Services:

  Seamless integration with your bank account for easy fund transfers is a convenient feature. Check if the broker supports multiple banks and offers instant fund transfer facilities.

Choosing the right zero brokerage trading account involves evaluating multiple aspects beyond just the brokerage fees. By considering the factors mentioned above, you can find a trading account that not only saves costs but also provides a comprehensive, secure, and efficient trading experience.

Why choose m.Stock Zero brokerage trading account?

Choosing m.Stock for your trading and investment needs ensures a cost-effective, transparent, and efficient trading experience, allowing you to focus on growing your wealth without worrying about brokerage fees. Here’s why an m.Stock zero brokerage trading account is the right choice for you:

• Zero Brokerage for Life:

  m.Stock offers a zero brokerage trading account for life on all products (except MTF), including Delivery, , Intraday, Currencies, IPOs, and ETFs. With this account, you can trade across all products without incurring brokerage charges. Alternatively, you can opt for a free delivery account at zero cost and pay a flat rate of ₹20 per order on intraday, F&O, currencies, and more.

• No Hidden Charges:

  Transparency is key at m.Stock. No hidden brokerage charges are levied thereby ensuring that you can trade freely and with confidence. This transparency in pricing helps you manage your trading costs effectively.

• Unlimited Orders:

  With m.Stock, you can place as many orders as you wish without worrying about brokerage charges. Whether you place one order or a thousand, you will enjoy zero brokerage fees, allowing you to trade freely and frequently.

• No Subscription Fees:

  Unlike many platforms that charge subscription fees for margin trading facilities, m.Stock offers MTF (eMargin) with no additional subscription costs. This means that your overall rate of return can be higher, as you save on these extra fees.

• Free Investing & Trading for Life:

  While most brokers do not charge brokerage on delivery trades, they often impose fees on intraday and F&O trades. m.Stock breaks this norm by offering zero brokerage on all trades (except MTF trades), including intraday and F&O, for life. This allows you to maximise your investment returns without the burden of brokerage fees.

• Higher Returns:

  By eliminating subscription fees and brokerage charges, m.Stock ensures that you can achieve higher returns on your investments. Over time, regular trading or long-term investing with zero brokerage can significantly enhance your profits.

• Enhanced Trading Experience:

  Brokerage charges might seem small individually, but they can add up and reduce your profits, especially if you trade frequently or hold long-term investments. m.Stock’s zero brokerage account helps you avoid these costs, thereby enhancing your trading experience and boosting your ROI.

Conclusion

Give your trades and investments a better and enhanced platform with zero brokerage. Be it intraday trades or long-term stock investments, manage everything at zero brokerage for life with m.Stock by Mirae Asset.

Usually, brokers charge as high as Rs. 20 per trade for intraday trading. But with m.Stock, there is zero brokerage for intraday trading in both cash and F&O segment.

m.Stock app and web platform allows you to trade free for life at zero brokerage across all products by paying a one-time fee of Rs. 999. Post this, no further charges are levied, and you enjoy zero brokerage for life.

While used synonymously, discount brokerage and zero brokerage are not the same. Zero brokerage is a part of the discount brokerage model of trading but under discount brokerage, a flat fee is charged (usually Rs. 20 per trade) whereas under zero brokerage, no brokerage is charged across products.

No. For all sorts of trading and investment in India, you need to have a DEMAT account with a registered stockbroker like m.Stock.

Zero brokerage is the better choice since you pay zero brokerage across all trades and products for life, which results in very high savings on brokerage.