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What Are Call and Trade Auto Square Off Charges

15 Sep 2023

In the world of stock trading in India, understanding various charges and fees is crucial. Among the most often misunderstood charges are the "Call and Trade (Auto Square Off)" charges. Let's explore what these charges entail and how they can impact your trading experience.

Call and Trade (Auto Square Off) charges are fees imposed by brokerage firms in India for executing trades on behalf of clients over the phone. They are particularly relevant for investors who prefer not to place orders through online trading platforms but instead rely on broker-assisted services.

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How Do Call and Trade Charges Work?

Brokerage firms typically charge clients on a per-order basis for using Call and Trade services. The charges vary among brokers and can range from a fixed fee per executed order to a percentage of the trade value.

  • Impact on Trading Costs

Call and Trade charges add to the overall cost of trading. Depending on the broker and the volume of trading, these charges can accumulate over time. Traders should be aware of these costs and factor them into their trading strategies.

  • Different Brokerages, Different Charges

It's essential to note that Call and Trade charges are not standardized across all brokerage firms in India. Each broker has its own fee structure, and it's crucial for investors to understand the charges imposed by their chosen brokerage.

How to Minimise Call and Trade Charges?

  • Leverage Online Platforms: 

Whenever possible, use online trading platforms provided by your broker to place orders. This eliminates the need for Call and Trade services.

  • Plan Your Trades: 

If you need Call and Trade assistance, plan your trades accordingly to minimize the number of orders placed through this service.

  • Negotiate with Your Broker: 

Some brokerage firms may offer reduced or waived Call and Trade charges to high-frequency traders with substantial trading volumes. It's worth negotiating these terms.

  • Compare Brokerages: 

Before choosing a brokerage, compare Call and Trade charges among different firms. Look for a broker that offers competitive rates and aligns with your requirements.

What is the Importance of Transparency?

For investors, transparency regarding Call and Trade charges is essential. Brokers should provide clear information about these charges on their websites and other communication channels. Traders must educate themselves about these fees to make informed decisions.

Call and Trade (Auto Square Off) charges are an integral part of trading in the Indian stock market, especially for those who rely on broker-assisted services. While they may seem insignificant at first, these charges can accumulate over time and affect the overall cost of trading. By understanding Call and Trade charges, you can make more informed investment decisions in the stock market.


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