What is an Online Brokerage Calculator
Brokerage is the charge that your stock broker levies each time you make a buy or a sell transaction. Depending on the stock broker, their brokerage pricing mechanism, and the type of asset that you’re purchasing or selling, the brokerage is likely to change.
And when you’re into serious online trading, the brokerage itself can significantly inflate your cost of ownership. That’s why it is important to be aware of just how much brokerage you’d have to pay on each transaction before actually conducting the transaction.
But, how do you do that? Fortunately, there’s a simple way for you to calculate the amount of brokerage that you would have to pay on a transaction. How, you ask? Through the use of an online brokerage calculator. Here’s what it is.
- What is an online brokerage calculator?
A brokerage calculator is a simple, yet nifty little tool that can help you determine the brokerage for each buy and sell transaction that you’re about to make. All that you have to do is enter the particulars of the transaction that you’re about to make. The tool will automatically calculate the amount of brokerage applicable on the transaction.
Although you can find a good brokerage calculator online, it is advisable to go with one that applies to your stock broker. For instance, if your stock broker is Motilal Oswal, it is a good idea to use a Motilal Oswal brokerage calculator instead of other online calculators. This is because different stock brokers have different pricing mechanisms and using an brokerage calculator that doesn’t apply to yours can end up skewing the results.
- How to use a brokerage calculator?
Using an online brokerage calculator such as the Motilal Oswal brokerage charges calculator is incredibly simple. Here’s a brief overview of the steps that you would have to follow. Be advised that the process might differ slightly depending on the stockbroker you’re associated with.
- Search for and visit the webpage of your stock broker’s website containing their brokerage calculator.
- Select the kind of asset that you wish to trade in. You typically have the following choices - equity delivery, equity intraday, futures, and options.
- Once you’ve done that, choose the order type - buy or sell.
- Next, enter the quantity of the asset that you wish to purchase or sell, followed by the price at which you wish to do so.
- After that, choose the exchange in which you’re planning to conduct this transaction.
- And finally, click on the calculate button. The online brokerage calculator will instantly display the amount of brokerage that you would have to pay.
Conclusion
Now that you know what an online brokerage calculator is, go ahead and try the Motilal Oswal brokerage calculator right away. That said, if you’re interested in online trading, but don’t have a demat and trading account already, visit Motilal Oswal to open one for free within just a few minutes.
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