Zerodha: If you’re not cautious you end up paying a lot of brokerage fees in Zerodha. Even sometimes it doubles or more than that. Zerodha online discount trading brokerage is probably one of the most famous Trading Platforms of India because of low brokerage charges. But, of course, there’s always one significant oversight that most traders are unaware of, and it has severe consequences. In this article, we are going to reveal this mistake and discuss how you can best avoid it. An investor needs to have a clear picture of the brokerage charges while undertaking any form of investment.
Brokers’ fees refer to the amounts of money that brokers or an investment firm charges for a trade. Originally, Zerodha was an offline discount broker, operating on limited costs as compared to other traditional brokers. For example:
• Delivery Trades: Zerodha charges no brokerage.
• Intraday Trades: Holding costs of ₹20 per trade or 3 paisa (which is 0.03% of the transaction value), whichever the smaller amount.
The charges seem simple and easy to execute. However, the manner which these fees are set means that even a small lapse can lead to them growing very fast. But let’s understand how can this happen?
How Brokerage Charges Double
Let me explain it with a scenario where you are trading in intraday stocks and cost per transaction is ₹20 as brokerage fee. Today, if you enter into a debit balance with Zerodha, which means you owe money to Zerodha, they do not only charge you the trading cost but also extra charges for debited balance and higher brokerage charges.
For example, suppose you have made the five intraday trades in a single day. Normally, the brokerage would be:
5 trades x ₹20 = ₹100
But if your account balance is negative, Zerodha may double the charges as a penalty:
5 trades x ₹40 = ₹200
That’s how you end up paying more.
Why Negative Balance Results in Double Billing?
If your account balance turns negative, it means you’re trading against funds that haven’t cleared for use yet. Zerodha sees this as risk and then charges you more by increasing the brokerage fees. This not only affects your profitability but also discourages you from making further trades.
How to Avoid This Mistake
The solution is simple: always maintain a positive balance in your account. Before making any trades, check your funds to ensure there’s no shortfall. If you’re unsure about managing your trades or worried about high brokerage fees, consider exploring platforms like Angel One.
Angel One offers low brokerage charges. It’s especially beginner-friendly and helps you trade smarter. If you’re looking for a platform that saves you money and guides you better, you can start your journey with Angel One by simply clicking here https://tinyurl.com/29sj4kaq
Trading is exciting, but only when you’re careful with your decisions. Avoid negative balances, save on brokerage charges, and make the most of your trading journey!
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