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What are call and trade charges & how different brokers charge them?

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Earlier when only traditional brokers were there traders need to make a call to their brokers for placing their buy/sell orders over the exchange.The entire process was time-consuming and also the huge cost was involved. At that time brokerage charges were very high as compared to the present.People were not very familiar with technologies as they are now.With the introduction of different technologies, a new concept of the discount broker was also introduced.Although both traditional broker and online discount brokers offer brokerage services there is a big difference in the amount charged by them as commission.

Call charges

With the presence of advanced technology nowadays trading can be done from anywhere even without having computer or access to the internet.All you need to do is make a call to the executive of your broker and place your different buy/sell orders.A call charge has to be paid every time you place an order over the phone.Charges on orders placed with traditional brokers are calculated on a percentage basis.Traders using discount broker trading model do not need to follow this traditional mode of trading. Using their trading platform they can place their order on their own without making any phone call and therefore no call charges are to be paid.But there are traders who willing opt for this call service and they have to pay call charges.Once a trader learns how to learn how to use trading platform then only a flat fee of Rs 20 is to be paid per executed order.

Trade charges

This is a charge which a trader need to pay for every trade he does by making a phone call and it is executed.In the case of traditional brokers, they charge differently on the basis of lot size, trade amount.These amounts are calculated on a percentage basis and increase with the increase of lot size.For example, if you trade 6 times in a day then you need to pay different trade charges 6 times calculated on your lot size and trade amount.Trade charges are a huge burden on traders and using services of discount brokers they can successfully remove this barrier. As they do not charge differently for a different order.They charge a flat fee for every executed order irrespective of lot size and amount.

These charges are mandatory, by opening Demat account with discount brokers traders can save their money.As they offer a trading platform along with trading tools which facilitate traders to perform trading at their end.
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