Aside from the purchase price of securities, trading in them requires paying certain fees. The brokerage fee, which a trader must pay to a broker, is one of the most essential of these costs. The brokerage is a fee paid to a broker for facilitating trading.
Brokerage is often levied as a percentage of the whole trade value. Brokers charge this fee in addition to the initial trade value and subtract it from the trader's portfolio. Depending on the size of the deal, such a monetary outlay may be significant. As a result, many investors utilise a brokerage calculator to get an idea about brokerage charges.
What is a commodities brokerage calculator?
Commodities brokerage calculator is an online tool that brokers and other investing platforms make available to traders to ease brokerage computation before executing a trade. A commodities brokerage calculator does more than just calculate brokerage. It also computes stamp duty, transaction fees, the SEBI turnover fee, GST, and the Securities Transaction Tax (STT).
Below are the requirements for input into the brokerage calculator
An online commodities brokerage calculator considerably simplifies the process of determining the cost of a transaction. To calculate trading costs, an individual needs to enter the following information into our commodities brokerage calculator:
- The commodity that you want to trade (aluminium, copper, crude oil, etc.)
- Quantity (enter the number of lots that you are buying or selling)
- Buy price - (enter buying price)
- Sell price - (enter selling price)
- Segment - (Select the segment that you are going to trade. If you are trading in the futures segment, select the futures. If you are trading in the options segment, select options)
As soon as you enter the above details, the commodity calculator shows the below data:
- Brokerage
- Other charges
- Breakeven
- Net P/L
There is an option to view these charges as a breakup. If you select it, the below data is displayed.
- Turnover
- Brokerage
- Turnover charges
- STT total
- GST
- SEBI charges
- Stamp duty
- Total charges
- Net buy value
- Net sell value
- Points to breakeven
Advantages of our currency brokerage calculator
1. Informed decisions
This tool informs traders or investors about brokerage fees before they make a trade. This enables them to make more educated trading judgments.
2. Compare brokerage partners
Brokerage calculators are quite useful when deciding between brokering partners. They give the necessary information for comparing the expenditure structure, price plans, and charges of brokers.
3. Additional charges
Commodities brokerage calculator in addition to brokerage fees also shows various charges such as Securities Transaction Tax, Goods and Service Tax, state-by-state stamp duty, SEBI charges, turnover charges, and so on.
4. Breakeven
Brokerage calculations also show how many points a transaction needs to break even.
