Brokerage Calculator

What is Brokerage Calculator?

An online brokerage calculator, offered by brokers and investment platforms, serves as a valuable tool for traders by enabling them to pre-calculate various costs associated with a trade. 

How does a brokerage calculator work?

Brokerage charges represent the fees collected by brokers from traders to facilitate trades. Investors are typically required to pay brokerage fees both when buying and selling securities. 

Formula use for GoPocket brokerage calculator

Despite potential variations, the formula for calculating brokerage in the share market generally involves applying a predetermined percentage to the total trade value.

Brokerage = Number of shares sell / buy * Price of the one unit stock * Percentage of Brokerage 

Example: Amit decides to purchase 100 shares of Yes bank at Rs.20 each, and within 10 days, hee sells those off at Rs.30. He does so via a Broker Z who charges 0.5% as brokerage fees.
In this example, Ria’s total trade value stands to be:
Rs. [(100 x 20) + (100 x 30)]Or,
Rs. (2000 + 3000) = Rs.5000
Since Broker Z charges 0.5% as brokerage, the total fee she pays to the broker is:Rs. (5000 x 0.5%) = Rs.25
Therefore, Amit would pay Rs.25 as a brokerage for carrying out transactions worth Rs.5000. However, if he carried out a transaction on which brokerage by standard means is too low, then a broker would charge the minimum amount applicable, which is usually Rs.20 – Rs.30.However, individuals can streamline the tedious process of computing brokerage by utilizing a stock brokerage calculator.

What are the Factors on which Brokerage Calculation Depends?

The factors on which brokerage calculations depend are –

1. Buy / sale price
   ‍The brokerage commission is directly proportional to the buy or sale price of a single unit of security, making it a key determinant in the calculation.
2. Volume of transaction
   The calculation of brokerage, whether done manually or using a brokerage calculator, is significantly influenced by the volume of transactions. As the transaction volume increases, the brokerage amount tends to rise; however, certain brokers may lower the percentage commission for investors engaging in large-scale trades

3. Segment of trade
   This crucial factor is integral to brokerage calculations, considering the various market segments available for trading, including the spot/cash market and the derivatives market. The applicable brokerage for a trade is contingent upon the specific segment in which you intend to place an order.
   

What are the Benefits of using GoPocket Brokerage Calculator?

• Brokerage calculators provide transparency by breaking down the various components of transaction cost. 
• It allows users to estimate the total cost of a trade, including brokerage fees, taxes and other charges. 
• Investors can quickly compare the costs of different trade scenarios by inputting various parameters, such as trade size, price, and frequency.
•  Calculators allow users to assess the impact of transaction costs on the overall profitability of a trade.
•  Brokerage calculators serve as educational tools, helping investors understand the various charges associated with trading. 
•  As online tools, brokerage calculators are accessible anytime and anywhere with an internet connection. 

FAQs for Brokerage