No, only one trading account can be opened with one broker. However, beneficial owners can open multiple Demat accounts with as many DPs or brokers as they want.
Brokerage firms use two pricing models, namely ‘per trade’ and ‘per executed order,’ to levy charges for their services.
- Per Trade: Charges are applied for each individual trade made irrespective of the order size or quantity of shares. This means the brokerage firm will charge a fixed fee for the entire trade.
- Per Executed Order: Charges are levied per order executed, regardless of the number of shares traded within that order. This means brokerage will be charged for the orders that are executed. No brokerage will be charged for pending orders.
Stockbroker charges vary widely and depend on various factors such as the type of broker (full-service or discount), services offered, account type and the volume of trading. Some stockbrokers charge flat fees per trade/order others charge a percentage of the transaction value. Some even charge annual maintenance charges or a combination of these.
The Financial Kaleidoscope
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