One of my friends, Kate started trading on local stock exchange about one year ago after hearing her friends talk about catching stocks on their uptrend and receiving regular dividend payouts.
She didn’t have any experience but just armed with finance and accounting degree and basic understanding of business. She invested in local stock market and a few of her shares went up but she did not hold on to them. She traded aggressively sometimes making as many as 5-10 online trades per day. However, she was surprised to discover that her portfolio was making a loss due to the high brokerage fee. Thus, a brokerage fee is crucial as it will eat into the profits and may actually end up with thin gains.
Brokerage fees are mostly capped at 0.7% of the transacted value. On average, online platform provides charge a brokerage rate of 0.42% while for remisier, the rate is 0.6% of the transacted value. So, it is usually cheaper to trade online.