Are Brokerages really eating your profits?

Are Brokerages really eating your profits?

Hello dear,

I hope you are doing well. Today, I was just scrolling my social media platform and I found a post where people are posting about how brokerages are eating their profits.

After reading the comments, I came to know “How aggressively people are trying to find the solution of lower the brokerages”

There is no harm to find a solution where we can find a way to reduce the cost of business But I have a different perspective here. 

Trading is a business and like all other businesses, brokerages & taxes are like raw materials. Or in other words, you can say that these are the costs of running a business.

People were making money when brokerages were ₹100/200 per lots. Now brokerages are like ₹20 per order. This means if you are trading with 10 lots, now you have to pay only ₹40 to open and closed a position instead of ₹2000 – 4000 earlier people were paying.

And the best part is there were making money with those high charges also. Now we are crying with ₹40 only.

I believe the problem is not brokerages. The problem is a mindset. As a business person, you have to change your mindset from savings to earning. We have to keep our focus on how to increase our earnings. And to do that We need real skills, discipline, and patience.

Nowadays people things “Brokerages bhi na dena pade aur paise bhi easily ban jaye” and all this is because of social media where people are sharing anything just to gain a few likes and shares without knowing the consequences.

A recent example is there where people lose huge amounts of capital due to a technical glitch of Finvasia. Just to save a few brokerages they added huge systematic risk through an unstable broker. Thoda thoda na deke, ek hi baar mein sab de diya.

So I think we should trade with a stable and reputed broker. Obviously, we have to pay something extra because every valuable thing comes with a certain price. And there is no harm to pay the cost of doing business where you have the security of your hard earned money.

Now the second question, how to reduce your brokerages by increasing your earnings: 

  • The first thing is analyzing your trading style. If you are earning less you can simply increase your lot size. But for that, you need a high margin.
  • Nowadays we have so many options where we can reduce the margin requirements like trade with hedging strategies. Keep your risk limited and when risk is limited, exchange will automatically reduce your margin.
  • Another way is reducing the no of orders. I trade with Option strategies where risk is limited and I need to take action only where adjustments are required instead of placing orders every single day. It helps me to reduce my brokerages.
  • One more way is to upgrade your learning to increase your earning potential. Remember one thing “There is no such thing as easy money.”

So instead of finding a way to save brokerages, we have to find a way how to increase our profit so that we can easily bear this cost of doing business. Else one day, you will have to pay a huge price for that and you can lose your whole earning with the capital too.

So trade with some reputed brokers and upgrade yourself. If you want to know how I’m trading with options hedging strategies to generate my weekly income. Can check the Mentorship program where I help options traders who want stress-free trading while limiting their risk by taking real hedges to protect their capital from all types of risks. 

Mentorship Program by Sachin Sival

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By signing up for our program, you’ll gain access to a team of experienced options traders who will guide you every step of the way. You’ll learn how to identify the right options strategies for different market conditions, how to manage risk effectively, and how to adjust your positions as needed.

Plus, with our live market support, you’ll have the opportunity to ask questions and get real-time feedback on your trades. This personalized support will help you develop the confidence and skills you need to take on even the most challenging market conditions.

Don’t miss out on this valuable opportunity to take your options trading to the next level. Sign up for our Options Strategies: A Mentorship Program today and start your journey toward success!

Here is the link: Option Strategies: A Mentorship Program

DISCLAIMER: – we are not SEBI research analysts. Views and strategies are posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

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