India’s legacy brokers bank on leveraged trading to claw back lost ground
Under the traditional model, brokerage is calculated as a percentage of trade value. For instance, if an investor buys shares worth ₹1,00,000 and the brokerage is 0.30%, the fee is ₹300 on the buy side and another ₹300 on the sell side. As trade value rises, so does the fee. In contrast, discount brokers typically charge a flat fee per order, say ₹20 per side, whether the trade value is ₹1,00,000 or ₹5,00,000.
