Most investors make this two-way exchange of securities considering stock prices, technical analysis, and market trends. However, not many take into account the different brokerage charges. The effects of these fees on total returns can be substantial. It is very important to comprehend these charges to avoid the situation after pulling all the money out or, even better, save money in the process and get maximum gains.
This information guide will include all the details of the different brokerage charges, brokerage fees, STT (Securities Transaction Tax), GST, SEBI Fees, stamp duty, and other charges.
| Equity Delivery (Buy & Sell) | 0.1% each side | Trade Value |
| Intraday (Sell only) | 0.025% | Trade Value |
| Futures (Sell only) | 0.0125% | Trade Value |
| Options (Sell only) | 0.05% | Premium Value |
3. Goods and Services Tax (GST)
GST is charged at 18% on brokerage and transaction charges.
For example, if brokerage fees are ₹100, GST will be ₹18 (18% of ₹100).
4. SEBI Turnover Fees
The SEBI charges a turnover fee to regulate the market. The current turnover rate is ₹10 per crore (0.0001%).
SEBI charges 0.000025% of the turnover (Rs. 2.5 per crore) on all purchase and sale transactions.
Example: If your total turnover is ₹50 lakh, the SEBI fee will be ₹5.
5. Stamp Duty Charges
Stamp duty is a state government levy applicable to financial transactions.
| Transaction Type | Stamp Duty Rate (per ₹1 crore) |
| Equity Delivery | ₹150 |
| Intraday (Equity) | ₹300 |
| Futures (Equity) | ₹200 |
| Options (Equity) | ₹500 |
6. Exchange Transaction Charges
Each time a stock exchange (NSE, BSE, MCX) makes a transaction, they are charging a commission for it:
- Equity Delivery: 0.00325% on NSE.
- Equity Intraday: 0.00325% on NSE.
- Futures: 0.0019% on NSE.
- Options: 0.05% on premium turnover.
Example: If you engage in intraday trading with an amount of ₹1,00,000, the transaction charge will be ₹3.25.
7. Depository Participant (DP) Charges
Depositories (CDSL/NSDL) deduct the fees through their brokers when you sell your stocks in your Demat account.
Example: Zerodha charges ₹13.5 per scrip sold.
8. Other Hidden Charges
- Call & Trade Fees: A small fee is required while placing the orders by phone. Usually, it is ₹20 per order.
- Auto Square-Off Charges: The broker may impose a charge of ₹50 per order if the intraday positions are not closed on time.
- Payment Gateway Charges: Net banking can cost around ₹9 for some but not all brokers, as they may still charge fees for depositing funds using this mode (around ₹9).
Essence
To keep your trading costs under control and maximize your returns, it is essential to have a solid understanding of brokerage charges. Utilizing a Brokerage Calculator to obtain a comprehensive understanding of the costs associated with the trades that are to be executed is a prudent course of action.
