Understanding Brokerage Charges in India: A Complete Guide for Traders and Investors
By CapitalKeeper | Beginner’s Guide | Indian Sock Market | Market Moves That Matter I 28th June 2025
Brokerage Charges in India: A Trader’s Complete Guide
Whether you trade stocks occasionally or actively speculate in futures & options (F&O), brokerage charges directly impact your net profit. Understanding how they work is essential to making smart decisions, choosing the right broker, and managing trading costs.
What Are Brokerage Charges?
Brokerage charges are fees levied by brokers on buy or sell transactions executed through their platform. They can be:
- Flat per trade fee (e.g., Rs. 20 per executed order)
- Percentage-based fee (e.g., 0.1% of transaction value)
Different segments like equity delivery, intraday, F&O, and commodities have different brokerage structures.
Types of Brokerage Structures in India
1. Discount Brokers
These brokers (Zerodha, Upstox, Groww, Angel One) offer low-cost trading with flat fees, typically:
- Equity Delivery: Free or Rs. 0
- Equity Intraday/F&O: Rs. 20 per executed order
2. Full-Service Brokers
Traditional brokers (ICICI Direct, HDFC Securities, Kotak Securities) charge a percentage-based fee:
- Equity Delivery: 0.3% – 0.5% of turnover
- Equity Intraday: 0.03% – 0.05% of turnover
- F&O: 0.03% – 0.05% of turnover
They also provide research, advisory, and relationship managers.
Other Charges to Consider
Besides brokerage, traders also pay:
- Exchange Transaction Charges: NSE/BSE fees on turnover
- STT (Securities Transaction Tax): Government tax on buy/sell trades
- GST: 18% on brokerage + exchange charges
- Stamp Duty: State-wise duty on traded value
- SEBI Turnover Fee: Nominal fee by regulator
How Brokerage Affects Your Trading Returns
High brokerage eats into small profits, especially for active traders. For example:
| Trade Value | Brokerage (Flat) | Brokerage (0.1%) |
|---|---|---|
| Rs. 1 lakh | Rs. 20 | Rs. 100 |
| Rs. 5 lakh | Rs. 20 | Rs. 500 |
Thus, high-volume traders often prefer discount brokers with flat charges.
Tips to Reduce Brokerage Costs
- Use discount brokers for intraday & F&O trades
- Consolidate trades instead of placing multiple small orders
- Compare brokers’ hidden charges (call & trade fees, software costs)
- Negotiate rates if trading large volumes with full-service brokers
Final Thoughts
Brokerage is just one part of trading costs, but controlling it is crucial to improving net returns. Research, compare, and pick a broker whose fee structure matches your trading style.
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