Charges Applicable for Trading

When someone plans on trading he/ she asks the first question how much brokerage he/she has to pay.

I can guarantee when you trade in stock market after certain time you really don’t bother about the brokerage. You just see the profit and loss.

I will tell you about the brokerage and other charges which are applicable in trading.

If you want to trade in stock exchange, you need a broker to open your account.

If you are going through a broker obviously you have to pay the brokerage.

The maximum limit of one side brokerage is 2.5% of the total amount set by SEBI.

If you open an account with a broking firm currently the standard brokerage charged by them is 0.05% for intraday (if you buy and sell the stock on the same day) for one side (one side means one trade either buy or sell) and 0.50% for delivery (buy today and sell any day except the same day).

For intraday the total amount charged is: brokerage + STT (security transaction tax) (i.e. 0.125% of the total volume)

For Delivery the total amount charged is: brokerage + STT (security transaction tax) + Stamp Duty + Stock Delivery Charge.

When you will check your statement Stock delivery charge is not mentioned in the statement. I still don’t know the reason.

Every broking firm has different stock delivery charge. But it is possible that broking firm A charges INR 20 per script and broking firm B charges INR 40 per script. So before opening an account with any broking firm, check out how many and how much charges you have to pay.