In all the marketing campaigns done by any of the brokers, they say “No Brokerage charges” or “Flat 20 rs for any trade” and “No additional charges“. But are these campaigns true? Yes, they are but these marketing campaigns are made from the point of view of the broker. So from there point of view, there are no hidden charges.
Let’s take an example: you invested 10000 INR. Over the due course of time, the price has increased to 15000 INR. So your profit is 5000 INR. You decide to sell the shares (assuming the brokerage charges are 20 INR), so should end up making a Net Profit of 4980 INR. But, the amount you get will be lesser than what you calculated. Why it is so? This is because of the hidden charges charged by the Government Authority. So let’s see what are these charges and what is the % you need to pay.
Below are all charges/ hidden Charges involved in the trade:
|Brokerage Charge**||This is the fees charged by|
your broker for execution of
|0.03% (Zerodha) /|
0.05% (Upstox) OR
20 INR/- per order
|DP Charge||These are the Depository Participant charges charged by your broker.||NA||NDSL: 4.5 INR|
CDSL: 5.5 INR
Zerodha: 8 INR
Upstox: 13 INR
|Exchange Transaction Charges||Exchange Transaction|
charges are the amount
charged by Exchanges and
Clearing authority on all trades
|GST on Brokerage||Goods and Service tax which|
needs to be paid on the brokerage amount.
|GST on Exchange|
|Goods and Service tax which|
needs to be paid on Exchange
|GST on DP Charges||Goods and Service tax which|
needs to be paid on DP
|Security Transaction Tax||This charge is for the purchase or sale of securities of the|
companies listed on the
|0.025% on SELL||0.1% on SELL|
|SEBI Turnover Charges||0.0001%|
(BUY and SELL)
(BUY and SELL)
|Stamp Duty||Varies State wise||Varies State wise|
**Brokerage charges are mentioned for Zerodha and Upstox Broker. Other brokers will have different pricing.
Manually, calculating these metrics on all your transaction is not a feasible way. So the brokers like Zerodha and Upstox have simplified it by creating a brokerage calculator. Below are the links for them.