Basics Share Market

What are the Hidden Charges behind your trade?

  • Follow on Instagram
  • Join us on Telegram
  • Like us on Facebook
  • Follow on Twitter
  • Subscribe to Youtube Channel

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:

Charge NameDescriptionIntradayDelivery
Brokerage Charge**This is the fees charged by
your broker for execution of
your transaction.
0.03% (Zerodha) /
0.05% (Upstox) OR
20 INR/- per order
0
DP ChargeThese are the Depository Participant charges charged by your broker.NANDSL: 4.5 INR
CDSL: 5.5 INR
Zerodha: 8 INR
Upstox: 13 INR
Exchange Transaction ChargesExchange Transaction
charges are the amount
charged by Exchanges and
Clearing authority on all trades
NSE: 0.00325%
BSE: 0.003%
NSE: 0.00325%
BSE: 0.003%
GST on BrokerageGoods and Service tax which
needs to be paid on the brokerage amount.
18%18%
GST on Exchange
Transaction Charges
Goods and Service tax which
needs to be paid on Exchange
Transaction charges.
18%18%
GST on DP ChargesGoods and Service tax which
needs to be paid on DP
charges.
NA18%
Security Transaction TaxThis charge is for the purchase or sale of securities of the
companies listed on the
stock exchange.
0.025% on SELL0.1% on SELL
SEBI Turnover Charges0.0001%
(BUY and SELL)
0.0001%
(BUY and SELL)
Stamp DutyVaries State wiseVaries 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.

We the team of StopToExplore are part of the zerodha family. If you are not part of Zerodha then you can join us now by clicking this button. Join Zerodha

About the author

Saif Ghole

I am a working professional in an IT Firm who loves technology. I have a big interest in technology, the latest gadgets, and traveling.

2 Comments

Click here to post a comment

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 38 other subscribers