What are the Hidden Charges behind your trade?

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.

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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 Name	Description	Intraday	Delivery
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 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	NSE: 0.00325% BSE: 0.003%	NSE: 0.00325% BSE: 0.003%
GST on Brokerage	Goods 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 Charges	Goods and Service tax which needs to be paid on DP charges.	NA	18%
Security Transaction Tax	This charge is for the purchase or sale of securities of the companies listed on the stock exchange.	0.025% on SELL	0.1% on SELL
SEBI Turnover Charges		0.0001% (BUY and SELL)	0.0001% (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.

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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.