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Stock Broker Charges – Brokerage Charges, Transaction Charges & more

In this article, we will check out various stock broker charges involved like brokerage charges, transaction charges, turn over charges & more.

Most of the investor thinks that during the time of buying or selling shares in India, they just need to pay the cost or sale price and then brokerage. But, this is not true. There are many charges levied by Stock Brokers & SEBI which are applicable.

In this article, we will inform you about the other charges such as transaction charges, stamp charges, GST charges and so on. In fact, there are a number of various charges that are levied when you are going to buy or sell shares in India.

Take a look at the various charges which are involved when you buy or sell shares in India.


What are Stock Broker charges?

Stock Broker Charges or Stock Broker FeesBrokerage charges are the fee charged by the broker in order to execute the transaction or provide special offers.

Most of the brokers will charge brokerage fees for their services such as purchasing, sales, consultations, negotiations and delivery. There are no standard brokerage charges and it will vary from individuals to individuals.

The stockbroker charges are the fee charged by a broker in order to execute the transactions or to provide special services.  The stockbroker charge will depend on the percentage of the transaction.

In the financial industry, the broker charges will be charged in order to facilitate trading or to administrator investment or other accounts. There are three main types of brokers that charge brokerage fees such as full service, discount and online.


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What is the various Stock Broker Charges involved in buying and selling of shares?

It is already mentioned that apart from brokerage charges, there are various charges which are levied on stock exchange transaction. It will be good for you to know about the charges.

You will see the below-mentioned charges in addition to brokerage charges such as Security transaction charges, Stamp duty and other charges.

Along with this, there are a few more charges such as transaction charges and SEBI and turnover charges. Then there is also service tax which is added with all charges except STT.

Brokerage Charges

The brokerage charges will depend on whether the deal is done in the cash segment or the futures segment of the capital market or whether it is a delivery based process or intraday broking.

The intraday brokerage charges can vary from 0.01% and above but the brokerage charges are high for case-based delivery.

There is no doubt that brokerage charges are the biggest chunk of charges on your contract paper. For instance, most of the regular brokerage house, the delivery based trading brokerage charges can be 0.25 to 0.50.

Transaction Charges

Transaction charges are charged by the stock exchanges. It can be charged for both sides of the trading and it will be same for intraday and delivery.

For instance, the transaction fee of the Bombay stock exchange is 0.00275% on the total amount.

SEBI Turnover Charges

The security exchange board of India is the security market regulator. All the rules and regulations for the exchanges are made by SEBI.

It is charged on both sides of the transaction which means buying and selling. Normally, the SEBI charge is 0.0002% of the total amount and it is same for the intraday and delivery trading.

STT / CTT Charges

After the brokerage charges, this is the second biggest charge. For delivery trading STT is charged for both sides and for intraday trading, STT will be charged only if you sell then stock.

You need to pay this STT charge once and then there is no need to pay capital gain on profit from sales of shares.

Stamp Charges

Earlier a person needs to fix the physical stamps on the share certificates and these were payable at the time of transferring the shares.

But, in recent times shares are traded in an electronic form and this is why you need to pay the stamp charges. It is also charged on both sides of trading that means buying and selling and it will be charged on the total amount.


List of Stock Brokers along with their Charges

Sharekhan ChargesAlice Blue Online ChargesEureka Securities Charges
5Paisa ChargesAnand Rathi ChargesGeojit Finance Charges
Angel Broking ChargesArihant Capital ChargesGlobe Capital Charges
Kotak Securities ChargesASE Capital Markets ChargesHDFC Securities Charges
ICICI Direct ChargesAsit C Mehta ChargesIDBI Direct Charges
Motilal Oswal ChargesAxis Direct ChargesIIFL / India Infoline Charges
Zerodha ChargesBMA Wealth Creators ChargesIntegrated Enterprises Charges
Aditya Birla Money ChargesBonanza Portfolio ChargesJainam Share Consultants Charges
Alankit Assignments ChargesEdelweiss ChargesJhaveri Securities Charges
Swastika Investmart ChargesNirmal Bang ChargesJM Financial Charges
Tradebulls Securities ChargesPrabhudas Lilladher ChargesKarvy Charges
Upstox ChargesReliance Securities ChargesKIFS Trade Charges
Way2Wealth ChargesReligare Securities ChargesLKP Securities Charges
Ventura Securities ChargesSAMCO Securities ChargesMastertrust Capital Charges
Indiabulls Ventures ChargesSBICap Securities ChargesMonarch Networth Capital Charges
Sushil Finance ChargesShah Investor ChargesSuresh Rathi Charges
SMC Global ChargesShri Parasram Holdings ChargesShriram Insight Charges

GST Charges

GST stands for goods and service tax. This tax is levied on the supply of goods from one person to another taxable person. Along with this, it makes inter-branch transfer taxable.

Account Opening Charges

If you are planning to open an account, then most of the time you need to pay something for. Whenever you are going a demat account or a trading account, then as per the rules of the broking house you need to pay this.

The account opening charges are different. For instance, in Zerodha trading accounts opening charges is Rs 200 and on the other hand, Demat account opening charges are Rs 100.

Demat Annual Maintenance Charges / Demat AMC

Apart from the Demat account opening charges, you need to give an annual maintenance charge. The range of this amount will be normally RS 300 to Rs 800.

There are some brokers who don’t charge this AMC for the first year.

Trading Annual Maintenance Charges / Trading AMC

To maintain your trading account if you need to pay any extra charges, then this is called a trading account annual maintenance charge.

But, most of the time you don’t need to pay any extra amount to maintain your trading account.

DP Charges

When you are going to buy a share, then it is kept in an electronic form in a depository. In order to get this service, the depositories charge some fixed amount.

They don’t charge the investors directory but they charge the depository participant. The broker company or the Demat account company is the depository participant.

Dematerialization Charges

Dematerialization is the process in which the client can able to get a physical certificate converted into electronic balances. In order to avail this service, you need to pay a little amount and this is called dematerialization charges.

Call and Trade Charges

The stock market has also shifted from a physical trading process to a more technology-based system. Now, without computer or internet access, a person can use his phone to purchase and trade various securities.

If the customer needs to get this service, then the customer has to pay for it thus bundling the pricing package.

Payment Gateway Charges

When you use the electronic mediums in order to transfer funds using credit cards, debits cards etc., then your retailer or seller uses a third-party application in order to secure your payment.

For this service, the vendors will ask for a nominal fee per transaction. This is actually payment gateway charges.


Stock Broker Charges – Conclusion

Charges and taxes are a very important part for trading and you should not ignore this. You have to pay a good amount of money for buying or selling shares.

The person needs to understand about the various charges which are involved.  The above are the charges which are levied during the time of buying or selling and you cannot avoid these charges.


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