Charges details during Trading both in Intraday and Delivery

 

If you want to trade in stock market you are required to open an account with brokerage firm. There are so many brokerage firms available in the market with each offering different plans and different services. You can negotiate for following with your broker firm:-

1.       Brokerage %age for Intraday, Delivery and F&O.

2.       Annual Maintenance charges- Some will offer life time free services

3.       Stock recommendations based upon on their research panel- Some firms will free of cost services to their clients

There are following types of charges which you are required to pay against the type of trading done:-

(a)    Brokerage charges:-

These charges vary amount the broker firms and can be as below-

Delivery brokerage - 0-0.5% of traded value buy and sell side

Intraday Trading - 0.005% to 0.05% of traded value or even Rs.10-20/executed order buy and sell side

(b)   STT (Security Transaction Tax):-

Delivery- 0.1% on buy and sell side

Intraday- 0.025% on the sell side

(c)    Transaction charges:-

Delivery- NSE- 0.00345%, BSE-0.00345%

Intraday- NSE-0.00345%, BSE-0.00345%

(d)   GST Charges:-

Delivery- 18% on brokerage and Transaction charges

Intraday- 18% on Brokerage and Transaction charges

(e)   SEBI Charges:-

Delivery- Rs.10/crore

Intraday- Rs.10/crore

(f)     Stamp Charges:-

Delivery- 0.015% or Rs.1500/crore on Buy side

Intraday- 0.003% or Rs.300/crore on buy side

Brokerage Charges:- These are charges which are collected by brokerage firms.

STT- Is charged by government when we trade or do transactions of exchanges. STT is charged on both buy and sell side when trading in cash segment but in F&O STT is charged only at sell side.

Transaction charges:- These are charges which are collected by exchanges such as NSE, BSE and MCX and will be charged on value of transactions.

Stamp Duty:- These charges are collected by Government of India and are as per Indian stamp act of 1899 for transacting in instruments on the stock exchanges and depositories.

GST:- This is the tax levied by Govt. on services provided.

SEBI charges:-  These are collected by SEBI for regulating the markets.

DP (Depository participant) charges:-These are the charge which are collected by CDSL and these are collected at Rs.13.5+ GST per script on the day script is debited from trading account when stocks are sold.

Pledging charges:- These charges are collected by brokerage firm and vary from broker firm to broker firm.

AMC (Annual Maintenance charges):- Brokerage firms charges for providing the services and vary from firm to firm.

 

So do analyze these charges as these charges will eat away your heaviest amount when you are a day trader. You will feel the pinch of these charges during day trading. I have seen that I past 15 years of trading in stock market I have more than Rs.2.5 lacs in above mentioned charges on cumulative basis. You have to bargain these charges while opening the account and you can bargain even between as new broker firms has made the market even more competitive in field of stock market brokers.