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Get an overall perspective of share market calculation, including all brokerage and statutory fees, through easy-to-understand formulas and examples.
Every stock market transaction, whether you're buying or selling, comes with a cost. One of the most important yet often misunderstood components of this cost is the brokerage charge. In India, share market brokerage charges vary based on your broker, the type of trade, and the transaction’s value.
Having an idea of the amount of brokerage charges helps you evaluate the actual cost, make better decisions, and plan your finances more effectively.
Brokerage is the fee you pay to your stockbroker for facilitating a trade on your behalf. The charge is the amount a broker claims for executing a buy or sell order in the stock market.
In India, brokers typically charge either a percentage of the transaction value or a flat fee per order. For example, on a transaction of ₹1 Lakh, a broker charging a commission of 0.3% will earn ₹300.
Brokerage is usually applicable to the following types of trades:
Equity delivery trades
Intraday trades
Futures and Options (F&O)
Commodities and currencies (via separate platforms)
There are two kinds of brokers associated with trading:
They offer end-to-end services, including trading, advisory, and asset management. Brokerage charges range from 0.01% to 0.5% on delivery and intraday trades.
They provide only trade execution without advisory services. Charges typically range from ₹10–₹20 per trade, with some offering free delivery trading. Brokerage may apply to both buy and sell or only one side.
Apart from the broker’s fee, there are other statutory charges added to your total transaction cost. Take a look at these fees below:
Charged by the broker for placing your order in the market
Varies from 0.01% to 0.5% depending on trade type and broker
May be capped for intraday/F&O in discount broking models
Government levy on the transaction amount
Applies on both the buy and sell sides for delivery and only on the sell side for intraday
STT applies at 0.1% on both buy and sell sides for delivery trades
For intraday trades, sellers pay 0.025% on the total transaction
Charged by stock exchanges for trade facilitation
The National Stock Exchange charges a transaction fee of 0.00325% of the total amount
The Bombay Stock Exchange charges a transaction fee of 0.00275% of the total amount
Regulated by SEBI
Typically, 0.0002% of the total turnover
Since 2017, it replaces Service Tax
The applicable GST is 18% on the brokerage charges and exchange transaction charges.
Levied by state governments
Exchanges charge it on both buying and selling sides, based on the type of security.
To simplify the process, brokers provide an online share market brokerage charges calculator to compute the charges. However, to calculate the charges manually, use the following formula to get the total cost of your trade, including all applicable charges:
Brokerage = Number of shares traded × Price per share × Brokerage rate
Scenario:
ABC buys 20 shares at ₹2000 each
ABC sells those 20 shares at ₹2100 each
Brokerage: 0.5% on each side
Here is how brokerage charges are calculated:
Details |
Values |
|---|---|
Purchase |
20 x 2000 = 40,000 |
Sell |
20 x 2100 = 42,000 |
Brokerage Charge |
0.5% |
Total Trade Value (20 x 2000) + (20 x 2100) |
(40,000 + 42,000) = ₹ 82,000 |
Brokerage Charge (82,000 x 0.5%) |
₹ 410 |
Total Charges = ₹410
Brokerage rates and tax components differ based on the type of trade. Check out how the calculation of these charges differs for equity and intraday delivery:
Component |
Equity Delivery |
Intraday Trade |
|---|---|---|
Brokerage |
Up to 0.5% per side |
Usually 0.01–0.05% |
STT |
0.1% |
0.025% |
Exchange, SEBI Fees, GST |
Applicable |
Applicable |
Stamp Duty |
On both sides |
On both sides |
Intraday trades generally have higher brokerage and tax impact as day traders execute multiple trades in a day.
Brokers keep fees competitive while following mandatory disclosures and charge limits. Here is an overview of how these charges work in practice:
SEBI sets the maximum brokerage a broker can charge, which must not exceed 2.5% of the transaction’s total value in case of delivery transactions
NSE and BSE fix exchange charges applicable to all members, which have recently changed to a uniform fee from a volume-based pricing model
Stamp duty is state-specific but standardised post-digital framework
Brokers must include all charges in the contract note sent post-trade
Understanding this ensures that you are not caught off guard by additional fees after your trade is completed.
An online brokerage charges calculator helps you estimate trading costs in advance. These tools typically ask for the following:
Purchase price of a stock
Sale price
Number of shares you want to buy
Your location for stamp duty
Once you enter these inputs, the calculator provides a breakup of:
Total transaction cost
Statutory charges
Net gain or loss after costs
To estimate profit and avoid loss
Choose between brokers or trading strategies
Helps intraday traders plan entry/exit with greater accuracy
Not all costs are visible upfront. So, review carefully before executing trades. Here’s what to keep in mind:
Check for platform usage charges, maintenance fees, or technology add-ons
Compare costs in the context of trade size and frequency
Always read the detailed breakdown provided in the trade confirmation
Use contract notes to audit actual charges vs estimated ones
Keeping track of your total cost per trade can significantly impact your net returns, especially if you trade frequently.
Brokerage charges are a fundamental part of trading in the Indian stock market. By understanding each component, from basic brokerage to government levies like STT and GST, you can accurately calculate your transaction costs.
Tools like brokerage calculators help demystify this process, allowing for greater clarity. Being aware of these costs helps you plan better and avoid unexpected charges after the trade.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Brokerage is typically charged as a percentage of the trade value or as a flat fee per transaction, depending on your broker’s plan.
Brokerage is the fee your broker charges for executing a trade. STT is a government-imposed tax on the transaction.
Different brokers have different pricing models. Discount brokers often charge flat fees, while traditional brokers may charge based on trade value.
Yes. Brokers may update their fee structure, and regulatory charges, such as stamp duty or GST rates, can also change. However, based on current regulations by SEBI, the charge should not exceed 2.5% of the transaction value.
It includes STT, exchange transaction fees, SEBI charges, GST, and stamp duty.
They offer good estimates, but the final cost may vary slightly due to rounding or real-time price changes.
Generally, mutual fund investments via direct plans and IPO applications through UPI are free from brokerage. However, platform or service fees may apply, depending on the intermediary.
