Understanding brokerage charges is essential for every Indian trader. While most discount brokers advertise “Rs 20 per order” or “zero brokerage,” the actual cost of trading includes several regulatory charges that can significantly impact your net profits.
How Brokerage Charges Work in India
Every trade on the Indian stock market involves six types of charges:
- Brokerage - The broker’s commission for executing your order
- STT (Securities Transaction Tax) - Government tax on securities transactions
- Exchange Transaction Charges - Fees charged by NSE/BSE
- GST - 18% on brokerage + exchange charges
- SEBI Charges - Regulatory fee (Rs 10 per crore of turnover)
- Stamp Duty - State stamp duty on buy-side transactions
Brokerage Fees by Broker
Most discount brokers in India follow a flat-fee model:
| Broker | Delivery | Intraday | F&O |
|---|---|---|---|
| Zerodha | Free | Rs 20 or 0.03% | Rs 20 or 0.03% |
| Upstox | Rs 20 or 2.5% | Rs 20 or 0.05% | Rs 20 or 0.05% |
| Groww | Rs 20 or 0.05% | Rs 20 or 0.05% | Rs 20 or 0.05% |
| Angel One | Rs 20 or 0.25% | Rs 20 or 0.25% | Rs 20 or 0.25% |
| Dhan | Free | Rs 20 or 0.03% | Rs 20 or 0.03% |
| 5Paisa | Rs 20 flat | Rs 20 flat | Rs 20 flat |
For intraday and futures, the charge is the lower of the flat fee or the percentage of turnover. For options, all brokers charge a flat Rs 20 per executed order.
Dhan Brokerage Calculator
Dhan offers zero brokerage on equity delivery trades and ₹20 per executed order on intraday and F&O. The charge structure:
- Delivery: Free (₹0 brokerage)
- Intraday: ₹20 per order or 0.03% of turnover, whichever is lower
- Futures: ₹20 per order or 0.03% of turnover, whichever is lower
- Options: Flat ₹20 per executed order
Worked example — Dhan intraday on 200 shares of TCS at ₹3,800 buy, ₹3,830 sell:
- Turnover (buy): 200 × ₹3,800 = ₹7,60,000 → 0.03% = ₹228, capped at ₹20
- Turnover (sell): 200 × ₹3,830 = ₹7,66,000 → 0.03% = ₹229.80, capped at ₹20
- Total Dhan brokerage: ₹40 (round-trip)
- Sell-side STT: 0.025% × ₹7,66,000 = ₹191.50
- Exchange transaction charges (NSE Equity Intraday): ~₹40.27
- GST (18% on brokerage + exchange): 18% × ₹80.27 = ₹14.45
- SEBI charges (₹10 per crore): ~₹1.53
- Stamp duty (buy-side, 0.003%): ~₹22.80
- Total charges: ~₹310.28 on a ₹6,000 gross profit (~5.2% drag)
Dhan’s zero-delivery and ₹20-cap structure makes it competitive for retail traders running 5-20 lakh per trade. For sub-lakh tickets, the ₹20 cap is the binding constraint, not the percentage.
Zerodha Brokerage Calculator
Zerodha is the largest discount broker in India and uses the same flat-fee model as Dhan:
- Delivery: Free (₹0)
- Intraday: ₹20 per order or 0.03% of turnover, whichever is lower
- Futures: ₹20 or 0.03%, whichever is lower
- Options: Flat ₹20 per executed order
Worked example — Zerodha equity delivery, 100 shares RELIANCE at ₹2,500 buy / ₹2,600 sell:
- Brokerage (delivery): ₹0
- Buy STT (0.1%): ₹250
- Sell STT (0.1%): ₹260
- Exchange charges (~₹2.97 per crore): ~₹15.13
- GST (18% × ₹15.13): ~₹2.72
- SEBI charges: ~₹0.51
- Stamp duty (buy-side, 0.015% delivery): ~₹37.50
- Total charges: ~₹565.86 on a ₹10,000 gross profit (~5.7%)
STT is the dominant cost on Zerodha delivery, not brokerage.
Groww Brokerage Calculator
Groww offers a flat ₹20 across all segments with a slightly different percentage cap:
- Delivery: ₹20 per order or 0.05% of turnover, whichever is lower
- Intraday: ₹20 or 0.05%, whichever is lower
- F&O: ₹20 or 0.05%, whichever is lower
Unlike Zerodha/Dhan, Groww does charge brokerage on delivery — though the ₹20 cap keeps it competitive for trades above ₹40,000 turnover.
Worked example — Groww options, 1 lot NIFTY at ₹200 buy / ₹250 sell (lot size 50):
- Buy turnover: 50 × ₹200 = ₹10,000 → 0.05% = ₹5, but flat ₹20 applies (whichever higher in this case → ₹20)
- Wait — Groww charges the lower of ₹20 OR 0.05%, so on small premium: ₹5 brokerage (the lower)
- Sell turnover: 50 × ₹250 = ₹12,500 → 0.05% = ₹6.25
- Round-trip brokerage: ₹11.25
- Sell STT (0.0625% on premium): 0.0625% × ₹12,500 = ₹7.81
- Other charges: ~₹15-25 combined
- Net P&L: ~₹2,443 on a ₹2,500 gross profit
Upstox Brokerage Calculator
Upstox has a slightly higher percentage cap (0.05%) for intraday and F&O, with a different delivery structure:
- Delivery: ₹20 per order or 2.5% of turnover, whichever is lower
- Intraday: ₹20 or 0.05%, whichever is lower
- F&O: ₹20 or 0.05%, whichever is lower
For low-value delivery trades (under ₹800), Upstox’s 2.5% applies. Above that, the ₹20 cap kicks in.
Angel One Brokerage Calculator
Angel One uses a higher percentage cap at 0.25%, meaning the ₹20 flat fee binds at lower turnover thresholds:
- All segments: ₹20 per order or 0.25% of turnover, whichever is lower
A ₹10,000 intraday turnover on Angel One: 0.25% = ₹25 → capped at ₹20. For sub-₹8,000 turnover, the percentage is lower; above that, the flat fee dominates.
5Paisa Brokerage Calculator
5Paisa charges a flat ₹20 per order across all segments — simplest pricing structure:
- Delivery / Intraday / F&O: Flat ₹20 per executed order (no percentage cap)
This is the most predictable but not always the cheapest — for sub-₹4,000 turnover trades on competitors with percentage caps, the percentage is lower than the flat ₹20.
Understanding STT (Securities Transaction Tax)
STT is the largest non-brokerage cost for most traders. The rates differ significantly by segment:
- Equity Delivery: 0.1% on both buy and sell sides (highest STT)
- Equity Intraday: 0.025% on sell side only
- Futures: 0.0125% on sell side only
- Options: 0.0625% on sell side (on premium value)
This is why delivery trading has much higher charges than intraday, and why many traders prefer intraday or F&O for lower tax impact.
Example: STT Impact on a Delivery Trade
For a delivery trade buying 100 shares of RELIANCE at Rs 2,500 and selling at Rs 2,600:
- Buy STT: 0.1% x Rs 2,50,000 = Rs 250
- Sell STT: 0.1% x Rs 2,60,000 = Rs 260
- Total STT: Rs 510 (out of Rs 10,000 gross profit)
That is over 5% of your profit going to STT alone on a delivery trade.
GST on Brokerage and Trading
GST is charged at 18% on the combined value of brokerage and exchange transaction charges. It is not charged on STT, SEBI charges, or stamp duty.
GST = 18% × (Brokerage + Exchange Transaction Charges)
For a typical intraday trade with Rs 40 brokerage and Rs 3.45 exchange charges:
- GST = 18% x Rs 43.45 = Rs 7.82
How to Reduce Trading Costs
- Choose the right broker for your style - Use Zerodha or Dhan for delivery (zero brokerage), and compare flat-fee structures for intraday/F&O
- Trade higher-value instruments - Percentage-based brokerage caps at the flat fee, so higher turnover trades have a lower brokerage percentage
- Avoid overtrading - Each trade incurs fixed costs (STT, exchange, stamp duty) regardless of profit
- Track your actual costs - Most traders underestimate how much charges eat into their profits
How JournalPlus Tracks Your Brokerage Costs
You just calculated charges for one trade. Now think about how many trades you take in a month — and how much you’re really paying in hidden costs across all of them.
JournalPlus auto-calculates brokerage, STT, GST, exchange fees, and stamp duty for every trade you take. No manual inputs. You’ll see your true net P&L (not the inflated gross number), a monthly breakdown of total costs, and exactly how much charges are eating into your profits. Most traders are shocked when they see the real number.
Stop guessing your costs. See your true P&L on every trade.
