How Brokerage is Calculated in India (2026 Complete Guide)
July 18, 2026 · 15 min read
Calculate your total trade cost instantly:
Use our FREE Brokerage Calculator →Every time you buy or sell a stock in India, you pay more than the displayed price. The difference comes from brokerage, taxes, exchange fees, and regulatory charges. Most traders know about brokerage but few understand the full breakdown of costs.
This guide breaks down every charge that applies when you trade in Indian markets. You will learn exactly how much each trade costs, why the charges exist, and how to minimise them. By the end, you will be able to calculate the true cost of any trade before you place it.
What is Brokerage?
Brokerage is the fee charged by a stockbroker for executing your buy or sell orders on the stock exchange. When you place an order through a broker, they route it to the exchange (NSE or BSE), match it with a counterparty, and confirm the trade. The brokerage fee is their compensation for providing this service.
In India, brokerage is regulated by SEBI. Brokers must disclose their brokerage rates upfront. The actual amount you pay depends on the type of broker, the segment you trade in, and whether you trade delivery or intraday.
Brokerage is just one component of your total transaction cost. The complete cost includes STT, exchange charges, GST, SEBI fees, stamp duty, and DP charges. Many traders focus only on brokerage and ignore the other charges, which can add up to more than the brokerage itself.
Types of Brokerage
Indian brokers charge brokerage in two main ways. Understanding the difference helps you choose the right broker for your trading style.
| Feature | Discount Broker | Full-Service Broker |
|---|---|---|
| Brokerage Model | Flat fee per trade (₹10-₹20) | Percentage of turnover (0.01%-0.50%) |
| Delivery Brokerage | Often free or ₹10-₹20 per trade | 0.10% to 0.50% of trade value |
| Intraday Brokerage | ₹10-₹20 per trade | 0.01% to 0.05% of turnover |
| Research & Advisory | Not included | Included (reports, tips, calls) |
| Trading Platform | Basic to moderate | Advanced with tools |
| Best For | Self-directed traders and investors | Beginners and those needing guidance |
| Examples | Zerodha, Groww, Upstox, Angel One | ICICI Direct, HDFC Sec, Sharekhan, Motilal Oswal |
Discount brokers have become extremely popular in India since 2015. They offer low flat fees by eliminating research and advisory services. Full-service brokers charge more but provide research reports, trading tips, portfolio reviews, and dedicated relationship managers.
Some full-service brokers advertise "zero brokerage" on delivery but charge higher hidden fees like demat AMC, account opening fees, or minimum brokerage commitments. Always read the fine print before opening an account.
Delivery Brokerage
Delivery trading means you buy shares and hold them in your demat account overnight. You can hold them for days, months, or years. This is also called cash market or equity delivery trading.
For delivery trades, most discount brokers charge zero brokerage on the buy side and a flat fee on the sell side. Full-service brokers charge a percentage of the trade value. Delivery brokerage is typically higher than intraday because the trade involves actual transfer of shares.
You buy 100 shares of Reliance at ₹2,500 each. Trade value = ₹2,50,000.
With a discount broker charging ₹20 per trade: Brokerage = ₹20 (buy side only).
With a full-service broker charging 0.10%: Brokerage = ₹250 (buy side only).
Intraday Brokerage
Intraday trading means you buy and sell the same stock on the same day. You do not take delivery of shares. All positions are squared off by the end of the trading session.
Intraday brokerage is lower than delivery brokerage because there is no actual transfer of shares. However, brokerage is charged on both the buy and sell sides. Discount brokers charge ₹10-₹20 per trade for intraday.
You buy 500 shares of Tata Motors at ₹600 and sell at ₹615 on the same day.
Buy value: ₹3,00,000. Sell value: ₹3,07,500.
With a discount broker (₹20/trade): Total brokerage = ₹40 (₹20 buy + ₹20 sell).
With a full-service broker (0.03%): Total brokerage = ₹182.25 (0.03% of total turnover ₹6,07,500).
| Factor | Delivery | Intraday |
|---|---|---|
| Brokerage rate | 0% to 0.50% of trade value | 0.01% to 0.05% of turnover |
| Brokerage on buy side | Yes (most brokers) | Yes |
| Brokerage on sell side | Yes (most discount brokers offer free delivery sells) | Yes |
| STT | 0.1% buy + 0.1% sell | 0.025% sell side only |
| DP charges | ₹15-₹25 per scrip on sell | None |
| Typical total cost (round trip) | 0.3% to 0.7% | 0.05% to 0.15% |
Futures Brokerage
Futures trading involves buying or selling a contract to deliver a stock or index at a future date. Futures are traded on margin, meaning you put up a fraction of the contract value as collateral.
Brokerage for futures is calculated on the contract value, not the margin amount. Discount brokers charge ₹10-₹20 per trade. Full-service brokers charge 0.01% to 0.05% of the contract value.
You buy one lot of Bank Nifty futures. Lot size = 15, contract price = ₹48,000. Contract value = ₹7,20,000.
Discount broker (₹20/trade): Brokerage = ₹20 (buy side only).
Full-service broker (0.02%): Brokerage = ₹144 per side.
Always remember that futures brokerage is based on the full contract value, not the margin you deposit. A contract worth ₹5,00,000 may require only ₹1,00,000 as margin, but brokerage applies to ₹5,00,000.
Options Brokerage
Options brokerage is different from other segments. It is calculated on the premium value, not the contract value. This makes options brokerage relatively low compared to the notional exposure.
For example, if you buy a Nifty call option with a premium of ₹200 and the lot size is 50, the premium value is ₹10,000. Brokerage is charged on ₹10,000, not on the underlying contract value of approximately ₹2,00,000.
You buy 2 lots of Nifty 20000 call options at ₹150 premium. Lot size = 50. Premium value = 2 x 50 x 150 = ₹15,000.
Discount broker (₹20/trade): Brokerage = ₹40 (₹20 buy + ₹20 sell).
Full-service broker (0.05%): Brokerage = ₹7.50 per side.
While options brokerage seems low, the STT on options is relatively high at 0.0625% on the sell side of the premium. For large options trades, STT can be significantly higher than the brokerage.
STT Explained
Securities Transaction Tax (STT) is a direct tax levied by the Government of India on every purchase and sale of securities listed on recognised stock exchanges. STT is one of the largest components of your total transaction cost.
| Segment | Buy Side | Sell Side | Calculated On |
|---|---|---|---|
| Equity Delivery | 0.1% | 0.1% | Trade value |
| Equity Intraday | 0% | 0.025% | Trade value |
| Futures (Equity & Index) | 0% | 0.0125% | Contract value |
| Options (Equity) | 0% | 0.0625% | Premium value |
| Options (Index) | 0% | 0.0625% | Premium value |
| Currency Futures | 0% | 0.0001% | Contract value |
| Commodity (Non-Agri) | 0% | 0.01% | Trade value |
STT is collected by the broker at the time of trade and remitted to the government. It appears on your contract note as a separate line item. STT is not refundable and cannot be adjusted against anything.
For delivery traders, STT alone costs 0.2% round trip (0.1% buy + 0.1% sell). On a ₹1,00,000 trade, that is ₹200. For intraday traders, STT is lower at 0.025% on the sell side only, meaning ₹25 on a ₹1,00,000 sell trade.
Exchange Transaction Charges
Exchange transaction charges are fees paid to the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) for using their trading and clearing infrastructure. These charges are collected by the broker and passed on to the exchange.
| Segment | Charge Rate | Calculated On |
|---|---|---|
| Equity Delivery | 0.00297% | Turnover (buy + sell) |
| Equity Intraday | 0.00297% | Turnover (buy + sell) |
| Futures | 0.00190% | Contract value |
| Options | 0.035% | Premium value |
| Currency Derivatives | 0.00035% | Turnover |
Exchange charges are relatively small per trade but add up significantly for high-volume traders. On a ₹1,00,000 delivery trade, the NSE charge is approximately ₹2.97. For the same trade in options, the charge depends on the premium value.
SEBI Charges
SEBI (Securities and Exchange Board of India) charges a regulatory fee on every trade executed on Indian stock exchanges. This fee funds the regulator's operations and market development activities.
SEBI charges are calculated at ₹10 per crore of turnover (both buy and sell sides combined). This works out to just ₹1 for every ₹10 lakh of trading volume. For most retail traders, SEBI charges are negligible.
Total turnover for the day: ₹5,00,000 (buy + sell).
SEBI charge: ₹10 / 1,00,00,000 x 5,00,000 = ₹0.50.
Yes, it is just 50 paise. But if you trade ₹1 crore daily, SEBI charges become ₹10 per day.
GST Calculation
Goods and Services Tax (GST) is charged at 18% on the total of brokerage and other fees. GST is not charged on the trade value directly. It applies only to the service fees charged by the broker and the exchange.
GST is calculated on the sum of:
- Brokerage charges
- Exchange transaction charges
- SEBI charges
- Other service fees (if any)
Brokerage: ₹20
Exchange transaction charges: ₹5
SEBI charges: ₹0.50
Total service fees: ₹25.50
GST at 18%: ₹25.50 x 18% = ₹4.59
GST can add 15-20% to your total brokerage cost. On a ₹20 brokerage, GST adds ₹3.60, making the effective brokerage ₹23.60. Use the Brokerage Calculator to see the exact GST impact on your trades.
Stamp Duty
Stamp duty is a state-level tax on the transfer of securities. It is collected by the stock exchange and remitted to the state government where the buyer's demat account is registered. The rate varies slightly between states.
| Segment | Rate |
|---|---|
| Delivery (Buy) | 0.015% of trade value |
| Intraday (Sell) | 0.003% of sell value |
| Futures (Buy) | 0.002% of contract value |
| Options (Buy) | 0.003% of premium value |
Stamp duty is a small charge but applies to every trade. For a ₹1,00,000 delivery purchase, stamp duty is approximately ₹15.
DP Charges
Depository Participant (DP) charges are fees for holding your shares in electronic form in a demat account. DP charges apply only when you sell delivery shares. Intraday and F&O trades do not involve actual share transfer, so DP charges do not apply.
DP charges are typically ₹15 to ₹25 per scrip per transaction. Some brokers charge a flat ₹15 per sell trade, while others charge ₹15 per scrip. If you sell 3 different stocks in one day, you pay DP charges on each scrip.
DP charges can significantly affect small trades. Selling ₹5,000 worth of shares with a ₹20 DP charge means the DP charge alone is 0.4% of your trade value. For small traders, DP charges can be larger than the brokerage itself.
Complete Worked Example
Let us calculate the total cost of a real trade across different segments. This example uses a discount broker charging ₹20 per trade.
Scenario 1: Delivery Trade
Trade: Buy 50 shares of Infosys at ₹1,800. Sell later at ₹1,850.
| Charge | Buy Side | Sell Side |
|---|---|---|
| Trade value | ₹90,000 | ₹92,500 |
| Brokerage | ₹20 | ₹20 |
| STT | ₹90 (0.1%) | ₹92.50 (0.1%) |
| Exchange charges | ₹2.67 | ₹2.75 |
| SEBI charges | ₹0.09 | ₹0.09 |
| Stamp duty | ₹13.50 | Nil |
| DP charges | Nil | ₹20 |
| Subtotal fees | ₹126.26 | ₹135.34 |
| GST (18% on brokerage + exchange + SEBI) | ₹8.20 | |
| Total cost (round trip) | ₹269.80 | |
| Total cost as % of buy value | 0.30% | |
Scenario 2: Intraday Trade
Trade: Buy 500 shares of ICICI Bank at ₹1,200, sell at ₹1,215.
| Charge | Buy Side | Sell Side |
|---|---|---|
| Trade value | ₹6,00,000 | ₹6,07,500 |
| Brokerage | ₹20 | ₹20 |
| STT | Nil | ₹151.88 (0.025%) |
| Exchange charges | ₹17.82 | ₹18.04 |
| SEBI charges | ₹0.60 | ₹0.61 |
| Stamp duty | Nil | ₹18.23 |
| Subtotal fees | ₹38.42 | ₹208.76 |
| GST (18% on brokerage + exchange + SEBI) | ₹13.94 | |
| Total cost (round trip) | ₹261.12 | |
| Total cost as % of buy value | 0.04% | |
Scenario 3: Options Trade
Trade: Buy 1 lot Nifty 19500 Call at ₹250 premium (lot size 50).
| Charge | Buy Side | Sell Side |
|---|---|---|
| Premium value | ₹12,500 | ₹12,500 |
| Brokerage | ₹20 | ₹20 |
| STT | Nil | ₹7.81 (0.0625%) |
| Exchange charges | ₹4.38 (0.035%) | ₹4.38 (0.035%) |
| SEBI charges | ₹0.01 | ₹0.01 |
| Stamp duty | ₹0.38 | Nil |
| Subtotal fees | ₹24.77 | ₹32.20 |
| GST (18% on brokerage + exchange + SEBI) | ₹8.78 | |
| Total cost (round trip) | ₹65.75 | |
| Total cost as % of premium value | 0.53% | |
Calculate the exact cost of your next trade:
Use our FREE Brokerage Calculator →Brokerage Formula
Here is the complete formula for calculating the total transaction cost of any trade in India:
Total Cost = Brokerage + STT + Exchange Charges + SEBI Fees + GST + Stamp Duty + DP Charges
Where:
Brokerage = Flat fee or % of trade value depending on broker type
STT = Rate depends on segment (delivery, intraday, F&O)
Exchange Charges = NSE/BSE fee based on turnover or premium
SEBI Fees = ₹10 per crore of turnover
GST = 18% of (brokerage + exchange charges + SEBI fees)
Stamp Duty = State-dependent rate on trade value
DP Charges = ₹15-₹25 per scrip (delivery sell only)
Formula for Break-Even Calculation
To find the exact price at which a trade becomes profitable:
For delivery: Break-even = Buy Price + (Total Cost / Quantity)
For intraday: Break-even = Sell Price must exceed (Buy Price + Total Cost per Share)
Our Brokerage Calculator and Share Average Calculator both handle these calculations automatically.
How to Reduce Brokerage Costs
Reducing your transaction costs directly improves your net returns. Here are proven ways to minimise brokerage and other charges:
If you are using a full-service broker, switching to a discount broker can reduce your brokerage by 90%. A flat ₹20 per trade is far cheaper than 0.1% to 0.5% of turnover for most traders.
Many discount brokers offer zero brokerage on delivery purchases. Take advantage of this for long-term investments. Only pay for intraday and F&O trades.
Each trade has a fixed cost component. Overtrading multiplies your costs. Focus on quality setups rather than high frequency. Use the CAGR Calculator to see how reducing costs improves long-term returns.
Always calculate the total cost before placing a trade. Our Brokerage Calculator shows the exact cost including all charges. This helps you avoid trades where the cost eats too much of your potential profit.
Instead of buying a stock in 5 small lots, buy it in 1 large lot. This reduces the per-trade cost. The brokerage on one ₹1,00,000 trade is the same as on five ₹20,000 trades for most discount brokers.
DP charges are fixed per scrip. Selling ₹5,000 worth of shares costs the same DP charge as selling ₹50,000 worth. Consolidate your sells to avoid paying high DP charges on small amounts.
Use the Experience Calculator to track your trading costs over time. Seeing how much you spend on brokerage annually can motivate you to optimise your trading strategy.
If you are a business or a professional trader, you may be able to claim GST input credit on the GST paid on brokerage. Consult a CA to see if this applies to you. Use the GST Calculator to estimate your GST costs.
Common Mistakes
Here are the most frequent mistakes traders make when it comes to brokerage and transaction costs:
| Mistake | Why It Matters |
|---|---|
| Ignoring STT costs | STT is often the largest cost component. For delivery trades, STT alone is 0.2% round trip. Many traders plan their targets without factoring in STT. |
| Not accounting for GST on fees | GST at 18% applies to brokerage, exchange charges, and SEBI fees. This adds 15-20% to your total fee bill. |
| Forgetting DP charges on delivery sells | DP charges of ₹15-₹25 per scrip can eat into small profits. On a ₹10,000 sale, a ₹20 DP charge is 0.2% extra cost. |
| Thinking zero brokerage means zero cost | Even zero brokerage plans still have STT, exchange charges, GST, SEBI fees, stamp duty, and DP charges. The total cost is never zero. |
| Not comparing brokers annually | Brokerage plans change frequently. What was cheapest last year may no longer be the best option. Review your broker annually. |
| Overtrading due to low per-trade cost | Just because a trade costs only ₹20 does not mean you should trade more. Overtrading increases total cost and reduces focus on quality. |
Frequently Asked Questions
What is brokerage in the stock market?
Brokerage is the fee charged by a stockbroker for executing your buy or sell orders. It is the primary source of income for brokerage firms and is charged as a percentage of the trade value or as a flat fee per trade.
How is brokerage calculated in India?
Brokerage in India is calculated as a percentage of the total trade value or as a flat fee per executed order. For delivery trades, brokerage is typically 0.01% to 0.50% of the turnover. For intraday trades, it is lower at 0.01% to 0.05%. Discount brokers charge flat fees like ₹10 or ₹20 per trade regardless of the trade value.
What is the difference between delivery and intraday brokerage?
Delivery brokerage applies when you buy shares and hold them overnight. It is charged only on the buy side for most discount brokers. Intraday brokerage applies when you buy and sell on the same day. It is charged on both buy and sell sides but the rate is lower.
What is STT and how is it calculated?
Securities Transaction Tax (STT) is a tax levied by the government on every purchase and sale of securities. For delivery trades, STT is 0.1% on both buy and sell sides. For intraday trades, STT is 0.025% on the sell side only. For options, STT is 0.0625% on the sell side. For futures, STT is 0.0125% on the sell side.
How is GST calculated on brokerage?
GST is charged at 18% on the brokerage amount only, not on the total trade value. For example, if your brokerage is ₹100, GST is ₹18. GST is applied on the total of brokerage, exchange charges, SEBI charges and other fees.
What are exchange transaction charges?
Exchange transaction charges are fees paid to NSE or BSE for using their trading platform. For equity delivery, NSE charges 0.00297% of the turnover. For options, it is 0.035% of the premium value. These rates change periodically based on exchange notifications.
What are SEBI charges?
SEBI charges are regulatory fees levied by the Securities and Exchange Board of India. They are ₹10 per crore of the turnover value on both buy and sell sides. This is a very small component of the total transaction cost.
What is stamp duty on stock trading?
Stamp duty is a state-level tax on the transfer of securities. For delivery trades, stamp duty is 0.015% of the trade value on the buy side. For intraday trades, it is 0.003% on the sell side.
What are DP charges?
Depository Participant (DP) charges are fees for transferring shares from your demat account when you sell. They are approximately ₹15 to ₹25 per scrip and apply only to delivery sell trades.
How is brokerage for options calculated?
Options brokerage is calculated on the premium value, not on the contract value. For example, if you buy one lot of Nifty options at a premium of ₹100 per lot, brokerage is charged on ₹100, not on the underlying contract value.
What is the total cost of a delivery trade?
The total cost includes brokerage, STT (0.1% buy + 0.1% sell), exchange transaction charges (0.00297%), GST (18% on fees), SEBI charges (₹10 per crore), stamp duty (0.015%) and DP charges (₹15-25 per scrip). The total typically ranges from 0.3% to 0.7% of the trade value.
How much brokerage do discount brokers charge?
Discount brokers in India typically charge a flat fee of ₹10 to ₹20 per executed order. Some offer zero brokerage on delivery trades. For example, Zerodha charges ₹20 or 0.03% (whichever is lower) for intraday and F&O with free delivery.
Is brokerage charged on both buying and selling?
It depends on the broker and segment. For delivery trades, most discount brokers charge brokerage only on the buy side. For intraday, brokerage is charged on both buy and sell sides. For futures and options, brokerage is charged on both sides.
What is the difference between a discount broker and a full service broker?
Discount brokers charge low flat fees with minimal services. Full-service brokers charge higher percentage-based fees but provide research reports, advisory, and relationship management. Discount brokers suit self-directed traders; full-service suits those needing guidance.
How can I calculate my total brokerage cost?
Use a brokerage calculator. Enter the trade value, segment, broker type, and quantity. The calculator shows the breakdown of all charges including STT, exchange fees, GST, SEBI fees, stamp duty and DP charges.
What is turnover based brokerage?
Turnover based brokerage is charged as a percentage of the total trade value. For example, if the rate is 0.01% and you trade ₹1,00,000, the brokerage is ₹10. This is common with full-service brokers.
Do I have to pay brokerage if I do not trade?
No, brokerage is only charged when you execute a trade. However, you may still have to pay annual maintenance charges (AMC) for your demat account, which ranges from ₹100 to ₹750 per year.
How does brokerage affect my profitability?
Brokerage directly reduces your net profit. For active intraday traders, transaction costs can consume 30-50% of gross profits. Even long-term investors lose 0.5-1% round trip, which significantly impacts compounding over decades.
What is the cheapest brokerage plan in India?
Several discount brokers offer low-cost plans. Zerodha charges ₹20/trade or 0.03% (whichever is lower) for intraday and F&O with free delivery. Groww charges ₹10/trade. Angel One charges ₹10/trade for intraday and ₹15 for delivery.
Where can I find a free brokerage calculator for Indian stocks?
Use the free Brokerage Calculator on JobReadyTools at jobreadytools.in/brokerage-calculator.html. It calculates the total cost for delivery, intraday, futures and options including all charges like STT, GST, exchange fees, SEBI fees, stamp duty and DP charges.
Final Checklist
Before you place your next trade, go through this checklist to ensure you understand the full cost involved:
- I know the brokerage rate my broker charges for this segment (delivery, intraday, or F&O).
- I have calculated the STT applicable to this trade (depends on segment).
- I have factored in exchange transaction charges (NSE/BSE fees).
- I have included GST at 18% on all service fees.
- I have accounted for SEBI regulatory charges (₹10 per crore).
- I have included stamp duty based on my state and segment.
- I have added DP charges if this is a delivery sell trade.
- My total transaction cost is less than my expected profit margin.
- I have checked the break-even price including all costs. Use the Brokerage Calculator for this.
- I am not overtrading. This trade meets my minimum quality criteria.