Many brokers advertise "zero brokerage", and new traders assume trading is almost free. It is not. Every trade carries a set of statutory and exchange charges, and for active traders these costs can be the difference between profit and loss.
Here is a plain-English guide to trading charges in India — and how to calculate yours.
1. Brokerage
The fee your broker charges. It may be zero for delivery trades, a flat amount per executed order for intraday and F&O, or a percentage of turnover with traditional brokers.
2. Securities Transaction Tax (STT)
A tax collected by the government on trades in listed securities:
- Equity delivery: charged on both buy and sell (0.1% of value).
- Equity intraday: charged on the sell side (0.025% of value).
- Futures: charged on the sell side — 0.05% from 1 April 2026.
- Options: charged on the sell side on the premium — 0.15% from 1 April 2026 (higher rates apply when options are exercised).
Rates are set by the government and do change — the STT calculator uses current rates.
3. Exchange transaction charges
Charged by NSE or BSE as a small percentage of turnover; rates differ between equity, futures and options.
4. SEBI turnover fee
A very small fee per crore of turnover charged by SEBI.
5. GST
18% GST is charged on brokerage, exchange transaction charges and SEBI fees (not on the full trade value).
6. Stamp duty
Charged on the buy side at rates that differ by segment (delivery, intraday, futures, options).
7. DP (depository) charges
When you sell shares from your demat account in delivery, a DP charge is levied per scrip per day by the depository and broker.
8. Other costs to remember
- Slippage: the difference between expected and actual execution price — often larger than all statutory charges for fast intraday trades.
- Call-and-trade fees, auto square-off fees and interest on margin funding, depending on your broker.
How costs change the maths
Imagine an intraday trader who takes 10 round trips a day. Even if each round trip costs only a few hundred rupees in total charges, that becomes a large amount across 250 trading days. A strategy needs to earn more than that just to break even.
For option buyers, STT and charges are small per trade but add up quickly with frequent trading. For delivery investors who hold for years, costs are usually minor compared with long-term returns.
Run your own numbers with the brokerage calculator, which breaks down brokerage, STT, exchange fees, GST, SEBI fees and stamp duty for delivery, intraday, futures and options.
How to reduce trading costs
- Trade less — fewer, higher-quality trades (overtrading).
- Aim for larger moves relative to costs — swing trading often beats scalping here.
- Use limit orders to control slippage in liquid instruments.
- Compare brokers on total cost, platform quality and reliability — not just headline brokerage.
- Include costs in backtests — set a realistic fee in the strategy builder.
Costs and taxes
Charges are separate from income tax on profits. Depending on how you trade, profits may be taxed as capital gains or business income. Read capital gains tax on shares and tax on intraday and F&O income.
Key takeaways
- Brokerage is only one of many charges; STT, exchange fees, GST, stamp duty and DP charges also apply.
- STT on futures and options increased from 1 April 2026.
- Frequent trading multiplies costs; slippage can be the biggest hidden cost.
- Calculate total costs before trading and include them in backtests.
Frequently asked questions
Is zero-brokerage trading really free?
No. Statutory and exchange charges like STT, exchange fees, GST, SEBI fees and stamp duty still apply.
Which trading segment has the highest costs?
For frequent traders, intraday and options trading usually have the highest total costs relative to capital because of the number of trades.
Can STT be claimed as a deduction?
For traders who report income as business income, STT is generally treated as a business expense. Consult a tax professional.
How can I calculate exact charges for a trade?
Use our brokerage calculator for a full breakdown.
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