Fundamentals · 8 min read

Understanding trading charges in India

A practical breakdown of what you actually pay every time you buy or sell — and why your net profit is always smaller than the price difference.

When you buy a share at ₹100 and sell at ₹105, it’s tempting to think you’ve made ₹5 per share. In reality, a handful of charges sit between you and that profit. Most are tiny on their own, but together they decide whether a trade is genuinely worth it — especially on small moves. This guide walks through each one.

The two kinds of charges

Every charge on a trade falls into one of two buckets:

Broker charges — what your broker keeps, mainly brokerage. These vary a lot between brokers.
Statutory charges — taxes and fees collected by the government, exchange and regulator. These are the same no matter which broker you use.

Understanding the split matters: switching brokers can lower the first bucket, but the second bucket is fixed for everyone.

Charge by charge

1. Brokerage

This is your broker’s fee for executing the order. Discount brokers typically charge nothing on equity delivery and a flat fee — often the lower of ₹20 or 0.03% — per executed order on intraday and F&O. Full-service brokers may charge a percentage of turnover instead.

2. STT / CTT (Securities/Commodities Transaction Tax)

A central government tax on the trade value. The rate depends on the segment — for equity delivery it applies to both your buy and sell, while for intraday and F&O it applies only on the sell side. It’s small per trade but scales directly with size.

3. Exchange transaction charges

A fee the exchange (NSE or BSE) charges on your turnover. It’s a fraction of a percent, but it applies to every order.

4. GST

Goods and Services Tax at 18%, charged on the sum of your brokerage, exchange charges, SEBI charges and DP charges — not on the trade value itself.

5. SEBI charges

A very small regulatory fee — currently around ₹10 per crore of turnover — that funds the market regulator.

6. Stamp duty

A state government duty charged only on the buy side. Rates differ by segment, with delivery attracting a higher rate than intraday or F&O.

7. DP charges

Applies only when you sell shares held in delivery. The depository (CDSL/NSDL) and your broker charge a small flat fee per scrip per day to move shares out of your demat account.

Want to see all of this on your own numbers? The TradeProfy brokerage calculator itemises every charge above, exactly like a contract note, and shows your net P&L instantly.

A worked example

Say you buy 100 shares at ₹100 and sell at ₹105 in delivery. On paper that’s a ₹500 gross profit. After STT on both sides, exchange and SEBI fees, GST, stamp duty on the buy, and DP charges on the sell, your total charges might be roughly ₹40 — leaving a net profit closer to ₹460. The smaller your price move, the more those fixed charges matter as a share of your profit.

Why this matters for your strategy

Charges are the reason scalping tiny moves is harder than it looks, and why high-frequency intraday trading needs a real edge to stay profitable. Before you enter a trade, it’s worth knowing your breakeven — the move you need just to cover costs. Everything past that is yours.

This article is for general education only. It is not investment advice, and rates mentioned are indicative and subject to change. Always confirm exact charges with your broker.

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