4.18What are brokerage charges?
Time-sensitive: Typical brokerage figures are illustrative as of November 2026 and differ by broker. Rules and rates change, so check the official source before acting.
1What is it?
Brokerage is the fee your broker charges for executing trades.
2Why does it exist?
It is how brokers earn. Lower brokerage helps, especially if you trade often.
3Stock market example
Many discount brokers charge ₹0 on delivery and around ₹20 per executed order or 0.03%, whichever is lower on intraday and F&O. Full-service brokers may charge a % of trade value (e.g. 0.3–0.5% on delivery). Charges vary, so check your broker’s pricing page.
4Calculation
Intraday brokerage = min(₹20, 0.03% × trade value) per order
- Buy ₹50,000 worth intraday: 0.03% = ₹15 → ₹15.
- Sell ₹51,000: 0.03% = ₹15.30 → ₹15.30.
Total brokerage ≈ ₹30.30, plus GST and other charges.
5Quick revision
- Brokerage = broker’s fee.
- Often ₹0 delivery at discount brokers.
- Frequent trading multiplies costs.
6Knowledge check
Q1. Why does brokerage matter more for frequent traders?Show answer
Costs add up with each trade.
Q2. What is a typical discount broker cap per intraday order?Show answer
About ₹20 (varies by broker).
Q3. Is GST charged on brokerage?Show answer
Yes, 18%.