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Brokerage charges explained
The brokerage is only one line on a trade. Several other charges, most of them set by the government and the exchanges, quietly stack up on every buy and sell. Here is each one in plain English, and why the amount debited rarely matches the headline fee.
Delivery versus intraday
Delivery means you buy shares and keep them, so they settle into your demat account. Many brokers charge no brokerage on delivery equity, but a DP charge applies when you later sell. Intraday means you buy and sell within the same day and never take delivery, which usually carries a small per-order brokerage. The statutory charges also differ between the two, so the same rupee value can cost different amounts depending on the segment.
The charges, one by one
- Brokerage. The stock broker's own fee for placing the order. This is the part that can be zero for delivery, or a flat amount per order for intraday and futures and options. See brokerage.
- Securities Transaction Tax (STT). A central government tax on the trade value, set by law and impossible for any broker to waive. See STT.
- Exchange transaction charge. A small fee the exchange (NSE or BSE) charges on the turnover of your trade. See exchange transaction charge.
- SEBI turnover fee. A tiny regulator fee on turnover that funds market oversight. See SEBI turnover fee.
- Stamp duty. A state charge on the buy side of a trade, collected centrally at a uniform rate. See stamp duty.
- GST. Goods and Services Tax at 18 percent on the service charges, mainly brokerage, the exchange transaction charge and the SEBI fee. See GST.
- DP charge. A flat depository fee when delivery shares leave your demat account, usually on a sell. It is per company per day, not per share. See DP charge.
- Account maintenance charge (AMC). A periodic fee some brokers levy to keep the demat account open. See AMC.
See it on a real trade
Reading the list is one thing, seeing the split is another. The True Cost Receipt takes one trade and shows every charge above to the rupee, and the broker charge comparison puts the same trade across brokers so you can see how the totals differ. To follow the reasoning behind any single line, the charges glossary covers each one on its own page.
Zero brokerage is not free
A zero brokerage offer only waives the broker's own fee. The statutory and depository charges above still apply, which is why the amount debited from your account is almost always more than the brokerage line suggests.
Common questions
What is the difference between delivery and intraday charges?
Delivery means you buy shares and hold them, so they move into your demat account, and many brokers charge no brokerage on delivery equity but a DP charge applies when you sell. Intraday means you buy and sell the same day without taking delivery, which usually carries a small brokerage per order and pays Securities Transaction Tax only on the sell side, at a lower rate than delivery, which pays STT on both buy and sell. The statutory charges differ by segment, so the same rupee value can cost different amounts.
What is STT and can a stock broker waive it?
Securities Transaction Tax is a central government tax charged on the value of your trade. It is set by law, collected through your broker and passed to the government, so no broker can reduce or waive it. The rate depends on the segment and on whether it is a buy or a sell.
What is a DP charge?
A DP or depository participant charge is a flat fee applied when delivery shares leave your demat account, which usually means when you sell holdings. It is charged per company per day, not per share, and it goes to the depository and the broker, so it applies even when the brokerage is zero.
Why is there GST on a trade?
Goods and Services Tax at 18 percent applies to the service charges on a trade, mainly the brokerage, the exchange transaction charge and the SEBI turnover fee. It does not apply to STT or stamp duty. Because it sits on top of other charges, a zero brokerage trade still carries a little GST on the remaining service fees.
Do these charges apply even with zero brokerage?
Yes. Zero brokerage only removes the broker's own fee. STT, exchange transaction charges, the SEBI turnover fee, stamp duty, GST and the DP charge on delivery sells are statutory or third-party charges that still apply. That is why the amount debited rarely matches the brokerage line alone.
Educational · Not investment advice. Charges and tax rates change from time to time, so treat the descriptions here as an explainer and confirm the current figures on your broker's pricing page and your contract note. BrokerWisely is not a tax adviser, and this page is education only, not a recommendation about how or where to trade.