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Stock Market · Introduction to Stock Markets

Brokerage, STT, GST

Buying and selling shares is not free. Every trade has a cost structure. Ignoring it leaks returns.

Brokerage

Your broker's fee per order. Discount brokers charge around ₹20 flat per order, or 0.03%. Whichever is lower. Full-service brokers charge 0.5%+ on trade value.

• 100 shares of a ₹1,000 stock at a discount broker: ₹20 flat.
• Same trade at a full-service broker: ₹500 (0.5% of ₹1,00,000).
• 100 trades/year: ₹2,000 vs ₹50,000. The difference compounds.

STT (Securities Transaction Tax)

Government tax on every trade. Non-negotiable.

• Delivery: 0.1% on both buy and sell sides.
• Intraday equity: 0.025% on sell side only.
• Futures: 0.0125% on sell side. Options: 0.0625% on sell side.

Other charges on every trade

• GST: 18% on brokerage amount only (not on trade value).
• Exchange transaction charges: ~₹0.0022 per ₹100 of trade value.
• SEBI charges: tiny regulatory fee (₹10 per crore).
• Stamp duty: 0.015% on buy side for delivery.

A round trip delivery trade (buy + sell) costs roughly 0.2–0.25% all-in. A stock must move more than 0.25% in your favour just to break even.

0.1%STT rate on each side of a delivery equity trade

₹20Typical discount-broker flat brokerage per order

Takeaway. Every trade costs you 0.2–0.25% in total charges. Factor this in, especially for intraday where you need the stock to move just to break even.