- Trading charges in India include GST, STT, SEBI fees, stamp duty, and brokerage.
- These costs silently eat into your profits—especially for intraday and options traders.
- Understanding them is key to managing risk and maximizing net returns.
- Master cost-effective trading inside our ₹499 Starter Pack.
Think your broker's zero-commission trades mean free trading? Think again.
Hidden charges like STT, GST, SEBI fees, stamp duty, and exchange charges can silently consume your profits—especially if you trade often. But don’t worry: this guide breaks down every fee, what it means, and how to reduce its impact.
1. Securities Transaction Tax (STT)
STT is a direct tax charged by the government when you buy or sell securities on recognized exchanges. It varies by instrument and transaction type.
STT Rates for 2025
- Equity Delivery Buy: 0.1% on turnover
- Equity Delivery Sell: 0.1% on turnover
- Intraday Equity: 0.025% on sell side only
- Futures (Equity): 0.0125% on sell side
- Options: 0.0625% on premium (sell side)
💡 Pro Tip: Option sellers pay higher STT. Plan exits and quantity accordingly.
2. Goods and Services Tax (GST)
GST is applied on brokerage and service charges. It’s charged at a flat 18% and is unavoidable.
Where GST Applies
- Brokerage
- Exchange Transaction Charges
- Clearing Charges
🧮 Example: If brokerage is ₹20 per trade, GST is ₹3.6 extra.
3. SEBI Turnover Fees
SEBI charges a small regulatory fee on every transaction to fund investor protection and market regulation.
- SEBI Fee: ₹10 per ₹1 crore turnover (or 0.0001%)
🔍 While tiny, frequent trades can make this fee noticeable over time.
4. Exchange Transaction Charges
Both NSE and BSE levy transaction charges based on trade volume.
Typical Rates (May vary)
- Equity Delivery: 0.00325%
- Equity Intraday: 0.00325%
- F&O Futures: 0.0019%
- F&O Options: 0.05% on premium turnover
5. Stamp Duty
Stamp duty is a state-governed fee but is now uniformly collected by exchanges and passed to states.
- Equity Delivery: 0.015% on buy side
- Intraday: 0.003%
- Futures: 0.002%
- Options: 0.003%
Note: Charged only on buy side.
6. Broker Charges (Not Regulated)
These vary by broker but include:
- Brokerage fees (flat or percentage-based)
- Call & trade fees
- DP charges for sell from demat (₹13–₹20 per script)
- Annual maintenance charges (AMC)
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Enroll Now – ₹50,000 Worth Content at ₹499Why Understanding These Costs Matters
- Helps you choose the right broker.
- Enables accurate profit & loss calculations.
- Improves your net ROI by avoiding unnecessary trades.
- Protects you from broker gimmicks and fake “zero brokerage” claims.
Common Mistakes Beginners Make
- Ignoring costs while scalping or high-frequency trading.
- Confusing STT with brokerage charges.
- Overtrading due to FOMO, unaware of compounding fees.
- Using the wrong tools to calculate net P&L. Try our [Link to Break-Even Calculator]
Pro Tips to Minimize Trading Costs
- Use discount brokers with flat fees.
- Avoid unnecessary trades—quality over quantity.
- Be aware of tax implications on turnover.
- Use calculators like [Link to Position Size Calculator] to stay efficient.
FAQs: Trading Charges in India
1. What is STT in trading?
STT or Securities Transaction Tax is a government levy on buy/sell transactions of securities.
2. How is GST applied in stock trading?
GST (18%) is applied on brokerage, exchange, and clearing fees—not on turnover or STT.
3. Are SEBI charges optional?
No. SEBI turnover fees are mandatory and apply to every executed trade.
4. How do I check my total charges per trade?
You can view the contract note from your broker or use a brokerage calculator tool.
5. What are hidden DP charges?
DP charges apply when you sell shares from your demat—around ₹13–₹20 per transaction.
6. Do I pay stamp duty on every trade?
No. Stamp duty is charged only on the buy side, and rates vary by instrument.
7. Are there different costs for intraday and delivery?
Yes. STT, stamp duty, and exchange charges differ between intraday and delivery trades.
8. Can I reduce these charges legally?
Yes. Use efficient brokers, avoid overtrading, and trade in higher volume to reduce per-trade cost percentage.
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