Trading in the stock market is associated with various charges, including brokerage charges and securities transaction tax (STT). Knowing how these charges are levied will help you to plan your trade in advance.
Before getting into brokerage charges let us understand who charges you brokerage fee and why.
Brokerage fee is charged to you by a broker through whom you trade in the stock market.
Stock broker is a financial intermediary through which you can trade in the stock market. These stock brokers facilitate trading in different financial instruments, like stocks, forex, commodities, natural gas, crude oil, futures and derivatives.
We have two different types of brokers in the stock market: discount broker and full-service broker.
Full service stock brokers are those who provide additional services like market report, advisory, customer service and research in addition to brokerage service.
Whereas, discount brokers did not provide any other additional services other than brokerage service. However, compared to full service brokers, they charge brokerage fees at a discounted rate.
In this article, we have included brokerage fees charged by discount brokerage firms to help you understand the rates of brokerage and when they are charged. You won’t get these types of lower brokerage rates from full service brokerage firms.
What is brokerage fee
Brokerage charges are the fees or commissions a stockbroker charges in order to execute transactions on the stock exchanged on behalf of a client.
Brokerage fees vary from every broker. It also depends on the type of transaction you make.
Brokerage fee is generally charged as a percentage of the transaction. Due to competition in the brokerage industry, some brokers are also charging a flat fee per transaction irrespective of the amount traded. You also have the option as a hybrid of the two.
This means in India, we have 3 varieties of brokerage plan;
- Based on percentage of trading volume; or
- A flat fee charged per trade; or
- A hybrid of the above two.
The brokerage fee is calculated on the total cost when a financial security is purchased or sold.
Understanding brokerage charges
Brokerage charges are levied both on buying and selling of stocks, futures and options, commodities and currencies.
Suppose a broker charges a fee of 0.05% on equity intraday trading. This means, when you buy stock for Rs. 100, brokerage charge is 0.05% of Rs 100, which is Rs. 0.05. When you sell the stock on the same day, you will again be charged a fee of 0.05%. Suppose you sold the stock for Rs. 200, brokerage charge is 0.05% of Rs. 200, which is Rs. 0.10. In total, you paid Rs. 0.15 (i.e. 0.05+0.10) toward brokerage charges for the intraday transaction.
We have prepared a list below showing you brokerage charges charged by different discount brokerage forms in India. These firms are not only offering low discount rates but also provide you a good trading platform to execute your transaction effortlessly.
Low brokerage charges for Equity Delivery
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | Zero |
| Upstox | Rs. 20 or 2.5%, whichever is lower |
| Angel Broking (Angelone) | Zero |
| Groww | Rs. 20 or 0.05% per executed order, whichever is lower |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Low brokerage charges for Equity Intraday
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | 0.03% or Rs. 20 / executed order, whichever is lower |
| Upstox | Rs. 20 per executed order or 0.05%, whichever is lower |
| Angel Broking (Angelone) | Rs. 20 / Executed Order Or 0.25%, whichever is lower |
| Groww | Rs. 20 or 0.05% per executed order, whichever is lower |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Flat brokerage charges for Equity futures
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | 0.03% or Rs. 20 / executed order whichever is lower |
| Upstox | Rs. 20 per executed order or 0.05%, whichever is lower |
| Angel Broking (Angelone) | Rs. 20 / Executed Order Or 0.25%, whichever is lower |
| Groww | Rs. 20 per executed order |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Flat brokerage fee for Equity options
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | Flat Rs. 20 per executed order |
| Upstox | Flat Rs. 20 per executed order |
| Angel Broking (Angelone) | Rs. 20 per Executed Order Or 0.25%, whichever is lower |
| Groww | Rs. 20 per executed order |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Flat brokerage fee for currency options
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | 0.03% or Rs. 20/executed order, whichever is lower |
| Upstox | Flat Rs. 20 per executed order |
| Angel Broking (Angelone) | Rs. 20 Per Executed Order Or 0.25%, whichever is lower |
| Groww | NA |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Low brokerage charges for currency futures
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | 0.03% or Rs. 20/executed order, whichever is lower |
| Upstox | Rs. 20 per executed order or 0.05%, whichever is lower |
| Angel Broking (Angelone) | Rs. 20 Per Executed Order Or 0.25%, whichever is lower |
| Groww | NA |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Low brokerage charges for commodity futures
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | 0.03% or Rs. 20/executed order, whichever is lower |
| Upstox | Rs. 20 per executed order or 0.05%, whichever is lower |
| Angel Broking (Angelone) | Rs. 20 Per Executed Order Or 0.25%, whichever is lower |
| Groww | NA |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Low brokerage charges for commodity options
| Name of the Broker | Brokerage fee |
|---|---|
| Zerodha | 0.03% or Rs. 20/executed order, whichever is lower |
| Upstox | Flat Rs. 20 per executed order |
| Angel Broking (Angelone) | Rs. 20 Per Executed Order Or 0.25%, whichever is lower |
| Groww | NA |
| 5paisa | Rs. 20 per order |
| IIFL Securities | Rs. 20 per order |
Certain brokers also have monthly and annual plans in which you need to pay a fixed sum in order to get a reduced rate of brokerage. Most of the discount brokers don’t offer a monthly plan as the fees are already discounted. You will get monthly / annual plans with full service brokerage firms.
