Brokerage Charges Explained (2026): What You Really Pay on Every Trade

Brokerage is just the start

When you buy or sell a share, you pay your broker a fee called brokerage. But your total cost also includes taxes and fees that go to the government, the exchange and the regulator.

Understanding each piece helps you compare brokers fairly and avoid being surprised when your profit is smaller than expected.

How brokers charge brokerage

Brokers usually use one of two models. A flat fee charges a fixed amount per executed order, no matter how big the trade. A percentage model charges a share of the trade value.

Some brokers offer zero brokerage on certain segments, often equity delivery, while charging for others. Check the brokerage for each segment you plan to use, because they can differ a lot.

Pro tip: On large trades, a flat fee is usually cheaper; on very small trades, a percentage model might be. Run both through our brokerage calculator.

Statutory and exchange charges

These are applied on top of brokerage and are broadly similar across brokers, because they are not set by the broker.

• Securities Transaction Tax (STT): a tax on the value of securities traded, at rates that differ by segment and side of the trade
• Exchange transaction charges: a small percentage of turnover charged by the stock exchange
• SEBI turnover fee: a tiny fee on turnover that goes to the regulator
• Stamp duty: charged by the government, usually on the buy side
• GST: charged on brokerage and certain other fees, not on the trade value itself

DP charges when you sell

When you sell shares held in your demat account, the depository and your broker charge a DP fee to debit the shares. It is usually a fixed amount per stock per day, regardless of quantity.

This means selling a tiny quantity can be surprisingly expensive in percentage terms. Intraday trades do not attract DP charges because the shares never reach your demat.

Why intraday, delivery and F&O costs differ

Rates for STT, stamp duty and exchange charges differ by segment. Delivery trades typically carry higher STT than intraday trades, while options are charged on premium rather than on the full contract value.

Because rates are revised from time to time, check your broker's charges page or the latest exchange circular instead of relying on old numbers you saw online.

An illustrative example

Say you buy shares worth ₹50,000 and sell them later for ₹55,000 (illustrative figures). Your gross profit is ₹5,000. From that you subtract brokerage on both legs, STT, exchange charges, the SEBI fee, stamp duty, GST and one DP charge on the sell side.

The total may look small next to the profit, but for frequent traders these costs add up quickly over a year. That is why knowing your break-even point matters.

Pro tip: Use our brokerage calculator to see the full cost breakdown and the break-even price for any trade.