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Investing and Trading Expenses

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Brokerage Charges

  • Brokerage Charges are the fees that you pay to your broker for the services he provides.

Brokers provide a lot of services but this chart is explicity in regard to the buy / sell transactions that you do.

Different brokers charge at different rates depending on the type of sevices they provide.

Since our trading and investing turnovers often go in thousands and lakhs and in some cases even crores of rupees, it is important to go for a brokerage plan as per your trading and investing needs.

The brokerage rate for trades on NSE and BSE will be different.

Further, the rates will be different for BSE-only shares.

Brokerage for XD group shares will be higher compared to XC group.

Demat Charges

Demat is an essential account if you are into trading or investing of company shares.

It is usually opened along with your trading account so that you can take delivery of company shares when you buy them.

A demat account is required to hold shares in an electronic format and is similar to a bank account.

It can also be used to hold financial instruments such as mutual funds, bonds, exchange-traded funds and non-convertible debentures.

There are various channels to open a demat account and each comes with costs attached.

Some offer a trading account with the demat account while others ask to open a separate trading account at a cost.

However, one does not need to have multiple demat accounts.

Even if you are a day trader, it makes sense somestimes to take delivery of the shares so that you can sell them at a higer rate in the next few days.

Opening a Demat Account

Where to open a Demat Account

Charges for a Demat Account

When you buy shares and take delivery, there will be no demat charge.

However, when you sell shares from your demat, there will be a charge per company (irrespective of the number of shares).

For example, Demat charges for Zerodha are ₹13.5 per scrip (irrespective of quantity), on the day, is debited from the demat account when stocks are sold. ₹5.5 per MF (irrespective of quantity), on the day, is debited from the demat on redemption. This is charged by the depository (CDSL) and depository participant (Zerodha).

There will be a number of demat charges, remat charges, credit charges, failed or rejected instruction charges, pledge service charges and mailing charges for non-periodic statements.

All the charges again vary across channels depending on your usage.

A demat charge is the cost to convert physical shares to demat form and can cost Rs.5 per certificate.

Re-materialization of stocks can cost Rs.20-30 per request.

Debit transaction can cost 0.03-0.04% of the value of transaction, which is usually capped at a certain limit.

Goods and Services Tax

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