Ever checked your broker’s contract note after a trade and wondered why the final deducted amount doesn’t match the “zero brokerage” you thought you signed up for? You’re not imagining things.
Brokerage is just one of at least five different charges applied to every single trade you place in India — and most of them have nothing to do with your broker at all.
This guide breaks down exactly what each charge is, who actually collects it, and — most usefully — walks through real worked examples so you can see precisely how much a delivery trade, an intraday trade, and an F&O trade actually cost you, beyond the headline brokerage number.
Disclaimer: The rates and figures in this article reflect typical charges applicable in 2026, including STT rates revised under Budget 2026-27.
Exchange transaction charges, in particular, are revised periodically and can vary slightly by broker and exchange. Always refer to your broker’s official tariff sheet or contract note for exact, current charges.
The Five Components That Make Up Every Trade’s True Cost
When people talk about “trading charges,” they usually just mean brokerage — but that’s only one piece of the puzzle. Every trade you place in India actually involves up to five separate charges:
- Brokerage — charged by your broker, for executing the trade.
- STT (Securities Transaction Tax) — charged by the government, on the transaction value.
- Stamp Duty — charged by the state government, on the buy-side transaction value.
- Exchange Transaction Charges & SEBI Turnover Fees — charged by the stock exchange (NSE/BSE) and the regulator (SEBI).
- GST — charged on top of brokerage, exchange charges, and SEBI fees (not on STT or stamp duty).
The important thing to understand: only brokerage goes to your broker. Everything else is passed through to the government, the exchange, or the regulator — your broker is simply the collection point.
That’s why even a “zero brokerage” trade still costs you something.
Brokerage — How It’s Actually Charged
Brokerage is the only charge on this list that’s genuinely negotiable and varies meaningfully between brokers. It’s typically charged in one of two ways:
- Flat fee per order — a fixed amount (commonly ₹20) regardless of trade size, common for intraday and F&O trades.
- Percentage of trade value — a small percentage (like 0.1% or 0.3%), often with a cap, common for delivery trades or Margin Trading Facility (MTF) orders.
Many discount brokers now offer zero brokerage on delivery trades, while charging a flat fee on intraday and F&O.
You can compare exact brokerage structures across major brokers using our brokerage calculator, and see the full charges comparison in our earlier guide on Zerodha vs Groww vs Upstox vs Angel One.
STT (Securities Transaction Tax) — Rates for Every Segment
STT is a direct tax collected by the exchange at the time of the trade and passed on to the government — it applies regardless of whether your trade was profitable.
Following the Budget 2026-27 revisions, STT rates for equity derivatives went up significantly, while equity delivery and intraday rates remained unchanged.
| Segment | STT Rate |
| Equity Delivery | 0.1% (buy + sell) |
| Equity Intraday | 0.025% (sell only) |
| Equity Futures | 0.05% (sell only) – raised from 0.02%, effective 1 Apr 2026 |
| Equity Options | 0.15% on premium (sell only) – raised from 0.10%, effective 1 Apr 2026 |
| Options (on Exercise) | 0.15% on intrinsic value – raised from 0.125%, effective 1 Apr 2026 |
| Mutual Fund (Equity-Oriented) Redemption | ~0.001% |
Notice that delivery trades attract STT on both legs (buying and selling), while intraday and F&O trades attract it only on the sell side.
This is one reason delivery investing often carries a higher STT cost proportionally, even though it’s usually free of brokerage.
For the full context behind these rate changes, see our guide on SEBI’s 2026 F&O regulatory overhaul.
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Stamp Duty — What It Is and How It’s Calculated
Stamp duty is levied by state governments under the Indian Stamp Act, but since 2020, it’s been standardised into a uniform, centrally collected rate applied nationally — regardless of which state you live in — making it far simpler than it used to be.
Stamp duty is charged only on the buy side of a transaction.
| Segment | Stamp Duty Rate | Charged On |
| Equity Delivery | 0.015% | Buy side only |
| Equity Intraday | 0.003% | Buy side only |
| Equity Futures | 0.002% | Buy side only |
| Equity Options | 0.003% | Buy-side premium value |
| Mutual Fund (Equity-Oriented) Redemption | ~0.005% | Buy side only |
Stamp duty rates are generally low in absolute terms, but they’re worth knowing about specifically because — unlike STT — they apply even to your very first leg of a trade, before you’ve made or lost a single rupee.
Exchange Transaction Charges & SEBI Turnover Fees
Beyond taxes, two more small charges apply to every trade:
Exchange Transaction Charges: NSE and BSE each charge a small fee for using their trading infrastructure, calculated as a percentage of turnover.
These rates differ by exchange and by segment — equity delivery/intraday charges are typically a few thousandths of a per cent, while options charges (calculated on premium value) run noticeably higher in percentage terms since premium values are much smaller than the underlying contract value.
SEBI Turnover Fees: SEBI, as the regulator, charges a very small turnover-based fee to fund its regulatory functions — typically around ₹10 per crore of turnover for equity and futures, and around ₹50 per crore of premium turnover for options.
Both of these charges are usually negligible on a single retail-sized trade — often just a few rupees or even paise — but they add up for high-frequency and high-volume traders, and they’re always itemised separately on your contract note.
GST on Trading — What Exactly Gets Taxed at 18%
Here’s a detail that trips up many traders: GST doesn’t apply to your entire trade value. It applies specifically at 18% on:
- Brokerage
- Exchange transaction charges
- SEBI turnover fees
GST does NOT apply to STT or stamp duty — these are already taxes in their own right, and taxing a tax isn’t how the system is structured here.
This distinction matters when you’re estimating your total cost: GST is a relatively small addition on top of the smaller components, not a blanket 18% tax on your whole trade.
Worked Example: Full Cost of a Delivery Trade
Let’s say you buy 100 shares at ₹500 (₹50,000) and later sell them at the same price (₹50,000), through a broker charging ₹20 or 0.1% (whichever is lower) per order on delivery trades.
| Charge | Calculation | Amount (Rs) |
| Brokerage (Buy + Sell) | Rs 20 x 2 orders | 40 |
| STT | 0.1% on Rs 50,000 (buy) + 0.1% on Rs 50,000 (sell) | 100 |
| Stamp Duty | 0.015% on Rs 50,000 (buy only) | 7.5 |
| Exchange Transaction Charges | ~0.003% on Rs 1,00,000 (both legs) | 3 |
| SEBI Turnover Fee | Rs 10/crore on Rs 1,00,000 turnover | 0.05 |
| GST | 18% on (40 + 3 + 0.05) | 7.75 |
| Total Cost | Sum of all charges | 158.3 |
On a ₹1,00,000 round-trip turnover, your total non-brokerage-related costs (STT, stamp duty, exchange charges, SEBI fee, GST) come to roughly 0.16% of turnover — even before accounting for any actual brokerage on a paid plan.
Worked Example: Full Cost of an Intraday Trade
Now let’s say you buy 100 shares at ₹500 (₹50,000) and sell the same day at ₹505 (₹50,500), through a broker charging a flat ₹20 per order.
| Charge | Calculation | Amount (Rs) |
| Brokerage (Buy + Sell) | Rs 20 x 2 orders | 40 |
| STT | 0.025% on Rs 50,500 (sell only) | 12.63 |
| Stamp Duty | 0.003% on Rs 50,000 (buy only) | 1.5 |
| Exchange Transaction Charges | ~0.003% on Rs 1,00,500 (both legs) | 3.02 |
| SEBI Turnover Fee | Rs 10/crore on Rs 1,00,500 turnover | 0.05 |
| GST | 18% on (40 + 3.02 + 0.05) | 7.75 |
| Total Cost | Sum of all charges | 64.95 |
Notice that intraday trading is meaningfully cheaper in statutory charges than delivery trading — mainly because STT applies only on the sell side, at a lower rate.
This is part of why some traders are drawn to intraday activity — though it’s worth remembering that intraday profits are taxed differently too, as covered in our stock market taxation guide.
Worked Example: Full Cost of an F&O Trade
Futures example: You buy and sell 1 lot of index futures worth ₹10,00,000 (both legs), through a broker charging a flat ₹20 per order.
| Charge | Calculation | Amount (Rs) |
| Brokerage (Buy + Sell) | Rs 20 x 2 orders | 40 |
| STT | 0.05% on Rs 10,00,000 (sell only) | 500 |
| Stamp Duty | 0.002% on Rs 10,00,000 (buy only) | 20 |
| Exchange Transaction Charges | ~0.0019% on Rs 20,00,000 (both legs) | 38 |
| SEBI Turnover Fee | Rs 10/crore on Rs 20,00,000 turnover | 0.2 |
| GST | 18% on (40 + 38 + 0.20) | 14.08 |
| Total Cost | Sum of all charges | 612.28 |
Options example: You buy and sell 1 lot of index options with a premium value of ₹50,000 on each leg.
| Charge | Calculation | Amount (Rs) |
| Brokerage (Buy + Sell) | Rs 20 x 2 orders | 40 |
| STT | 0.15% on Rs 50,000 premium (sell only) | 75 |
| Stamp Duty | 0.003% on Rs 50,000 premium (buy only) | 1.5 |
| Exchange Transaction Charges | ~0.035% on Rs 1,00,000 premium turnover (both legs) | 35 |
| SEBI Turnover Fee | Rs 50/crore on Rs 1,00,000 premium turnover | 0.05 |
| GST | 18% on (40 + 35 + 0.05) | 13.51 |
| Total Cost | Sum of all charges | 165.06 |
Notice how much higher options charges look as a percentage of premium compared to futures or delivery — this is precisely because premium value is a small fraction of the actual contract’s notional value, so the same rupee charges represent a much bigger percentage.
This nuance is exactly why the STT hike introduced in 2026 hit options traders particularly hard, on top of the broader SEBI F&O reforms already reshaping retail derivatives trading.
How to Read Your Broker’s Contract Note
Every trading day, your broker is legally required to issue a contract note — a document itemising every trade you made and every charge applied to it. Here’s what to look for:
- Trade-wise breakup: Each individual trade, with quantity, price, and order type (buy/sell).
- Brokerage: Listed separately per trade or as a daily total.
- STT: Shown as a distinct line item, calculated per the rules above.
- Exchange Transaction Charges: Usually a very small amount, itemised separately.
- SEBI Turnover Fees: An even smaller amount, also itemised.
- Stamp Duty: Shown on the buy-side transactions.
- GST: Calculated on the sum of brokerage, exchange charges, and SEBI fees — never on STT or stamp duty.
- Net amount payable/receivable: The final figure after all charges are netted against your trade value.
Reviewing your contract note regularly — rather than just glancing at your account balance — is the single best habit for genuinely understanding your real trading costs, especially if you trade frequently.
Frequently Asked Questions
Why did my “zero brokerage” delivery trade still cost me money?
Because brokerage is just one of five charges applied to every trade. STT, stamp duty, exchange transaction charges, SEBI fees, and GST all still apply, even when your broker charges zero brokerage.
Is GST charged on the entire value of my trade?
No. GST at 18% applies only to brokerage, exchange transaction charges, and SEBI turnover fees — not to the trade value itself, and not to STT or stamp duty.
Why are options charges so much higher as a percentage compared to futures?
Because options charges (STT, stamp duty, exchange fees) are calculated on the premium value, which is a small fraction of the contract’s actual notional value — so the same charges represent a much larger percentage of the (smaller) premium amount.
Do these charges apply to mutual fund investments too?
STT applies to equity-oriented mutual fund transactions at a much smaller rate (around 0.001% on redemption), and stamp duty applies on mutual fund purchases as well, though the overall cost structure for mutual funds is generally simpler than direct equity/F&O trading.
Can I claim GST paid on brokerage as input tax credit?
Only registered businesses eligible under GST law that use trading as part of a formal business structure may be able to claim input tax credit on brokerage-related GST; individual retail investors typically cannot. Consult a Chartered Accountant for your specific situation.
Where can I see the exact charges applied to my trades?
Your broker’s daily contract note is the most accurate source, since it reflects the exact rates applied to your specific trades. You can also use our brokerage calculator to estimate costs before placing a trade.
Final Thoughts
The next time you see a broker advertise “zero brokerage,” remember that it only addresses one of five charges that apply to every trade you place.
STT, stamp duty, exchange transaction charges, SEBI fees, and GST are all set by the government, exchanges, and regulator — not your broker — and they apply consistently regardless of which platform you use.
Understanding this breakdown helps you estimate your real trading costs accurately, rather than being caught off guard by the gap between “brokerage” and what actually gets deducted from your account.
For a deeper look at how these charges compare across brokers, or to calculate your exact cost before placing your next trade, head over to our charges & hidden fees page and brokerage calculator.