How It Works: The True Cost of Trading in India
Many discount brokers advertise "Zero Brokerage" or "Flat ā¹20 per trade." While this is technically true for their specific fee, the Indian government heavily taxes equity market transactions. For day traders with tight margins, these statutory fees often turn a winning trade into a net loss.
The Hidden Dangers of STT (Securities Transaction Tax)
STT is the silent killer of profitability. For Equity Delivery (CNC), STT is levied at 0.1% on both the buy and sell sides. For a ā¹1 Lakh delivery trade, you immediately lose ā¹200 just to STT, regardless of whether you make a profit or a loss. For Intraday (MIS), STT is slightly lower (0.025%) but is levied solely on the sell side.
Exchange Turnover Charges & Stamp Duty
Beyond STT, the National Stock Exchange (NSE) charges a turnover fee (~0.00322% on the total traded value). The government then applies an 18% GST on the sum of your brokerage and these exchange fees. Finally, a state-level Stamp Duty (0.015% for delivery, 0.003% for intraday) is applied to the buy side. Our engine aggregates all these micro-charges to reveal your true Net P&L.