Trading charges explained
Updated 11 October 2026
Brokerage and charges calculator →
Every trade costs more than the price of the shares or contracts. On top of it you pay a string of charges, each going to someone different: your broker, the government, the exchange, SEBI or the depository. This page explains each line and how to check it on your contract note. Rates were checked on 11 October 2026 and do change, so confirm them on your broker's charges page and in NSE circulars. To add them up for your own trade, use the brokerage calculator.
The charges, one by one
Brokerage
Brokerage is your broker's fee for carrying out your order, and it varies by broker and plan. Most plans charge it per executed order: once when the buy is filled and again when the sell is filled. An order that never executes costs nothing. Plans come in two common shapes:
- Flat: a fixed fee per executed order, such as ₹20, whatever the order size.
- Percentage with a cap: such as the lower of 0.03% or ₹20. On a ₹50,000 order, 0.03% is ₹15, so you pay ₹15. On a ₹1,00,000 order, 0.03% is ₹30, so the ₹20 cap applies.
Some plans charge nothing on delivery, and some set a minimum per order.
STT (securities transaction tax)
STT is a central government tax, collected through your broker and the exchange. It is worked out on the value you trade, not on profit, so you pay it on losing trades too.
From 1 April 2026, the Finance Act 2026 raised STT on futures from 0.02% to 0.05% of the sell value, and on options from 0.1% to 0.15% of the premium on the sell side. A futures sale worth ₹10,00,000 now carries ₹500 of STT instead of ₹200. For shares, STT is 0.1% on both buy and sell for delivery, and 0.025% on the sell for intraday.
Why only the sell side in F&O? The law taxes the sale of a futures or options contract and makes the seller pay. So you pay STT whenever you sell: to close a position you bought, or to open one, such as writing an option or shorting a future. Buying carries no STT, with one exception: if an option you bought is exercised, you pay 0.15% of its intrinsic value.
Exchange transaction charges and IPFT
The exchange charges a fee on the value of every buy and every sell. NSE's rates since 1 October 2024 are 0.00297% for equity, 0.00173% for futures and 0.03503% of the premium for options. With it comes the IPFT charge, which goes to NSE's Investor Protection Fund Trust: ₹10 per crore of value traded for equity and futures, and ₹50 per crore of premium for options. As one crore is ₹1,00,00,000, ₹10 per crore is 0.0001%.
SEBI fee
SEBI, the market regulator, charges ₹10 per crore of value traded, on buys and sells: 10 paise on ₹1,00,000 of trades.
Stamp duty
Stamp duty is charged only on the buy side. It is a state levy, collected through the exchange or depository on behalf of the state governments: 0.015% for delivery, 0.003% for intraday, 0.002% for futures and 0.003% of the premium for options.
GST
GST at 18% applies to brokerage, exchange charges, the SEBI fee and DP charges. It is not charged on STT or stamp duty, which are already taxes.
DP charges
When you sell shares from your demat holdings, your depository participant (usually your broker) charges a flat fee, part of which goes to the depository, CDSL or NSDL. It is taken once for each stock you sell on a day, whatever the quantity. At the brokers we checked it was ₹12.50 to ₹20, plus GST. Intraday and F&O trades do not attract it, because nothing leaves your demat.
Statutory rates by segment
These are set by the government, the exchange and SEBI, not by your broker. Exchange charges are NSE's; BSE sets its own. For options, the rates apply to the premium, not the contract value.
| Charge | Delivery | Intraday | Futures | Options |
|---|---|---|---|---|
| STT | 0.1% on buy and sell | 0.025% on sell | 0.05% on sell | 0.15% on sell |
| Exchange transaction charge | 0.00297% | 0.00297% | 0.00173% | 0.03503% |
| IPFT | ₹10 per crore | ₹10 per crore | ₹10 per crore | ₹50 per crore |
| SEBI fee | ₹10 per crore | ₹10 per crore | ₹10 per crore | ₹10 per crore |
| Stamp duty (buy only) | 0.015% | 0.003% | 0.002% | 0.003% |
Worked example: one intraday trade
You buy 100 shares of Stock ABC at ₹500 and sell them at ₹502 the same day. Your broker charges a flat ₹20 per executed order. The buy value is 100 × ₹500 = ₹50,000 and the sell value 100 × ₹502 = ₹50,200, so turnover (buy plus sell) is ₹1,00,200 and gross profit is ₹200.
| Charge | Working | Amount |
|---|---|---|
| Brokerage | ₹20 × 2 orders | ₹40.00 |
| STT | 0.025% × ₹50,200 (sell) | ₹12.55 |
| Exchange transaction charge | 0.00297% × ₹1,00,200 | ₹2.98 |
| IPFT | 0.0001% × ₹1,00,200 | ₹0.10 |
| SEBI fee | 0.0001% × ₹1,00,200 | ₹0.10 |
| Stamp duty | 0.003% × ₹50,000 (buy) | ₹1.50 |
| GST | 18% × (₹40.00 + ₹2.98 + ₹0.10 + ₹0.10) | ₹7.77 |
| Total charges | ₹65.00 |
Your net profit is ₹200 − ₹65.00 = ₹135.00. Charges took about a third of the gross profit: the price had to rise about 65 paise a share (₹65.00 ÷ 100) just to cover them. Had it fallen to ₹498 instead, the charges would have been ₹64.88 and your total loss ₹264.88. Amounts are rounded to the paisa; contract notes may round some lines differently.
How to read a contract note
Your broker sends a contract note, usually by email, for each day you trade. It is the legal record of your trades. Read it the same day, in three parts:
- Trades: order number, time, buy or sell, quantity and price. Check that each trade is one you placed.
- Charges: brokerage, exchange charges (IPFT may have its own line), STT, SEBI fee, stamp duty and GST, which may show as IGST or as CGST plus SGST. Compare them with your own working.
- Net amount: what you owe the broker, or it owes you, after charges. It should match your ledger.
DP charges often appear in the ledger rather than on the contract note. If anything does not match, raise it with your broker at once. Keep your contract notes: if your trading is business income, these charges are expenses you can claim (see the F&O tax guide).
Other costs people forget
- Call-and-trade: placing an order by phone through the broker's dealing desk usually costs extra.
- Auto square-off: many brokers charge a fee when they close an intraday position you left open.
- AMC: the annual maintenance charge many brokers levy on a demat account, whether you trade or not.
- MTF interest: buying with the broker's margin trading facility means paying interest on the amount funded for each day you hold.
These vary by broker and plan and are not in the calculator, so check your broker's charges page.
Risk reminder
Charges come out of every trade, win or lose, so frequent trading adds them up fast. SEBI's studies (2023 and 2025) found about 9 in 10 individual F&O traders lost money in the years studied (SEBI). Before you trade, know how far the price must move just to cover costs, and size the trade so a loss stays affordable (see position sizing).
Questions people ask
- Who pays STT in futures and options?
- The seller. From 1 April 2026, STT is 0.05% of the sell value for futures and 0.15% of the premium for options, charged only on the sell side. If an option you bought is exercised, STT is 0.15% of its intrinsic value.
- Is GST charged on STT and stamp duty?
- No. GST at 18% applies to brokerage, exchange charges, the SEBI fee and DP charges, but not to STT or stamp duty.
- Do I pay DP charges on intraday trades?
- No. DP charges apply when shares leave your demat account, once for each stock you sell from your holdings on a day. Intraday and F&O trades do not move shares out of your demat.
- Are charges refunded if a trade makes a loss?
- No. Charges are worked out on the value you trade, not on your profit, so you pay them on losing trades as well.
- Why does my contract note differ slightly from the calculator?
- Brokers round some lines differently and may show IPFT inside exchange charges. Extra costs such as call-and-trade or auto square-off fees are not in the calculator. The contract note is the final record.