Intraday trading charges: STT, Brokerage, SEBI regulatory fees, Transaction charges, Intraday charges Zerodha

All you need to know about intraday trading charges in India.

What are the intraday trading charges in India

Various studies have shown that only 3.5%-4.5%[1] of intraday traders are successful in making money. So, apart from being disciplined about following trading strategies, traders need to be aware of brokerage, taxes, and other charges that incur while executing intraday trades.

Here is a look at the cost of intraday trading brokerage as well as the total cost of intraday trading.

Different types of intraday trading charges 

There are mainly five different types of charges a trader has to pay when involved in Intraday trading. Here are the charges and how they are calculated:

STT (Securities Transaction Tax)
STT is a regulatory charge paid by investors and traders to the Central Government. STT is charged in the contract note issued by a broker and is based on the overall value of a transaction.

STT = 0.025% of (number of shares sold * average price)

Average price is calculated as: 

Average price = [(Buy Qty*Buy Price) + (Sell Qty*Sell Price)] / (Buy Qty+Sell Qty)

Brokerage
Brokerage is the commission a broker charges for the services they provide. This can differ across brokers. Brokerage fees (also called commission fees) are calculated as a percentage of the transaction, a flat fee, or a combination of both. Discount brokerages have become popular over the years as their commissions are cheaper than conventional brokers. 

Related: Intraday trading: Frequently asked questions

SEBI regulatory fees
SEBI charges a regulatory fee (also known as SEBI turnover fee) to cover the costs it incurs in carrying out its responsibilities. SEBI charges are now set at Rs 20 per crore of transaction value, or 0.0002 percent for each equity transaction, whichever is lower.

Transaction charges
Share brokers in India charge a transaction fee for trades made on stock exchanges (BSE, NSE, MCX). Transaction fees, often known as turnover fees, are usually a combination of exchange turnover charges and clearing charges. These vary as per the exchange in which the transaction has occurred.

For instance[2], NSE charges 0.00325% per transaction and BSE charges 0.00275% per transaction.

Stamp duty
Stamp duty rates differ across states since states define and recover stamp duty. Stamp duty is charged while buying and selling shares.

GST 
GST is calculated as 18% of the total of brokerage and transaction charges.

Related: How gains from intraday trading are taxed

Breakdown of intraday trading charges 

Now that you have understood the various charges, let’s see how a leading brokerage (Zerodha) charges for intraday trading. Suppose you are buying 1000 stocks of a certain company at Rs 200 and selling them on the same day at Rs 210. 

Quantity of shares: 1000

Buy Price: Rs 200

Sell Price: Rs 210

Therefore, your trading profit would be Rs 210*(1000) – Rs 200*(1000) = Rs 10,000

Related: How to read candlestick charts for informed decisions in intraday trading?

Intraday charges in Zerodha 

As per Zerodha’s intraday (equity) calculator, the breakup of intraday charges on Zerodha would be as follows:

Broker  Zerodha
Turnover (Buy+Sell Volume) 410000
Brokerage 40 (20 while buying and 20 while selling)
Total STT 53
Exchange transaction charge 14.14
GST 9.75
SEBI Charges 0.41
Stamp duty 6
Total tax and charges 123.3

Therefore, your overall profit would be Rs 10,000 (trading profit) – Rs 123.3 (charges and commission) = Rs 98767.7

Related: Tomorrow Makers’ Comprehensive eBook on Intraday Trading

Almost all the leading brokers offer intraday equity calculators. Before choosing a broker, it is highly recommended that you use their intraday equity brokerage calculator to figure out whether intraday trading would be profitable for you or not.

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