Understanding Brokerage and Statutory Charges on Every Trade

Brokerage is only one part of your trading cost. Statutory charges are levied by the government and exchanges and apply regardless of which broker you use.

Securities Transaction Tax applies on both sides for delivery and only on the sell side for intraday. GST is charged at 18% on brokerage plus exchange transaction charges. Stamp duty applies on the buy side.

For small order sizes, statutory charges can exceed brokerage itself. This is why comparing only headline brokerage can be misleading.