Brokerage

Brokerage refers to the fee or commission charged by a stockbroker or brokerage firm for executing buy or sell transactions on behalf of investors in financial markets — including equity, derivatives, commodities, and currency markets. In India, brokerage can be structured as a percentage of transaction value (traditional full-service brokers) or as a flat fee per order (discount brokers like Zerodha, Groww, and Ventura). SEBI caps brokerage at 2.5% of the transaction value for equity delivery trades. In practice, discount brokers charge ₹20 per executed order regardless of trade size, while full-service brokers may charge 0.3% to 0.5% of turnover. In addition to brokerage, investors pay Securities Transaction Tax (STT), exchange transaction charges, GST on brokerage, and SEBI turnover fees — all of which are disclosed in the contract note issued after each trade. For frequent traders, total transaction costs including all charges can meaningfully erode returns, making broker selection an important consideration in trading strategy.