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Monday, May 18, 2020

Different stock market charges?

Different stock market charges?


Hello all are you a day trader or investor this post is for all beginners to know what are the different charges in stock markets, there are many numbers of charges involved when buying and selling of shares while trading and investing, but many people’s don’t involve in charges, if you are an investor you must and should concentrate on charges while trading.

Now I am going to explain different charges in the stock market, some of the are STT/CTT, DP charges etc…before going to this post you need to know some basic things about yourself… so be with me minimum 5 minutes.

Are you a day trader are an investor:

  • When you buy and sell a share within a day it’s called day trading or intraday trading example- if you buy a share at morning and sold it on stock market closings time its intraday
  • If you bought a share and hold it for few days, weeks, years it means investing (or) delivery example- when you buy a share today and sell its on next day (or) one day after then its delivery or investing

Full service/discount service :

  • Full-service broker are traditional brokers they provide their services in all segments stocks, commodities and currency along with they provide advice and research, investment banking etc… full-service broker charged 0.1 to 0.50 for delivery and intraday
  • Discount brokers are modern brokers they provide only trading platform they don’t provide research and advice to their clients, discount brokers charges flat free commission per trade 10 to 20rs they charge brokerage.

Different charges in the stock market:

Security transaction charge  STT :

  • it is charged by the government and it is the biggest charge.
  • For delivery, STT charged both sides on trade(buy and sell)
  • For intraday STT charges only sell side( when you sell a share)
  • When you buy it in delivery it will charge around 0.1 %, and when you buy it on intraday it will charge around 0,0025 %

Transaction Charge :

  • The transaction charge is charged by the exchanges like NSE and BSE.
  • It is charged by both sides of delivery and intraday
  • NSE charges around 0.00325% per trade
  • BSE charges around 0.00275% per trade

Stamp duty :

  • it is charged by the government as per their charges regulation.
  • it totally depends on state government.
  • generally, it is charges both sides of buy and sell order.
  • different states have different stamp duty charges by total turnover of around 0.1 to 0.025.

SEBI charge :

  • SEBI stands for Securities and exchange board of India it is a regulatory body to exchanges
  • It is charged both sides on delivery and intraday it may charge around 0.0002%

Service charge:

  • Service charges are charged by the broker.
  • A broker is a middleman to stock exchange and customer.
  • They provide the trading platform to buy and sell a share.
  • For that, they charge this charges for their services rendered.
  • Every broker has different charges according to competition and their service.

Depository participant charge :

  • Depository participant charge calls as DP charges I will only apply for investors who will trade in      delivery(not for intraday)
  • The Depository participant has kept your shares in dematerialized form (or) electronic form
  • It charges some fixed amount like 10 to 35 per trade depends on your broker

GST :

  • GST means goods and service tax taxed by the central government.
  • It is taxed on your trade it will charge around 18% on brokerage + transaction charge.

AMC:

  • AMC stands for the Annual maitainence charge that will be charged by a brokerage company
  • The charges depend on the company
  • Here is a link to brokerage reviews and ratings just check ithttps://www.chittorgarh.com

this charges and taxes are very important to both investors and traders mainly trader will focus on charges, here is one more tax is there capital gain tax is very important than above-mentioned charges I will explain it in next article clearly

I hope this article is helpful to you comment below if you have any queries happy investing.....

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