Brokerage Calculator

How Brokerage Works in India

Brokerage is the fee your broker charges for executing trades on your behalf. In India, two distinct models exist: the percentage-based model used by full-service brokers like ICICI Direct, HDFC Securities, and Kotak Securities, and the flat-fee model pioneered by discount brokers like Zerodha, Groww, Angel One, and Upstox.

Full-service brokers typically charge 0.3% to 0.5% of trade value per side, with a minimum of ₹25–50 per order. On a ₹1,00,000 delivery trade, brokerage alone could be ₹500–1,000 round trip. These brokers justify the cost through research reports, relationship manager access, portfolio advisory, and physical branches.

Discount brokers changed the game starting around 2012. Zerodha's Kite platform popularised the flat ₹20 per executed order model (or 0.03% of trade value, whichever is lower) for F&O and intraday. Many brokers now offer zero brokerage on equity delivery — their revenue comes from F&O charges, interest on margin, and collateral income.

The Flat ₹20 Model — Zerodha, Groww, and Upstox

The ₹20-per-order model (or ₹0 for equity delivery) is now the industry standard among discount brokers. Zerodha charges ₹0 for equity delivery, ₹20 or 0.03% (whichever is lower) for intraday and F&O. Groww follows a similar structure. Upstox started at ₹20 flat and has since moved to ₹0 delivery.

For a trader executing 10 F&O orders a day, the ₹20 model means ₹200/day in brokerage versus potentially ₹2,000–5,000 with a percentage-based broker on the same notional value. Over 250 trading days, that's ₹50,000 saved — purely in brokerage. This structural cost advantage is why discount brokers now account for over 70% of retail trading volumes by order count.

The catch: flat-fee brokers provide minimal advisory support. If you're a self-directed investor comfortable with research, that's fine. If you rely on your broker for stock picks and portfolio guidance, a full-service relationship has tangible value — though few retail investors consistently get their money's worth from those recommendations.

Total Trading Cost Breakdown — All Charges

Brokerage is just one line item on your contract note. The full cost of executing a trade in India includes STT, GST on brokerage, SEBI turnover fees, exchange transaction charges, and stamp duty. For a trader focusing only on brokerage, the other charges can easily exceed the brokerage itself — especially at low-brokerage discount brokers.

Impact of Total Charges on a ₹1,00,000 Trade

Break-Even Return After Charges

For delivery trades with zero brokerage, the minimum return needed to break even (after STT, exchange charges, and GST) is roughly 0.22% per round trip. That means a ₹1,00,000 delivery position needs to appreciate by at least ₹220 before you've covered your transaction costs.

For intraday traders, the bar is lower in percentage terms (0.08%) but the absolute amount matters less than the frequency. An intraday trader doing 20 round trips a day on ₹10 lakh capital is paying roughly ₹1,640 in charges daily — that's ₹4.1 lakh per year just in transaction costs. Those costs must be earned back through profitable trades before you make a single rupee.

This math is why consistently profitable intraday trading is so difficult: you're starting every month with a significant charge burden that compounds against you.