Hidden Charges in Stock Trading You Must Know
Introduction
Most new traders look only at brokerage fees when choosing a stockbroker. But trading involves more than just the advertised charges. Many small costs add up quickly and affect your profits. In this guide, we explain all the hidden charges in stock trading that every Indian investor should be aware of in 2025.
1. Brokerage Charges
Even with discount brokers, intraday and F&O trades carry a charge of ₹20/order or a percentage. While some brokers show this clearly, others may hide plan-based fees or special segment charges.
Example: Zerodha charges ₹20 or 0.03% per executed order (whichever is lower) for intraday and F&O.
2. Securities Transaction Tax (STT)
STT is a government tax charged on the value of your trade, not your profits.
| Trade Type | STT Rate |
|---|---|
| Delivery Buy | 0.1% on turnover |
| Delivery Sell | 0.1% on turnover |
| Intraday Sell | 0.025% on turnover |
| F&O Sell | 0.01% on premium (Options) |
Note: STT is not refundable, even if you incur a loss.
3. Exchange Transaction Charges
These are fees charged by the stock exchanges (NSE, BSE, MCX). The charges differ based on the trading segment.
| Segment | Charge (approx.) |
|---|---|
| Equity | ₹325 per crore |
| Futures | ₹200 per crore |
| Options | ₹5,300 per crore |
These charges appear separately in your contract note.
4. DP (Depository Participant) Charges
This is one of the most overlooked hidden charges. Every time you sell shares from your demat account, your DP (like CDSL or NSDL) deducts a flat fee.
- ₹13.5 + GST per ISIN per day (for CDSL via Zerodha)
- Some brokers charge higher (₹20–₹25)
Even if you sell just 1 share, DP charges apply.
5. GST (Goods & Services Tax)
GST is charged at 18% on the sum of brokerage, exchange fees, and SEBI charges.
While brokerage may be low, the cumulative GST can still impact frequent traders.
6. SEBI Turnover Fees
- Charged at ₹10 per crore on the total turnover
- This is a regulatory fee, fixed across all brokers
7. Stamp Duty
Stamp duty is charged on the buy side only and differs based on your state.
| Transaction Type | Stamp Duty Rate |
|---|---|
| Equity Delivery | 0.015% |
| Intraday | 0.003% |
| Futures | 0.002% |
| Options | 0.003% on premium |
Brokers collect and pay this to the state government.
8. Call & Trade Charges
If you place orders via phone instead of the app or website, most brokers charge ₹20–₹50 per order.
For active traders, this adds up quickly if not using digital platforms.
9. Annual Maintenance Charges (AMC)
Demat accounts often carry an annual fee:
- Zerodha: ₹300/year
- Upstox: ₹150/year
- Some full-service brokers charge ₹500–₹1000+
AMC is auto-debited and non-refundable.
Summary Table: Hidden Charges in Trading
| Charge Type | Applies To | Approx. Amount |
|---|---|---|
| STT | On turnover | 0.1% (Delivery), 0.025% (Intraday) |
| Exchange Transaction Fee | All trades | ₹200–₹5300 per crore |
| DP Charges | Equity Sell (Delivery) | ₹13.5–₹25 per transaction |
| GST | On total costs | 18% |
| SEBI Fee | On turnover | ₹10 per crore |
| Stamp Duty | On buy side | 0.003%–0.015% |
| Call & Trade | Phone orders | ₹20–₹50/order |
| AMC | Yearly demat account | ₹150–₹500+ |
FAQs
1. Are DP charges applicable on intraday trades?
No. DP charges apply only to delivery-based sell transactions.
2. Can I avoid AMC?
Some brokers offer zero AMC for the first year or limited-time offers, but most charge it after that.
3. Why is STT deducted even on loss-making trades?
STT is a turnover-based tax, not linked to profit or loss.
4. Are hidden charges the same across all brokers?
No. While statutory charges are fixed, brokers may have different platform or DP fees.
5. Can I reduce hidden trading costs?
Yes. Trade with discount brokers, avoid unnecessary call trades, and use delivery instead of high-frequency intraday if cost-sensitive.
