BROKERAGE CALCULATOR
A brokerage calculator is an invaluable tool and offers several advantages to the investor. It
is accurate and provides clear and relevant information to the customer without any hidden
terms and conditions. When carrying out a transaction, time is of utmost importance. With
a brokerage calculator, investors have an edge because even before executing a trade, they
can get to know the charges in an instant. The brokerage calculator also displays adequate
information which helps the investor compare costing of competitors.
A brokerage calculator thus helps investors get a clear idea of how much they will be paying
for carrying out a particular transaction and therefore make smart investing decisions.
Try our easy-to-use online brokerage calculator below and compare charges.
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Brokerage is the amount you need to pay to the broker when you undertake a particular transaction. A brokerage calculator helps you calculate and compare brokerage charges for commodities, currency, equity, futures and options, intraday and carry forward transactions. You can do this across different stock and commodity exchanges. The calculator also gives you other charges that the broker will levy like transaction charges, state-wise stamp duty, Securities Transaction Tax (STT), Goods and Services Tax (GST) etc. You have to enter the buy price or sell price, the number of shares bought or sold, and trading frequency (daily, weekly, monthly or yearly). Once you type out all this, the calculator will display the exact brokerage payable.
Bank-Based Stock Brokers
These are the most expensive stockbrokers; they have a specific brokerage calculator for the customer
Full-Service Stockbrokers
Similar to bank-based stockbrokers, this category also falls in the expensive bracket. Angel One is an example of this.
Discount Stockbrokers
As the name suggests, discount brokers offer stock trading options at much lower rates, since they provide limited products and low brokerage charges. They have their brokerage charges calculation.
Investors use the compare brokerage charges online application to see what would suit them the best.
To simplify this process and to ease the confusion for the investor, most of these websites provide a how-to-calculate brokerage calculator.
Before you include these items below, the brokerage calculator requires what trading segment it is, e.g., equity delivery, equity intraday, derivates – futures and options, currency, commodity, the exchange it is traded on – NSE or BSE.
Below are the requirements for input into the brokerage calculator:
- Buy price
- Sell price
- Number of prices
- Lot Size - in the case of Options trading
- Your State - to calculate Stamp Duty
The website provide a simple, self-explanatory user interface of the brokerage calculator with the inputs mentioned above.
Advantages:
Price Point
The main attribute every investor looks at is the price offered by the banks, broking companies etc. If the brokerage cost is competitive and reasonable, then the investor is willing to pay for it.
Accuracy
The brokerage calculator provides precise and clear-cut information to the investor without any hidden terms and conditions.
Effectiveness of time
Even before carrying out the trade, the investor can learn about the charges. The response time is rapid once the data has been entered.
Competitors
The brokerage calculator also makes available information for the investor to view the competition costing.
These are only a few significant advantages that a brokerage calculator offers.
For instance, Angel One provides a straightforward means of calculating brokerage.
First, you have to select either one of the four options provided :
- Intraday Equity
- Delivery Equity
- Future Equity, Commodity and Currency
- Options Equity and Currency
The only information required from the investor is :
- Buy at ( amount) - This would be needed if it is a purchase transaction
- Sell at ( amount) - This would be required if it is a sale transaction
- The number of shares purchased or sold
- Frequency of the trade (daily, weekly, monthly, yearly )
These two simple steps will enable the investor to view the exact brokerage amount payable and savings for the year.
FAQs - Frequently Asked Questions
How is brokerage calculated?
Brokerage is that amount, which is payable by the investor to the broker on transaction of a particular trade. The charges could either be a percentage or a flat rate depending on the depository participant – DP, most of the times a brokerage charges calculator is used
Example :
Purchase : 1,000 shares @ Rs. 500 / each
Sale : 1,000 shares @ Rs. 550 / each
Brokerage Charges @ 0.4%
Total Trade Value :
(1,000 x 500) + (1,000 x 550)
5,00,000 + 5,50,000
= 10,50,000/-
Brokerage Charge : 10,50,000 x 0.4% = Rs. 4,200/- payable by the investor.
What is intraday brokerage?
Intraday brokerage is the service charge paid by the investor to the broker. Each broker has their intraday brokerage charge together with a securities transaction tax (STT) and GST which is imposed on the sell leg of the intraday trade. Transaction fees, SEBI and NSE regulatory fees and stamp duty charges are to be paid.
How is intraday brokerage calculated?
Intraday brokerage is calculated in a similar manner of a normal brokerage; however, the brokerage is for the buy and sale of that transaction. Additionally together with the brokerage charges, there is a securities transaction tax (STT), SEBI Regulator Fees, Transaction charges, stamp duty levied on the amount of transaction
Is Stamp Duty charge same for all Indian states?
No, the stamp duty charge is different for all Indian states.
What are STT charges?
The Government of India levies a security transaction tax on all trades of equities. Currently, a tax of 0.025% of the transaction value is applicable on the sell side of an intraday equity transaction.
How are futures brokerage calculated?
Futures brokerage is calculated separately on the buying price and the selling price
Buying: each broker has set up their respective brokerage amount. This is either a percentage or a flat price per unit value. Service Tax is calculated on the brokerage value, Regulatory Fees and Stamp Duty is paid on the total contract amount.
Selling: the brokerage is calculated similarly to the buying process; however, an additional STT-security transaction tax is levied.
How is commodity brokerage calculated?
Commodity brokerage is calculated on the commodity trade value. Each broker sets their brokerage charge; it could either be a flat rate or a percentage. A Commodities Transaction Tax – CTT is levied on the seller and the buyer at 0.05% and 0.0001% respectively.
What is CTT?
CTT or Commodity Transaction Tax is similar to Securities Transaction Tax (STT), applies to all transactions carried out in recognised domestic commodity exchanges. The tax was proposed in the Union Budget of 2013-14 and implemented in 2016. Transactions carried out in foreign commodity exchanges in foreign currencies are exempted from CTT.
CTT applies to the sell-side turnover at the rate of Rs 10 per lakh. So, if sell-side turnover is Rs 2 lakh, applied CTT is Rs 20.
Another important thing to note regarding CTT is that it doesn’t apply to agricultural commodities.
What is SEBI Charge?
It is a regulatory fee collected by the Securities & Exchange Board of India to perform its duties as a market regulator. All registered exchanges are required to pay SEBI charges based on their turnover as per the applicable rate of 0.2 percent lakh.
What is a Stamp Duty?
Stamp duty is a legal fee levied by the Indian government for carrying out security transactions at the stock exchanges. It applies to all types of stocks, currencies, and commodity trading for issuing stamped contract notes at the end of the day. Both sellers and buyers involved must meet stamp duty obligations per applicable rates.
What is Exchange txn Charge?
Indian exchanges collect transaction fees on turnover for providing traders with the technology platform for carrying out buying and selling activities. Exchange transaction charges vary between investment instruments. You can calculate Exchange Transaction Charges in advance using a brokerage calculator.
