Low Brokerage and Low-Cost Discount Brokerage

Brokerage charges in India impact trading costs; understanding fees and choosing wisely is essential for profitable stock trading. Read on to learn about the brokerage charges in India.

Brokerage charges are an integral aspect of stock trading. They represent the fees traders pay to brokerage firms in exchange for their services and access to the financial markets. These charges can significantly impact an investor’s returns and overall profitability. 

In this comprehensive guide, we will delve into the intricacies of the lowest brokerage charges, including what they are, how they are calculated, the components involved, and factors to consider when choosing a broker. 

What are Brokerage Charges?

Brokerage charges, often called “brokerage fees,” are the costs of buying or selling stocks, commodities, or other financial instruments through a brokerage firm. These fees are the primary source of revenue for brokerage firms and are collected as a commission for executing trades on behalf of their clients.

How are Brokerage Fees Calculated?

Brokerage fees in India are typically calculated based on a percentage of the total transaction value or a fixed fee per trade, depending on the type of brokerage firm and the specific trading account. The two common methods of calculating brokerage charges are:

  1. Percentage-Based: Many traditional full-service brokerage firms charge a percentage of the total transaction value as their brokerage fee. The percentage can vary and often depends on factors such as the type of trade (delivery or intraday), the trading segment (equity, derivatives, currency, or commodities), and the brokerage firm itself.
  2. Flat Fee: Discount brokerage firms, on the other hand, often charge a fixed fee per trade. This means that, regardless of the transaction size, investors pay the same brokerage fee for each trade. However, discount brokers charge the lowest brokerage fee, providing all the services.

Components of Brokerage Charges

Brokerage charges are comprised of various components that contribute to the overall cost of trading. These components may include:

  1. Brokerage Fee: The brokerage fee is the primary component of brokerage charges. This fee is the commission the brokerage firm earns for facilitating the buy or sell order. It can be a percentage of the transaction value or a fixed amount per trade.
  2. Securities Transaction Tax (STT): The Indian government levies an STT on both the buy and sell transactions in the equity cash (delivery) segment. The government predefined the rates and applied them to the transaction value.
  3. Goods and Services Tax (GST): GST applies to the brokerage fee and other charges associated with trading. It is calculated as a percentage of the total brokerage charges.
  4. Exchange Transaction Charges: Stock exchanges charge transaction fees on every trade executed on their platform. This fee is usually nominal and varies based on the exchange and the segment in which the trade occurs.
  5. Stamp Duty: Stamp duty is a state-level tax imposed on the transfer of financial instruments. The rate of stamp duty varies from one state to another.

What is the Minimum Brokerage Charge?

The minimum brokerage charge is the lowest amount a brokerage firm will charge for a single trade. It is typically set to ensure that the brokerage firm covers its operational costs, even for small trades. The minimum brokerage charge can vary from one brokerage firm to another and may also depend on the type of trade (e.g., delivery or intraday).

For example, a brokerage firm might have a minimum charge of ₹20 for delivery trades and ₹10 for intraday trades. If a trade’s calculated brokerage fee based on the percentage of transaction value is lower than the minimum charge, the investor will be charged the minimum fee.

What is the Maximum Brokerage Charge?

The maximum brokerage charge is the broker’s highest amount for a single trade. As per SEBI’s guidelines, a broker can’t charge brokerage more than 2.5% of the total value for equity delivery trades. In contrast, this limit is down to 0.25% for intraday trading.

Discount brokers, which offer lower-cost trading services, typically have lower maximum brokerage charges than full-service brokers. The maximum brokerage charge can vary significantly, so investors should know the specific rates their chosen brokerage firm offers.

What are Discount Brokers?

Discount brokers are a relatively recent development in the Indian brokerage industry. These brokers offer a no-frills, low-cost trading experience with reduced brokerage fees. Discount brokers have gained popularity among traders and investors due to their cost-effective services. Angel One is a full-service discount broker with a complete range of services.

Key Features of Discount Brokers

  1. Low Brokerage Fees: Discount brokers charge significantly lower brokerage fees compared to traditional full-service brokers. They often have flat fee structures, making it cost-effective for traders who frequently buy and sell stocks.
  2. Online Trading Platforms: Most discount brokers operate entirely online, providing user-friendly trading platforms and mobile apps. This allows investors to execute trades conveniently from their computers or mobile devices.
  3. Limited Research and Advisory Services: While full-service brokers provide research reports and personalised advisory services, discount brokers offer limited research tools and may not provide personalised investment advice.
  4. Direct Market Access: Discount brokers typically offer direct market access, allowing traders to place orders directly on stock exchanges without manual intervention.

Factors to Consider Before Choosing a Stock Broker 

When selecting a brokerage firm in India, it’s essential to consider various factors beyond just brokerage charges. While cost is crucial, other factors can influence your trading experience and overall satisfaction. Here are some factors to remember:

  1. Brokerage Charges: Compare the brokerage fees of different brokerage firms, including percentage-based and flat-fee models. Consider your trading frequency and style to determine which fee structure suits you best.
  2. Trading Segment: Ensure that the brokerage firm offers access to the specific trading segments you are interested in, such as equity, derivatives (F&O), currency, or commodities.
  3. Research and Analysis: Full-service brokers often provide research reports, market analysis, and personalised advisory services. If you require guidance and research, choose a broker that offers these services.
  4. Trading Platforms: Evaluate the broker’s trading platforms, including their usability, features, and reliability. A robust and user-friendly platform can enhance your trading experience.
  5. Customer Support: Reliable customer support is essential, especially for resolving trading-related issues promptly. Test the broker’s customer support responsiveness before opening an account.
  6. Margin and Leverage: Check the broker’s margin and leverage offerings, as these can impact your trading capital and risk exposure.
  7. Account Opening and Maintenance Charges: Besides brokerage fees, be aware of any account opening and maintenance charges and other hidden fees.
  8. Transparency: Choose a broker that provides transparent information about all charges, including brokerage, taxes, and other transaction costs.

Brokerage Charges in Angel One

Angel One is a well-known brokerage firm in India, and its lower brokerage charges typically involve a percentage-based fee. Angel One’s brokerage charges include:

Types of Charges Stock Investments Intraday Trading Futures Options
Brokerage Charges ₹0 ₹0 brokerage upto ₹500 for first 30 days* Then, lower of ₹20 or 0.03% per executed order ₹0 brokerage upto ₹500 for first 30 days*

Then, ₹20 per executed order

Transaction Charges NSE: 0.00325% NSE: 0.00325% NSE: 0.00190% NSE: 0.05%

BSE: 0.005%

Demat Transaction / DP Charges ₹20 + GST / Company ₹0 ₹0 ₹0
STT (Securities Transaction Tax) 0.1% 0.025% 0.0125% 0.0625%
GST** 18% 18% 18% 18%
Stamp Duty Charges 0.015% 0.003% 0.002% 0.003%

Please note that these charges are subject to change, and investors should verify the most up-to-date rates with Angel One or their chosen brokerage firm.


Understanding brokerage charges is a vital aspect of successful stock trading in India. These charges can significantly impact your trading costs and overall profitability. Whether you choose a traditional full-service broker or a discount broker like Angel One, it’s essential to carefully consider the brokerage fee structure, additional charges, and the overall services provided by the brokerage firm. 

By making informed choices, you can optimise your trading exprience and financial outcomes in the Indian stock market. Start investing and trading with low brokerage fees and free for the first month. 

Remember, brokerage charges and tax regulations may change over time, so staying updated with the latest information is crucial for accurate financial planning and trading decisions.


What is the brokerage fee in India?

Brokerage charges in India vary based on the status of the broker and the services offered. In a ballpark, a full-service broking house will charge between 0.03% to 0.60% of the volume of transactions. If your broker is a discount broker, it may charge a flat fee on intraday trading or offer free lifetime delivery of stocks to your account.

What is the minimum brokerage charge?

The brokerage fees between broking houses vary based on their status and the range of services offered. If you are an intraday trader, partner with a broking house that charges nominal fees for each transaction since you’ll frequently transact in large volumes. Angel One offers one of the lowest broking charges in the market.

What is the maximum brokerage that a broker can charge?

BSE and NSE have fixed 2.5% as the highest brokerage fees that a broker can charge from its clients.

Is Angel One a discount broker?

Yes, Angel One is a full-service discount broker with a complete range of services. As a discount broker, we offer you the lowest rates on equity transactions, and as a full-service broker, we extend a plethora of additional services to make your investment journey rewarding.

What are the brokerage charges for futures?

The charges are variable. But brokerage fees for futures are less than brokerage charges on equity. Per lot, broking fees are also often applied, which makes futures contracts a cheaper option. Angel One charges a flat fee of ₹20 per executed order in a future transaction.

What are the brokerage charges for intraday?

₹20 or 0.03%, whichever is lower. Angel One charges a flat fee of ₹20 for each executed order.

What are the brokerage charges for delivery?

Broking houses can charge a percentage or a flat fee to deliver equities to your account. In Angel One, you’ll receive lifetime free delivery of stocks.

What are the brokerage charges for options?

At Angel One, we charge a ₹20 flat fee per executed order.