Cost per Transaction Query

[KoolSIM]

Hello,

I am just curious about the total cost a person ends up shelling out when he/she purchases a stock from a broker. The additional charges besides the purchase price of the stock share and the brokerage cost.

Eg. I purchased a stock for Rs. 100. Assuming a 0.5% brokerage charge. The cost rises to Rs. 100.5. What additional charges are added like STT etc.? And how much will the total cost come out to?

Thanks

 

[veluri1967]

Hello,

I am just curious about the total cost a person ends up shelling out when he/she purchases a stock from a broker. The additional charges besides the purchase price of the stock share and the brokerage cost.

Eg. I purchased a stock for Rs. 100. Assuming a 0.5% brokerage charge. The cost rises to Rs. 100.5. What additional charges are added like STT etc.? And how much will the total cost come out to?

Thanks

I donot want to disect the different taxes or rates etc.

But simple formula for calculating your cost would be as follows:-

Brokerage rate X 4 times

In your case, the brokerage is 0.5%, so, your cost becomes 0.5 X4 = 2%

So, Rs.100/- stock costs you Rs.102/-. That means if you sell the stock at same Rs.100/- you will earn nothing. But Rs.2/- goes to the cuffers of broker, taxer, exchange etc.....etc.

So, to breakeven, you should be able to sell the share at atleast Rs.102/-

Hope the point is clear.

 

[KoolSIM]

Yeah I know the break-even fundamental that you've explained here, I wanted to know more about the various taxes and any other charges that are taken off.

Although I did not get the '4 times' that you've done here. Why 4?