How are brokerage charges applied?

A

Antar123

New Member
#1
#1
Hello Friends,

I am new to stock market & am trying to learn things.
Will someone kindly explain me this?

Lets say XYZ brokerage house charges the following rates.
Intra-day: 0.03%
Delivery: 0.50%

Now lets say I buy 100 shares each worth Rs. 500 for a total of Rs. 50,000 to do intra-day trading.

1. Intra-day

If the stock shoots up to Rs. 510 & I decide to sell on the same day. Will the brokerage of 0.03% be levied on both the the buy price (50,000) & sell price (51,000)?
Something like this...
0.03% on 50,000
+
0.03% on 51,000


2. Delivery

The stock stays Rs. 500 so I decide to take delivery. Next day the stock goes up to Rs. 510 & I sell it. How will the brokerage be levied in this transaction (since I began the transaction with an intention of intra-day trading)?
Will it be like this?
0.03% on 50,000 (buying with intention of intra-day)
+
0.50% on 50,000 (takin delivery)
+
?.??% on 51,000 (brokerage % for selling the stock in such a transaction?)


3. Hidden Charges & Taxes

Apart from the brokerage charge what hidden charges &/or taxes are to be paid on such intra-day/delivery transaction?

Thanks for your help. :)
 
C

casonite

Active Member
#2
#2
Antar123 said:
Hello Friends,

I am new to stock market & am trying to learn things.
Will someone kindly explain me this?

Lets say XYZ brokerage house charges the following rates.
Intra-day: 0.03%
Delivery: 0.50%

Now lets say I buy 100 shares each worth Rs. 500 for a total of Rs. 50,000 to do intra-day trading.

1. Intra-day

If the stock shoots up to Rs. 510 & I decide to sell on the same day. Will the brokerage of 0.03% be levied on both the the buy price (50,000) & sell price (51,000)?
Something like this...
0.03% on 50,000
+
0.03% on 51,000


2. Delivery

The stock stays Rs. 500 so I decide to take delivery. Next day the stock goes up to Rs. 510 & I sell it. How will the brokerage be levied in this transaction (since I began the transaction with an intention of intra-day trading)?
Will it be like this?
0.03% on 50,000 (buying with intention of intra-day)
+
0.50% on 50,000 (takin delivery)
+
?.??% on 51,000 (brokerage % for selling the stock in such a transaction?)


3. Hidden Charges & Taxes

Apart from the brokerage charge what hidden charges &/or taxes are to be paid on such intra-day/delivery transaction?

Thanks for your help. :)
Click to expand...
All of this information you can easily get if you call any brokerages toll free number ..if you square off you position the same day....0.03% will be applied both ways..meaning buying and selling..
If you buy and hold than delivery charges of 0.5% will be applied. There is no hidden charges...

by the way these charges are high...you can easily negotiate a 0.15% delivery and 0.015% intraday...there are brokers who just charge 20/trade (zerodha) or 9/lot (r k global)

rest all that you pay goes to goverment in shape of securities transaction tax, stamp duty and others....you also need to pay demat charges...
 
E

enkaysharma

Active Member
#3
#3
Trading is not everybody's game. Trading is like giving somebody a car to drive who doesn't know the concept of gear, excellator or break. Would definitely smash.
So is the case of choosing a broker and brokerage. Get into depth and then pay brokerage.
New enterants gets excited about the market and pay brokerage as they are asked.
It is advisable to learn trading before trading. And no one will teach u real trading, take it for granted.
Read more and more at Traderji. And one day u may become a trader.
 
D

dr.pkjee

Member
#4
#4
Hi, friends,
I am bit confused about ICICIdirect brokerage.I find that the cost(brokerage+other costs) of intraday trading is different for different stocks.Can anyone throw some light on this ?
thaks
pkjee
 
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