A brokerage calculator is an online tool that helps traders and investors calculate the amount of brokerage they will have to pay to the brokerage firm, Goodwill Wealth Management Pvt. Ltd., for executing their trades in the stock market.
Benefits of Brokerage Calculator
Convenient and Reliable: Our online brokerage calculator is convenient to use and provides reliable information.
Precise Insight into Fees: The brokerage calculator provides a quick and precise insight into the fees associated with any transaction, allowing investors to make informed decisions.
Informed Investing Decisions: Utilizing the brokerage calculator helps investors make informed decisions by considering all pertinent fees associated with any chosen transaction.
User-Friendly Tool: Our online brokerage calculator is user-friendly and easy to use.
Start Trading Smarter: By using the brokerage calculator, investors can start making smarter trades and investments.
Types of brokerage calculator
Equity Brokerage Calculator:
This type of calculator is used to calculate the brokerage fees for trades in the equity market.
F&O Brokerage Calculator:
This type of calculator is used to calculate the brokerage fees for trades in the futures and options market.
Commodity Brokerage Calculator:
This type of calculator is used to calculate the brokerage fees for trades in the commodity market.
Currency Brokerage Calculator:
This type of calculator is used to calculate the brokerage fees for trades in the currency market.
How is Brokerage Calculated?
Let us break up the components of an online brokerage calculator and how the charges are levied. The best way to explain this is using a simple example.
Imagine a broker charges fees of 0.05% for intraday trading, this essentially translates to brokerage fees on the full turnover. If the shares you buy has the value of Rs. 100, the brokerage charges will be 0.05% which is equal to Rs. 0.05. The full brokerage charge on the total trading is Rs. 0.05 plus 0.05 = Rs. 0.10 (for buying and selling). Additionally, the brokerage gets computed on the total price of the stocks based on the percent determined.
The formula to calculate brokerage is as follows:
Brokerage = Market Rate of a Share x Amount of Shares x Brokerage Charges
How is commodity brokerage calculated?
When engaging in a commodity trade, the brokerage rate is calculated based on the monetary value of the trade. Different brokers may charge a flat fee or percentage--be sure to consult your broker's specific fee structure. Commodity Transaction Tax (CTT) may also apply, amounting to F&O : 0.01% for sellers and Option : 0.05% on Option premium.
Securities Transaction Tax
Securities Transaction Tax (STT) is an Indian tax applied to the value of securities transacted through a recognized stock exchange, such as BSE or NSE. With regards to delivery-based equity trading, the rate for STT in 2016 was 0.1% on delivery and 0.025% on sell side for Intraday transactions. Off-market transactions, commodities and currency are not subject to STT.
Commodity Transaction Tax
The Commodity Transaction Tax (CTT) is a tax imposed on all institutionalized investments made through domestic exchanges, much like the Securities Transaction Tax (STT). It was implemented in 2016 and exempts transactions involving foreign currencies or agricultural commodities.
Stamp Duty Charges
Stamp duty is a tax placed on certain legal documents that governments use to register real estate and other asset transfers. Also known as stamp taxes, these charges help governments better regulate transactions between entities. Documents bearing a stamp duty must be included in the transaction to make it legally binding.
The following are the stamp duty charges:
equity delivery, stamp duty charges are 0.015% or ₹1500 / crore on the buy side
equity intraday, stamp duty charges are 0.003% or ₹300 / crore on the buy side
equity futures, stamp duty charges are 0.002% or ₹200 /crore on the buy side
equity options stamp duty charges are 0.003% or ₹300 / crore on the buy side
Currency Future stamp duty charges are 0.001% or ₹100 / crore on the buy side
Currency options stamp duty charges are 0.001% or ₹100 / crore on the buy side
Delivery Trading Brokerage
When deciding whether to make a delivery trade or not, you must take into account the entirety of your delivery trading charges. This includes the brokerage to be paid to the broker and other statutory charges, such as STT, GST, stamp duty, exchange fees and turnover tax. All these have an influence on your break-even price for your delivery trade calculation. Understandably this is sometimes referred to as brokerage for delivery trade since it is just one component of all your delivery trading expenses.
1. How do I calculate brokerage
To calculate brokerage using our stock brokerage calculator, follow these steps:
Select the "Equity" tab
Enter the details such as:
Trading segment (e.g. BSE, NSE)
Transaction type (e.g. Buy, Sell)
Brokerage plan (e.g. Standard Plan, Direct Plan)
Click the "Calculate" button
The brokerage, taxes, and other charges will be displayed on the screen.
2. Is brokerage the same for BSE & NSE?
Brokerage charges may differ between BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) for the same brokerage firm. Different brokerage firms may also have different brokerage charges for the same exchange. It is advisable to check the brokerage charges for both the exchanges with the respective brokerage firms before trading.