Every Charge on a Single Nifty Trade
When you buy and sell 1 lot of Nifty futures on NSE, here's everything that gets deducted — even before you make or lose money on the trade itself:
| Charge | Rate | Example (Nifty 25,000) |
|---|---|---|
| Brokerage (Zerodha) | Rs 20/order | Rs 40 (buy + sell) |
| STT (sell side) | 0.0125% on premium | Rs 8 (on Rs 62,500 turnover) |
| Exchange charges (NSE) | Rs 2.97/lakh | Rs 3.70 |
| SEBI charges | Rs 10/crore | Rs 0.01 |
| GST (18% on brokerage+exchange) | 18% | Rs 7.87 |
| Stamp Duty (buy side) | 0.003% | Rs 1.88 |
| TOTAL per round trip | ~Rs 62 |
Rs 62 per trade before you make or lose a single point. On a 1-lot Nifty trade (25 units × 25,000 = Rs 6.25 lakh turnover), this is 0.01% — small. But do 10 trades a day and it's Rs 620/day = Rs 13,000/month = Rs 1.56 lakh/year in charges alone.
STT (Securities Transaction Tax) — The Big One
STT is the tax the government charges on every securities transaction. It was introduced in 2004 to replace long-term capital gains tax (which was later reintroduced anyway). You pay it regardless of whether you make a profit.
| Transaction Type | STT Rate | Applied On | Notes |
|---|---|---|---|
| Equity Delivery (Buy+Sell) | 0.1% | Both sides | Highest STT. Buy Rs 1 lakh stock = Rs 100 STT on buy + Rs 100 on sell |
| Equity Intraday | 0.025% | Sell side only | 4x cheaper than delivery. This is why intraday has lower charges. |
| Futures (Sell) | 0.0125% | Sell side only | On total turnover, not premium |
| Options (Sell) | 0.0625% | Sell side (on premium) | Increased 5x in Budget 2024 (was 0.0125%). Big hit for option sellers. |
| Options (Exercise/Expiry ITM) | 0.125% | On settlement price | Physical settlement on stock options. Let ITM options expire = pay this. |
The 2024 STT hike on options: SEBI increased option STT from 0.0125% to 0.0625% (5x increase) in Budget 2024. This hit option sellers hard. On a Rs 100 premium with 25 lot size (Rs 2,500 turnover), old STT was Rs 0.31. New STT is Rs 1.56. Doesn't sound like much, but an active option seller doing 100 trades/month now pays Rs 125 extra in STT alone.
CTT (Commodity Transaction Tax)
CTT is the commodity equivalent of STT. Applied on MCX trades:
- Rate: 0.01% on sell side
- Applied on: Non-agricultural commodity futures (Gold, Silver, Crude, Copper, Natural Gas)
- Not applied on: Agricultural commodities (Cotton, Soybean, etc.)
CTT is significantly lower than equity STT. A Rs 1 lakh silver trade on MCX costs Rs 10 in CTT vs Rs 100 in equity STT for the same turnover. This is one reason commodity trading is cheaper per trade than equity.
The Hidden Charges Nobody Talks About
GST (18% on brokerage + exchange charges)
Every Rs 20 brokerage = Rs 3.60 GST. Every exchange charge = 18% GST on top. It adds up: 10 trades/day × Rs 7 GST/trade = Rs 70/day = Rs 1,500/month. You can't avoid GST, but you can reduce brokerage (some brokers charge Rs 0 for delivery).
Stamp Duty (state-specific)
Ranges from 0.003% to 0.015% depending on your state and instrument. Applied on buy side only. Most states charge 0.003% for F&O and 0.015% for equity delivery. Check your broker's contract note for the exact rate applied to your trades.
DP Charges (Delivery only)
When you sell delivery shares, your depository (CDSL or NSDL) charges Rs 13-15 per scrip per day. This is separate from brokerage. If you sell 5 different stocks in one day = Rs 65-75 in DP charges.
How to Minimize Trading Charges
- Trade futures instead of options (if your strategy allows). Futures STT is 0.0125% vs options 0.0625%.
- Close options before expiry. If your ITM option expires, you pay 0.125% STT on the settlement price — 2x the normal rate. Square off before 3:15 PM on expiry day.
- Use zero-brokerage for delivery. Zerodha, Groww, and Angel One charge Rs 0 for equity delivery trades. Only pay STT + regulatory charges.
- Trade internationally to avoid STT entirely. When you trade EUR/USD or XAU/USD on Exness or XM, there is no STT, no exchange charges, no stamp duty, no SEBI charges. You only pay the spread (0.1 pip on Exness Raw) + commission ($3.50/lot). Total cost per trade is 50-80% lower than NSE.
For a complete guide on how trading profits are taxed (capital gains, business income, ITR filing), see our trading tax guide for India.
Real-World Calculator: Your Actual Trading Cost
Here's how to calculate your monthly trading costs:
Monthly trades: 200 (10/day × 20 trading days) Average turnover per trade: Rs 5,00,000 Brokerage: 200 × Rs 20 = Rs 4,000 STT (futures): 200 × Rs 6.25 = Rs 1,250 Exchange: 200 × Rs 14.85 = Rs 2,970 GST: 18% × (4,000 + 2,970) = Rs 1,255 Stamp Duty: 100 × 0.003% × 5,00,000 = Rs 1,500 ──────────────────────────────── TOTAL: ~Rs 10,975/month = ~Rs 1.32 lakh/year To break even, you need Rs 11,000/month in profit just to cover charges. That's 22 points/day on Nifty.
This is why SEBI's study shows 91% of F&O traders lose money — many are profitable on gross basis but negative after charges.