What is Brokerage and Brokerage Calculator?

If you are a stock market enthusiast, Brokerage Calculator is a word you will often come across especially from any trader or an investor before the commencement of a trade. So, before diving deep into the meaning of this proficient calculator, it is necessary to know what the word BROKERAGE means.

Whenever an individual trades in securities, the total cost he needs to bear involves not only the price of that security but many other charges as well. A major part of this additional expense consists of the fee that needs to be paid to the concerned broker. The Brokerage Fee is the commission a broker receives for expediting the trade.

To explain in a layman language, nothing comes free in this world. NOT EVEN HELP. If you wish to get help to ensure a smooth trading, you will have to pay for it. In stock market world, if you need assistance for having a lubricated trading, BROKERAGE is the amount you need to pay for assurance of the hassle free stock deal that you wish to perform.

Coming back to the technical talks, mostly brokerage is a percentage of the total trade value that your pay to your stock broker. This commission fee is typically levied over and above the trade value and deducted from a trader’s portfolio.

This additional pecuniary expenditure could be highly significant depending on the on the scale of your trading. This is the main reason why majority of the investors use a BROKERAGE CALCULATOR to aid their total price and expense assessment.

WHAT IS BROKERAGE CALCULATOR??

It is an online tool that many stock brokers and financial platforms proffer to enable the process of determining the trading cost in advance. This tool helps in calculating not only brokerage charges but also stamp duty charges, SEBI turnover fee, GST, transaction fees and STT (Security Transaction Tax) which helps in providing thorough analysis of the trade expenses lightening fast and efficiently in real time.

FAQs:

Q1. How is brokerage calculated?

The brokerage is calculated on the percentage of the total price of shares either bought or sold. Formula wise,

Brokerage = Price of one unit of stock x No. of shares brought/sold x Brokerage percent

NOTE: The Brokerage percentage varies from firm to firm and also on the trade (Be it Intraday or Delivery trading). Just the percentage value changes, formula remains same.

Q2. Which is the best brokerage calculator?

This Brokerage Calculator is very proficient.

Q3. What are STT and CTT charges?

STT stands for Securities Transaction Tax. It is a direct tax that needs to be paid on buying and selling of securities listed on established stock exchanges(NSE and BSE mostly) in India. It is the government tax levied in equity sector transactions.

CTT stands for Commodities Transaction Tax. It is a direct tax that needs to be paid on buying and selling of commodities (non-agri ones).

Q4. What are state stamp duty charges?

Stamp duty is another type of tax that is levied on value on transferring of stocks, debentures, commodity instruments and currency derivatives. In India it is levied by various states. Thus, the rate of stamp duty is different in every state of India.

Q5.What are other charges in the brokerage calculator?

It includes stamp duty charges, SEBI turnover fee, GST, transaction fees and STT (Security Transaction Tax).

Q6.What is SEBI turnover fees?

For regulating and governing the stock market, SEBI levies fees for sale and purchase transactions in all types of debt securities which is called as SEBI turnover fees. The current fixed rate is Rs. 5 per crore.

Digital Marketing Executive at Indira Securities