A brokerage calculator is an easy-to-use online tool that brokers (like Sharekhan) make available to traders and investors free of cost to make it easier for them to calculate brokerage before placing a trade. What’s more, a brokerage calculator can do much more than just figure out the brokerage. It can compute and provide GST charges, Securities Transaction Tax (STT), SEBI turnover fee and stamp duty payments as well.
Consequently, a brokerage charges calculator greatly streamlines the process of figuring out the cost of trade. Here are the basic details the calculator requires to determine the cost of trading:
A brokerage calculator enables quick and efficient trading by instantly providing accurate information about such charges. Therefore, it is crucial for traders who heavily rely on timing to execute their deals, such as Intraday traders. Before buying and selling stocks, they can simplify the cost analysis process by using an Intraday brokerage calculator.
As we already know from earlier mentions, brokerage costs are what brokers charge traders to make trades possible. As a result, brokerage fees are necessary for both purchasing and selling stocks by investors. Most brokers charge their brokerage fees as a percentage of the trade value. Such percentages could change depending on the trade value's magnitude. However, the following is the formula for calculating brokerage in the stock market:
Share brokerage calculators use this method to calculate brokerage for both Intraday trading as well as Delivery trading.
Mahesh decides to purchase 10 shares of ABC Limited at INR 5,000 each. He then proceeds to sell these off after 15 days at a price of INR 6,000. Say her broker charges 0.2% as brokerage fees.
In this example, Mahesh’s total trade value is as follows:
Since his broker charges 0.2% as brokerage, the total fee is calculated as:
Mahesh pays INR 220 as brokerage for transactions worth INR 1,10,000. However, if he carried out a transaction on which brokerage by the above calculation is too low, then the broker may charge the minimum amount applicable, which is usually in the range of INR 20 to 30.
To simplify this tedious process of calculating brokerage, traders and investors use a stock brokerage calculator.
The factors on which brokerage calculations depend are as follows:
The purchase or sale price of a single security unit is one of the major factors affecting brokerage commission. It relates the brokerage in exact proportion.
The amount of transactions is another element that heavily influences brokerage calculations, whether done manually or with the aid of a brokerage calculator. The brokerage amount increases with the size of the volume. However, some brokers lower the percentage commission when traders place large orders.
Brokerage charges may vary depending on whether your broker is a full-service broker or a discount broker. Full-service brokers provide numerous value-added services associated with trading in securities, such as Research recommendations, RM support, click-and-brick model and much more.
To use a brokerage calculator, all you need to do is enter some basic information regarding the trade you want to conduct, like:
The brokerage calculator on Sharekhan platforms offers a straightforward, self-explanatory user interface after inputting the aforementioned parameters.
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A brokerage calculator is an easy-to-use online tool traders and investors can use free of cost to make it easier for them to calculate brokerage before placing a trade. What’s more, a brokerage calculator can do much more than just figure out the brokerage. It can compute and provide GST charges, Securities Transaction Tax (STT), SEBI turnover fee and stamp duty payments as well. Consequently, a brokerage charges calculator greatly streamlines the process of figuring out the cost of trade. Here are the basic details the calculator requires to determine the cost of trading: Buy price, Sell price, Quantity, State in India (for stamp duty computation) and Lot size (for Options trading).
Brokerage calculator can do much more than just figure out the brokerage. It can also calculate GST charges, Securities Transaction Tax (STT), SEBI turnover fee and stamp duty.
The value of a commodity trade is used to calculate commodity brokerage. Each broker decides how much they will charge for brokerage; it may be a fixed fee or a percentage. The seller and the buyer are each subject to a Commodities Transaction Tax (CTT) of 0.05% and 0.0001%, respectively. Click here to view Sharekhan’s Brokerage Charges page. See Sharekhan’s Freedom Pricing Plan brokerage charges here.
Similar to how typical brokerage is computed, Intraday brokerage accounts for both the Buy and Sell sides of the transaction. The Securities Transaction Tax (STT), SEBI regulator fees, transaction charges and stamp duty are additional fees in addition to the brokerage fees.
On all trades of stocks (Buy as well as Sell sides), the Indian government collects a Security Transaction Tax (STT). On the Sell side of an Intraday equity transaction, a tax of 0.025% of the transaction value is currently in effect.
Similar to how typical brokerage is computed, Delivery brokerage accounts for both the Buy and Sell sides of the transaction. The Securities Transaction Tax (STT), SEBI regulator fees, transaction charges and stamp duty are additional fees in addition to the brokerage fees.
The Indian government imposes stamp duty as a legal charge for conducting securities transactions at stock exchanges. In order to issue stamped contract notes at the end of the day, it applies to all kinds of stock trading, currency exchange, and commodities trading. Both the sellers and the buyers involved must pay the applicable stamp duty rates.
