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Zerodha & Upstox Brokerage Charges - DP Charges, AMC & Hidden Charges in Demat Account | #16 - YouTube
Channel: Asset Yogi
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Namaskar my name is Mukul and welcome to another video of assets yogi鈥檚 master investor series
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Friends this video is so important because we are going to talk about charges
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When we trade or invest in shares, many things are promised to us
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Different broking houses promise a lot of things
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For example, people say that if you trade in the intraday
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you will have to pay flat charges of 10 Rs or 20 Rs
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Or if you take delivery i.e. take delivery of equity
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then you will not incur any charges at all, 0 charges will apply
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But when we open our account statement and see it, there are various types of charges
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which are often not talked about when we open our account
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So in this video, we are going to talk about 11 such hidden charges
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so that's why this video is going to be very important
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Also, when we open our Demate and trading accounts
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which charges should we pay more attention to, this too I will cover in the last
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So you must watch this video till the last, let's start
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Friends, if you want to learn Stock Investing
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then you can follow our Master Investor Series which is absolutely free
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You will find the link to the playlist in the description below
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Apart from this, we have a very common query that if we want to invest or trade in shares
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then for that, where should we open a Demate and trading account
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So I recommend that you can open this account with any discount broker
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The brokerage charges are very less and the delivery charges are absolutely 0
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Where should you open the account with the latest offers, recommendations, and links, you will find in the description
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Apart from this, if you have any stock market-related queries, if you need initial hand holding
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then you can contact on our WhatsApp number on 9292924848
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Also, you can contact us by e-mail, you will get it on your screen
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Friends, first of all, we understand what is the difference between intraday and day trading
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I have already covered these things in my videos but
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However, we will go through with an example, for that we take a little clarity on it
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So see what is intraday
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When you buy and sell shares on the same day
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it means that you bought one share on any particular day and sold it on the same day to
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earn a profit, there may also be some loss, you never know, then we call it intraday trading
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So let's consider this an intraday trader who buys some shares from a seller
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let's say his buying price is 190Rs and he buys 100 shares
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And he would sell these 100 shares to another buyer for 200 rupees
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With an investment of 19000 and he sold it on 20000 then his profit was 1000 Rs
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But on this, the actual profit will not be 1000 Rs because he will have to pay some charges
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So out of 1000 Rs, those charges will come out, the balance will be his profit
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how much will be those charges, we will talk soon, So we understood intraday
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Second is our delivery, what is the meaning of delivery
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buy your shares on a day but when you took their delivery
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You did not sell them on that day and you have held them for more than a day
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that is you sell them, after a day or after a month, after 1 year or after 10 years, then we will call it delivery
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So in our case i.e. in our example he holds these shares for 2 years of 20000 Rs
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and from lets say it sells these shares for 300 Rs instead of 200 Rs
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That is, if it sells for 30000 Rs, it has a profit of 10000 Rs
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Even this will not make an actual profit of 10000 as he will have to pay some charges
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So many brokerages claim it to be zero but they are not actually zero
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we will see soon why it does not happen
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So see now let's talk about the charges fiRst
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First, we will talk about intraday after that we will talk about delivery
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The most important charge is on this, that is the brokerage
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If we talk about intraday charges, then full-service brokers charge you a little more
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because they give you more services
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Services mean that they give you equity research reports, they give buy and sell calls
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then if you want services of this kind, then you can go to the full-service broker
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Their charges are but a little high and how high they are, they charge from 0.05% to 0.3%
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and you have to pay this brokerage at the time of buying shares and also whenever you sell shares
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And it is not that this brokerage has to be given only to full-service brokers
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it has to be given in discount brokers too
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But nowadays discount brokers have also become quite famous and they charge less
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They charge either 0.01% or 10 to 20 Rs flat per trade
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means you have to pay a flat fee if you are trading in more volume
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That is, even if you have traded 2 lakh 3 lakh in a trade
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it is not that you have to give on a percentage basis, you have to give only 10 Rs or 20 Rs
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So this is about intraday brokerage, and the second is delivery
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now full service brokers charge you in delivery from 0.1% to 0.6%
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Discount brokers charge you zero, as many discount brokers today
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In fact, I will give you some examples of this as well
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full-service brokers, as there are many bank brokers like ICICI, Axis, HDFC
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Angel Broking, Motilal Oswal, Sharekhan, these are all your full-service brokers
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Example of Discount brokers Zerodha, Uptox, 5paisa, they are your Discount brokers
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So see, the brokerage is such a charge that everyone tells you upfront
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then everyone knows this charge
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But apart from this, we should also understand a little bit about other hidden charges
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So if I talk to you about intraday charges, then the example we were taking that
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If there is an investment of 19000 Rs of this intraday trader and
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he sold these shares in 20000 Rs then what was his total turnover
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19000 + 20000 total turnover is done i.e. 39000 Rs
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so on this see how much brokerage it will cost
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Right now let鈥檚 assume it will give 0.01% brokerage on this
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So on this, it has to be paid on both the buy and sell-side i.e. 39000 Rs will be charged
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brokerage and how much will be charged 0.01% of 39000 i.e. 3.9 Rs
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Apart from this, our second type of charge which we call Securities Transaction Tax
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is levied by the government and this is a fixed charge in today's date it is 0.025% on the sell-side
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When we talk about Intraday, when you buy these shares
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then securities transaction tax is not charged, when you sell them
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then only this STD charge is applicable to you
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So how much is 0.025% on this, If you take 0.0025% of 20000, then that is your 5 Rs
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Apart from this, an exchange transaction charge is levied i.e. if you are trading in NSE then
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there will be a charge and may be different in BSE
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So in NSE, it is 0.00325 % of turnover and in BSE is 0.003 % of turnover
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If we take this example, we take 0.00325% of the 39000 then it is 1.27 Rs
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Now along with this, your GST is also levied on brokerage and exchange transaction tax
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Now see Securities Transaction Tax is already a tax, then no tax will be levied on it
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But they are services, the brokerage is a service, and exchange transaction is also a service
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which is providing you by the stock exchange
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And on top of that GST is levied on brokerage and transaction charges
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then it is calculated at 18%, so how much is 18% on 3.9 and 1.27
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When you add this, it turns out to be 0.93
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Then our next charge is SEBI Turnover Charges, Now what is SEBI, SEBI is a regulator
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like RBI is the regulator of banks, SEBI is the regulator of securities
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so it also levies a charge of its own
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How much do they levy it is 0.0001% on the buy and sell-side both so that means 0.0001%
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Of 39000 approximately is 0.04, actually its 0.039 so I have approximated it to 0.04
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Then we get another charge which is Stamp Duty
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Now the central government has collected GST and STT
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So why will the state government stay behind, they should also charge some
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So wherever you are transacting you have to pay stamp duty
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for whatever state you reside in and it is different for every state
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For example, it is 0.002 % of turnover in Delhi
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Talking about Tamil Nadu, it is 0.006 % of turnover
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Now all these charges can be changed, but we are taking an example here
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So now if we talk about Delhi, we assume in our example that someone is trading in Delhi itself
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So 0.0002% of 39000 is 0.78
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So how much did the total intraday charges come in our example, it is 11.92, approximately 12 Rs
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So if this guy was making a profit of 1000 Rs
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then if we minus 12, our actual profit which will be 988 Rs
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So take a little care of this that many times the charges are increased so much
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that it doesn't make much profit for you
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So your profit should be more than at least 12 Rs, then only you will get any benefit
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Now we have talked about intraday charges, now let's talk about delivery charges
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FiRst, we will talk about full-service broker
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Here we will assume that our buying was 20000 is our example
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and the selling which was 30000, then our turnover is 50000
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Brokerage for example we assume that a full-service broker is charging 0.2%
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on both buy and sell side so it becomes 0.2% of 50000 i.e. 100 rupees
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Security Transaction Tax would be separated on this, It is 0.1% on delivery on both buy and sell sides
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so on this your securities transaction tax becomes 0.1% of 50000 i.e. 50 Rupees
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The exchange transaction tax is the same for delivery as well as for intraday
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So in the example in NSE, if we take 0.0325% of 50000 i.e. 1.62 Rs
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Now apart from this here comes DP charges
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DP charges are applied within delivery because
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what is DP? Depository Participant, and who is this Depository Participant
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This is your broker and on whose behalf, they are charging
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They are charged on behalf of your depository who maintain your Demat account
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And there are two such organizations in India one is CDSL and one is NSDL
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So the CDSL charges in today's date is Rs 5.5
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but the Depository Participant also charges some of his own
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And it varies from Rs.10 to Rs.30 in the case of a full-service broker
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So in our example, we go by the value of 15 Rs
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it is Rs 15 per scrip, Scrip means per stock
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Irrespective of your quantity, whether you sell 100 shares, or you sell 1000 shares, for example
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if we sell shares of Reliance, then whether we sell 100 shares, or sell 1000, it will be a one-time charge
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So I will assume this charge of Rs.15 in our example
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Now the GST which is there will be applicable on brokerage and transaction
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as well on DP charges as this is also a type of service
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If this will also cost 18%, then the charge on Rs 100 is Rs 1.62 and on Rs 15
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if we add the total then it will become 20.99
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SEBI turnover charges are the same here at 0.0001% on buy and sell
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so here we get Rs.0.05
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Stamp duty gets changed for delivery in some states, it remains the same in some states
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In the case of Delhi, the charge on delivery has become different
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It is the same in the case of Tamil Nadu
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In our case, we had taken an example from Delhi, so taking 0.1% of 50,000 it is 5 Rs
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So the delivery charges totaled of this guy
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if he goes with a full service broker then Rs 192.66.
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But this if this guy goes to a discount broker for delivery
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So suppose if the discount broker has his demate account
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So what changes will be the brokerage, it will be different.
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Brokerage will be zero, the charge which is highlighted often
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So how much did it charge for the brokerage, so it actually took only 0
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The rest of the charges are all same, but here GST will be a little different
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because on this 0 charge, there will be no GST applicable
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it will be 2.72 Rs
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Now if you add the rest of these charges, then it will come out to be only 72.89 Rs
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So look at this we understood 2 things
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First of all, it is not zero charges actually, you have to pay the rest of these charges actually
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Whether it is the taxes or the charges of any public company
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Or are there any government charges, that you have to pay
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Your brokerage is definitely zero
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Then if someone claims that you have to pay 0 for delivery, it is not true
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See also in our case he is paying 73 Rs
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But definitely, they charge a little less than a full-service broker
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There you were paying 192 Rs and here you have to pay only 72 Rs
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When we look in the long term, you end up with a lot of savings
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So here we talked about intraday and delivery charges
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which are major charges to be paid, apart from this, there are some other charges
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We should talk about them as well, as many people do not notice them
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Now see, many discount brokers give you very cheap brokerage
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but they encourage that you do not call them, you should trade by yourself
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But if you call or trade them, then they will charge separately for that
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That is, if you place an order on their phone, they will charge it.
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So generally if we talk about the example then it takes 20 Rs + GST per order
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And you should also keep in mind that
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If you are trading in intraday and if you have not squared off your position
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i.e. did not place your sell order on that day, then automatically the RMS team will close those orders
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and they consider it an order of call and trade
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then your 20 Rs + GST gets automatically charged
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So you will also have to pay a little attention to this call and trade charge
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if you are working with a discount broker.
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Then there are account opening charges, at someplace, they charge zero for opening
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And some brokerage houses charge up to Rs.700 to Rs.800
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It can vary a lot of sometimes so you must know about then
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But it is a one-time charge so I don't put too much stress into it
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But one thing you should take care of is that
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you have to pay separate account opening charges for equity and commodity
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If you want to work in both, then you should definitely open these accounts
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But if you want to work in equity only, then you can open an account of equity only
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Then the annual maintenance charges are also ignored by many people
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It is also important for you to know that there is an
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annual maintenance charge range from 150 Rs to 500 Rs in most brokerage houses
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plus GST is also applicable
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Apart from this, you also have to pay capital gains tax
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If you are working in intraday
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then whatever your profit earned in the whole year
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is subject to short term capital gains tax
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Short term capital gains tax is applicable for investments of less than 1 year
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As we call them trading losses or profits
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So you get 15% tax on it
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but if you hold any investment for more than 1 year then we call it long-term capital gains
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And if you have a profit of more than 1 lakh in a year
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then your long-term capital gains tax of 10% is applicable on it
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So you also need to know about this
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So on this, I have covered all the hidden charges in this video
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Now we come to the final point that if we want to choose a stockbroker
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then if we open our Demate account or trading account, then how do we do that?
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Look here we talked about the rest of the charges
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which the government levies you NSE, BSE, or SEBI's charges are constant
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we cannot do anything about them
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But the variable charge is your manly 3 charges
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First is your brokerage, which is the most important and the biggest charge
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is what you should definitely pay attention to and should compare in all broking houses
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Second is your DP charges
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DP charges are basically taken by CDSL and NSDL
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but along with that, the broking house also adds there own charge
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which is variable, so you must also ask the DP charges, which are variable
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Third charge is your annual maintenance charge
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however annual maintenance charge has to be paid only once a year
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and that is not a huge amount, I will not lose my sleep over it
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But still, for those who are beginners, it can matter a little bit
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So these are the three charges that you should compare when you compare stockbrokers
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I hope that in this video you have understood all the hidden charges
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So if you like this video then please like and share it
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Do tell your friends and family also about Master Investor Series
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so that they can also benefit
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If you have some suggestions related to this video or related to channel
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then you can comment below you can also suggest topics for future videos
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And if you have not subscribed to this channel yet, then after subscribing from below
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press the bell icon on your phone so that you will get a notification of my latest video
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So see you in the next important video, till then keep learning, keep earning and be happy
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