Intraday trading is one of the best and most popular trading segments. But do you know how brokerage is calculated in Intraday trading? In case you want to know then know the steps and method involved.
Now as already known that the intraday trading charges are charged on the basis of the type of broker you are trading with.
Here the discount broker charges a flat fee while a full-service stockbroker calculates it on the basis of turnover value.
Let’s see how is brokerage calculated for trading.
Intraday Brokerage Calculation
Let’s understand how intraday brokerage charges are calculated for a full-service broker and a discount broker with examples.
Suppose you are doing intraday trading with a discount broker and bought 100 shares of Tata Motors at ₹465 when the market opened and sold all these shares at ₹ 468 per share when the market closed.
Now, let’s suppose the broker charges brokerage of ₹ 20 / executed order or 0.25% (whichever is lower) on total trade turnover for intraday trading.
Total Turnover is= (Buying Price x Quantity) + (Selling Price x Quantity)
=(100 x 465) + (100 x 468) = ₹93300
So brokerage is= 93300 x 0.25%
= ₹233.25
Now according to the brokerage fees you have to pay ₹20 for buying order and another ₹20 for the selling order as 0.25% of the total trade order is higher than ₹20 per executed order.
So the total brokerage for this order will be ₹40 only.
Now suppose you executed the same trade with full service who charges intraday brokerage of 0.05% of the turnover value
The total trade turnover for the above order is ₹93300 so for executing the trade you will be charged a total brokerage of 0.05%*93300
= ₹46.65
In this way, you can calculate intraday trading brokerage for any stockbroker. Here along with the brokerage, there are a few taxes charged by SEBI, exchange, and government.
Make sure you are aware of these charges as all these charges are charged on the turnover value irrespective of the type of broker.
