Understanding and Calculating Call and Trade Charges in Zerodha
Zerodha, one of India's largest and most popular stock brokerage firms, offers a straightforward fee structure that makes it easier for investors to manage their trading costs. This article will provide a detailed breakdown of the call and trade charges, along with how to calculate the total charges involved in a trade. We will also provide an example calculation to help you understand the process better.
Call and Trade Charges in Zerodha
Zerodha charges 50 per order for placing trades over a phone call or through their mobile application. This fee is added to your overall transaction costs, which include brokerage charges, transaction charges, GST (Goods and Services Tax), and SEBI (Securities and Exchange Board of India) charges.
Brokerage Charges
The brokerage charges in Zerodha vary depending on the type of transaction:
Equity Delivery: Free of cost with no brokerage.
Equity Intraday: 20 or 0.03, whichever is lower, per traded order.
Futures and Options: 20 or 0.03, whichever is lower, per traded order.
Currency and Commodity: 20 or 0.03, whichever is lower, per traded order.
Other Relevant Charges
In addition to the brokerage charges, there are other charges applicable:
Transaction Charges: Vary based on the exchange and the type of security traded.
Goods and Services Tax (GST): Applied at 18% on brokerage and transaction charges.
SEBI Charges: Charged at 10 per crore of the turnover.
It is important to note that the charges can vary and it is always advisable to check the latest fee structure on Zerodha's official website.
How to Calculate Total Charges
To calculate the total charges for a trade, follow the provided formula:
Equity Delivery Example:
Let's break down the calculation for an equity delivery trade.
Order Value: Determine the total value of the trade by multiplying the number of shares by the price per share.
Brokerage: Zero for delivery as mentioned above.
Call and Trade Charges: Add 50 per order if placing the trade via call or mobile application.
Transaction Charges: These vary based on the exchange and security. For example, on the NSE, 0.00325 for 50,000 as calculated in the previous step.
Goods and Services Tax (GST): 18% on the brokerage and transaction charges calculated in steps 2 and 4.
SEBI Charges: Apply 10 per crore of the turnover as mentioned above.
Total Cost: Sum up all the charges to get the final total cost.
For example, if you want to buy 100 shares of a stock worth 500 per share, and you place the order via call and trade:
Order Value: 100 x 500 50,000
Brokerage: 0, as it's an equity delivery trade.
Call and Trade Charges: 50
Transaction Charges: 50,000 x 0.00325 1.625
Goods and Services Tax (GST): (0 1.625) x 18% 0.2925
SEBI Charges: 50,000 / 10,000,000 0.005
Total Cost: 50,000 50 1.625 0.2925 0.005 50,051.9225
By following these steps, you can get a clear understanding of your total charges when trading through Zerodha.
Remember to regularly check Zerodha's official website for the latest fee structures as they might change over time.