InvestorQ : How much brokerage do I have to pay for buying and selling shares?
Rutuja Nigam made post

How much brokerage do I have to pay for buying and selling shares?

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Mahima Roy answered.
3 years ago
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A share broker gives you a variety of services like research, advice, putting your transactions etc. For this service, they charge you brokerage. There is nothing like a fixed rate that the broker will charge. It is between you and the broker. When you open your share market trading account with the broker, you must discuss the brokerage rates with your broker and see that it is clearly mentioned in the agreement itself. Typically, brokers will charge you more if you take delivery of shares when buying but will charge you lower brokerage if you close out the position on the same day. Closing out your share market position on the same day is also called intraday trading.
The brokerage cost is added to your purchase price or it is deducted from your selling price. For example, let us say your brokerage rate for buying shares is 0.40%. If you buy 100 shares of SBI for Rs.250, then the value of the transaction will be Rs.25,000. The brokerage of Rs.100 (0.4% of Rs.25,000) will be added to your cost of purchase. This is what the broker earns from you.
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