Why was the brokerage charged on delivery trades?
There is no brokerage for delivery-based trades, also known as Cash and Carry (CNC). However, intraday or Margin Intraday Square off (MIS) charges of 0.03% or ₹20, whichever is lower per executed order, may apply if:
- The same share is bought and sold in one trading session using CNC. For example, 10 shares of ITC were bought at 10 AM and sold at 2 PM. In this case, intraday charges would be applicable as the shares were bought and sold on the same day.
- Shares held in the demat account are sold and bought back on the same day using CNC. For example, there are 100 Infosys shares held in the demat account. At 11 AM, 50 shares were sold, and later at 1 PM, 25 shares were bought back. Intraday charges will be applicable for both orders, regardless of the quantity bought back.
To learn about other charges, visit zerodha.com/charges#tab-equities. To learn more about the different product types, see What does CNC, MIS and NRML mean?
Did you know? For delivery-based trades, a minimum of ₹0.01 will be charged per contract note. As per taxation rules, a service can not be provided for an absolute 0 fee, due to which a token amount of 1 paisa is charged.
Related articles
- What are the brokerage charges for resident individual accounts at Zerodha?
- What are the account opening, brokerage and other transactional charges applicable to a Partnership account at Zerodha?
- What are the account opening, brokerage and other transactional charges applicable to a Trust account at Zerodha?
- What are the risks associated with the physical delivery of stock Futures & Options (F&O)?
- What are the charges applicable to a Hindu Undivided Family (HUF) account?
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I possess comprehensive expertise in financial markets, particularly in stock trading, brokerage charges, and different types of trading orders. My knowledge is rooted in a deep understanding of the dynamics and intricacies of trading platforms and their associated fees.
In the article provided, the focus is on brokerage charges in the context of delivery-based trades and other types of orders on trading platforms like Zerodha. Let's break down the concepts mentioned:
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Delivery-Based Trades (CNC): These trades involve buying and holding shares in a demat account for more than one trading day. In such cases, there's typically no brokerage charged.
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Intraday Trading or Margin Intraday Square Off (MIS): This involves buying and selling shares on the same trading day. Brokers may charge a fee for such trades, usually 0.03% or ₹20 per executed order, whichever is lower.
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Applicability of Intraday Charges on Delivery Trades: a. Buying and selling the same shares within a single trading session using the CNC option attracts intraday charges. b. Selling shares from the demat account and buying them back on the same day, even if it's a partial quantity, will incur intraday charges on both orders.
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Minimum Charge for Delivery-Based Trades: Even though brokerage is not levied on delivery trades, a minimum charge, often a nominal amount (like ₹0.01 per contract note), is applied to comply with taxation rules, as providing services for an absolute zero fee is not allowed.
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Other Product Types: The article also directs readers to explore different product types such as CNC, MIS, and NRML, which denote various order types and trading strategies.
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Related Articles: Several related articles cover specific queries about brokerage charges for different types of accounts like resident individual, partnership, trust, Hindu Undivided Family (HUF), and risks associated with physical delivery of stock Futures & Options (F&O).
Overall, the article aims to educate traders about brokerage charges associated with different types of trades, emphasizing the distinction between delivery-based trades and intraday trading, and provides information on additional charges and account types.
If there's a specific aspect you'd like to delve deeper into or any further clarification needed, feel free to ask!
