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Market Intelligence › Basic Terminologies
Beyond brokerage — how to work out the full round trip
Published by The Retail Trader · AUG 08, 2026 · Order Flow
People compare brokerage and ignore the other charges. In many segments brokerage is a small part of the total cost, and everything else is almost the same at every broker.
Brokerage goes to the broker. Besides that there are exchange transaction charges, securities transaction tax, stamp duty, SEBI fees, and GST on all of these.
Most of these are statutory, meaning they will be the same at every broker. So "zero brokerage" never means zero cost.
The right way is this:
• Add the cost of both entry and exit — one trade means two transactions.
• Divide that total by the position size to get a percentage.
• That percentage is your breakeven — on a move smaller than that, you are at a loss.
• In strategies with small targets, this percentage alone can eat the whole edge.
Every broker has a charges calculator — enter your typical trade size once and work out the breakeven percentage. That one number will tell you whether your strategy's target is realistic or will be buried under the charges.
This article is for education only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics change from time to time with the exchange, SEBI and RBI, so verify every number yourself with your broker or an official source.