Ever entered a trade thinking, “This one’s gonna be big,” only to find your profit shrank once the charges hit? Yeah, that sinking feeling, I’ve felt it too. Intraday trades are tempting: quick execution, fast feedback… but also fast bleeding in fees.
Let’s get candid: intraday trading charges are high because multiple small costs stack up brokerage, STT, GST, exchange fees, and stamp duty. Individually, they’re tiny, but cumulatively, they hit hard.
Stick with me, we’ll unpack why, compare intraday with delivery trades, see how charges affect your bottom line, and explore ways to reduce them. No fluff, just useful insight based on facts and a bit of real-life experience.
Table of Contents
Key Takeaways
- Intraday trading charges are high because many small, mandatory charges add up with frequent trades.
- Difference from delivery trading: intraday has lower tax per trade but multiplies via frequency.
- Brokerage fees vary; flat models beat percentage models for active traders.
- Charges significantly cut into small-margin profits; optimising them is essential.
- Good brokers, fewer trades, disciplined frameworks, and proper record‑keeping help lower net costs.
- Treat intraday trading like a business to deduct charges from taxable income file the correct ITR, and maintain records.
Breakdown of Intraday Trading Charges
Let’s break it down like a real trader would with examples.
Brokerage Fees
- Discount brokers (like Zerodha, Groww, Angel One): flat ₹20 or lower per buy/sell order (whichever’s lower) for intraday. Angel One caps at ₹20 or 0.03% per order, whichever is less
- Full-service brokers might charge 0.03–0.05% of trade value, and minimum ₹30 per trade
For high-frequency trades, flat‑fee brokers are much more cost‑effective.
Exchange Transaction Charges & SEBI Fees
- NSE charges about 0.00325% (~₹3.25 per lakh), BSE
0.00275% (₹2.75 per lakh) on intraday turnover (Kotak Securities). - SEBI turnover fee is ₹20 per crore (~0.0002%) of transaction value
These are tiny per trade, but they’re not waived.
Securities Transaction Tax (STT)
- For intraday equity, STT is levied only on the sell side at 0.025% of the turnover (post‑April 2023) (Angel One). The sale of equity futures or options attracts different STT rates.
Stamp Duty
- Paid on the buy side only, varies by state. For intraday equity, it’s around 0.003% or ₹300 per crore (~₹3 per lakh)
GST (18%)
- Charged on brokerage + exchange charges, not on the trade amount itself. Still adds ~₹3–4 extra per trade.
Put it all together: every executed intraday trade includes brokerage, GST, exchange fee, SEBI fee, stamp duty (buy side), and STT (on sell). That’s a cocktail of costs every single day.
Intraday Trading vs. Delivery Charges: Key Differences
Why is intraday so expensive per trade, even though percentages seem lower?
Trading frequency vs. tax structure
- *Intraday: taxed as speculative business income no capital gains taxes, but heavy turnover-based costs apply each time.
- *Delivery trades: attract STT on both buy & sell (0.1% each), higher stamp duty (about 0.015%), and capital gains tax if held beyond 12 months(wikipedia.org)
Comparative impact
- Intraday trades: lower per‑trade percentages but many trades → costs add up fast.
- Delivery trades: fewer trades, but higher tax on gains, and often higher brokerage rates (~0.2–0.75% per trade)(hdfcbank.com)
If you hold longer, fewer executions = lower churn fees. But intraday traders pay more simply due to volume, even if each trade costs less in percentage terms.
Comparison of Brokerage Charges for Intraday Trading
Here’s how typical brokers stack up:
| Broker Type | Broker Fee (Intraday) | Notes |
|---|---|---|
| Discount Brokers | ₹₹20 or 0.03% per executed order | TTransparent, low cost |
| Groww | ₹₹20 or 0.1%, min ₹5 per trade | Advisory, research, but pricey |
| Angel One | ₹20 or 0.03% per trade | No hidden charges guarantee |
| Full-Service Brokers | 0.03–0.05% or ₹30/min | Advisory, research but pricey |
| ICICI Direct (premium) | As low as 0.007% or ₹20 per trade | Basic interface, minimal tools |
High-frequency traders almost always prefer discount brokers: the flat-fee model means trading more doesn’t multiply per‑trade cost.
How High Charges Impact Intraday Traders’ Profits
Small fees bite especially with narrow profit targets.
Example:
- Trade ₹50,000 worth, net profit ₹200. You pay ₹20 brokerage + ₹4 GST + ₹3 stamp duty + ₹3 exchange + ₹2 SEBI + ₹25 STT = ~₹57 in charges. Net gain now ₹143.
- Over 10 trades: ₹2,000 gross → ₹1,430 net.
When you’re targeting ₹100–₹150 per trade, fees can slice off 25–30% of gross profit. At scale, that’s lethal. And if slippage or spreads occur, even worse.
That’s why cost-efficiency is as critical as strategy.
How to Reduce Intraday Trading Charges
Let’s talk about practical moves you can make today.
Choose the right broker
- Go flat-fee with ₹20 or less per order.
- Look for brokers with zero hidden fees for bracket orders, APIs, or platform usage.
Consolidate your trades
- Don’t break trades into multiple legs unless necessary. Combining two ₹25k trades into one ₹50k trade saves one ₹20 fee.
Use tools & discipline
- Always calculate net expected profit after charges using built-in brokerage calculators (provided by Zerodha, Groww, etc.)
- Use bracket orders to pre-set SL/target to avoid market order slippage.
- Review contract notes weekly for surprises.
Limit over‑trading
- Each trade costs money; don’t trade impulsively. Treat trading like a business: only take setups that justify the cost.
Are Intraday Trading Charges Tax-Deductible?
Ye, but only if you treat trading as a formal business.
Income tax classification
Intraday profit/loss is classified as speculative business income, not capital gains(hdfcsky.com, Sharekhan, jmfinancialservices.in). You must file ITR‑3, unless you opt for presumptive taxation (44AD) filed via ITR‑4
What you can deduct
Traders can deduct:
- Brokerage charges
- SSTT, exchange fees, stamp duty
- PPlatform subscriptions, data costs
- Internet, electricity, and even office rent if trading is your main business
All supported by broker contract notes and expense records.
Audit & turnover rules
- If total turnover (sum of absolute gains + losses across trades) exceeds ₹10 crore (digital) or ₹1 crore (cash), you need a tax audit unless the presumptive regime applies
- Losses can be carried forward for up to 4 years, but only set off against speculative income
Tax is not a killjoy if you’re rigorous, trading costs become part of your business overhead, and you get relief accordingly.
Conclusion
Have you ever calculated your cost‑per‑trade and realised your “winning day” barely broke even after all fees? Share your experience, I’d love to hear what you discovered. Or if you’re looking for low‑fee broker suggestions or calculator links, ask away!
Hope this helps you see beyond the surface and run your trades with cleaner margins. Take care, and trade smart. more interesting and informative blog see moneykoan.com
