An app like Zerodha, Upstox & Groww (Discount Brokerages) are helping the user to Buy & Sell Stocks at NSE & BSE with lots of ease and low Tax compare to other Brokerage.
So, What are the hidden charges to use this kind of apps?
Hidden Charges define as When user trade with these discount brokers like Zerodha, Upstox & Groww.
1. Brokerage Charges
- Brokerage is a fee charged by the broker to execute the transaction.
2. Security Transaction Tax(STT)
- Tax charge by the government when the transaction on this exchange Live NSE and BSE.
3. Exchange Transaction Charges
- Charges by Exchange like NSE and BSE on the value of your transaction.
4. SEBI Charges
- Charged by the securities and exchange board of India for regulating the market specifically the stock market.
5. DP Charges
- This is charged by the depository CDSL / NSDL and depository participants when stocks are sold in equity delivery.
6. Account Maintenance Charges
- It is charged for managing the User's Trading & Demat Account every year. These charges are around Rs.300 + 18% GST per year.
7. Stamp Charges
- Charges by the government of India for transacting in the instrument on the stock exchange and depository.
Conclusion
But, My personal advice is that if you are interested in Investing in Stocks & want to generate some awesome money by Investing then you should focus on minimizing the Tax which is appliable to your Profit.
To minimise the Tax we should hold our stock for a longer period of time (at least 1 Year).
If we hold stocks for more than 1 year then we don't need to pay Short Term Capital Gain(Profit) which will lose your profit.
To save more profit try to hold the stocks for 1 year and then If your Capital Gain (Profit of that Particular stock) less than 1 lakh then you no need to pay this tax (Long Term Capital Gain).
While in case of Short Term Capital Gain, Tax is around 15 % on your Capital Gain (Profit)
So, I hope I convince you to hold that money for at least 1 Year.
But, Choice is yours.
Remember,
Execution is the Real Game. :P
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