Brokerage Fee

A brokerage fee is the amount you pay to a broker or trading platform for executing your buy or sell orders in the market.

This fee is usually charged when you trade in:

Stocks

Bonds

Mutual funds

Derivatives (like futures & options)

The fee can be:

A fixed amount per trade

Or a percentage of the transaction value

Different brokers have different fee structures depending on the type of trade.

Key points:

Charged on buying and selling transactions

Varies across brokers and trade types

Can be flat or percentage-based

Impacts overall returns

Example:

If you buy shares worth ₹10,000 and the broker charges ₹20 per trade, then ₹20 will be deducted as brokerage fee for that transaction.