Trading costs: NSE delivery fees, taxes, slippage explained

Retail traders on Indian social media are comparing contract notes and reaching the same conclusion. “Zero brokerage” does not mean “zero cost”. Even if your broker charges nothing, mandatory taxes and exchange levies still apply. For delivery trades, the largest explicit cost discussed is Securities Transaction Tax (STT). Posters also highlight stamp duty, exchange transaction charges, SEBI turnover fees, and GST. Many traders only notice these after reviewing the final contract note. The conversation is especially active around frequent trading strategies. The reason is simple: small percentage costs compound quickly. Slippage and impact cost then add a second layer of friction.

Why “zero brokerage” still costs money

A common misconception is that brokerage is the only trading cost. Reddit posts repeatedly point out that most charges are statutory. These amounts go to the government, the exchange, the clearing corporation, SEBI, and the depository chain. Even when brokers call plans “zero”, they still collect and pass through these levies. Traders also note that a broker does not “earn” STT or stamp duty. The broker simply remits it as per rules. Another repeated point is that only executed orders are charged. Cancelled orders are typically not billed, because there is no execution. This distinction matters for traders who place and modify frequently.

The six line items on every contract note

Community breakdowns mention six recurring categories on Indian equity contract notes. Brokerage is what you pay the broker for execution. STT is a central-government transaction tax, with rates varying by segment and direction. Stamp duty is a state-level duty that has been effectively unified and capped through exchange collection. Exchange transaction charges are charged by NSE/BSE for the matching infrastructure. SEBI turnover fees are collected to fund market surveillance and investor protection. GST is applied at 18% only on defined service components, not on STT. Some brokers consolidate line items, but the underlying components still exist.

STT: the biggest explicit cost in delivery

For equity delivery, the threads cite STT at 0.1% on the buy side and 0.1% on the sell side. That makes it 0.2% for a round-trip. On a ₹1,00,000 buy and ₹1,00,000 sell, that example totals ₹200. Traders call this “the big one” for delivery-style active trading. The key nuance is that STT rates differ by instrument and execution mode. So the right way is always to map your trade type to the applicable STT rule. Several commenters also compare delivery with other segments, but the delivery STT rate is the one most discussed here. Because STT is a percentage, it scales directly with turnover.

Stamp duty and why it is buy-side only

Stamp duty is described as a state-level tax collected on the buy side. The posts cite a cap of 0.015% on the buy value through exchange mechanisms. On a ₹1,00,000 buy, that comes to ₹15 in the example shared. Traders also note that states technically have different rates, but the exchange collection is capped as mentioned. Since it applies on the buy side, it is often overlooked in “round-trip” mental math. But for frequent trading, it keeps adding up. Unlike brokerage plans, stamp duty is not negotiable. It is also separate from capital gains tax, which is not part of the contract note charges being discussed. The practical takeaway is to budget it as a fixed friction per purchase.

Exchange charges and the SEBI turnover fee

Apart from taxes, the exchange levies transaction charges on each trade. Social posts cite a typical exchange transaction charge rate of 0.00345%. These charges are small per trade but scale with turnover. SEBI’s turnover fee is cited as ₹10 per crore of turnover. Posters describe it as a regulatory fee funding market oversight. Some examples in the discussion show the combined “exchange plus SEBI” bucket as a few rupees on a ₹1,00,000 scale trade. Exact amounts vary by broker presentation and segment, but the components are consistent. Traders emphasise that these are mandatory and show up even if brokerage is zero. This is why “brokerage-free” screenshots still show non-zero totals.

Brokerage models: flat, percentage, and API deals

Brokerage is the most variable component in the conversation. Discount brokers are described as charging ₹20 flat per order, regardless of order size. Full-service brokers are described as charging up to 0.3% of transaction value, with the higher cost justified by research and advisory. Systematic traders using API-style setups are described as paying ₹0 to ₹20 per order in some cases. The practical effect is that brokerage can be tiny for large trades under flat plans. But it can be meaningful under percentage plans, especially on delivery turnover. Traders also highlight that per-order pricing penalises strategies that split orders frequently. Since only executed orders are billed, the execution pattern becomes important. This is why comparing “effective cost per round-trip” is more useful than comparing headline brokerage.

GST: charged only on service components

GST at 18% is repeatedly mentioned as a “charge on charges”. The threads state that GST applies on brokerage, exchange transaction charges, clearing corporation fees, and SEBI fees. It is not applied on STT, because STT is itself a tax. One example shared is that on roughly ₹50 of exchange plus SEBI plus clearing charges, GST adds about ₹9. Another example is that if brokerage is ₹300, GST on that brokerage adds ₹54. Because GST is applied to service components, changing brokerage plans changes GST too. This is why a “high brokerage” plan increases cost twice, once through brokerage and again through GST. Traders reading contract notes are advised to check the GST base carefully. The common confusion is assuming GST is on the whole trade value, which it is not in these examples.

Worked example: ₹1,00,000 delivery buy and sell

The most shared example is a ₹1,00,000 delivery buy plus a ₹1,00,000 delivery sell on NSE. In that breakdown, STT totals ₹200 for the round-trip. Stamp duty is shown as ₹15 on the buy side. Brokerage is shown as a range, from ₹20 flat to 0.3% of value (₹300) depending on broker model. With GST and other pass-through charges added, posters cite a total explicit cost of roughly ₹294 to ₹574, or 0.29% to 0.57%. Some threads also mention DP charges, with one cited example of ₹13.50, which can matter for delivery sell-side settlements depending on the setup. A separate community example shows a different total (₹168), highlighting that assumptions and line-item grouping can differ. The right reference point is always your own contract note and broker tariff.

Slippage and impact cost: the invisible leak

Beyond explicit charges, traders focus heavily on slippage. Slippage is defined in the threads as the gap between expected price and actual fill. It does not show up as a line item on your statement. Yet it is real money leaving the strategy. A rule-of-thumb range cited is 0.05% to 0.3% per trade depending on liquidity, order size, and timing. Nifty 50 names during continuous session are cited around 0.05%. Small-caps and some F&O situations are cited around 0.1% to 0.3%. Pre-open auction is cited as higher, around 0.1% to 0.5%. Some posters also connect slippage to platform reliability, citing stale prices or execution delays as causes.

Practical checks before you place the order

The discussions converge on a few practical checks for traders. First, estimate total “round-trip cost” rather than brokerage alone. Second, confirm whether your strategy is delivery or not, because STT treatment is different across segments. Third, read your broker’s contract note sections for how charges are grouped. Fourth, remember that only executed orders are charged, so avoid unnecessary partial executions. Fifth, watch slippage by using more liquid stocks and appropriate order types for your size. Sixth, compare effective costs under flat per-order pricing versus percentage pricing for your typical turnover. Finally, track costs over time because frequent trading turns small percentages into large rupee totals. One post even frames it as “explicit fees first, slippage next” when evaluating an edge.