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Minimum Brokerage Per Contract Note Explained with Real Example

Published on Sunday, December 11, 2016 by Team


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Most brokers in India charges the minimum brokerage fee. You could read this article for more detail about minimum brokerage:

To understand how the minimum brokerage is calculated, let's take an actual contract note issued by Angel Broking, a popular traditional stock broker with highest number of branches in India.

At Angel Broking, the brokerage is charged on % basis of transaction value as agreed with customer at the time of account opening. However, where the rate of share or futures contract is below specified rate where specified rate is calculated as A / B (as explained in example below), then Minimum Brokerage in paise is charged on Quantity instead of % rate.

Example: Lets says that the brokerage agreed with customer is 0.25% with 5 paise as minimum brokerage then specified rate would be (5 / 0.25) which is Rs. 20. Hence 5 paise would be levied as brokerage on per share basis where share price is less than Rs. 20.

Also note that the brokerage charged to the customer is higher of brokerage value as per the existing rates or Rs 30 per settlement/segment, subject to the maximum rates (2.5%) prescribed by SEBI.

Understanding Angel Broking Contract Note


  1. In 1st transaction customer bought 1 share of ICICI BANK LTD for Rs 263.95. As it's an Equity Intraday transaction, customer is charged the brokerage at 0.05% which is Rs 0.132.
  2. In 2nd transaction customer sold 1 share of ICICI Bank Ltd for Rs 265.00. The customer is charged 0.05% (Eq Intraday) brokerage which is Rs 0.1325.
  3. In 3rd transaction customer bought 1 share of ALOK INDUSTRIES LTD (a penny stock) for Rs 2.75. As the share price is less then Rs 20; Angel charged flat 5 paisa per share minimum brokerage.
  4. In 4th transaction customer sold 1 share of ALOK INDUSTRIES LTD for Rs 2.72. Once again customer paid minimum brokerage of 5 paisa per share

Per Contract Note Minimum Brokerage Rule at Angel

Most traditional brokers also have 'Per Contract Note Minimum Brokerage' charges. Note that customer is issued one contract note per day for all transactions in a segment.

Angel broking Per Contract Note Minimum Brokerage Charges: Rs 30 or 2.5% whichever is lower.

How minimum brokerage is calculated?

The above 4 transaction generate total brokerage of Rs 0.3645 (0.132 + 0.1325 + 0.05 + 0.05). This is lower than Rs 30 minimum brokerage for this contract note.

Minimum Brokerage for this contract note: (263.95 + 265.00 + 2.75 + 2.72) * 2.5% = Rs 13.3605

As Rs 0.3645 is already charged along with the first 4 transactions; Angel added an additional charge of Rs 12.996 (13.3605 - 0.3645).

Customer pays following taxes on this transition:

  • Service Tax @14.00%
  • Swachh Bharat Cess @0.5%
  • Krishi Kalyan Cess @0.5%
  • Exchange Transaction Charges @ ₹325 per Crore
  • SEBI turnover Fees
  • Stamp Duty

After taxes customer booked the loss of Rs 14.37.

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