Fixed Charges

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Fixed charges are brokerage or account-related fees that remain constant regardless of trade size, transaction value, or trading volume, ensuring predictable co

Fixed charges in broking refer to fees that remain constant irrespective of the size, value, or volume of a trade. Unlike percentage-based brokerage, these charges do not fluctuate with the transaction amount. They are predetermined by the broker and clearly defined under a specific pricing plan.

In simple terms, whether you trade ₹10,000 or ₹10,00,000, the fixed charge remains the same. This makes cost calculation straightforward and predictable for investors.

How Fixed Charges Work

Fixed charges are typically applied:

  • Per executed order (e.g., ₹20 per order)

  • Per transaction (e.g., ₹20 DP charge per sell transaction)

  • Per service request (e.g., pledge/unpledge charges per ISIN)

  • Annually (e.g., Demat Account AMC)

Common Types of Fixed Charges

  1. Flat Brokerage Fee – A fixed amount charged per executed order.

  2. Annual Maintenance Charges (AMC) – Yearly fee for maintaining a demat account.

  3. Call & Trade Charges – Fixed fee for placing orders via dealer assistance.

  4. Pledge/Unpledge Charges – Fixed fee per ISIN for margin funding.

  5. DP Charges – Fixed fee for debiting securities from demat account.

Answered on

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