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Sharekhan Commodity Brokerage
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Charges
Commodity trading gives another way for traders to trade in the stock market and earn profit. But like any other segment, there are certain charges associated with it. In this article, we will specifically discuss Sharekhan commodity brokerage in detail.
Sharekhan is a familiar name in the stockbroking industry and it offers trading services across various segments including commodities.
However, in order to trade in commodities, you need to have a Sharekhan Trading Account first and then pay the broker certain charges including the brokerage and transaction charges. Therefore, it is important that you are aware of all these charges before you start trading with Sharekhan.
To trade in commodities with Sharekhan, a person has to pay the brokerage on
- Commodity Futures Trading
- Commodity Options Trading
Other than the brokerage on these two trading segments, a trader also has to pay a lot of other charges like Commodity Transaction Tax, GST, SEBI charges, and stamp charges.
However, in this article, we will first talk about the brokerage and then move on to the commodity transaction charge and other additional charges one has to pay for commodity trading.
Trading in commodity futures means you can buy or sell the commodities at a date that you have fixed with the other party in the future. The price though gets locked on the day you make the deal and it doesn’t change with time.
For trading in commodity futures, Sharekhan charges 0.03% of the total trade turnover value as the brokerage.
| Sharekhan Commodity Futures Charges | |
| Commodity Futures Charges | 0.03% of turnover value |
And it goes without saying that other than Sharekhan option trading charges, the additional and hidden charges such as CTT, SEBI charges etc will also be applicable on every trade.
With Commodity Options, you trade in commodities on a predetermined date and at a fixed price only but here, you get the option of not buying or selling the product if the market conditions seem unfavorable to you.
Brokerage charges in Sharekhan for commodity trading in options is ₹40 per lot. It means you are charged ₹40 on one side, i.e, either buying or selling. When you buy and sell a lot together, you will be paying ₹80 as the Commodity options brokerage.
| Sharekhan Commodity Option Charges | |
| Commodity Futures Charges | ₹40 per lot |
Apart from the brokerage, the additional charges will be levied on you here as well.
One of these additional charges is commodity transaction tax which is levied on the stockbroker by the central government and on the trader by the stockbroker.
Apart from the brokerage charges, Sharekhan has some hidden charges when it comes to commodity trading. These hidden charges include Commodity Transaction (CTT), SEBI charges, GST, Stamp duty, and Transaction charges.
| Sharekhan Hidden Charges | |
| Commodity Transaction Tax | Commodity Futures: 0.01% on Sell |
| Commodity Options: 0.05% of the Premium | |
| Commodity Options: 0.125% of the Settlement Price on Buy | |
| SEBI Charges | ₹15 per crore |
| Stamp Duty | Varies as per the states |
| Transaction Charges | NSE: 0.0345% of the total trade turnover |
| BSE: 0.0345% of the total trade turnover | |
| GST | 18% of (Brokerage+Transaction) |
Above all charges make it difficult for a trader to calculate the total brokerage. But with the Sharekhan brokerage calculator not only you will be able to find the total brokerage charges but also the profit or loss percentage in a particular trade.
To use the calculator, just fill in the basic details like Buy/Sell price, quantity, and state. Click on the ‘Calculate’ button and you can check the cost of trade on the screen.
Conclusion
Sharekhan, with the quality of service it provides to its clients as a full-service stockbroker has a pretty manageable and affordable brokerage rate when it comes to commodity trading.
With 0.03% of the total trade turnover as a brokerage in commodity futures, Sharekhan ensures that the commodity traders don’t have to pay a lot of brokerages even if they generate a pretty high turnover.
However, Options trading brokerage might seem to be slightly on the higher side with a trader having to pay ₹40 for each lot.
Overall, Sharekhan commodity charges seem quite manageable and especially when the traders get so many good trading facilities with the stockbroker.
Begin your trading journey now with a renowned stockbroker. Get in touch with us and we will assist you in opening a demat account online for FREE!