How Much Brokerage Do You Pay On Paytm Money?2 min read
Isn’t it amazing how a courier company will run across the world to deliver your “You live too far away” care package to your friend while you bask in the comfort of your home? In return, you just need to pay a fee.
Now, pause and relate this to the stock market.
Brokers are the agents or middlemen you act like those courier companies. They help you buy and sell stocks, futures, ETFs, options and various other securities on the stock exchanges, in just a few taps. For this convenience, you pay them a fee known as a brokerage charge. And we are one of those.
Paytm Money’s Brokerage Charges
So, what are the typical fees for such services?
Brokerage fees are usually charged by the companies to execute your transitions and facilitate the services around it. These could be per transaction, monthly, quarterly, or annually.
*₹ 0.01 per transaction
**Minimum of 0.05% of turnover or ₹10
Continue reading to understand how these charges work.
How Is Brokerage Calculated?
Brokerage is calculated on the turnover of a particular transaction ie buy/sell price * quantity.
But how does the math work out exactly and how is brokerage then applied by Paytm Money? We’ll explain.
Let’s assume 2 scenarios.
Scenario 1: Equity Delivery
You’ve done thorough research, dug through annual reports, nearly memorized fundamentals before deciding that Stock X is THE ONE <3.
You start accumulating in this fashion.
You will end up paying ONLY ₹ 0.02 on Paytm Money for 2 transactions.
Scenario 2: Equity Intraday
You have been studying Stock X for a while. And you know that today, it is going to show momentum.
Here’s how you trade in Stock X.
Brokerage rates vary from broker to broker. So, choose wisely and weigh in what services you are getting from the broker in that fee.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd. Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. *Please refer www.paytmmoney.com/stocks/pricing for information on pricing.