As a matter of fact, you cannot buy or sell shares, derivative products or other financial instruments directly. Being that, you will need an agent or a middleman. Specifically, such agents or authorized middleman are known as brokers. For this purpose, brokers offer their services for a fee known as brokerages. At the same time, as a retail investor, brokerages are not only the charges that you need to pay. Analogous to there are other fees and charges as well for any stock market and related transactions. Let us understand these charges and fees in little bit details before we move on to the FAQs on RMoney brokerage charges and others.
Being that, as seen above, the brokerage is the fee for the services that any broker offers. Each broker in India is free to adopt any model of his choice for the brokerage plan. However, the regulators have only given broad guidelines for such brokerage. Mainly two types are there. A full-service brokerage plan and a discount brokerage plan.
A full-service brokerage plan is also known as traditional brokerage plan. Here a broker has the leverage to charge in the percentage of the trade amount. In lieu of this, they offer various additional services to their clients. On the other hand a discount brokerage plan, brokers offer either flat monthly brokerage or charges per trade fees. In general, discount brokerage plans are cheap in comparison to full-service brokerage plans.
These transaction charges go to your brokers only. The important point to remember here is that it constitutes the largest part of brokerage you pay for your transactions through your broker. In fact, transaction charges comprise of two different charges, i.e., exchange turnover charges and clearing charges.
All buying and selling of stocks are done through a stock exchange, like NSE and BSE. So each stock exchange charges a fee to facilitates such transactions. These are security transaction charges. In India, you need to pay STT only on sale side for intraday and FO trades. However, when you take delivery of any shares, then both buying and selling attract STT. Moreover, at present, there is no STT on bonds, currency, and mutual funds.
If you trade in commodity derivatives in India, you will need to pay commodity transaction charges. But CTT is applicable only on non-agriculture commodities. And all agricultural commodities are exempt from any such CTT. Thus, non-farm and non-agro commodity derivatives like gold, silver, copper, crude and natural gas future trading in India attract CTT.
State governments in India are liable to collect stamp duty on any kind of security transactions documentation. Also, it varies from state to state.
The central government in India imposes GST on all securities transactions within the country. Currently, you need to pay 18% of the total cost of brokerage and transaction charges as GST to the government.
SEBI turnover fee or SEBI charges are fees for all sale and purchase transactions in financial securities. However, debt securities do not attract SEBI turnover charges. Currently, SEBI charges this turnover fee at INR 15 per crore.
After getting a brief overview of various charges and brokerages that are applicable right now in India, let us move to understand FAQs on various charges of RMoney India.
In general, for equity delivery trading you need not have to pay any brokerage charges. In this case, Rmoney offers “Zero Brokerage” to all its client of delivery of shares. All in all, you will need to pay other mandatory charges as discussed above.
Not to mention, RMoney brokerage charges for intraday trading in equities is the lowest among its peers. In that case, on Intraday trades, Raghunandan money charges INR 18 or 0.01% per executed order, whichever is lower
For intraday trading, you need to pay 0.01% as brokerage. But on top of it, the maximum brokerage you will pay is just INR 18 per executed order.
RMoney charges flat brokerage for equity future trading. INR 18 is the flat brokerage irrespective of quantity. Also, INR 18 is the maximum brokerage charged per executed order. You should also remember that, if the order is not executed, they RMoney won’t charge any brokerage from you.
For equity options trading also INR 18 flat brokerage is there irrespective of quantity. Further, INR 18 is the maximum brokerage charged per executed order. Similar to equity future trading, if the order is not executed, then we won’t charge any brokerage.
Currently, RMoney is providing account opening completely free of cost. For this purpose, account constitutes both trading and demat accounts.
There is no annual maintenance charge for Raghunandan Money trading account and demat account. It’s lifetime free of cost. This means that you do not have to pay any charges towards AMC for the lifetime, you operate both accounts with us.
RMoney is providing free account opening along with brokerage reversal benefits. Therefore, this is not an account opening charges. The client can get brokerage reversal on his/her day 2-day trading for first 45 days
As a USP of our plans, we provide Free of Cost “Call-and-Trade” facility. We will not charge for “Call & Trade”. Further to this, you will be getting the copies of statements electronically on emails. Also, you can see it and download it from back-office software free of cost. Please note that we prefer electronic communication.
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