Hi everyone,
I’m looking to buy just 1 unit of NiftyBees on the Kite platform by Zerodha. I wanted to understand the complete breakdown of charges and transaction costs involved in this purchase. Could someone please clarify the following:
Thanks in advance for your help!
There is no brokerage on delivery orders at Zerodha. Also STT is not charged on ETFs. Other charges like stamp duty, gst will be charged but it’s negligible because of purchasing only 1 unit.
You may review all the charges regarding any order (intraday or delivery) on the order window right before placing it in the kite app or web.
Please note that 1 paisa of brokerage is charged at Zerodha on delivery orders for the calculation purposes.
Everyone say ETF has liquidity issues. In practice, there is liquidity; but that liquidity is from market makers and they do markup/down their prices a bit.
So, along with some statutary charges (stamp duty being the highest), you also have slippage.
For 1,00,000 INR buying, around 20 INR will be the charge.
If you want to time the buy and want to use the money in trading account … ETF is ok. You might beat the slippage and charges, you might also catch some good fall in the price.
The liquidity is fine. The reason for asking was because I wanted to capture the intraday volatility in the NIFTYBees ETF from a daily period point of view.
Also, if you could answer, whether SIP in any mutual fund is able to capture the intraday volatility ? Like investing on a particular day/date ?
STT does not apply to GOLD ETFs, LIQUID/Gilt ETFs, and some international ETFs. Apart from these ETFs, all other ETF charges are the same as equity trades. Explained here
@vicktor_reznov_1102 Here’s how: What does Charges on the Kite order window mean?
STT or GST for a single quantity doesn’t show accurately because the actual value goes beyond two decimal places.
Example for 100 qty of Niftybees:
Yep, as per taxation rules, a service cannot be provided for an absolute 0 fee, due to which a token amount of 1 paisa is charged. Mentioned here.
@nithin_kumrr STT charges for equity ETF is substantially less than stocks. 0.001% vs 0.1%. Correct me if i am wrong.
Yep, STT on equity delivery is 0.1% on the sell side, while for ETF delivery it is 0.001% on the sell side. For intraday, both equities and ETFs are charged 0.025% on the sell side. Explained here: Is securities transaction tax (STT) levied on exchange traded funds (ETFs)?
The lower STT for ETFs applies only in delivery trades.
too much tax for majority middle class country - so only trump critizied , Tax is more then a product - how i can make profit
sad part is - in mutual fund - there is no entry load , but tax is collected for investing in MF - exit load is there , stcg , ltcg is there ,
if we turn our head right or left - tax is surrounded every where - TOO BAD Administration
What will be the Stt on purchasing the Niftybees and Juniorbees on MTF and what will be the brokerage. Can you please tell me with an example?
On both Buy and Sell for cash market stocks.
Please don’t share Ai response. I also know how to use AI and all. I want response from someone credible and from Zerodha team.
AI is usually useful with plain numbers and gives a fair idea of costs.
Also, fixed rates don’t change just because you use mtf. STT/ETT are based on the entire value (including mtf)
You might get answer from staff on Monday. Good luck.
@Dependra_Porwal while we wait, in the meantime,
in the above screenshot, there appear to be links to some publicly accessible pages that the LLM may have used to guess the answers it did.
Looking at the icons, likely they are Zerodha’s official support pages…
…that contain the details of STT and MTF charges (and logic) applied by Zerodha.
Hey Dependra Porwal, for NIFTYBEES/JUNIORBEES purchased through MTF, there’s no STT on the buy side, while the STT on the sell side is 0.001%. You can refer to the article here.
The MTF brokerage is 0.3% or ₹20 per executed order, whichever is lower. Along with this, there are also pledge and unpledge charges of ₹15 + 18% GST per ISIN, for each pledge and unpledge request. You can click here for a better understanding.
For example, if you buy ₹1,00,000 worth of NIFTYBEES through MTF:
So, the brokerage for the buy + sell would be ₹40, while the total STT would be ₹1.10, apart from the pledge/unpledge charges, other applicable charges and MTF interest.
For more clarity, you can also check our MTF Brokerage Calculator by clicking here.
Please check this screenshot it is saying other thing about the STT and doesn’t match with your statement. Can you please clarify on this?
@Dependra_Porwal Hi according to my knowledge I have read it somewhere that stt does not apply to goldbees because it is commodity oriented etf that means it track gold which is a commodity hence there is no stt.
But stt applies to etfs that are equity oriented like niftybees juniorbees because they track basket of equities hence stt applies on it.
@rihan_baji can you also please cross verify it and clarify on it ?
I also thought STT is applicable on sell side but when I open order window and click on charges.
There is no stt for niftyfees/juniorbees but it is applicable on shares.
You can check on kite there is no stt on niftybees/juniorbees.
