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
