Why does the transaction tax differ from one broker to another?

Hey Karthik,

The transaction tax you pay to your broker would depend on how much transaction tax the Exchange is levying to your broker. The Exchange has a slab-wise mechanism of charging transaction charges meaning higher the turnover generated by your broker, the lower the ‘per lakh’ transaction charge he is levied. You could look up on the Exchange’s website to know the charge they levy.

In addition, if the broker you are trading with is not a clearing member and is clearing his trades through a Professional clearing member, he would include the clearing fee and charge you transaction charges.

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