Online Brokerage Charge Calculator and Comparison

Personal Finance

Have you ever wondered why the amount you invested in buying stocks is not utilised 100%? This is because a portion of the amounts you invest is a contribution for brokerage, taxes etc. Brokerage is a practice in which a broker takes care of your investments in exchange for a commission. Besides managing your financial transaction, a full-time broker also gives you trading tips in their brokerage rates. So, understanding how to calculate brokerage rates becomes essential.  

How does brokerage work?   

The brokerage varies from broker to broker. For example, a full-time broker might take a 10% brokerage on your trade. However, discount brokers can charge a lower brokerage, as they will only manage your deal but will not give any financial advice. Another type of broker is an online site, which tells you the correct stocks you can invest in at a given time.

Serious traders hire a full-time broker to manage their trade. Finding the right broker depends on your expectations and the amount of commission you can share with your broker. While dealing with your broker, you will need to calculate the brokerage they will be taking. Unfortunately, calculating the commission amount is hectic. So, the best method of brokerage calculation will be to use an online brokerage calculator.   

You can use it to track your stock investment or change investment plans based on your budget. The online brokerage calculator will save you time and let you make investment decisions.

What is a brokerage calculator?   

Online brokerage calculators allow traders to choose different brokerage rates, helping them to calculate and compare brokerage fees. A brokerage calculator is an online tool that deals with brokerage accounts and helps traders decide on their investments. Brokerage firms provide this free online tool which makes the process easy.  

It is a mandatory tool for traders to keep a record of the commission or brokerage rates that go to a broker. Sometimes, traders are unaware of the money going into a broker’s pocket. Due to this, they have to incur huge losses. So, calculating the commissions before hiring a broker becomes an essential trade practice if you are a trader.   

For instance, a flat fee broker might charge Rs. 10 to Rs. 20 per trade. You have to be vigilant enough to keep an eye on this per-trade charge so that the combined trade fee is not affected. You can save more on investment and countercheck the transaction with your broker.   

How does an online brokerage calculator work?  

To enter the brokerage world and understand the working of an online brokerage calculator, you should be aware of terms such as stamp duty, STT, GST, SEBI, net profit and transaction charges. 

  • Stamp duty: An official registered document is created to face cases like a betrayal by the broker or the trader. This document states all the transaction details and procedures between the investor/trader and a broker. This document is called stamp duty, which binds the two parties in a commitment.   
  • Securities Transaction Tax (STT): STT is a direct tax on buying and selling listed securities on the stock exchange.   
  • Goods and Services Tax (GST): GST is an indirect tax levied on goods and services, including stock exchanges.   
  • Securities and Exchange Board of India (SEBI): SEBI is India’s security and commodity regulatory body. Only listed firms in SEBI are allowed to enter the stock market. Being a regulator, it checks the function of the stock market. A trader must also pay a regulatory fee to SEBI, which helps the institution manage its financial operation.   
  • Net profit: It is the amount of profit made after reducing net costs from the net sales.   
  • Transaction charges: These are the charges that brokers get per trade.    

Considering all these elements, we calculate the brokerage. After buying and selling, the broker gets a certain percentage as a commission. For example, the stock you want to buy is worth Rs. 300, and the broker demands 0.05%. Then 0.05% of Rs. 300, which is Rs. 15 during buying and 5% of the same price, Rs. 15, will be added and paid to the broker, which is Rs. 30. Sometimes traders don’t calculate this price and lose the money they might otherwise have saved. 

Benefits of an online brokerage calculator 

Calculating the commission using an online brokerage calculator is an intelligent step. 

  • You can find correct and reliable results in a fraction of a second.  
  • As a trader, you can compare various brokers’ commissions or brokerage rates and choose the cheaper one.  
  • A brokerage calculator also helps you become smart traders who fall into the trap of expensive and sometimes fake advertising brokerage firms.  
  • It tells you the transaction charges and stamp duty, STT and GST.  
  • It is entirely free.  
  • An online brokerage calculator makes you self-reliant in taking decisions for trading. You do not have to call an expert every time.  
  • It also shows you net profits.  


Investment in the stock market starts with opening a Demat account or trading account. At first, the stock market may leave you confused, but your trading skills will gradually improve with days of scrolling and making the wrong or good decisions.  

Some investors feel starting with one’s stock market journey and then consider hiring a broker. 

But, brokers have experience managing stocks and trading, so many traders advise by talking to brokers and taking financial and trading advice.  

If you’re a student, you can try trading without aid, but as you make profits or get stuck into the web of failures, you will have to contact a brokerage firm or any discount broker.  

However, as a naive trader who wants to hire a broker, you must know the basic legal and financial terminology that applies to the calculation of brokerage using an online brokerage calculator. Then, after thorough research, you can talk to a broker.  

This process also lasts after you meet a few brokers as you might need to compare their commission percentages and go for the right one who will fit your savings goals.  

Please visit the Piramal Finance website to learn more about Brokerage Charge Calculator.