Why is the brokerage more than ₹1?

The total deduction per trade includes statutory charges on top of Punch's ₹1 flat brokerage.

Written By Archit Sunat

Last updated 27 days ago

Brokerage vs. total charges — they are different things

When you see a deduction higher than ₹1 on a trade, it is important to understand that the brokerage itself is still just ₹1. The additional amount comes from mandatory government and exchange fees that every broker in India is required to collect.

What makes up the total cost?

On top of the ₹1 brokerage, the following charges are added to each trade:

  • STT — Securities Transaction Tax, set by the government

  • Exchange turnover charges — A fee from NSE/BSE for processing the trade

  • SEBI turnover fees — A regulatory fee for market oversight

  • GST — 18% on brokerage, exchange charges, and SEBI fees

  • Stamp duty — A state government charge on buy-side transactions

  • IPFT — A small contribution to the Investor Protection Fund

These charges vary depending on the trade type, value, and segment. For a complete breakdown, visit our Pricing page.