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What are the Different Flattrade charges?
What Do the Flattrade Charges for 2024 Mean for Traders?
Flat trade is becoming Popular due to its Zero Brokerage Plans where they Promise to Offer zero brokerage in all Segments. So in this Article we will find the facts and verify that what they are saying is actually true or not ? Though it offers a seamless experience for both beginners and seasoned investors, but we should we cautious about all the things before choosing right demat account.
we will also try to know whether this app for made for traders only or the investors can also benefit from this.
Open an account with Angel One.
What are the Different Flattrade Charges?
Know about the key Flattrade charges for 2024 that traders should be aware of while using the platform for their investment activities.
1. AMC (Account Maintenance Charges)
There is good news for users. There is no Account Maintenance Charge (AMC) for both Broking Account and DP Account. This is a welcome relief for investors, as it eliminates the burden of additional annual charges.
Read on: Flattrade Brokerage Calculator: Guide for Traders and Investors.
2. Trading Account Opening Charge
To begin your trading journey with Flattrade, you have to pay a one-time trading account opening charge of Rs.200 + GST. in addition to this you have to Pay Rs. 175 inclusive of GST as DDPI (demat debit and pledge ) charge. So total sum 411 Rs. has to be paid for opening account with Flat trade.
3. Margin Pledge/Margin Repledge/Margin Unpledged Charges
Executing script requests related to margin activities incurs a charge of Rs.20 + GST per script. Understanding these charges is vital for those actively managing their margin positions.
4. DP (Depository Participant) Charges
Catering to the depository services, Flattrade imposes a charge of Rs.20 + GST per scrip (irrespective of quantity) on the day when stocks are sold. This charge is levied by the depository (CDSL) and depository participant, ensuring the secure transfer of securities.
5. Demat Debit and Pledge (DDPI) Charge
For managing your Demat Account, Flattrade imposes a one-time charge of Rs.175 (inclusive of GST) for Demat Debit and Pledge (DDPI). I have not observed this charge anywhere else in other brokers. This charge is asked at the time of opening account in flat trade.
6. MTF (Margin Trading Funding) Charges
For traders utilizing margin trading facilities, it applies an interest rate of 18% per annum on the utilized margin. This charge is crucial for those leveraging their positions to amplify potential returns.
7. Call & Trade Charges
Flattrade’s Call & Trade Charges for orders placed through its support/dealing desk vary across different segments.
- For Equity Intraday, Equity Futures, and Currency Futures, the charge is either Rs.50/- plus GST for every order executed or 0.01% of turnover plus GST, depending on whichever is lower.
- Similarly, for Equity Delivery, the charge is Rs.50/- plus GST for every order executed or 0.1% of turnover plus GST, whichever is lower.
- Equity Options and Currency Options incur a charge of Rs.20/- plus GST for every order executed. In the case of Commodity Futures and Commodity Options, the charge is Rs.50/- plus GST for every order executed.
These structured charges provide clarity for traders engaging in Call & Trade activities, enabling them to assess and manage costs effectively across different trading segments.
8. Intraday Square Off Charges
Flattrade imposes Intraday Square Off Charges for positions closed before market closing by their RMS team.
- For Equity Intraday, Equity Futures, and Currency Futures, the charge is Rs.50/- plus GST for every order executed or 0.01% of turnover plus GST, whichever is lower.
- In the case of Equity Delivery, the charge is Rs.50/- plus GST for every order executed or 0.1% of turnover plus GST, whichever is lower.
- For Equity Options and Currency Options, the charge is Rs.20/- plus GST for every order executed, and for Commodity Futures and Commodity Options, it is Rs.50/- plus GST for every order executed.
This fee structure reflects Flattrade‘s commitment to transparency and provides traders with a clear understanding of the charges associated with Intraday Square Off.
9. Late Payment Charges
For those with debit margins, it applies an 18% interest rate as late payment charges. It is crucial to settle your dues promptly to avoid incurring additional costs.
10. Zero Brokerage Charges
Yes, they do not charge any brokerage in delivery, intraday and F&O. Don’t get confused with the charges explained above. Actually all the above charges are one time charges and they are not applied on each transaction. The most frequent charge is brokerage which you are going to save completely here.
Read on: Flattrade Trading: Top 15 Reasons to Go For It.
Regulatory Charges
These charges belong to SEBI, NSE, BSE, CDSL, NSDL etc. They Do not belong to broker.
1. SEBI Charges
Regulating the markets comes at a cost. Securities and Exchange Board of India (SEBI) charges Rs.10 per crore as a regulatory fee. This nominal charge contributes to maintaining the integrity and fairness of the financial markets.
2. Securities/Commodities Transaction Tax (STT)
STT is a tax that is levied on both Buy and Sell sides when trading equity delivery. However, for intraday trading or trading in the Futures and Options (F&O) segment, STT is charged only on the selling side. Being aware of these tax implications is essential for accurate financial planning.
3. GST (Goods and Services Tax)
GST is a government-imposed tax on the services rendered. Flattrade charges 18% of the total (brokerage + transaction charges + SEBI charges) as GST. Being mindful of the GST component is crucial for calculating the total cost of your trades accurately.
4. Transaction/Turnover Charges
Exchange transaction charges and stamp charges are incurred for transacting in instruments on the stock exchanges and depositories. Stamp charges, governed by the Indian Stamp Act of 1899, are applicable and contribute to the overall transaction costs.
What Do the Flattrade Charges for 2024 Mean for Traders?
With a one-time trading account opening charge of Rs.200+GST, the platform emphasizes accessibility. Transaction charges, STT, GST, and SEBI charges contribute to the overall cost, demanding a nuanced understanding.
Notably, zero AMC for both Broking and DP accounts is a boon. Intraday Square Off Charges vary across segments, promoting flexibility.
Flattrade‘s transparent fee structure underscores its commitment to empowering traders, offering a clear insight into the financial commitment associated with its activities in 2024, enabling strategic decision-making and informed financial planning.
Open an account with Upstox.
Conclusion
Flattrade’s fee structure is transparent – which empowers traders to make informed decisions, allowing them to focus on maximizing returns because they don’t have to Pay Brokerage in Any segment like Delivery, intraday, futures and options. So the App is Great for Traders but investors can also rely upon this because Equity delivery is free and they are offering decent level of customer Service.
My pesoanlly favourite demat account for trading is upstox and for Investing is Angelone, you can also open demat account there.
