A user question and this time it is about the brokerages and how to calculate them.

I am the new for the share marketing I am open the account for Sharekhan. I don’t know how to calculating brokerage for Sharekhan. Will you please explain how to calculating the brokerage giving me some example.

Thank you sir

As far as I know Sharekhan have a brokerage plan of 5 paise / 50 paise but if you push hard at the time of opening an account they can bring brokerage down as well but let’s assume 5 paise / 50 paise as the brokerage plan and do the calculation.

## Now what does 5 paise / 50 paise mean.

It means that when you do a transaction (Buy or Sell) of 100 Rs on delivery based buying or in simple terms if you buy shares with a plan not to sell the same day you pay 50 paise as brokerage. On top of these 50 paise there will be other tax and charges which roughly makes these 50 paise close to 70 paise.

But if you square of the trade on the same day you will not be paying 50 paise but it will be 5 paise instead.

The same brokerage also applies when you sell the shares. I.e. on 100 Rs share price you pay 50 paise as brokerage.

## Example

How to calculate the brokerage very fast and with no calculator?

Just add 1.5 Rs per 100 Rs to the actual share price.

Let’s say you buy Reliance Industries at 1050 Rs. (Rounded price as of now)

Now the total brokerage roughly that you will pay for buying as well as selling would be 15.75 per unit.

So the cost price will be 1050 +15.75 and so if you sell Reliance Industries at 1065.75 you will make some profit.

My broker is Motilal Oswal and My Brokerage plan is 3 paise / 30 Paise and so for this I just add 1 Re per 100 Rs to the actual share price.

I.e. 1050 + 10.5 i.e. 1060.50 will be my price where I can make some profit.

So how do you calculate your brokerage?