Zero Brokerage is quite a powerful marketing line, and it is easy to believe that overnight, trading becomes free. The reality, however, is that zero brokerage, in most cases, means a broker is not charging brokerage, that is, the amount they keep on a certain segment, usually equity delivery or some mutual funds, but you still pay the statutory and exchange levies and at times some other platform or back-office fees.

A simple run on a reliable Brokerage Calculator exposes what exactly you pay for a trade before you click on “confirm.”

What “Zero Brokerage” actually covers

Most discount brokers that advertise Zero Brokerage waive their brokerage component for certain products or account types, such as equity delivery. That does not exempt you from Securities Transaction Tax (STT), exchange transaction charges, SEBI turnover fee, stamp duty, GST, or depository charges on sell transactions-all of which are legally payable. In other words, the broker’s fee may be zero, but taxes and exchange fees are not.

Why the Brokerage Calculator matters

A brokerage calculator aggregates every line item, which includes brokerage, if any; STT; exchange charges; SEBI fees; stamp duty; GST; and DP charges. It gives you a net P&L and the breakeven points. That transparency shows if a “zero brokerage” promise actually changes your trading economics, especially for small-ticket trades where fixed levies or stamp duty can dominate. 

Common pitfalls with no-brokerage deals

• Per-trade or per-order fees elsewhere. Some platforms replace percentage brokerage with flat fees, subscription models, or minimum contract notes, which can be worse for particular ticket sizes.

• DP charges on sell transactions: Even if there is no brokerage on delivery purchases, selling those holdings may attract DP or transaction-specific charges.

• Premium services and margin costs. Research, advisory, advanced order types, and margin funding may have additional fees or higher interest rates, none of which are covered by “zero brokerage.”

• Hidden minimums or promotional windows. Offers such as “zero brokerage for first 30 days” or caps for limited volumes are common.

How to use a Brokerage Calculator to evaluate “free” trading

• Simulate real trades: By entering an exact buy/sell price, quantity, and segment (delivery vs intraday vs F&O). Statutory charges and net P&L can be seen on the calculator for comparison in different scenarios.

• Compare brokers for the same trade: Run the same trade across two or three brokers’ calculators to see who gives the lowest total cost, not just the lowest brokerage.

• Test strategy breakevens: If your trading edge is small (scalping, intraday), the calculator reveals the minimum price movement you need to net a profit after taxes and fees.

• Beware of non-recurring charges. Check for charges to open an account, AMC, contract note charges, or charges for inactivity or advisory; include these in your annual cost estimate.

Who benefits most from zero brokerage?

Thus, long-term delivery investors with large ticket sizes usually benefit the most from zero brokerage on equity delivery. For very small or very frequent intraday trades, a flat-fee broker or a volume-discount plan can sometimes be cheaper than a “zero brokerage” model; again, testing via a Brokerage Calculator is the fastest way to know.

Conclusion

Zero Brokerage can meaningfully reduce costs-but it’s rarely entirely free. Use a Brokerage Calculator each time you plan a new trade or change brokers: it converts marketing into numbers, exposes hidden costs, and lets you choose the pricing model that suits your trading frequency and ticket sizes. Don’t be dazzled by “zero”; be guided by the calculator. 

FAQs 

Q1: If my broker says ‘Zero Brokerage’, do I still pay taxes? 

Yes. Zero brokerage refers to the broker’s fee; statutory levies like STT, exchange charges, SEBI turnover fee, stamp duty and GST still apply. Use a Brokerage Calculator to see the exact totals.

Q2: Are brokerage calculators trustworthy? 

Yes, brokers and independent sites provide calculators using published levy formulas. They’re excellent estimates, but always confirm final figures on the broker’s contract note.

Q3: Should I move to a zero brokerage broker? 

Run your usual trades through several Brokerage Calculators first. Unless the zero brokerage cuts your all-in cost of trading (taxes, DP charges and incidental fees), switching won’t save money.