Exchange transaction charges on NSE, BSE, and MCX

Overview

Every recognised stock exchange in India charges a transaction fee on trades settled through its clearing mechanism. These charges are levied on brokers by the exchange and are passed through to clients as a line item on the contract note. At Zerodha, exchange transaction charges from the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and the Multi Commodity Exchange (MCX) are collected from clients at the rate prescribed by the respective exchange and remitted without markup. The charges fund the exchange’s infrastructure, regulatory compliance, clearing and settlement operations, and investor services.

Exchange transaction charges are distinct from brokerage (which Zerodha retains as revenue) and from statutory levies such as STT, GST, stamp duty, and the SEBI turnover fee. They are subject to GST at 18 percent, meaning the effective cost to the client is the exchange charge plus 18 percent of that charge.

Rate schedule: NSE

NSE publishes its schedule of charges periodically, typically for each financial year. The following rates are applicable for FY 2025-26 (April 2025 to March 2026):

NSE equity cash segment

NSE applies the same rate to delivery and intraday in the equity cash segment. The charge is on gross turnover (price x quantity), per side.

NSE equity derivatives (F&O)

Options attract a higher percentage charge than futures because the charge base (premium) is much smaller than the notional contract value. In absolute rupee terms, the exchange charge on an options trade is typically small.

NSE currency derivatives

Currency derivatives carry a lower charge rate than equity futures, reflecting the higher volume and tighter margins in the currency segment.

NSE interest rate derivatives

Interest rate futures (on G-secs) and interest rate options carry transaction charges set separately by NSE, typically in the range of 0.00004 to 0.00007 percent of notional value. These instruments have low retail participation.

Rate schedule: BSE

BSE’s transaction charges differ from NSE’s, particularly in the equity cash segment where BSE uses a tiered or security-category-based schedule.

BSE equity cash segment

BSE classifies listed scrips into groups (Group A – large cap, Group B – mid cap, Group X, Group Z, and others). The transaction charge varies by group:

BSE’s rate is marginally higher than NSE’s for the equity cash segment.

BSE derivatives (equity F&O, Sensex and Bankex options)

Rate schedule: MCX

MCX charges are set separately for each commodity and commodity category. The following are indicative rates for major commodities:

MCX revises its charge schedule periodically. Clients should verify current rates from the MCX website or from Zerodha’s charges page.

GST on exchange transaction charges

Exchange transaction charges are subject to GST at 18 percent. The GST is computed on the exchange charge and added to the client’s debit. This is included in the total “GST on charges” line on the Zerodha contract note, which covers brokerage, exchange charges, and SEBI turnover fee collectively.

How exchange charges appear on Zerodha contract notes

On Zerodha’s contract notes, exchange transaction charges are listed as a single line item (not broken down by charge component within the exchange’s tariff). The SEBI turnover fee and IPFT levy may be shown separately or bundled into the exchange charges line depending on the format of the contract note. Clients who need the precise breakdown can view per-order charges on the Zerodha Kite app under the order history detail, or through the Zerodha Console back-office.

Why options carry higher percentage charges than futures

NSE’s charge on options is 0.03503 percent of premium, compared with 0.00173 percent of contract value for futures. The reason is that the contract notional value of an options position is far larger than the premium. An options position with notional value of Rs 17,25,000 (one lot of Nifty futures at 23,000 with 75 units) might carry a premium of only Rs 5,000 to Rs 50,000. If NSE charged 0.00173 percent of premium, the absolute rupee amount would be trivial. Instead, NSE sets the options charge as a percentage of premium to ensure meaningful revenue per transaction.

From the client’s perspective, the absolute exchange charge on options is usually lower than on equivalent futures positions because even at 0.03503 percent of premium, the premium is much smaller than the futures contract value. For a Nifty option with Rs 10,000 premium turnover: exchange charge = 0.03503% x Rs 10,000 = Rs 3.50. For a comparable Nifty futures position with Rs 17,25,000 notional: exchange charge = 0.00173% x Rs 17,25,000 = Rs 29.84.

Comparison with global exchanges

Major global exchanges charge varying transaction fees. NSE’s 0.00297 percent on equity cash segment is broadly comparable to transaction fee levels at the Hong Kong Exchange (approximately 0.00565 percent) and the London Stock Exchange (approximately 0.00325 percent including stamp duty levy). The US model differs – exchange transaction fees in the US are much smaller (SEC fees and FINRA fees total well under 0.001 percent) because US brokers historically earned their revenue from bid-ask spread capture rather than explicit commission, and the market structure is different.

Impact of exchange charges on high-frequency strategies

For retail traders making a handful of trades per day, exchange charges are small relative to brokerage and STT. For algorithmic traders executing thousands of orders per day, exchange charges can become a significant cost. At NSE’s 0.00297 percent rate on equity cash, a trader turning over Rs 10 crore per day pays Rs 29,700 in exchange charges alone (each side), or Rs 59,400 in a round trip. Zerodha does not offer institutional-rate discounts on exchange charges to retail clients; such rebates are offered by exchanges to designated market makers and liquidity providers under separate schemes.

See also

• Zerodha brokerage structure overview
• SEBI turnover fee
• IPFT levy on Zerodha trades
• GST on broking charges
• STT and CTT on Zerodha
• Zerodha
• National Stock Exchange
• Bombay Stock Exchange

References

1. NSE Circular: Schedule of Charges for FY 2025-26 – NSE/FAOP/54417 series
2. BSE Notice: Transaction Charges Schedule, BSE/LISTING/2024-25 series
3. MCX Schedule of Transaction Charges, FY 2025-26
4. SEBI Master Circular for Stock Brokers, SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/72
5. Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
6. CGST Act 2017, Section 9 – GST applicability on exchange charges