Angel Broking Brokerage Charges

When trading/investing in stock market, customers need to pay a fee(brokerage charges) to their respective broker(like Angel Broking). This fee is used by the broker to provide services and support day to day operations for its customers. Market regulators feel(and rightly so) that if a broker charges high brokerage but does not provide at par service then customers would migrate to a different broker.  Hence, individual brokers are free to decide the amount of brokerage they wish to charge their customers.

In this article, we will discuss brokerage charged by Angel Broking and let us begin with a brief history about Angel Broking.

Started in 1987, Angel broking today is recognized across India as a member of all major stock,  commodity exchanges & Forex exchanges like NSE(National Stock Exchange), BSE(Bombay Stock Exchange), MCX(Multi Commodity Exchange) and NCDEX(National Commodity and Derivative Exchange). Read our detailed review of Angel broking or continue reading below, if you are interested in knowing in detail about Angel’s brokerage charges.

Brokerage Charges for Stock Delivery at Angel Broking:

Let us start by understanding, what is the meaning of stock(or share or equity) delivery trade? Stock delivery means that investor buys & holds the stock for at-least one trading day before selling it to someone else.

Delivery(CNC – Cash and carry) means that buyer holds the stock(share) for at-least 7.15 hours before selling. There is no upper time limit, hence even if you hold a stock for 20 years before selling – it would be considered a delivery based trade.

Angel Broking charges a brokerage between 0.16% to 0.40% of the turnover for delivery based trades. For instance, let us say that an investor buys stocks of Reliance Industries worth Rs 2 Lakhs today(and plans on holding the stock for 1 year). In this case,  brokerage charged would be based on the total turnover traded today(Rs 2 Lakhs) and hence brokerage would be:

200000 * 0.16/100 = Rs 320 (+Taxes)

OR

200000 * 0.40/100 – Rs 800 (+Taxes)

Now, let us see why is there a variation(of over 2 times) in brokerage charged for the same transaction.

Angel Broking offers different prepaid brokerage plans. The concept is that you get a reduced brokerage by prepaying the brokerage and the more is the prepaid amount{margin amount} – the lesser is the brokerage. It is worth noting that you can withdraw the margin amount after 21 days of opening your account and you will still be charged reduced brokerage.

Since investors can withdraw the entire margin money after opening account, we would recommend opening the account with highest possible margin – so that you can get a lifetime reduced brokerage.

Brokerage Charges for Stocks Intraday trades at Angel Broking:

Let us begin by understanding, what is the meaning of stock(or share or equity) intraday trade? Intraday(or MIS) means that you buy & sell the equity in the same trading day. This kind of orders is generally used by traders who square off(or close) their positions on the same day.

Intraday(or MIS) means that buyer can hold the stock(share) for at-most 7.15 hours before selling. In case of intraday, you cannot hold a stock overnight and sell it the next day.

Angel Broking charges a brokerage between 0.016% to 0.040% of the turnover for intraday trades. For instance, let us say that an investor buys stocks of Infosys worth Rs 2 Lakhs today and sells it for Rs 2.1 lakhs (cool profit of Rs 10,000 in one day). In this case, the total turnover would be 2 + 2.1 = Rs 4.1 Lakhs.

Hence the brokerage would be calculated as:

200000 * 0.016/100 = Rs 32 (+Taxes)

OR

200000 * 0.040/100 – Rs 80 (+Taxes)

Brokerage Charges for Futures trades at Angel Broking:

Futures is a derivative based financial instrument used by traders to take positions in the stock market by depositing the only margin. The margin required to execute the trade is typically only 12-15% of the overall traded value. A futures contract comes with an expiry date and hence trade should either be settled or rolled off before the expiry date(Last Thursday of the every Month).

A trader can buy stock(like Infosys) or index(like NIFTY or BANKINDEX) futures from the stock market.

Let us take an example that trader buys(@ Rs 1000) & sells(@ Rs 1010) a lot of futures of Asian Paint. A lot of Asian paint contains 400 stocks and hence total turnover would be:

Buy Transaction Turnover = 1000 * 400 = 400000

Sell Transaction Turnover = 1010 * 400 = 404000

Total Turnover = 804000

Hence the brokerage would be calculated as:

804000 * 0.016/100 = Rs 128.64 (+Taxes)

OR

804000 * 0.040/100 – Rs 321.60 (+Taxes)

As you can see yet again, the difference in brokerage charged is huge and hence we would recommend opening your account with Higher margin check with Angel.

Brokerage Charges for Options trades at Angel Broking:

Options is a derivative based financial instrument used by traders to take positions in the stock market. Options are generally traded in lots and typically traders purchases multiple lots to take a positional trade in stock market.

The brokerage charges for Stock Options trades are as follows:

Hence, if you buy and sell 10 Lots of ICICIBank and have an Angel Classic account – then brokerage charged would be Rs 2000(+Taxes). {(10 + 10)*100}

The brokerage charges for NIFTY Options trades are as follows:

Hence, if you buy and sell 10 lots of NIFTY and have an Angel Classic account – then brokerage charged would be Rs 1000(+Taxes). {(10 + 10)*50}

Because of difference in brokerage(and it will increase with every trade), we would recommend that you open your trading account with a higher margin.

Conclusion

Hopefully you now have all required details about brokerage charged by Angel Broking. We would recommend opening an account with Angel Broking – if you need access to Angel Research advice and tools like ARQ(for the stock recommendation – based on your financial profile).

To know more click – Open your account with Angel Broking today.