What are the charges and fees associated with trading on the MCX market?
When trading on the MCX market, there are various charges and fees involved that traders need to be aware of. Let’s dive into each of these charges to better understand the costs associated with trading on the MCX market.
1. Brokerage Charges
Brokerage charges are the fees charged by the brokers for facilitating trades on your behalf. Brokers charge a percentage of the transaction value as brokerage fees. The percentage may vary based on the broker and the type of transaction.
2. Exchange Transaction Charges
Exchange transaction charges are levied by the MCX for every transaction executed on the exchange. These charges are calculated based on the transaction value or quantity and are fixed by the exchange. Traders need to pay these charges to the exchange for each trade they undertake.
3. Clearing & Settlement Charges
Clearing and settlement charges are incurred for the clearing and settlement of trades. These charges are imposed by clearing corporations or clearing houses. The charges cover the cost of the clearing and settlement process, including risk management, margin requirements, and trade confirmation.
4. Taxes and Duties
Along with the above charges, traders also need to consider taxes and duties. This includes Goods and Services Tax (GST) on brokerage, Securities Transaction Tax (STT) on the sale of commodities, and any other applicable taxes or duties as per the regulations of the government.
By Astrobulls research pvt ltd