F&O Trading Charges Explained – Brokerage, STT, Exchange Fees, GST and Stamp Duty
Published 2026-10-15 · Aadarna Stock Broking Pvt. Ltd.
Many new traders look only at brokerage, but every Futures & Options (F&O) trade carries several charges. For frequent traders, these costs add up quickly and can turn a small gross profit into a net loss.
The charges on every F&O trade
- Brokerage: what your broker charges per executed order. Check Angel One's current tariff.
- STT (Securities Transaction Tax): a government tax. In options it is charged on the premium when you sell; in futures, on the sell-side value. Rates are set by the government and change from time to time.
- Exchange transaction charges: levied by NSE/BSE on turnover.
- SEBI turnover fees: a small regulatory fee on turnover.
- Stamp duty: charged on the buy side, as notified by the government.
- GST (18%): on brokerage, exchange transaction charges and SEBI fees.
- Exercise / assignment costs: options that expire in-the-money can attract STT on the settlement value. This often surprises new traders.
Where to see the exact amounts
Every trade generates a contract note (sent by email by Angel One), which lists each charge separately. Read it at least once a week. The Angel One app also shows a charges/brokerage calculator before you place an order.
Why costs matter so much in F&O
- Options traders often trade many times a day, and charges apply on every order.
- Small premiums mean charges can be a large share of the profit per trade.
- SEBI's study found loss-making traders spent an additional 28% of their net trading losses on transaction costs.
Sources
- Angel One – brokerage, transaction and government charges
- SEBI – research studies, including the January 2023 study of individual traders' profit and loss in equity F&O
Risk disclosures on derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to ₹50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Source: SEBI study dated January 25, 2023 on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment", wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.