Yes, if you’re looking to engage in swing trading on Groww, you will incur certain charges. These charges vary based on the type and volume of your trades. Here’s a comprehensive breakdown of the typical fees associated with trading on Groww, especially relevant for swing trading:
Groww’s Trading Charges
1. Brokerage Fees
Groww applies a brokerage fee of ₹20 or 0.1% per executed order, whichever is lower. However, there’s a minimum brokerage of ₹2 if the calculated brokerage is less than ₹2. This means that even for very small trades, you will still be charged a minimum of ₹2. This minimum can significantly impact the effective brokerage percentage on low-value trades.
2. Delivery Trading (Typically for Swing Trading)
Swing trading usually involves holding stocks for a few days to a few weeks, which falls under the category of delivery trading. For delivery trades, the following charges apply:
- Brokerage: As mentioned above (₹20 or 0.1% per executed order, whichever is lower, with a minimum of ₹2).
- DP Charges (Depository Participant Charges): A flat fee of ₹15 per company per day when you sell. This charge is levied by the depository (CDSL/NSDL) and the DP (Groww, in this case) for the successful transfer of shares from your demat account. It’s important to note that this is charged per company, not per transaction, on a given day if you sell shares of that company.
- Stamp Duty: This is a state-level tax levied on the purchase of securities. For delivery trades, it’s 0.015% of the transaction value and is applied at the time of buying.
- STT (Securities Transaction Tax): A central government tax on the sale of equity shares. For delivery-based equity trades, it’s 0.1% of the transaction value and is applied at the time of selling.
- Exchange Transaction Charges: These are fees levied by the stock exchanges (NSE and BSE) for using their trading platforms. For equity delivery, these are approximately 0.00297% for NSE and 0.00375% for BSE of the transaction value.
- SEBI Turnover Charges: A small fee levied by the Securities and Exchange Board of India (SEBI) for regulating the market. This is 0.0001% of the transaction value.
- GST (Goods and Services Tax): An 18% GST is applied to the sum of brokerage, exchange transaction charges, and SEBI turnover charges. This is an indirect tax that you pay on the services provided by Groww and other intermediaries.
3. Intraday Trading
While swing trading focuses on holding positions, it’s useful to understand the charges for intraday trading for comparison, as some traders might occasionally engage in both. For intraday trades (where you buy and sell shares within the same trading day), some charges differ:
- Brokerage: Same as delivery (₹20 or 0.1% per executed order, whichever is lower, with a minimum of ₹2).
- STT: Applied only on the sell side at 0.025%. It’s lower than delivery STT because the intention is not to take delivery of shares.
- Stamp Duty: Applied only on the buy side at 0.003%. This is also lower than delivery stamp duty.
- DP Charges: Not applicable for intraday trades because shares are not moved to or from your demat account.
- Exchange Transaction Charges: Similar to delivery: approximately 0.00297% for NSE and 0.00375% for BSE.
- SEBI Turnover Charges: Same as delivery: 0.0001%.
- GST: Same as delivery: 18% on brokerage, exchange transaction charges, and SEBI turnover charges.
Important Considerations for Swing Trading on Groww
Higher Costs on Low-Value Trades
Groww’s recent introduction of a minimum brokerage fee of ₹2 can significantly impact the overall cost of your trades, especially for orders below ₹2,000. For instance, if you place an order worth ₹500, the 0.1% brokerage would normally be ₹0.50. However, due to the minimum charge, you will still be debited ₹2. This means the effective brokerage percentage on such small trades becomes much higher (0.4% in this example). This is a crucial point for swing traders who might be experimenting with smaller position sizes.
Using the Brokerage Calculator
Given the various charges and their dependencies on transaction value and type, it’s highly recommended to use Groww’s brokerage calculator. This tool allows you to input your intended trade details (buy/sell price, quantity, type of trade) and get an estimated breakdown of all the applicable charges. This helps in pre-calculating your potential costs and assessing the profitability of your swing trades.
Conclusion
To summarize, performing swing trading on Groww involves paying a combination of charges including brokerage, DP charges (on sell), STT, stamp duty, exchange transaction charges, SEBI turnover charges, and GST. These charges can fluctuate based on your trade’s value and whether it’s a buy or sell transaction. It’s particularly important to be mindful of the minimum brokerage fee, as it can disproportionately increase costs for lower-value trades. Utilizing Groww’s brokerage calculator will provide you with a clear picture of the costs associated with your specific swing trading strategies.
