What It Means
STT (Securities Transaction Tax) is a government tax deducted automatically on every share and derivative transaction executed on an Indian stock exchange — it's a tax, not a brokerage fee, and it applies the same way no matter which broker you trade through.
How It Works
The rate depends on the type of transaction, not the broker. As of the rates effective April 2026: equity delivery trades attract 0.1% STT on both the buy and sell side; intraday equity trades attract 0.025% on the sell side only; futures attract 0.05% on the sell side; and options attract 0.15% on the premium, whether sold or exercised. These rates are set by the government and get revised periodically — F&O rates specifically were raised in the 2026 Budget — so treat any specific number as a snapshot, not a permanent fact, and check the current schedule before relying on it for a real calculation.
Warning
STT is often mistaken for a brokerage charge. It isn't — it's a government tax deducted the same way regardless of which broker executes your trade, on top of whatever brokerage that broker separately charges.