Hidden Charges in Stock Market Trades — A Silent Wealth Killer

Many retail traders enter the futures & options (F&O) segment hoping for profit — but unknowingly lose thousands of rupees every month due to unnoticed overcharging, hidden costs, and misleading brokerage systems.

This problem is more common than you think, and often goes unnoticed until it’s too late.

? A Real-Life Example (Names Changed)

Rohit, an active futures trader, noticed something unusual while reviewing his trading statement from AlphaTrade Securities.

He traded:

• FUTSTKTECH (Techno Motors Futures, 1 lot = 2,000 shares, price ₹480)

• FUTSTKNET (NetLine Communications Futures, 1 lot = 60,000 shares, price ₹9.50)

Even though both trades had almost the same contract value (around ₹9.5 lakh), the brokerage was completely different:

• FUTSTKTECH – ₹420 total charges

• FUTSTKNET – ₹4,250 total charges

On checking the detailed contract note, Rohit found that the broker charged “minimum brokerage” per partial fill — multiplying hundreds of small trades within a single order.

The result? Brokerage was 10 times higher than normal, wiping out his profit silently.

? Why Does This Happen?

1. Per-Fill Brokerage Charging:
   Instead of charging once per order, some brokers charge their “minimum ₹20” brokerage for every small trade fill within an order.
   Large-lot, low-priced futures (like telecom or penny stock contracts) get executed in multiple fills — leading to massive, hidden charges.

2. Complex Billing Language:
   Many brokers’ bills use technical language like “Transaction Leg, Order Split, Per Fill Execution”, which hides true costs from regular investors.

3. Lack of Review:
   Traders rarely check their daily settlement or contract notes carefully, assuming charges are automatically correct.

4. Different Treatment for Different Contracts:
   Same-value contracts may be billed differently due to lot size or price per share, which is misleading and unfair.

?️‍♂️ How You Can Catch These Discrepancies

✅ Step 1: Download Your Contract Notes

Always download and review your daily or monthly contract notes from your broker’s back office or email.

Look specifically for:

• Brokerage amount

• Exchange transaction charges

• STT / CTT

• GST

• Stamp Duty

• SEBI turnover fee

If you see unusually high brokerage (like ₹3,000–₹4,000 for one trade when others are ₹300–₹400), investigate immediately.

✅ Step 2: Compare Trades of Similar Value

Take two contracts with similar turnover.
If one shows 10× higher brokerage, it’s a clear red flag.

✅ Step 3: Contact the Broker in Writing

Send a formal written email to your broker’s compliance or grievance cell.
Use polite but clear language — include:

• Date and trade details

• Screen captures or PDF statement

• Comparison with other trades

• Request for refund and recalculation

Keep all communication in writing for record and escalation.

✅ Step 4: If No Response, Escalate

If your broker doesn’t respond or gives an unsatisfactory answer within 15 working days, escalate your complaint to:

• SEBI SCORES: https://scores.sebi.gov.in

• NSE Investor Grievance Cell: https://investorhelpline.nseindia.com

Attach:

• Complaint copy sent to broker

• Contract note or derivative statement screenshots

• Reply (if any) from broker

Regulators take such billing complaints seriously.

? Important Tips to Stay Safe

✅ Always download your daily trade reports.
✅ Compare brokerage % vs turnover — it should not exceed your plan rate.
✅ Choose flat-fee brokers (₹20/order) to avoid per-fill charges.
✅ Never rely only on mobile app summaries — check detailed reports.
✅ Keep a yearly habit of auditing your brokerage charges.
✅ If overcharged, act fast — SEBI allows you to raise complaints within 6 months of the incident.

? In Simple Words

The stock market doesn’t just test your trading skills — it also tests how carefully you watch your bills.

Hidden brokerage may not sound big per trade, but over a year, it can quietly drain your profits.

So, be alert, check every report, and raise your voice if you spot anything wrong.

❤️ Moral of the Story

Before blaming the market for your losses, check if your broker’s billing is eating your profits.
Always verify your reports — and if you find mismatched charges, speak up and demand correction.

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