What is the Brokerage for Commodity Segment | Motilal Oswal

What is the Brokerage for Commodity Segment

What is the Brokerage for the Commodity Segment? 

  • The term 'brokerage' for the commodity segment refers to the fees or charges that a broker or a brokerage firm charges for facilitating trading in commodity derivatives.
  • It's the commission or fee paid by traders or investors when buying or selling commodity contracts.
  • The brokerage for the commodity segment can vary from one brokerage firm to another.
  • It's typically expressed as a percentage of the transaction value or a fixed amount per lot or contract.
  • Motilal Oswal provides transparent brokerage charges for different types of trading. In the commodity segment, the brokerage fee is 0.02% for futures and Rs. 20 per lot for options.
  • These charges provide investors with a clear understanding of the costs involved in commodities trading.

What are the Account Charges Associated with Motilal Oswal?

  • To open an account with Motilal Oswal, investors need to consider the account opening charges and annual maintenance charges (AMC).
  • Currently, the trading account opening charges are set at zero rupees, making it free.
  • Moreover, the AMC for both the trading and demat accounts is zero as well, providing convenience and cost-effectiveness for investors.

How Does the DEMAT Account Fee Structure Work?

Opening a DEMAT account is free on the Motilal Oswal platform; however, there is an AMC of Rs. 400 per year, which is waived for the first year. Additionally, for each debit transaction in the DEMAT account, customers are charged either 0.025% of the transaction amount or Rs. 30, whichever is higher. This fee structure ensures transparency and clarity for investors.

Are there any Transaction Charges Investors Should be Aware of?

In addition to the brokerage charges, investors should also consider the transaction charges imposed by Motilal Oswal. These charges are known as exchange turnover charges and vary as per the trading segment. Here is an overview of these transaction charges:

  • Equity delivery: NSE: Rs. 335 per crore (0.00335%), BSE: Rs. 1000 per crore (0.01%) (each side)
  • Equity intraday: NSE: Rs. 325 per crore (0.00325%), BSE: Rs. 200 per crore (0.002%) (each side)
  • Equity futures: Rs. 200 per crore (0.002%)
  • Equity options: NSE: Rs. 5110 per crore (0.0511%), BSE: Rs. 200 per crore (0.002%) (on premium)
  • Currency futures: Rs. 125 per crore (0.00125%)
  • Currency options: Rs. 4200 per crore (0.042%) (on premium)
  • Commodity: MCX: Rs. 250 per crore (0.0025%)

Being aware of these transaction charges allows investors to calculate their trading expenses accurately.

What are the Various Taxes Imposed by Motilal Oswal in Addition to Brokerage Charges?

Motilal Oswal levies a few taxes in addition to the brokerage charges. These include the securities transaction tax (STT), the goods and services Tax (GST), stamp duty, and SEBI charges. Here is a breakdown of the tax rates:

  • Securities Transaction Tax (STT): The rates vary based on the type of trade, ranging from 0.1% to 0.05%.
  • Goods and Services Tax (GST): Set at 18% of the brokerage, transaction charges, and SEBI fee.
  • Stamp Duty: The stamp duty rates differ for various types of trades. For equity delivery, it is 0.015%; for intraday, it is 0.003%; for equity futures, it is 0.002%; for equity options, it is 0.003%; and for currency F&O, it is 0.0001%. For commodity futures, it is 0.002%, and for commodity options, it is 0.003% (MCX).

By understanding these taxes, investors can calculate their overall expenses and ensure transparency in their trading activities.


  • To sum up, investors should have thorough information regarding the brokerage fees and tariff sheets in the commodity segment.
  • Motilal Oswal provides a transparent fee structure, allowing investors to make informed decisions.
  • Investors can effectively plan their trading strategies and accurately calculate their trading expenses by knowing their brokerage charges, account fees, transaction charges, and taxes.
  • Motilal Oswal's commitment to transparency ensures that investors have a clear understanding of the costs associated with commodity trading.

  • Open your FREE Demat Account in 5 Minutes
Select State
Select City
By submitting your details, you are authorising us to call you or send promotional communication even though you may be registered under DND