Understanding Trading Costs: The Dhanush Advantage Explained

As investors become increasingly cost-conscious, understanding the various fees associated with trading has become crucial for many. This guide explores how traders can optimise their costs while maintaining access to premium trading services and how Dhanush can help them achieve this goal.

Understanding Trading Costs

Trading costs can significantly impact your investment returns, often in ways that aren’t immediately apparent. While many focus on the potential gains from their trading strategies, understanding the cumulative effect of various trading fees can be the first step toward optimising your trading approach.

Brokerage Charges

Traditional brokers often implement a tiered fee structure based on trading volume or a flat percentage of each trade.

Demat Account Fees

Maintaining a demat account traditionally involves annual maintenance charges, account opening fees, and custody charges. These fixed costs can accumulate to several thousand rupees annually, regardless of your trading activity.

Transaction Charges

Beyond basic brokerage charges, traders face various regulatory and operational charges that can complicate cost calculations and impact overall returns.

Dhanush’s pricing approach

Free Demat Account Benefits

By eliminating demat account opening charges, Dhanush removes a significant fixed cost burden from investors. This approach particularly benefits small and medium-sized investors who might find traditional maintenance fees prohibitive.

Competitive Brokerage Rates

Dhanush offers one of the market’s most competitive brokerage structures:

• Equity Delivery: 0.05%
• Equity Intraday: 0.002%

• F&O Futures: 0.002%
• Options Trading: Flat ₹10 per lot

• Currency Futures: 0.002%
• Currency Options: ₹10 per lot

• Commodity Futures: 0.05%
• Commodity Options: ₹10 per lot

Transparent Additional Charges

While some charges are mandatory and regulated, Dhanush ensures complete transparency in all costs:

• Securities Transaction Tax (STT)
• Stamp Duty
• Exchange Transaction Charges
• SEBI Turnover Charges
• Investor Protection Fund Trust Charges

These regulatory charges are standardised across brokers and cannot be avoided, but Dhanush’s transparent approach helps traders understand and plan for these expenses effectively.

Dhanush Advantage: The real differentiator lies in Dhanush’s value-added services, particularly its regular research reports from SEBI-registered analysts, which are typically charged premium fees by traditional brokers.

Conclusion

By minimising costs, traders can focus more on strategy development and market analysis rather than worrying about fee structures eating into their profits. Dhanush’s combination of competitive rates, transparent fees, and value-added services creates an optimal environment for traders at all levels.