₹20 per order or ₹49 per lot? How F&O brokerage charges can reduce your trading profits
F&O brokerage charges can significantly erode trading profits, particularly for investors dealing in multiple lots. A comparison of pricing shows how transaction costs can rise sharply with trading volume, even before taxes and other charges.
- Nov 13, 2026,
- Updated Nov 13, 2026 8:27 PM IST
Brokerage charges can significantly affect profits for active futures and options traders, particularly when multiple lots are involved. While Zerodha and HDFC SKY offer flat ₹20-per-order options pricing, ICICI Direct's cited ₹49-per-lot structure can result in substantially higher costs for larger trades.
For retail investors trading futures and options (F&O), brokerage charges may appear insignificant compared with potential market gains. However, frequent trading and larger positions can turn seemingly small transaction fees into substantial expenses, reducing overall profitability.
The difference becomes particularly noticeable when comparing flat per-order brokerage with per-lot pricing offered by different trading platforms.
₹20 per order vs ₹49 per lot: What's the difference?
Under the pricing structures provided, Zerodha and HDFC SKY charge ₹20 per executed options order, irrespective of the number of lots traded in that order.
ICICI Direct, meanwhile, offers plan-dependent brokerage, with ₹49 per lot used as the illustrative rate. Its charges may vary depending on the subscription plan.
Consider a trader buying and subsequently selling options contracts through two executed orders.
For a single lot, the brokerage would amount to ₹40 under a ₹20-per-order model, compared with ₹98 under the ₹49-per-lot structure.
However, the difference increases sharply with larger positions.
How brokerage costs change with lot sizes
| Lots traded | ₹20 per order (buy + sell) | ₹49 per lot (buy + sell) | Difference |
|---|---|---|---|
| 1 lot | ₹40 | ₹98 | ₹58 |
| 5 lots | ₹40 | ₹490 | ₹450 |
| 10 lots | ₹40 | ₹980 | ₹940 |
| 20 lots | ₹40 | ₹1,960 | ₹1,920 |
Note: Calculations assume one buy order and one sell order, with all lots executed in each order. Statutory taxes and other transaction charges are excluded.
How frequent trading affects profits For a trader executing 20 round-trip trades involving five lots each, brokerage under the flat-rate model would total ₹800.
Under the ₹49-per-lot structure, the same activity would generate brokerage expenses of ₹9,800, representing a difference of ₹9,000.
These calculations demonstrate how brokerage structures can influence trading expenses, particularly for active traders dealing in multiple lots.
Brokerage is not the only expense
Investors must also account for securities transaction tax (STT), exchange transaction charges, GST, stamp duty and other applicable levies.
These additional expenses can further reduce net trading profits, especially when positions are opened and closed frequently.
Importantly, lower brokerage does not guarantee better trading outcomes. Leverage, market volatility, options time decay and poor risk management can result in losses far exceeding transaction costs.
Before choosing a platform, traders should compare the complete cost of trading, including applicable brokerage plans, statutory charges and execution-related expenses, rather than relying solely on advertised rates.
Brokerage charges can significantly affect profits for active futures and options traders, particularly when multiple lots are involved. While Zerodha and HDFC SKY offer flat ₹20-per-order options pricing, ICICI Direct's cited ₹49-per-lot structure can result in substantially higher costs for larger trades.
For retail investors trading futures and options (F&O), brokerage charges may appear insignificant compared with potential market gains. However, frequent trading and larger positions can turn seemingly small transaction fees into substantial expenses, reducing overall profitability.
The difference becomes particularly noticeable when comparing flat per-order brokerage with per-lot pricing offered by different trading platforms.
₹20 per order vs ₹49 per lot: What's the difference?
Under the pricing structures provided, Zerodha and HDFC SKY charge ₹20 per executed options order, irrespective of the number of lots traded in that order.
ICICI Direct, meanwhile, offers plan-dependent brokerage, with ₹49 per lot used as the illustrative rate. Its charges may vary depending on the subscription plan.
Consider a trader buying and subsequently selling options contracts through two executed orders.
For a single lot, the brokerage would amount to ₹40 under a ₹20-per-order model, compared with ₹98 under the ₹49-per-lot structure.
However, the difference increases sharply with larger positions.
How brokerage costs change with lot sizes
| Lots traded | ₹20 per order (buy + sell) | ₹49 per lot (buy + sell) | Difference |
|---|---|---|---|
| 1 lot | ₹40 | ₹98 | ₹58 |
| 5 lots | ₹40 | ₹490 | ₹450 |
| 10 lots | ₹40 | ₹980 | ₹940 |
| 20 lots | ₹40 | ₹1,960 | ₹1,920 |
Note: Calculations assume one buy order and one sell order, with all lots executed in each order. Statutory taxes and other transaction charges are excluded.
How frequent trading affects profits For a trader executing 20 round-trip trades involving five lots each, brokerage under the flat-rate model would total ₹800.
Under the ₹49-per-lot structure, the same activity would generate brokerage expenses of ₹9,800, representing a difference of ₹9,000.
These calculations demonstrate how brokerage structures can influence trading expenses, particularly for active traders dealing in multiple lots.
Brokerage is not the only expense
Investors must also account for securities transaction tax (STT), exchange transaction charges, GST, stamp duty and other applicable levies.
These additional expenses can further reduce net trading profits, especially when positions are opened and closed frequently.
Importantly, lower brokerage does not guarantee better trading outcomes. Leverage, market volatility, options time decay and poor risk management can result in losses far exceeding transaction costs.
Before choosing a platform, traders should compare the complete cost of trading, including applicable brokerage plans, statutory charges and execution-related expenses, rather than relying solely on advertised rates.