One of the biggest mistakes new traders make is ignoring brokerage fees and hidden charges. Over time, high transaction costs can severely eat into your trading profits. If you are considering opening an account with Dhan, you are probably wondering exactly how much they charge for trades, account maintenance, and other hidden fees.
Dhan has quickly become one of the most popular discount brokers in India, primarily because of its transparent pricing model and cutting-edge technology like deep TradingView integration. In this comprehensive guide, we will break down the complete Dhan brokerage charges, covering everything from equity delivery to intraday and F&O trading.
By the end of this article, you will have a crystal-clear understanding of every single fee associated with the Dhan app. Let’s get started!
⚡ Quick Answer (Google AI Overview)
If you are looking for a rapid summary of Dhan’s fee structure, here are the core charges you need to know:
Account Opening Fees: ₹0 (Completely Free)
Annual Maintenance Charges (AMC): ₹0 (Lifetime Free for everyone)
Equity Delivery (Long-term Investing): ₹0 Brokerage
Equity Intraday (Day Trading): ₹20 or 0.03% per executed order (whichever is lower)
Futures & Options (F&O): Flat ₹20 per executed order
Mutual Funds & IPOs: ₹0 (No commission)
Detailed Breakdown of Dhan Brokerage Charges
Unlike traditional full-service brokers that charge a percentage on every single trade regardless of the volume, Dhan operates on a flat-fee discount broking model. Let’s look at how this applies to different segments.
1. Equity Delivery Charges (Investing)
If you are an investor who buys shares and holds them in your Demat account for more than a day, you will absolutely love Dhan.
Brokerage: Dhan charges ₹0 brokerage on equity delivery. This means whether you buy shares worth ₹10,000 or ₹10 Lakhs, the broker does not take any commission from your investment. You only pay the mandatory government taxes.
2. Equity Intraday Charges (Day Trading)
For day traders who buy and sell shares on the exact same day, Dhan offers a highly competitive rate.
Brokerage: You pay ₹20 or 0.03% per executed order, whichever is lower. This means if your trade volume is very small, your brokerage will be just 0.03%, saving you from the flat ₹20 fee. However, if you place a massive trade, your brokerage is capped at a maximum of ₹20 per order.
3. Futures & Options (F&O) Brokerage
Options trading requires lightning-fast execution and low fees. Dhan is incredibly popular among derivative traders for this exact reason.
Brokerage: Flat ₹20 per executed order. Whether you buy 1 lot or 50 lots of Nifty options in a single order, the brokerage remains a flat ₹20.
Understanding the DP Charges in Dhan
While delivery brokerage is free, there is one crucial charge you must understand when selling your holdings: the DP (Depository Participant) Charge.
Whenever you sell shares from your Demat account (Delivery sell), the depository (CDSL) and the broker charge a fee to debit those shares.
Dhan DP Charges: ₹12.5 + 18% GST (Totaling around ₹14.75) per scrip, per day. Please note that this charge is only applied when you sell delivery shares, not when you buy them. It is also charged per company (scrip), not per share.
Other Important Fees (Taxes & Regulatory Charges)
Apart from the broker's fee, every trader in India has to pay mandatory government and exchange taxes. Dhan does not keep this money; it goes directly to the respective authorities. Here is what you should expect:
Securities Transaction Tax (STT): Charged by the government on both buying and selling in Delivery, but only on selling in Intraday and F&O.
Exchange Transaction Charges: A tiny percentage charged by NSE or BSE for facilitating your trade.
GST (Goods and Services Tax): 18% GST is applied to the sum of your brokerage, transaction charges, and SEBI fees.
SEBI Charges: A nominal fee of ₹10 per crore of traded value.
Stamp Duty: A state-level tax applicable only when you buy shares or options.
Dhan provides a built-in "Brokerage Calculator" on their app and website where you can see the exact breakdown of all these taxes before you even place a trade.
Why Traders Choose Dhan (Beyond Low Fees)
Low brokerage is fantastic, but it isn't the only reason traders are flocking to Dhan.
TradingView Integration: Dhan allows you to trade directly from TradingView charts for free. You get access to premium charting tools without paying the hefty TradingView subscription fee.
Instant Withdrawals: Dhan is known for processing fund withdrawals to your bank account within minutes.
Dedicated Options Trader App: They have a separate, highly optimized app specifically designed for F&O traders.
Considering all these advantages, if you are planning to open your Dhan account, one smart move is to apply a partner code during the registration process itself. Most new users miss this option and lose out on free onboarding rewards worth up to ₹2,000. We have written a complete walkthrough on how to apply Dhan referral code & partner code JIINM22240 that covers every step with screenshots, so you can claim the maximum benefit right from day one.
Frequently Asked Questions (FAQs)
1. Are there any hidden charges in Dhan?
No, Dhan is extremely transparent. There are no hidden software fees, no platform usage fees, and no sneaky account maintenance charges. You only pay for the trades you execute and the standard government taxes.
2. Is Dhan AMC really free for a lifetime?
Yes! While many brokers charge ₹300 to ₹500 annually as maintenance fees, Dhan has completely waived off the Annual Maintenance Charge (AMC) for all users, making it lifetime free.
3. How much does Dhan charge for Mutual Funds and IPOs?
Investing in Direct Mutual Funds and applying for IPOs through the Dhan platform is 100% free. There are no commissions or brokerage fees involved in these segments.
4. What happens if my intraday trade is auto-squared off?
If you fail to close your intraday position before 3:20 PM, Dhan’s risk management system will automatically square it off. For this auto-square-off service, Dhan charges an additional ₹20 per position.
Disclaimer: Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. Brokerage and regulatory fees are subject to change as per government policies.