What are the MCX transaction charges and why are they different across brokers?
The MCX transaction charges are 0.0026% for group A commodities. The charges for group B are as follows:
|RBD Palmolein (RBDPMOLEIN)||0.001%|
Transaction charges include exchange clearing fees and clearing member charges as most brokers use 3rd party clearing vendors for F&O. To view the list of charges, visit
MCX calculates the average turnover from brokers and then incentivises them by reducing the transaction charges from 0.0026% to 0.00175% if the turnover is above ₹350 crores. This incentivises brokers to drive up the volumes on the exchange.
Refunding clients if the transaction charges reduce is impossible for the following reasons:
- The turnover numbers are shared a few weeks after the close of the month.
- Impractical to backdate the clients who were part of the first ₹350 crores.
- Transaction charge along with GST is collected and paid to the respective authorities. It is impractical to track, refund and reverse GST.