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:
| Commodity | Transaction charge |
| Pepper | 0.00005% |
| Castorseed | 0.0005% |
| RBD Palmolein (RBDPMOLEIN) | 0.001% |
| Kapas | 0.0026% |
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
zerodha.com/charges#tab-commodities.
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.
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