I’m currently using multiple brokers, and cover orders cost me an average of ₹120 in brokerage for a total transaction of ₹10 lakh (₹5 lakh buy + ₹5 lakh sell in equity only).
On the other hand, Groww offers a flat ₹40 charge for both buying and selling combined, but it lacks API support, which is a major limitation for me.
Dhan has caught my attention because of its unique and innovative features, making me seriously consider switching from my current broker. However, I want to clarify whether cover orders on Dhan also follow a flat ₹40 fee structure or if the charges vary based on execution.
Would appreciate insights from anyone familiar with Dhan’s pricing!
Each executed order is ₹20 for intraday and ₹0 for delivery. You shouldn’t get charged more than ₹40 here.
Side note. If it’s on your mind, the best time to switch to Dhan is now. 
Have been using Dhan since launch 3 years back, have had no hiccups.
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Hi @Vishal_Singh,
In case of a cover order, each buy leg will correspond to a sell leg, and if the initial order is executed in multiple parts, each part will have its own corresponding sell leg for stop loss. The brokerage will be charged for each order executed.
Please note that order matching occurs on the exchange based on the availability of buyers and sellers, and brokers do not influence this process. The execution of orders may happen partially depending on the volume and the number of buyers and sellers involved.
As a cover order is always executed in multiple legs, the brokerage will always be greater than 40.
Ideally, this should be abstracted away, as individual traders don’t really need to worry about how many legs their order gets executed in. A flat fee would make more sense, but brokers often say that execution-based charges are out of their control because exchanges impose fees on each executed order.
However, since exchanges already charge traders directly(Exchange Transaction Charges), it feels like we’re paying twice—once to the exchange and again to the broker. Wouldn’t it be more reasonable for brokers and exchanges to handle this more efficiently without passing the extra burden onto traders?
tagging @PravinJ to get more clarity on this.