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Do all brokerages charge an administrative fee?

An administrative fee is one of the brokerage charges you might incur when you utilize the brokerages’ services. You may find that apart from the sale commission the broker will get, there is an additional charge that they may charge the clients or the seller of the owner of the services or product.

In some states, you may find that there are laws that have been put in place that such fees violate the procedures act for brokerage. Since no regulation determines how the brokerage can charge the broker in many states, they charge other expenses to facilitate the process. In this article, you will know if all the brokerage charges an administrative or not.

What is the administrative fee?

An administrative fee is one of the brokerage charges charged to the seller and the buyer when closing the deal. This fee varies from state to state, or the services provided, but it mostly ranges from 11,000 INR to 12,000 INR. This fee is an additional cost on the commission that is being collected. The broker sets this fee, increasing it even after closing the deal.

Once the broker waves the fee to the seller or the buyer, they will deduct the amount from the amount the buyer will pay. This charge has raised a lot of concern, and others have gone ahead to form a legal policy not to perform an additional fee apart from the commission.

However, the brokers found ways to make the administrative fee part of the commission. Therefore, you may see that they say they do not charge this fee, but it, in a real sense, is like a hidden fee to the commission they charge. Now let’s look if all the brokerages charge an administrative fee.

Do all brokerages charge an administrative fee?

The answer to this question is no. Not all brokers charge an administrative fee. Before you do any business with any broker, you must check if they charge additional charges or not. To avoid any confusion that may arise later when working with the brokers, you can agree with them in writing before you start any deal with them.

To know if they charge other fees apart from the one in the agreement, check their agreement policy to be sure. Therefore, before signing any document with them, make sure that they charge an extra fee or not.

If you find that their administrative fee is required, you can opt to use the one that does not charge an extra fee. Despite the kind of deal, you want to enter with the brokers, you will get one that can offer their services without additional charge. Thus, you should compare them before selecting any broker.


Not all stockbroker in India charges administrative fees. Every brokerage has its model and how they provide its brokerage services. Others do not find it hard to pay for any extra charge because of the fantastic services that they get from these agents. However, you may view it as a waste of money if you can work with other agents that offer the same service without charging you an extra fee.