Do I have to pay any brokerage at the time of applying for an IPO?

Last Updated: 24-Feb-2021

Short Answer

No, the application process for an IPO can be availed with zero brokerage fees. Applying in an IPO is free of cost and you don't have to bear a fee.

Detailed Answer

IPO Stands for Initial Public Offering, which is a process by which any private company becomes a public company by offering its shares to the general public for the very first time. It is the process by which a company gets listed on the stock exchange, so that the public can buy their share, unlike a private company where a handful of shareholders shares the ownership.

Brokerage Fee for Applying for an IPO

There are no brokerage fees associated to apply for an IPO. All you need to do is to maintain a minimum amount that will be applicable as your application fee for an IPO.

Even though you don't have to pay any brokerage fee for applying for an IPO, when you sell your shares, you have to pay brokerage and taxes for that IPO.

Moreover, if a stock broker like Zerodha who offers brokerage-free equity delivery trading, it's likely it won't charge commission even while selling the allocated IPO shares sold through it.

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Categories: IPO Basics
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