How Much Brokerage Does Zerodha Charge?

When it comes to online trading in India, Zerodha stands out as one of the most popular brokerage firms. But a common question that many potential investors ask is: How much brokerage does Zerodha charge? In this article, we’ll break down Zerodha’s brokerage structure, explain how its charges work, and help you understand whether Zerodha offers good value for your investments.

Introduction to Zerodha

Zerodha, established in 2010, is a discount brokerage firm that has revolutionized the Indian stock market with its low-cost, tech-driven approach to trading. Unlike traditional brokers who charge a percentage of the transaction amount as brokerage, Zerodha offers a flat fee structure, making it attractive to retail investors and traders alike. This article provides a detailed overview of Zerodha's brokerage charges, helping you make an informed decision if you’re considering using their platform. Please check out our article about Zerodha Review for more insights.

What Makes Zerodha Different from Traditional Brokers?

Before diving into the specifics of Zerodha’s charges, it’s essential to understand the difference between discount brokers and traditional brokers. Traditional brokers typically charge a percentage-based fee on the transaction value. This means that the higher the trade volume, the more you pay. Zerodha, being a discount broker, charges a flat fee for most transactions, regardless of the trade size.

Zerodha Brokerage Charges Overview

Zerodha’s brokerage charges vary depending on the type of transaction. Here’s a breakdown of its fees:

1. Equity Delivery (Buying and Selling Stocks to Hold Long-Term)

   • Brokerage: Zero brokerage on equity delivery trades. This means you can buy and sell stocks with no brokerage charge when holding them for the long term.

2. Equity Intraday (Buying and Selling Stocks Within the Same Day)

   • Brokerage: Zerodha charges ₹20 or 0.03% per executed order, whichever is lower. If you trade intraday stocks, the maximum brokerage you’ll pay is ₹20 per order, regardless of the order size.

3. Equity Futures

   • Brokerage: Zerodha charges ₹20 or 0.03% per executed order, whichever is lower. This flat fee applies to all equity futures trades.

4. Equity Options

   • Brokerage: A flat fee of ₹20 per executed order for buying and selling equity options. This makes options trading cost-effective, especially for high-volume traders.

5. Currency Futures and Options

   • Brokerage: ₹20 or 0.03% per executed order, whichever is lower, for trading in currency derivatives. This fee applies to both currency futures and options.

6. Commodity Futures and Options

   • Brokerage: Similar to equity and currency trades, Zerodha charges ₹20 or 0.03% per executed order, whichever is lower, for commodity futures and options.

Additional Zerodha Charges You Should Know

While the brokerage charges are clear-cut, there are other fees and taxes that apply to trades on Zerodha. Here’s a list of additional charges:

1. Securities Transaction Tax (STT)

   • Equity Delivery: 0.1% on both buy and sell.

   • Equity Intraday: 0.025% on the sell side.

   • Futures and Options: 0.01% on the sell side for futures and 0.05% on the sell side for options.

2. Transaction Charges

   • For NSE transactions, ₹325 per crore of turnover is charged for equity, and ₹190 per crore for futures.

3. Goods and Services Tax (GST)

   • A 18% GST is levied on the brokerage and transaction charges combined.

4. Stamp Duty

   • This varies by state, but it’s charged as per government regulations, typically as a small percentage of the trade value.

5. SEBI Charges

   • Zerodha charges ₹10 per crore as SEBI turnover fees.

6. Call and Trade Charges

   • If you prefer to place orders via phone instead of using the online platform, Zerodha charges ₹50 per order for the call and trade facility.

Is Zerodha’s Brokerage Cost-Effective?

One of the biggest reasons investors and traders flock to Zerodha is its low-cost structure. For retail traders who deal with small volumes or beginners who are just stepping into the world of trading, Zerodha’s ₹20 flat fee is particularly attractive. Even for high-volume traders, the flat fee structure makes trading more predictable and affordable.

Comparison with Other Brokers

When compared to traditional brokers who charge a percentage of the trade value, Zerodha’s brokerage is significantly lower. For instance, if you were to execute a trade worth ₹1 lakh, a traditional broker might charge 0.5%, or ₹500, whereas Zerodha would charge a maximum of ₹20.

Zerodha’s Free Equity Delivery Trades

Perhaps the most appealing feature of Zerodha is its zero brokerage for equity delivery trades. This means if you’re an investor looking to buy stocks and hold them for the long term, you won’t pay any brokerage on your transactions. This can result in substantial savings over time, especially if you’re making frequent long-term investments.

Hidden Charges to Watch Out For

While Zerodha’s fee structure is transparent, there are a few things to be aware of:

1. DP (Depository Participant) Charges

   • Zerodha charges ₹13.5 per scrip when you sell shares from your Demat account. This is not a brokerage fee but a DP charge that is standard across all brokers.

2. Pledging Charges

   • If you want to pledge your shares for a loan or margin trading, Zerodha charges ₹30 + GST per pledge request.

3. Annual Maintenance Charges (AMC)

   • Zerodha charges ₹300 per year as Demat account AMC. However, for new traders, this is a reasonable cost considering the platform’s features and benefits.

Zerodha’s Brokerage Calculator

To make things easier, Zerodha offers a brokerage calculator on its website. This tool allows you to calculate the exact cost of each trade, including brokerage, taxes, and other charges. Simply input the type of trade, trade amount, and market, and the calculator will provide a breakdown of all the costs associated with that trade.

Pros and Cons of Zerodha’s Brokerage Structure

Pros:

• Flat ₹20 per trade: Cost-effective, especially for high-volume traders.

• Zero brokerage for equity delivery trades.

• Transparent fee structure with no hidden costs.

• Access to a powerful trading platform (Kite) with a wide range of features.

Cons:

• DP charges can add up if you sell shares frequently.

• Call and trade facility comes at an additional cost.

• AMC charges for the Demat account.

Conclusion

Zerodha’s brokerage charges are among the most competitive in the Indian market. With a flat ₹20 fee for most trades and zero brokerage on equity delivery, it offers excellent value, particularly for active traders and long-term investors. However, it’s essential to factor in the additional charges like DP fees, transaction charges, and GST to get a full picture of the cost.

Whether you’re a beginner or a seasoned trader, Zerodha’s transparent and cost-effective brokerage structure makes it a top choice for many investors in India. If you’re looking for a platform that combines low costs with advanced trading tools, Zerodha might just be the ideal brokerage for you.