Home / Business and Economy / Zerodha Doubles Brokerage on Intraday Derivatives
Zerodha Doubles Brokerage on Intraday Derivatives
25 Mar
Summary
- Zerodha's intraday derivative fees double to ₹40 per order.
- New fees apply to traders not meeting SEBI's 50% cash collateral rule.
- Brokerage hike follows proposed hike in Securities Transaction Tax.
Starting April 1, Zerodha, a leading Indian stockbroker, will double its brokerage fees for specific intraday derivative trades to ₹40 per order. This adjustment targets traders who do not meet the Securities and Exchange Board of India's (SEBI) requirement of holding at least 50% of their collateral in cash or cash equivalents during intraday trading.
Previously, Zerodha bridged this collateral shortfall using its own funds without additional charges. The enhanced fees will specifically impact futures and options trades funded by the broker, while intraday stock trades remain unaffected. This pricing revision aligns with industry trends and potential market shifts.
This decision by Zerodha, known for popularizing low-cost trading, coincides with pressure on derivative volumes due to proposed hikes in the Securities Transaction Tax (STT). The government plans to increase STT on futures from 0.02% to 0.05% and on options premiums from 0.10% to 0.15% starting April 1, 2026. Industry experts anticipate this move could prompt similar fee adjustments from other brokerage firms.
Zerodha's CEO, Nithin Kamath, highlighted that increased collateral requirements have necessitated this change, noting the potential need to borrow funds to meet these obligations. He explained that charging a higher brokerage for trades executed only when accounts are in debit or lack sufficient cash collateral is a more targeted approach compared to a percentage-based fee for debit accounts.
