Zerodha Brokerage Charges Review

Zerodha Brokerage Charges has been explained properly in this Article, Lets have a detailed understanding of Zerodha Brokerage.

As a discounting firm, Zerodha charges very minimal and nominal brokerage rates. Also, the brokerage structure of Zerodha is very simplified in comparison to the other full service brokers. The typical full service brokers have multiple schemes and under each scheme, each instrument will have a category and a further sub category and different rates for each category and sub-category. Like in case of equity it will have equity intraday and equity delivery, then for commodities – different rates for different exchanges and so on.

Zerodha Brokerage Charges Overview

In case of Zerodha, a flat brokerage at the rate of 0.01% on each trade order is charged. However, the brokerage per order cannot exceed INR 20. So, basically, a brokerage of lower of INR 20 or 0.01% of the traded value would be charged to the customer.

Brokerage PlanFlat Plan
Flat FeeRs.20 or 0.01%
Equity DeliveryRs.20 or 0.01%
Equity IntradayRs.20 or 0.01%
Equity FuturesRs.20 or 0.01%
Equity OptionsRs.20 or 0.01%
Currency FuturesRs.20 or 0.01%
Currency OptionsRs.20 or 0.01%
CommodityRs.20 or 0.01%

Zerodha Flat Rate Brokerage

As mentioned above, Zerodha has a flat brokerage rate through-out for all the product variants – be it currency, F&O – equity or F&O currency or commodity or simple equity trading. However, there is one exception to this. Zerodha offers an absolutely free trading for delivery based equity transactions.

Zerodha Brokerage Plan

Having understood the simple brokerage plan, the readers need to learn about the other statutory charges that accompany the brokerage charges. These statutory charges form a part of an investor’s cost base and is an outflow for him/her. Thus, it is not only the 0.01% or the 20 rupee that the investor will shell out, rather, there would be add on expenses as well which are discussed below:

SegmentsTransaction Charges (per Cr.)STTGST
Equity Delivery & IntradayINR 325Delivery – 0.01% on both Sides
Intraday – 0.025% on Sell Side
18% on Brokerage + Transaction Charges
Futures – EquityINR 2100.01% on Sell Side
Options – EquityINR 5,3000.017% on Sell Side
Futures – CurrencyINR 135NA
Options – CurrencyINR 4,300NA
CommodityNon Agri – 0.0031%

Agri – 0.00175%

0.01% on Sell Side

* Stamp duty may vary depending upon the state laws

The above details would suffice for an investor to learn about Zerodha Brokerage charges that he or she has to bear for any trading activity.

Zerodha Brokerage Charges Explained

  • Transaction charges : This includes two components – Exchange turnover charges and clearing charges. The exchange turnover charges are the charges levied by the stock exchange for providing a platform to execute trade. The clearing charges are the charges that are paid or incurred by the stock broker to get the trade settled/cleared either by professional clearing member or by itself.
  • STT ( Securities transaction tax) – This is a fiscal tax imposed by the Government. This was introduced to curb cases where the profits from trading were not being declared by the investors.
  • GST – The most happening topic since last few months – Goods and service tax
  • SEBI Turnover fee : This came in effect in January 2007 and was introduced by SEBI – Securities & Exchange Board of India. SEBI prescribed that the brokerage houses are required to pay certain percent of their respective turnover.

The brokerage houses charge their investor with this fee (i.e. the prescribed percentage is charged on the value of transaction) on each transaction and then remit this to the SEBI via concerned stock exchange.

The said fee is typically shown as separate line item in the contract note.

Zerodha Brokerage Charges Customer Ratings

Zerodha Brokerage Charges Review

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