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 Rs.20 per order is charged for Option segment and 0.03% or Rs. 20/executed order whichever is lower for other charges. However, the brokerage per order cannot exceed INR 20. So, basically, a brokerage of lower of INR 20 or 0.03% of the traded value would be charged to the customer.
|Brokerage Plan||Flat Plan|
|Equity Delivery||Rs 0 (Free)|
|Equity Intraday||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Equity Futures||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Equity Options||Flat Rs 20 per executed order (on Turnover)|
|Currency Futures||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Currency Options||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Commodity||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
Zerodha Flat Rate Brokerage
As mentioned above, Zerodha has a flat brokerage rate of Rs.20 per order on one of the options segment. This means, if you choose to trade in the equity options category, you only have to pay Rs.20 per executed order, irrespective of the amount in transaction.
However, there is one great exception to this. Zerodha offers an absolutely free trading for delivery based equity transactions. Other than the equity options and the equity delivery segments, all the other segments have a common brokerage of 0.03% or Rs. 20/executed order whichever is lower.
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 0.03% or the 20 rupee that the investor will shell out, rather, there would be add on expenses as well which are discussed below:
|SEBI Turnover Charges||Rs 10 / Crore|
|STT||Equity Delivery: 0.1% on both Buy and Sell|
Equity Intraday: 0.025% on the Sell Side
Equity Futures: 0.01% on Sell Side
Equity Options: 0.05% on Sell Side(on Premium)
Commodity Futures: 0.01% on sell side (Non-Agri)
Commodity Options: 0.05% on sell side
Currency F&O: No STT
On Exercise transaction: 0.125%
Right to entitlement: 0.05% on sell side
|Stamp Duty||(On buy side only)Delivery: 0.015%, Intraday: 0.003%, Equity Futures: 0.002%, Equity Options: 0.003%, and Currency F&O: 0.0001%. Commodity Futures: 0.002%, Commodity Options: 0.003% (MCX)|
|GST||18% on (Brokerage + Transaction Charge + SEBI Fee)|
|Margin Funding Charges||75% Margin|
|Reactivation Charges||Rs 20 per instruction|
|Account Closure Charges||Rs 25 per instruction|
|Dematerialisation Charges||Rs 30 per instruction|
|Pledge Creation||Rs 30 per request|
|Pledge Invocation||Rs 20 per ISIN|
|Margin Pledge/Unpledge/ Pledge closure||Rs 9 + Rs 5 per request CDSL fee|
|Margin Repledge||Rs 2 CDSL Fee|
* Stamp Duty: On BUY Side (0.015% or ₹1500 / crore For Delivery; 0.003% or Rs.300 / crore for Intraday and Options; 0.002% or Rs.200 / crore for Futures; 0.0001% or Rs.10 / crore for currency F&O; 0.002% or Rs.200 / crore for Commodity Futures and 0.003% or Rs.300 / crore for Commodity Options).
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.
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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
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