When investing or trading in the stock market through Zerodha, one of India’s most popular discount brokers, it’s important to understand how much brokerage charges in Zerodha are applied to various types of transactions. Whether you’re trading equity, derivatives, commodities, or investing in mutual funds, the charges can vary slightly. Having a clear understanding of these fees helps investors make better financial decisions and manage costs effectively. Zerodha has gained popularity due to its low-cost structure and transparency, making it a preferred platform for many retail investors and traders in India.
Overview of Zerodha’s Brokerage Model
Zerodha operates on a flat-fee discount brokerage model. This means they charge a fixed fee for certain trades, unlike traditional brokers who charge a percentage of the transaction value. This structure makes Zerodha a cost-effective platform, especially for high-volume traders and long-term investors.
Key Features of Zerodha’s Brokerage Structure
- No brokerage on equity delivery trades.
- Flat fee of ₹20 or 0.03% (whichever is lower) per executed order for intraday and derivatives.
- Zero charges on mutual fund investments via Coin (Zerodha’s mutual fund platform).
Equity Brokerage Charges
Equity Delivery
For equity delivery trades, Zerodha charges absolutely no brokerage. This means you can buy and hold shares in your demat account without incurring any brokerage charges.
Brokerage for Equity Delivery: ₹0
Equity Intraday
If you are engaging in intraday trading that is, buying and selling stocks within the same trading session Zerodha charges a flat fee.
Brokerage for Intraday Trading: ₹20 or 0.03% per executed order, whichever is lower
For example, if you buy shares worth ₹50,000 and sell them the same day, your brokerage will be 0.03% of ₹50,000 = ₹15. Since ₹15 is less than ₹20, you will pay ₹15 as brokerage.
Futures and Options (F&O) Charges
Equity Futures
Trading in equity futures on Zerodha also incurs a flat brokerage charge.
Brokerage for Futures: ₹20 or 0.03% per executed order, whichever is lower
Equity Options
For options trading, Zerodha charges a flat brokerage per executed order.
Brokerage for Options: ₹20 per executed order
This fee is fixed regardless of the lot size or contract value. Even if you trade multiple lots of an option, the charge remains ₹20 for that executed order.
Commodity Trading Charges
Zerodha allows trading in commodities through its platform on MCX (Multi Commodity Exchange).
- Commodity Futures: ₹20 or 0.03% per executed order
- Commodity Options: ₹20 per executed order
Other additional charges such as transaction charges, CTT, and SEBI turnover fees will also apply as per regulatory norms.
Currency Derivatives Charges
Zerodha offers trading in currency futures and options across various currency pairs.
- Currency Futures: ₹20 or 0.03% per executed order
- Currency Options: ₹20 or 0.03% per executed order
These charges are the same as equity futures and intraday trades, offering uniformity across instruments.
Mutual Fund Investments
Zerodha offers direct mutual fund investments through its platform called Coin. There are no commissions or brokerage fees charged for investing in mutual funds via Zerodha.
Brokerage for Mutual Funds: ₹0
Investors can choose from a wide range of direct mutual funds, and Zerodha earns no trail commission, which helps improve overall returns for investors.
Call & Trade Charges
If a user prefers to place trades through Zerodha’s call and trade service, an additional charge is levied.
Call & Trade Fee: ₹50 per order
This charge is separate from the brokerage fee and applies each time a trader places an order through the phone.
Other Charges to Consider
Transaction Charges
These are charges levied by stock exchanges and vary depending on the exchange (NSE/BSE/MCX) and the traded instrument.
GST (Goods and Services Tax)
GST of 18% is applicable on the brokerage and transaction charges.
SEBI Charges
SEBI turnover fees are ₹10 per crore of turnover, and these are standard across all brokers.
Stamp Duty
Stamp duty is charged as per the state in which your account is registered and differs for delivery, intraday, and derivatives.
Illustrative Example
Let’s say you buy ₹1,00,000 worth of shares and sell them the same day in an intraday trade. Here’s how your charges may look:
- Buy Brokerage: ₹20 or 0.03% of ₹1,00,000 = ₹30 → You are charged ₹20
- Sell Brokerage: ₹20 or 0.03% of ₹1,00,000 = ₹30 → You are charged ₹20
- Total Brokerage: ₹40
- GST @ 18% on ₹40 = ₹7.2
- Other charges (Exchange fee, STT, Stamp Duty): Vary depending on instrument and state
Total cost could be around ₹50-₹70 depending on other applicable fees, which is still lower compared to traditional brokers who charge a percentage of the total trade value.
Why Zerodha Is Cost-Effective
Many traders and investors choose Zerodha because of its transparent and affordable pricing model. By charging flat brokerage rates, Zerodha ensures that even large trades don’t attract higher fees. This benefits high-volume traders significantly.
Benefits of Zerodha’s Brokerage Charges
- Flat, predictable costs for traders
- No hidden charges
- No brokerage on delivery trades encourages long-term investment
- Zero fees on mutual funds increases returns over the long term
Understanding how much brokerage Zerodha charges is essential for optimizing your trading and investing costs. With no brokerage on delivery trades and a flat ₹20 or 0.03% charge on intraday, futures, and options, Zerodha provides one of the most competitive fee structures in India. By keeping brokerage low and transparent, Zerodha empowers retail traders and investors to make informed and cost-effective financial decisions. If you are looking for a platform that balances affordability with reliable services, Zerodha stands out as a smart choice for both beginners and experienced market participants.