Zerodha Doubles F&O Brokerage Charge for Select Traders Starting April 1 Zerodha has announced a significant change in its brokerage charges for intraday futures and options (F&O) traders, effective April 1, 2026. The company will increase the brokerage fee from ₹20 to ₹40 per order for traders who do not comply with the Securities and Exchange Board of India (SEBI) margin rules. This adjustment applies only to specific traders, not all users. The new fee structure is part of Zerodha’s response to regulatory changes and declining revenue in the F&O segment. SEBI has recently prohibited brokers from using their own funds to meet clients’ margin requirements, forcing firms to adjust their pricing models. Additionally, reduced trading volumes in the F&O segment have led to a nearly 40% drop in Zerodha’s brokerage revenue. Under the updated rules, traders must maintain at least 50% of their collateral in cash or liquid funds to avoid the higher fee. Those who fail to meet this requirement will now face a ₹40 charge per order instead of the previous ₹20. Zerodha previously helped traders with insufficient cash by using its own funds to meet regulatory requirements, but this practice will no longer be available. The decision aligns with broader industry shifts, including the elimination of exchange fee rebates and higher taxes on derivatives, which have pressured brokers’ business models. Zerodha’s CEO, Nitin Kamath, had previously warned that regulatory changes would impact the company’s operations. He emphasized that Zerodha remains debt-free, ensuring that customers will not face direct financial consequences from the new policies. The move underscores the growing challenges faced by brokerage firms in adapting to stricter regulations and evolving market dynamics.#sebi #zerodha #nitin_kamath #futures_options #brokerage_fees
Zerodha Increases Brokerage Charges: Industry Implications and Key Reasons Announcement of Fee Hike Zerodha, India’s leading discount brokerage, has announced an increase in brokerage charges for trades where traders do not maintain sufficient cash collateral. The move affects trades where the margin requirement is not met, leading to higher fees for such transactions. This decision comes amid rising operational costs and regulatory pressures. Key Reasons Behind the Decision STT Tax Hike: The government’s proposed increase in Security Transaction Tax (STT) for futures and options has raised the cost of derivative trading. Futures STT is set to rise from 0.02% to 0.05%, while options premiums will see a 0.10% to 0.15% increase. This has already elevated transaction costs for traders. Collateral Management: Zerodha’s CEO, Nitin Kamath, highlighted that the rapid growth in collateral deposits has strained the company’s liquidity. To sustain operations, Zerodha may need to borrow funds, which incurs interest costs. Instead of imposing a flat fee, the firm opted to charge additional brokerage on trades with insufficient cash margins. Risk Mitigation: The move aims to reduce excessive leverage in the market, aligning with regulatory efforts to curb systemic risks. Industry-Wide Impact Potential for Broader Changes: Market experts suggest Zerodha’s decision could signal a trend in the brokerage industry. As a major player, Zerodha’s fee hike may encourage other firms to follow suit, leading to a broader shift in pricing strategies. Market Volatility: Higher transaction costs could dampen trading volumes, particularly in derivatives markets. This may pressure traders to adjust their strategies or seek alternative platforms.#stock_market #zerodha #nitin_kamath #stt_tax #dr_digraj_madheshia
