Zerodha is the largest platform for online share trading in India, providing brokerage services to invest in equity, currency, commodity, IPO, mutual funds, etc. Before you start trading, it will be helpful for you to know about the availability of commissions. This article will cover all Zerodha fees, including account opening and trading charges.
Is Zerodha completely free?
Trading costs vary depending on the market segment. For example, Zerodha provides commission-free mutual fund investment and equities delivery trading.
Despite trading options without fees, clients must pay other levies such as Government Taxes (STT, Exchange Turnover Charges, Goods and Services Tax or GST, SEBI Charges, and Stamp Duty) and Demat account and transaction fees.
Note! You can utilize a brokerage calculator on the Zerodha website to count commissions for trading various assets.
Zerodha online trading charges
The platform also offers a flat-fee brokerage service. Zerodha charges a set fee of ₹20 or 0.03% (whichever is lower) for every completed order for Intraday and Futures and Options (F&O) trading across Equity, Currency, and Commodity categories.
The Nifty Futures & Options segment of Zerodha is known as NFO. It can be traded on the platform via Zerodha Kite Web or the mobile app.
NFO charges are levied on trades in the F&O segment. For trading in Futures, Zerodha has set charges of 0.03% or ₹20 per executed order, whichever is lesser, and a flat ₹20 per completed transaction for trading in Options.
The platform provides currency trading as NSE and BSE derivatives. It provides the following trading pairings:
- Yen/Indian Rupee (JPY/INR);
- US Dollar/Indian Rupee (USD/INR).
Zerodha offers it in two variants: Futures and Options because currency trading can only be done through derivatives.
The brokerage charge follows the platform’s core model and is 0.03% or ₹20. There is no Securities Transaction Tax or Commodity Transaction Tax, although there is an 18% GST. There are also exchange transaction charges, which both exchanges pay at varying rates: 0.00022% for BSE and 0.0009% for NSE.
The brokerage for options in Zerodha is comparable to Futures, i.e., 0.03% or ₹20. Again, there is GST at 18%. The exchange fees are as follows: NSE is 0.035%, and BSE is 0.001%.
Zerodha does not collect hidden fees, for example, for email notifications and SMS alerts. All current commission amounts are indicated on the Zerodha website. Trading taxes are also listed in the contract note.
Trading fees on Zerodha
The platform provides a trading and Demat account. To open it, you need to pay the entry and other charges. The complete list is below:
- Account opening fees are ₹200 for online creation and ₹400 for offline submission of documents.
- Account Maintenance Charges (AMC) are ₹300 plus GST. The corresponding amount is charged every quarter, i.e., 90 days.
- Depository participant charges are ₹13.5 + GST per scrip on the day. It is debited from the trading account when stocks are sold.
- Transaction/Turnover Fees are calculated based on the number of your transactions and are charged by the exchanges (BSE, NSE, MCX). Their value also depends on the market segment you are trading.
- The call and trade service is an additional fee of ₹50. It is charged for an order placed via a call to support.
- Stamp charges. Fees are levied by the Government of India under the Indian Stamp Act of 1899 for trading in instruments on depositories and stock exchanges.
- GST is a government tax levied on services delivered, 18% of the total (brokerage services + transaction fees).
- SEBI fees. The Securities and Exchange Board of India (SEBI) charges a fee ranging from ₹1 to ₹10 for regulating the markets. The amount depends on the traded segment.
- Pledging fees are ₹30 plus GST per each pledge request.
- Corporate action order charges: takeover/delisting/buyback/OFS orders placed through Console will be charged ₹20 + GST.
- Off-market transfer fees are 25% or 0.03% of the transfer value (whichever is more).
- Delivery-based trades are charged a minimum of ₹0.01 per contract note. To receive physical contract notes, you need to pay ₹20 each. Courier fees are not included.
- Request for physical Client Master Report (CMR). The first request is free of cost. For future requests, add ₹20 + ₹100 of courier charge + GST.
- The payment gateway charge is ₹9 per transfer, excluding GST. It does not apply to transfers via UPI.
- Delayed Payment Fees. On the debit balance in your trading account, interest is charged at 0.05% per day or 18% per year.
Non-Resident Indian (NRI) brokerage fees for a PIS account, the equity rate is ₹200 or 0.5% per executed order (whichever is lower); for a non-PIS account, the equity fee is ₹100 or 0.5% per executed order. Also, AMC is ₹500 + GST; Futures and Options orders cost ₹100.
Note! List of all fees, charges, and taxes on trading and investing you can find on the Zerodha website.
The trading platform is optimal for beginners, providing clear brokerage plans and no hidden fees. If you suddenly feel that the charges are too high, do not worry: brokerage cannot exceed the rates specified by SEBI and Indian exchanges.
You should consider the commissions Zerodha takes and the risk of losing your investment. To reduce this financial risk, get trained and not trade large amounts right away.