Zerodha brokerage structure overview

Overview

Zerodha operates a flat-fee brokerage model that departed from the percentage-of-turnover convention dominant among Indian brokers when the firm launched in 2010. Under this model, the brokerage component of a trade’s cost is either zero (for equity delivery) or capped at a flat Rs 20 per executed order across all other segments. The total amount debited from a client’s account, however, is substantially larger because several statutory levies – securities transaction tax, exchange transaction charges, GST, stamp duty, and the SEBI turnover fee – are collected on top of brokerage and remitted to the relevant governmental or regulatory authorities.

Understanding the brokerage structure in its entirety requires separating two categories of charges: those that Zerodha retains as revenue (brokerage itself, and a share of the payment-gateway fee on some funding methods) and those that Zerodha merely collects as an agent and passes through to the government, the exchange, the depository, or SEBI. This article maps the complete charge architecture for every major trading segment available on Zerodha’s Kite platform as of mid-2026.

Historical context

Before discount brokers entered the Indian market, full-service firms typically charged 0.3 to 0.5 percent of turnover on delivery trades and 0.03 to 0.05 percent on intraday trades. On a Rs 1,00,000 delivery trade, a client could pay Rs 300 to Rs 500 in brokerage alone before any statutory levies. Zerodha’s 2010 launch with a flat Rs 20 cap, and the subsequent introduction of zero-brokerage on equity delivery, forced a structural repricing across the industry. As of 2026 every major Indian broker – Groww, Upstox, Angel One, 5Paisa, HDFC Securities – offers some version of flat-fee pricing, though rate cards and exemption categories differ.

Segment-by-segment brokerage rates

Equity delivery

Zerodha charges zero brokerage on equity delivery trades executed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). A delivery trade is one where the client intends to take or give actual possession of shares, resulting in a change in demat account holdings by the settlement date (T+1 as of January 2023 under SEBI’s shortened settlement cycle). The zero-brokerage policy covers all delivery buy and sell orders regardless of value, with no minimum transaction size. Detailed treatment appears in the companion article equity delivery brokerage.

Equity intraday (MIS)

For intraday equity trades – positions opened and squared off within the same trading session under the MIS (Margin Intraday Square-off) product type – Zerodha charges 0.03 percent of turnover per side or Rs 20 per executed order, whichever is lower. The turnover figure used is the actual traded value, not the notional value leveraged through the margin facility. See equity intraday brokerage for the full rate table and illustrative calculations.

Futures (F&O)

Futures trades across NSE and BSE carry a flat brokerage of Rs 20 per executed order on each side (buy and sell). The charge applies per order, not per lot; a single order for ten lots of Nifty futures incurs one Rs 20 brokerage charge, not ten. Commodity futures traded on the Multi Commodity Exchange (MCX) fall under the same Rs 20 flat rate. The companion article F&O futures brokerage covers lot-size calculations and the MCX tariff schedule.

Options (F&O)

Options orders – both equity options on NSE/BSE and commodity options on MCX – carry a flat brokerage of Rs 20 per executed order per side. Because options orders are often filled as a single order spanning multiple lots, the effective per-lot cost depends on position size. The Rs 20 cap makes large options positions significantly cheaper on a per-lot basis than legacy percentage models. Full analysis is in F&O options brokerage.

Currency derivatives

Currency futures and options on NSE, BSE, and the Metropolitan Stock Exchange (MSE) carry the same Rs 20 flat brokerage per executed order. Currency derivatives are excluded from Securities Transaction Tax but are subject to all other statutory levies. The SEBI turnover fee rate for currency derivatives differs from the equity segment rate.

Mutual funds

Zerodha’s Coin platform offers direct-plan mutual fund investments with zero transaction charges. SEBI regulations prohibit brokers from receiving trail commission on direct plans, so there is no hidden fee embedded in the fund’s expense ratio.

Statutory levies: the larger cost component

For most active traders, brokerage is a minor fraction of total transaction cost. The statutory levies – STT/CTT, exchange transaction charges, GST, stamp duty, and the SEBI turnover fee – collectively exceed brokerage in practically every segment. The table below provides a consolidated reference; each levy is described in detail in the linked companion articles.

Rates shown for NSE as of mid-2026. BSE and MCX rates differ slightly; see exchange transaction charges for the full schedule.

Securities Transaction Tax

STT and CTT are the single largest statutory cost for most equity traders. STT is levied under the Finance Act 2004 and is collected by the exchange at the point of trade. The rate varies by instrument and by whether the trade is on the buy side or sell side:

• Equity delivery: 0.1 percent on both buy and sell turnover
• Equity intraday: 0.025 percent on sell turnover only
• Futures: 0.02 percent on sell turnover
• Options: 0.1 percent on the options premium on sell side

CTT (Commodities Transaction Tax) applies to non-agricultural commodity derivatives traded on MCX at 0.01 percent on sell turnover for futures and 0.05 percent on sell premium for options.

STT paid on equity delivery trades is allowable as a deduction against business income under Section 36(1)(xv) of the Income Tax Act if the trader is assessed as a business. For investors taxed under capital gains provisions (Sections 111A and 112A), STT is not deductible but is a prerequisite for the concessional long-term capital gains tax rate of 10 percent on equity assets.

Exchange transaction charges

Every recognised stock exchange charges a fee on each trade settled through its clearing mechanism. NSE, BSE, and MCX publish their tariff schedules, and Zerodha passes these charges through to clients at cost. NSE’s equity cash segment transaction charge is approximately 0.00297 percent of turnover; BSE’s rate differs and varies by scrip category. Futures and options carry different rates – NSE charges approximately 0.00173 percent on futures turnover and 0.03503 percent on options premium. The full rate schedule appears in exchange transaction charges.

GST on brokerage

GST at 18 percent (CGST 9 percent + SGST 9 percent, or IGST 18 percent for clients outside the broker’s state) applies to the sum of brokerage, exchange transaction charges, and the SEBI turnover fee. It does not apply to STT, stamp duty, or the IPFT levy. For a client who incurs Rs 20 in brokerage and Rs 5 in exchange charges, GST is Rs 4.50, making the total Rs 29.50 before other levies.

Stamp duty

Stamp duty on securities transactions was unified under the Finance Act 2019 amendment to the Indian Stamp Act 1899, effective 1 July 2020. All stamp duty is levied on the buy side only, eliminating the prior anomaly where some states levied duty on both sides. The rate schedule varies by instrument: 0.015 percent for equity delivery, 0.003 percent for equity intraday and options, 0.002 percent for futures. Stamp duty is remitted to the state government of the buyer’s registered address, not the exchange’s state.

SEBI turnover fee

SEBI levies a turnover fee on every trade to fund its regulatory operations. The fee is currently 0.0001 percent (Rs 10 per crore of turnover) across most segments. The full mechanism and rate history are covered in SEBI turnover fee.

IPFT levy

The Investor Protection and Education Fund Trust (IPFT) levy is a small charge collected by exchanges and deposited into the IPFT fund maintained by SEBI. The rate is 0.0001 percent for the equity cash segment and 0.0005 percent for derivatives. It is included in what Zerodha labels as “exchange charges” on contract notes. Full details are in IPFT levy.

Depository participant charges

DP charges are levied on every sell transaction that results in actual debit of securities from the client’s CDSL demat account. Zerodha charges Rs 13.5 plus 18 percent GST (total Rs 15.93) per ISIN per day when shares are debited, regardless of quantity or value. This charge does not apply to intraday trades (no demat debit occurs) or to options/futures (no physical demat settlement). DP charges are often overlooked by new investors and can become significant for high-frequency delivery traders who hold many different scrips.

Account-level recurring charges

Beyond per-trade charges, Zerodha levies certain account-level fees:

• Annual Maintenance Charge (AMC): Rs 300 plus GST per year for demat account maintenance via CDSL. The first year is free for accounts opened after a specified date. Details: AMC at Zerodha.
• Call and Trade: Rs 50 per order placed through the phone-order desk, on top of normal brokerage. Details: Call and Trade charges.
• Payment gateway fee: applicable on certain funding methods; UPI is free. Details: payment gateway fees.
• Delayed payment interest: 18 percent per annum on outstanding debit balances. Details: delayed payment interest.

One-time and event-driven charges

Several charges arise only in specific circumstances:

• Pledge and unpledge: Rs 30 plus GST per pledge or unpledge request for margin against shares. Details: pledge and unpledge charges.
• DDPI (Demat Debit and Pledge Instruction): a one-time charge of Rs 75 plus GST to activate the DDPI facility that replaces the need for a physical power of attorney. Details: DDPI charge.
• Off-market transfer: Rs 25 per instruction or 0.03 percent of value (whichever is higher) for transferring securities off-market. Details: off-market transfer charges.
• CMR/CML physical request: charges apply when a client requests a physical copy of the Client Master Report or the Client Master List. Details: CMR/CML charges.
• Corporate action order charges: applicable when Zerodha submits orders on behalf of clients for rights issues, buybacks, or OFS. Details: corporate action order charges.

MTF charges

Margin Trading Facility (MTF) allows clients to buy securities on credit, with the broker funding a portion of the purchase price. Zerodha charges interest on the funded amount at approximately 0.04 percent per day (approximately 14.6 percent per annum as of mid-2026), plus normal brokerage on MTF trades. Details: MTF interest and brokerage.

NRI accounts

Non-Resident Indian clients trade under a different fee structure. PIS (Portfolio Investment Scheme) accounts used for repatriable equity delivery investments carry a brokerage of 0.5 percent or Rs 200 per order (whichever is lower). Non-PIS accounts used for non-repatriable investments carry the standard flat-fee structure. Statutory levies are the same as for resident clients. Details: NRI brokerage.

Total cost illustration

To illustrate how these charges aggregate, consider a client who buys 100 shares of a Rs 500 stock (total value Rs 50,000) as an equity delivery trade and sells them on a subsequent day:

Buy leg:

Sell leg (same value, shares appreciated to Rs 52,000):

Round-trip cost: Rs 129.22 on a Rs 2,000 notional gain (6.46 percent of gain, 0.13 percent of turnover)

This illustration demonstrates that even with zero brokerage, statutory levies create a meaningful cost floor that traders must overcome to generate net profit.

Comparison with other brokers

As of mid-2026, the dominant flat-fee brokers in India charge the same statutory levies (which are mandated by law and identical regardless of broker). The differentiation lies in brokerage rates:

• Groww: Rs 20 per order for intraday/F&O; zero for delivery (same model as Zerodha)
• Upstox: Rs 20 per order cap; zero delivery brokerage
• Angel One: Rs 20 per order
• 5Paisa: Rs 20 per order
• HDFC Securities: percentage-based; 0.3% delivery, 0.05% intraday

The practical difference between the top discount brokers on brokerage is negligible. Key differentiators are platform reliability, margin policies, DP charge structure, and interest rates on MTF.

Regulatory framework

Zerodha, like all SEBI-registered stock brokers, is required to disclose all charges to clients before account opening and in each contract note. SEBI’s master circular on stock brokers (most recent revision 2023) mandates itemised disclosure of every charge component. The contract note issued for each trading day must list brokerage, STT/CTT, exchange charges, SEBI turnover fee, GST, stamp duty, and DP charges separately. Clients have a right to receive the contract note by the end of the trading day and to dispute any charge within 30 days of receipt.

See also

• Zerodha
• Equity delivery brokerage
• Equity intraday brokerage
• F&O futures brokerage
• F&O options brokerage
• STT and CTT on Zerodha
• SEBI turnover fee
• Exchange transaction charges
• GST on broking charges
• Stamp duty by segment
• DP charges
• SEBI
• National Stock Exchange
• Bombay Stock Exchange

References

1. SEBI Master Circular for Stock Brokers, SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/72 (May 2023)
2. Finance Act 2004, Chapter VII – Securities Transaction Tax
3. Indian Stamp Act 1899, as amended by Finance Act 2019 (Schedule I, Articles 5 and 6)
4. NSE Circular on Schedule of Charges – NSE/FAOP/54417 (applicable FY 2025-26)
5. BSE Notice on Transaction Charges – BSE/LISTING/2024-25 series
6. CGST Act 2017, Section 9; IGST Act 2017, Section 5
7. SEBI Circular on IPFT levy – SEBI/HO/MRD/DRMNP/CIR/P/2018/107
8. Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)