Equity delivery brokerage at Zerodha (zero fee)
Overview
Zerodha charges zero brokerage on equity delivery trades – orders placed under the CNC (Cash and Carry) product type on its Kite trading platform. This means the broker retains no brokerage fee from the client on the buy or sell leg of a delivery trade. The policy is unconditional: it applies to all listed equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with no minimum transaction value, no monthly trade-count threshold, and no account-tier qualification required.
Despite zero brokerage, the total debit from a client’s account on a delivery trade is not zero. Statutory levies – securities transaction tax, exchange transaction charges, stamp duty, the SEBI turnover fee, and GST – remain applicable in full. The depository participant charge is levied on the sell side. These pass-through charges are identical regardless of which broker a client uses, because they are mandated by law or by exchange regulations.
Definition of equity delivery
A delivery trade in the Indian equity market is one in which securities are either received into or debited from the buyer’s or seller’s demat account. For buyers, shares purchased under CNC are credited to the CDSL or NSDL demat account on the T+1 settlement date (T being the trade date, T+1 being the next business day, following SEBI’s shortened settlement cycle implemented in January 2023). For sellers, shares are debited from the demat account on trade day and transferred to the exchange’s clearing corporation for onward delivery to the buyer.
Zerodha’s Kite platform designates delivery orders with the product code CNC. This is distinct from MIS (Margin Intraday Square-off) for intraday equity trades and NRML (Normal) for overnight F&O positions. A client who places a CNC buy order and does not sell the shares before market close has committed to delivery; the shares will be credited to their demat account and cannot be squared off intraday without consequences.
Why zero brokerage on delivery
Zerodha’s stated rationale for the zero-delivery policy is volume-driven revenue on other segments. Equity delivery trades generate substantial STT, stamp duty, and DP charge revenue for the government and depositories, and they create long-term customers who eventually trade intraday or in derivatives. By waiving brokerage on delivery, the broker lowers the barrier to account opening and retains clients who might otherwise use mutual funds or direct equity investment platforms. The zero-delivery model has since become the industry standard among discount brokers.
Charges that apply despite zero brokerage
Securities Transaction Tax
STT is levied at 0.1 percent of turnover on both the buy and sell side of equity delivery trades. It is the largest single charge on delivery transactions. For a Rs 1,00,000 delivery trade, STT is Rs 100 on the buy leg and Rs 100 on the sell leg, totalling Rs 200 on a round trip. See STT and CTT on Zerodha for the complete legal basis and rate history.
Exchange transaction charges
NSE charges approximately 0.00297 percent of turnover on equity cash segment trades. BSE charges a different rate which varies by category of security (Group A, Group B, SME, etc.). For a Rs 1,00,000 trade on NSE, the exchange charge is approximately Rs 2.97 per side.
Stamp duty
Under the unified stamp duty regime effective 1 July 2020, stamp duty on equity delivery purchases is 0.015 percent of turnover, levied on the buy side only. There is no stamp duty on the sell side. For a Rs 1,00,000 purchase, stamp duty is Rs 15. Stamp duty is remitted to the state government of the client’s registered address. See stamp duty by segment.
SEBI turnover fee
SEBI levies 0.0001 percent (Rs 10 per crore) of turnover on all equity trades to fund its regulatory activities. On a Rs 1,00,000 trade this is Rs 0.10. See SEBI turnover fee.
GST
GST at 18 percent applies to the sum of brokerage (zero in this case), exchange transaction charges, and the SEBI turnover fee. Because brokerage is zero, GST on a delivery trade is very small – essentially 18 percent of the exchange charge and SEBI fee only. On a Rs 1,00,000 trade: GST = 18% x (Rs 2.97 + Rs 0.10) = approximately Rs 0.55.
Depository participant (DP) charge
When shares are sold from a demat account, the depository participant must debit the securities from the account. Zerodha charges Rs 13.5 per ISIN per day as the DP fee, plus 18 percent GST (total Rs 15.93). This charge is flat – selling 1 share of a scrip incurs the same DP charge as selling 10,000 shares of the same scrip in the same day. The charge is not levied on the buy side or on intraday trades. See DP charges on Zerodha.
IPFT levy
The Investor Protection and Education Fund Trust levy is 0.0001 percent per side, collected by the exchange alongside the transaction charge. On a Rs 1,00,000 trade this is Rs 0.10. See IPFT levy.
Total cost calculation: worked example
Scenario: Buy 200 shares at Rs 250 each (total Rs 50,000). Sell all 200 shares the following week at Rs 270 each (total Rs 54,000).
Buy leg (Rs 50,000 turnover on NSE):
| Charge | Rate | Amount (Rs) |
|---|---|---|
| Brokerage | Zero | 0.00 |
| STT | 0.1% x 50,000 | 50.00 |
| NSE transaction charge | 0.00297% x 50,000 | 1.49 |
| SEBI turnover fee | 0.0001% x 50,000 | 0.05 |
| IPFT | 0.0001% x 50,000 | 0.05 |
| GST | 18% x (0 + 1.49 + 0.05) | 0.27 |
| Stamp duty | 0.015% x 50,000 | 7.50 |
| Buy-side total | 59.36 |
Sell leg (Rs 54,000 turnover on NSE):
| Charge | Rate | Amount (Rs) |
|---|---|---|
| Brokerage | Zero | 0.00 |
| STT | 0.1% x 54,000 | 54.00 |
| NSE transaction charge | 0.00297% x 54,000 | 1.60 |
| SEBI turnover fee | 0.0001% x 54,000 | 0.05 |
| IPFT | 0.0001% x 54,000 | 0.05 |
| GST | 18% x (0 + 1.60 + 0.05) | 0.30 |
| Stamp duty | Nil | 0.00 |
| DP charge | Rs 13.50 + 18% GST | 15.93 |
| Sell-side total | 71.93 |
Total round-trip cost: Rs 131.29 Notional gain: Rs 4,000 Net profit after charges: Rs 3,868.71 Total cost as percentage of turnover (Rs 1,04,000): 0.126%
The effective transaction cost rate of 0.126 percent compares favourably with the full-service broker norm of 0.6 to 1.0 percent of turnover (brokerage alone). The dominant cost component is STT at Rs 104 of the Rs 131.29 total.
Impact on capital gains tax
STT paid on delivery trades interacts with capital gains tax rules. Under Section 111A of the Income Tax Act 1961, short-term capital gains (holding period below 12 months) on listed equity shares where STT has been paid are taxed at 15 percent (20 percent effective 23 July 2024 per Union Budget 2024). Under Section 112A, long-term capital gains (holding period 12 months or more) on listed equity shares where STT has been paid are taxed at 10 percent without indexation on gains exceeding Rs 1,25,000 per year (threshold raised from Rs 1,00,000 in Union Budget 2024). The payment of STT is therefore a prerequisite for access to these concessional rates.
If a trader is classified as engaged in business rather than as an investor, STT paid can be deducted as a business expense under Section 36(1)(xv) of the Income Tax Act, but the concessional capital gains rates are then unavailable.
Applicability to IPO and off-market transactions
The zero-delivery brokerage applies to secondary market trades on NSE and BSE. Zerodha does not charge brokerage on IPO applications submitted through its platform (UPI-ASBA or ASBA-based), though the shares received on allotment will incur normal delivery charges when eventually sold. Off-market transfers (direct demat-to-demat transfers without exchange intermediation) are not trades and carry a separate off-market transfer charge; see off-market transfer charges.
Comparison with peers
The zero-delivery brokerage model is now offered by all major discount brokers in India. As of mid-2026:
- Groww: zero delivery brokerage; same statutory levies
- Upstox: zero delivery brokerage; same statutory levies
- Angel One: zero delivery brokerage on its flat-fee plan
- 5Paisa: zero delivery brokerage
- HDFC Securities: 0.3% or Rs 25 minimum on delivery (retains the percentage model)
The difference between discount brokers on delivery trades is minimal. Investors choosing between them should consider factors such as platform reliability, mutual fund access, research quality, and DP charge structure rather than brokerage rates.
Regulatory disclosure requirement
Under SEBI’s master circular for stock brokers, Zerodha is required to disclose the zero-brokerage policy and all applicable pass-through charges in the account opening documentation and on each contract note. A client who is charged brokerage on a delivery trade contrary to the published policy has grounds to raise a complaint through Zerodha’s grievance mechanism and, if unresolved, through the SEBI SCORES investor grievance redressal system.
See also
- Zerodha brokerage structure overview
- Equity intraday brokerage
- STT and CTT on Zerodha
- DP charges on Zerodha
- Stamp duty by segment
- GST on broking charges
- SEBI turnover fee
- Zerodha
- National Stock Exchange
- Bombay Stock Exchange
References
- Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
- SEBI Master Circular for Stock Brokers, SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/72
- Finance Act 2004, Chapter VII (Securities Transaction Tax)
- Indian Stamp Act 1899, Schedule I, as amended by Finance Act 2019
- NSE Circular: Schedule of Charges for FY 2025-26
- Income Tax Act 1961, Sections 111A and 112A (as amended by Finance Act 2024)
- SEBI Circular: Shortened Settlement Cycle T+1, SEBI/HO/MRD2/DCAP/CIR/2021/624