F&O options brokerage at Zerodha (Rs 20 flat)

Overview

Zerodha charges a flat Rs 20 per executed order on options contracts traded on the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and the Multi Commodity Exchange (MCX). This rate applies to all options order types – market orders, limit orders, stop-loss orders – and to both buy and sell legs. The Rs 20 charge is per executed order, not per lot, making large multi-lot options positions substantially cheaper than under percentage-of-premium brokerage models.

Options trading carries a distinctive set of statutory charges. Securities Transaction Tax on options is levied on the premium rather than the notional contract value, making absolute STT amounts smaller than on equivalent futures positions. However, the STT rate on options sell transactions (0.1 percent of sell premium) is higher than the futures rate (0.02 percent of contract value). Exchange transaction charges on options are also substantially higher in percentage terms than on futures. These characteristics mean that frequent options traders – particularly those writing covered calls or buying weekly expiry options – face a distinctive cost structure that differs materially from futures traders.

Options market structure in India

Indian exchanges list options on equity indices (Nifty 50, Nifty Bank, Nifty Midcap 150, Sensex, Bankex), individual stocks (lot sizes set by SEBI based on minimum contract value norms), and commodities (gold and silver mini options on MCX). Options contracts expire on the last Thursday of the expiry month for weekly and monthly series. Weekly Nifty and BankNifty options are among the most actively traded instruments in the world by contract volume.

Options buyers (holders of long call or long put positions) have the right but not the obligation to exercise the option. Options sellers (writers of short call or short put positions) are obligated to perform if the buyer exercises. In India, equity and index options are settled in cash on exercise; physical settlement of in-the-money stock options on expiry has been mandatory since October 2019 for individual stock options.

Brokerage: Rs 20 per executed order

The flat Rs 20 brokerage applies per executed order regardless of the number of lots, the options premium value, or the strike price. Selling 50 lots of a Nifty call option in a single order incurs Rs 20 in brokerage. Selling the same 50 lots through 50 individual one-lot orders incurs Rs 1,000 in brokerage.

This per-order structure creates a strong incentive to consolidate options trades into single orders when possible, particularly for high-volume options writers. Algorithmic traders who generate many small orders must account for the fact that each execution counts as a separate brokerage event.

Premium-adjusted effective rate

Since brokerage is fixed at Rs 20 while the premium varies, the effective brokerage rate (brokerage as a percentage of premium paid or received) varies inversely with the premium:

Buyers of deep out-of-the-money options (very low premium) incur a high effective brokerage rate. Sellers of options receive the premium and pay Rs 20 brokerage, making brokerage a small fraction of receipts on near-the-money or in-the-money options.

Statutory charges on options

STT on equity and index options

STT on options is levied at 0.1 percent of the premium on the sell side only. This is the rate applicable when an option is sold (either writing a new option or closing a long position). STT does not apply on the option buy side.

There is a significant exception: for options that expire in-the-money and are exercised (rather than squared off in the market before expiry), STT is levied at 0.125 percent of the intrinsic value of the option at settlement (i.e., the settlement price times the lot size). This can be dramatically higher than the STT that would have been paid by selling the option before expiry. Zerodha actively alerts clients to this and recommends closing in-the-money option positions before expiry to avoid the higher STT on exercise settlement.

Example of expiry STT surprise:

• A Nifty call option with strike 23,000 expires with Nifty at 23,500.
• Intrinsic value at expiry: (23,500 - 23,000) x 75 = Rs 37,500 per lot.
• STT on exercise: 0.125% x Rs 37,500 = Rs 46.88 per lot.
• If instead the option was sold in the market at Rs 500 premium before expiry: STT on sell = 0.1% x (500 x 75) = 0.1% x Rs 37,500 = Rs 37.50 per lot.

In this case selling before expiry saves Rs 9.38 per lot in STT. For large positions the saving is more significant.

Exchange transaction charges on options

NSE charges approximately 0.03503 percent of premium turnover on equity and index options. This is substantially higher in percentage terms than the 0.00173 percent rate on futures, though in absolute terms the charge is smaller because options premiums are far below notional contract values.

For a Nifty option with premium of Rs 100 per unit and 1 lot (75 units), premium turnover per side is Rs 7,500. NSE exchange charge: 0.03503% x Rs 7,500 = Rs 2.63 per lot per side.

Stamp duty

Stamp duty on options is 0.003 percent of premium on the buy side. For a Nifty option purchase with premium Rs 7,500: stamp duty = 0.003% x Rs 7,500 = Rs 0.23.

SEBI turnover fee

0.0001 percent of premium turnover per side.

GST

18 percent on the sum of brokerage (Rs 20) + exchange charges + SEBI turnover fee.

IPFT

0.0005 percent of premium turnover per side for the derivatives segment.

Complete cost example: Nifty 50 weekly call option

Scenario: Buy 1 lot of Nifty 23,000 CE (call, 75 units) at a premium of Rs 150. Sell the same lot at Rs 250 premium.

Buy leg (premium turnover: Rs 11,250):

Sell leg (premium turnover: Rs 18,750):

Total round-trip cost: Rs 78.88 Premium gain: Rs 7,500 (from Rs 11,250 to Rs 18,750) Net gain after charges: Rs 7,421.12

Options writing (selling)

Options sellers (writers) face a different cost profile than buyers. The option writer receives the premium at the time of writing and pays Rs 20 brokerage. The STT of 0.1 percent on premium is levied when the position is closed (when the writer buys back the option). An option that expires worthless does not trigger STT on the buyer side, but the writer’s buy-back-to-close transaction would have triggered STT – unless the writer simply lets the position expire worthless, in which case no closing STT applies.

However, for stock options that expire in-the-money and go to physical delivery, the writer faces obligations analogous to the delivery trade, including higher STT.

MCX commodity options

Commodity options on MCX (gold mini and silver mini options) carry brokerage of Rs 20 per executed order, the same as equity options. CTT applies at 0.05 percent of the sell premium. MCX exchange charges for commodity options differ from NSE equity options rates.

Options on BSE (Sensex, Bankex)

BSE lists options on Sensex (30-stock index) and Bankex. The brokerage at Zerodha is Rs 20 flat, identical to NSE. BSE’s exchange transaction charge for options differs from NSE’s rate; clients should consult the current BSE schedule for the precise figure. Liquidity on BSE options is generally lower than NSE except in specific weekly expiry contracts.

Comparison with options brokerage before discount brokers

Before the flat-fee era, percentage-of-premium brokerage on options was common at 1 to 2 percent of premium. On a Nifty option with Rs 50 premium (Rs 3,750 per lot), the old-style broker might charge Rs 75 per lot per side. Zerodha’s Rs 20 flat rate produces a saving of Rs 55 per lot per side, or Rs 110 per round trip. For a trader dealing in 100 lots, the saving is Rs 11,000 per round trip.

See also

• Zerodha brokerage structure overview
• F&O futures brokerage
• STT and CTT on Zerodha
• Exchange transaction charges
• Stamp duty by segment
• GST on broking charges
• SEBI turnover fee
• IPFT levy
• Zerodha
• National Stock Exchange

References

1. Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
2. Finance Act 2004, Chapter VII (STT), Section 98 – rates on options
3. Finance Act 2013, Section 116C – CTT on commodity options
4. NSE Circular: Schedule of Charges for F&O Segment, FY 2025-26
5. MCX Schedule of Transaction Charges, FY 2025-26
6. SEBI Circular on physical settlement of stock options, SEBI/HO/MRD/DP/CIR/P/2018/167
7. Indian Stamp Act 1899, Schedule I, as amended by Finance Act 2019