Mumbai: Zerodha, led by Nithin Kamath, has decided to increase its brokerage fee for select intraday trades. From April 1, 2026, the charge will rise to Rs 40 per order.
This higher fee will apply only to traders who do not maintain at least 50 percent of their collateral in cash or equivalents, as per SEBI rules.
Industry May See Similar Hikes
Market participants believe other brokers may soon follow Zerodha’s move. The broking industry has been under pressure due to weak market sentiment and falling trading volumes, especially in the futures and options (F&O) segment.
Zerodha appears to be the first major player to take this step.
Falling Volumes Hit Revenues
A sharp drop in F&O volumes has impacted broker earnings. Experts say that discount brokers, which rely heavily on trading activity, are now looking to improve profitability.
Fee hikes are being seen as a way to support revenues after a long period of low-cost competition.
Comparison Shows Tight Pricing Pressure
Data from brokerage comparisons shows that pricing in the industry has been very competitive.
Zerodha currently charges Rs 20 per order or 0.03 percent for intraday trades, while brokers like Angel One and Groww also charge around Rs 20 per order across segments.
Kotak Neo, however, offers lower pricing with intraday charges as low as Rs 10 per order or 0.05 percent, making it one of the cheapest platforms in the market.
Regulatory Changes Add Pressure
Regulatory changes have also affected broker income. SEBI stopped volume-based incentives, and the NSE ended rebates from October 1, 2024.
Higher securities transaction tax (STT) and weaker volumes have further reduced trading activity.
Shift Towards Profitability
Brokers are now trying to move towards a more sustainable business model. Over the years, they have invested heavily in technology and customer acquisition.
Now, the focus is shifting towards improving margins and earning returns on those investments.
Impact on Traders
The fee hike may affect new traders more, as they usually prefer low-cost platforms. Existing traders may continue with trusted brokers despite higher charges.
Overall, the move signals a shift in the industry from aggressive pricing to profitability.
