Zerodha May End Zero Brokerage on Equity Delivery, Warns CEO Nithin Kamath
Zerodha’s co-founder and CEO Nithin Kamath has hinted that the brokerage might soon end its zero-brokerage model on equity delivery trades. This follows a sharp decline in revenues and increasing regulatory challenges.
Why the Change May Happen
In a recent blog post marking Zerodha’s 15th anniversary, Kamath said the company’s business model is under pressure. He explained that:
Zerodha’s brokerage revenue fell nearly 40% year-on-year in the June 2025 quarter.
This drop was mainly due to new rules affecting futures and options (F&O) trading.
If regulators remove weekly options contracts, which are a big source of trading volume, the company may be forced to start charging for equity delivery trades, which are currently free.
📌 Source: Zerodha Blog – “15 years of Zerodha — The risk crystallises”
Key Regulatory Pressures
According to Kamath, multiple changes have squeezed brokerage income:
Higher Securities Transaction Tax (STT) on options.
Fewer weekly expiries allowed for F&O contracts.
Removal of exchange fee rebates that brokers earlier received.
Slower retail trading participation in recent months.
Although there are talks about removing weekly options completely, Kamath also clarified that SEBI has not yet begun a formal consultation on this matter.
📌 Source: Economic Times
What It Means for Investors
Possible new charges: If zero brokerage ends, investors will have to pay a fee for equity delivery trades.
Industry impact: Other discount brokers may follow Zerodha’s lead if the change is introduced.
Shift in business model: Brokerages might focus more on premium services, subscriptions, or research tools.
Zerodha’s Financial Position
Despite the challenges, Zerodha is still financially strong. The company has a net worth of over ₹13,000 crore and no debt. This gives it some room to absorb short-term shocks, though Kamath admitted that profits have already taken a hit in the past year.
Bottom Line
Zerodha built its brand by offering free equity delivery trading, which attracted millions of retail investors. But with falling revenues and tighter rules, that era may be coming to an end.
For now, Zerodha has not fixed a date or confirmed a new fee structure. But if regulatory changes continue, retail traders could soon see a major shift in India’s stockbroking landscape.
