Zerodha Doubles F&O Brokerage Fees
Analysis based on 8 articles · First reported Mar 25, 2026 · Last updated Mar 25, 2026
The increase in brokerage fees by Zerodha, coupled with the proposed Securities Transaction Tax hike, is expected to raise trading costs for derivatives market participants in India. This could lead to a moderation in trading volumes, particularly in the retail-driven F&O segment, and potentially trigger similar pricing actions across the broking industry.
Zerodha, one of India's largest stockbrokers, is set to double its brokerage fees for specific intraday derivatives trades to ₹40 per order from April 1, 2026. This increase primarily targets traders who do not meet the India — Securities and Exchange Board of India's requirement of maintaining at least 50% of their collateral in cash or cash equivalents. Previously, Zerodha covered this shortfall using its own funds without charging clients. The decision, explained by Zerodha CEO Nithin Kamath, is driven by rising funding costs due to increased collateral parked with the firm. This move coincides with a broader increase in trading costs, as the Union budget of India 2026 proposed a hike in the Securities Transaction Tax on futures and options, also effective April 1. The combined impact of higher brokerage and taxes is expected to weigh on derivatives trading volumes and could prompt other brokerage firms to follow suit.
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