Zerodha Doubles F&O Brokerage Fees to ₹40 for Select Trades from April 1
Zerodha has doubled F&O brokerage fees to ₹40 for select trades from April 1, 2026. The change applies only to certain intraday positions with low margin, affecting traders who do not maintain sufficient collateral.
India’s largest discount broker, Zerodha Broking Ltd, has announced a significant change to its pricing for certain derivative trades. From 1 April 2026, the firm will charge ₹40 per order on some intraday futures and options (F&O) trades, up from the previous flat ₹20 brokerage cap. This update applies only to specific circumstances when clients do not meet regulatory margin requirements.
The move could affect active traders who frequently take intraday F&O positions without keeping sufficient cash or cash‑equivalent collateral in their accounts. Previously, Zerodha absorbed the shortfall itself without charging extra. Now, these users will face the higher fee.
Why the Charge Increase Applies
Under rules set by India’s market regulator, the Securities and Exchange Board of India (SEBI), traders must maintain at least 50% of the required margin in cash or cash‑equivalent assets to support intraday F&O trades. Zerodha had been covering shortfalls automatically with its own funds. From April, it will no longer offer that free cover and will instead charge ₹40 per order for these cases.
Not every trader will see this change. Those who maintain the required margins, particularly 50% or more in qualifying funds, are expected to continue paying the standard ₹20 brokerage for these trades.
Trading Cost Comparison After the Hike
To help traders understand the revised cost structure, here’s a simple comparison of fees before and after the change:
| Category | Previous Brokerage | New Brokerage (from 1 April) | Conditions |
|---|---|---|---|
| Intraday F&O trades | Up to ₹20 per order | ₹20 per order still standard | If margin collateral is ≥50% |
| Intraday F&O (low margin) | ₹20 per order | ₹40 per order | If margin collateral <50% |
| Equity delivery trades | ₹0 | ₹0 | No change |
| Other segments (cash | Intraday, futures, options all ₹20 | Unchanged | Flat brokerage outside low‑margin F&O |
Note: This table focuses on the core change announced and does not include taxes or exchange levies.
Why Zerodha Made This Change
The firm cited several market‑wide pressures behind this revision. Derivatives trading volumes in India have softened recently, and regulatory costs are rising. In addition, the government has increased the securities transaction tax (STT) on futures and options starting this financial year, pushing costs up for all brokers and traders alike. Brokers earn little from volume‑sensitive segments when prices remain static despite rising taxes.
Analysts believe this might lead other discount brokers to reconsider their own pricing models, especially if trading activity stays muted.
How Traders Are Responding
On social media forums and trader communities, reactions are mixed. Some users argue the new charge is reasonable for positions that rely on the broker’s funds. Others complain it signals an end to previously low‑cost trading advantages, particularly for high‑frequency intraday traders. Many forums also share experiences of other brokers charging interest or higher fees for intraday margin shortfalls.
Experts suggest that traders review their collateral positions more carefully. Maintaining margins above the required threshold could help avoid the higher ₹40 charge, preserving the previous cost‑effective model for active strategies.
What This Means for Indian Markets
Zerodha’s decision reflects broader shifts in the Indian stock trading landscape. As regulatory costs rise and trading volumes adjust, brokers face increasing pressure to balance competitive pricing with sustainable revenue models.
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