Traders got a shock of 440 volts! Brokerage charges will double from April 1, Zerodha made this new change

Zerodha Brokerage Hike: India’s leading stock broker Zerodha has made a big change for investors doing intraday derivative trading. The company has announced that brokerage charges on certain intraday futures and options (F&O) trades will be increased from ₹20 to ₹40 per order from April 1. This decision has come at a time when the derivatives market is already under pressure and a decline in trading volumes is being seen.

According to Zerodha, this increased fee will be applicable on traders who do not comply with SEBI’s rule that it is mandatory to maintain at least 50% of the total margin in cash or its equivalent for trading. Till now the company used to make up the shortfall in such cases from its own funds and did not charge any extra fee from the customers, but now the cost on this facility will be recovered.

No impact on intraday equity trading

According to the Economic Times news, under the new system, if a trader does not maintain sufficient cash margin for intraday F&O trade and uses broker’s funds, then he will be charged brokerage of ₹40 per order. However, the company has clarified that this change will be limited to the derivatives segment only and will not have any impact on intraday equity trading.

What do SEBI rules say?

As per SEBI rules, whether the trade is intraday or overnight, at least half of the total margin must be in cash or cash equivalents. Cash equivalents include cash, bank guarantees, fixed deposits and recognized securities. The purpose of this rule is to reduce market risk and control excessive leverage.

A major reason behind this decision is the increase in Securities Transaction Tax (STT) proposed by the government. In Budget 2026, the government proposes to increase STT on futures from 0.02% to 0.05% and on options premium from 0.10% to 0.15%. This will increase the cost of derivatives trading and there will be pressure on volumes in the market.

So will other brokers also increase charges?

Market experts believe that this step of Zerodha can set a new direction in the entire brokerage industry. When a big player in the industry increases fees, it can pave the way for other companies to do the same and may see widespread changes in brokerage charges in the times to come.

Also read: Share Market: Share market rose for the second consecutive day, Sensex rose by 1200 points; These shares created a stir

What did CEO Nitin Kamath say?

Zerodha CEO Nitin Kamath has also explained the reason behind this decision. He said collateral held by customers has increased rapidly and the company may soon have to borrow funds to provide margin to customers, which comes at a cost. He also said that if the company wanted, it could have charged interest on the debit balance, but this would have put more burden on the investors. Therefore the company has decided to impose additional brokerage only on those trades where there is shortfall in cash margin.