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Nithin Kamath's Zerodha, one of India’s largest stockbrokers, will increase brokerage charges for a section of intraday derivatives traders from April 1, a move that could raise trading costs for active market participants and potentially trigger similar action across the broking industry.

According to an Economic Times report, the online brokerage will charge ₹40 per order for certain intraday futures and options (F&O) trades, up from its long-standing ₹20 cap. However, the revised charge will not apply to all traders and is limited to those who do not meet the Securities and Exchange Board of India’s (SEBI) cash collateral requirement.

Under SEBI rules, traders are required to maintain at least 50% of their collateral in cash or cash equivalents for intraday positions, while the remaining margin can be held in non-cash assets. So far, Zerodha had been using its own funds to bridge this shortfall for clients without charging them separately, the report said.

From April 1, traders who do not maintain the required cash component and continue to take intraday F&O positions using broker-funded collateral will be charged ₹40 per order. The brokerage revision will not apply to intraday equity trades, added the ET report.

The move comes at a time when derivatives trading volumes are already under pressure due to the proposed Securities Transaction Tax (STT) hike announced in the 2026 Union Budget. The government has proposed increasing STT on futures to 0.05% from 0.02% and on options premiums to 0.15% from 0.10%, effective April 1.

While many brokers do not levy charges for intraday shortfalls in cash collateral, interest of 9% to 18% per annum is typically charged on overnight or carry-forward positions. With revenues coming under strain, brokerages appear to be exploring alternative ways to offset rising costs.

Explaining the decision, Zerodha chief executive Nithin Kamath said the amount of collateral clients have parked with the firm for margin trading has risen sharply, pushing up the cost of funding, as per ET. He noted that while Zerodha could have charged a percentage-based debit fee like some brokers, it instead chose to impose a higher brokerage only on trades executed when accounts fall short of the required 50% cash collateral, the report further said.

The change marks a notable shift for a company that helped popularise low-cost trading in India and reflects how tighter regulation and rising compliance costs are beginning to reshape the economics of discount broking.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience.

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