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Zerodha Brokerage, Account Opening, AMC and Other Charges 2024

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Zerodha Charges 2024

Zerodha Charges 2024: Investing with Zerodha has become a remarkable choice for traders and investors. They have a reputation for low brokerage and transparency in fees. Zerodha charges are clearly structured and easy to understand. The nominal fees for opening trading and demat accounts as well as various account types make it accessible to many.

In this article, we will take a look at Zerodha account opening charges, brokerage charges, and AMC while navigating Zerodha charges 2024. Additionally, if Zerodha carries some other charges, let’s explore that too.

Table of Contents

Zerodha Account Opening Charges

When considering opening an account with Zerodha, it is important to understand the various charges involved in it. A detailed breakdown of Zerodha account opening charges is given here.

Individual Accounts:

Type of account

Trading And Demat

Online account

Rs 200

Offline account

Rs 500

For clients below age of 25

Nil

Demat AMC

Rs 300 + GST

    • Online Account:
      • For online trading and demat, the charge is ₹200.
    • Offline Account:
      • For offline trading and demat account opening, Zerodha charges are ₹500.

Zerodh account opening is now free for those below 25 years of age. Click to open account instantly with Zerodha.

Non-Individual Accounts (Offline Only):

Type Of Account

Only Equity, F&O and Currency

With Commodity

NRI Account (offline only)

Rs 500

N/A

Partnership, LLP, HUF, or Corporate Accounts (offline only)

Rs 500

Rs 800

    • NRI Account:
      • A charge of ₹500 is applicable for equity account opening.
    • Partnership, LLP, HUF, or Corporate Accounts:
      • Equity account opening incurs a ₹500 charge, and ₹800 for both equity and commodities.

Additional Information:

    • Zerodha does not charge any fee for opening a trading account alone.
    • For demat account opening, the standard charge is ₹200.

By knowing these charges, you can take a better decision about account opening in Zerodha.

Note that there is no fee for opening only trading account in Zerodha. Also Zerodha has waived off the account opening charges for the clients under 25 years of age.  But the combined costs for trading, demat and commodity accounts can vary depending on how you open your account.

Zerodha Annual Maintenance Charges

Zerodha’s AMC and other related charges need to be examined. Because, these costs can affect your investment strategy. Here is a detailed overview of these charges:

Zerodha Annual Maintenance Charges (AMC)

Type of Zerodha Account

Annual Charges

Quarterly Charges

Individual, HUF, and partnership firms

₹300 + 18% GST

₹75 + 18% GST

NRI Account

₹500 + 18% GST

₹125 + 18% GST

Corporates, i.e. LLPs and private & public companies

₹1000 + 18% GST

₹250 + 18% GST

  1. For Individual Accounts:
    • Zerodha levies an AMC of ₹300 plus 18% GST annually for maintaining demat accounts, which is charged quarterly at ₹75 plus GST.
    • Even if there are no holdings in the account, the AMC is still applicable as long as the account remains active.
  2. For Non-Individual Accounts:
    • Non-individuals, such as corporates, are charged ₹1000 per year plus 18% GST for demat AMC, reflecting the additional administrative work involved.
  3. For NRI Accounts:
    • NRI customers have to pay ₹500 plus GST AMC annually for their Demat accounts.
  4. BSDA Accounts:
    • Basic Services Demat Account (BSDA) holders enjoy a tiered AMC structure:
      • Holdings up to ₹50,000: No AMC.
      • Holdings between ₹50,001 to ₹2,00,000: ₹100 plus 18% GST annually or ₹25 plus GST quarterly.
      • Holdings above ₹2,00,000: Standard AMC rates apply.

AMC Billing Cycle:

    • The AMC is deducted every 90 days from the account opening date and is directly debited from the Zerodha account balance.
    • As opposed to the standard four quarters in a year, Zerodha’s practice results in a 364-day billing cycle, which is a point of contention among some customers.

Other Associated Charges

  • Zerodha offers additional value-added services such as Tickertape, Smallcase, Streak, and Kite Connect, which come with their own set of charges.
  • It’s crucial to note that irrespective of account utilization, AMC charges are mandatory for all customers, and failure to maintain a sufficient balance for AMC deduction can lead to penalties.

Tips to Manage AMC

  • To avoid AMC charges, investors might consider using only a trading account or Zerodha commodity account, as these do not attract AMC fees.
  • Keeping track of the AMC billing cycle can help in ensuring that sufficient balance is maintained to avoid penalties.

    By understanding the complexities of these charges, investors can better manage their accounts and avoid unexpected fees. It’s also beneficial to keep an eye on Zerodha’s updates regarding charges, as they may change over time.

Zerodha Brokerage Charges

Understanding Zerodha brokerage charges is essential for traders and investors to make informed decisions. The Zerodha brokerage structure is straightforward, but it varies depending on the type of trading or investing. Here is an in-depth look at the various brokerage fees associated with trading on Zerodha’s platform:

  1. Equity Trades:
    • Equity Delivery:
      • No brokerage fee is charged for equity delivery trades, making it an attractive option for long-term investors.
      • Despite zero brokerage, statutory charges such as Securities Transaction Tax (STT), transaction charges, GST, SEBI charges, and Stamp duty are still applicable.
    • Equity Intraday and Futures:
      • A flat fee of ₹20 or 0.03% (whichever is lower) is charged per executed order, providing a cost-effective solution for day traders.
    • Equity Options:
      • Each executed order attracts a flat fee of ₹20, which is competitive in the market.
  2. Currency and Commodity Trades:
    • Futures:
      • Both currency and commodity futures trades incur a flat fee of ₹20 or 0.03% (whichever is lower) per executed order.
    • Options:
      • A flat fee of ₹20 is charged per executed order for both currency and commodity options.
    • Additional Charges:
      • Off-market transfer charges are ₹25 or 0.03% of the transfer value (whichever is higher).
      • Corporate action order charges are ₹20 plus GST for specific transactions like OFS, buybacks, and takeovers.
  3. Special Cases and Additional Services:
    • Call & Trade Services:
      • Orders placed through a dealer at Zerodha, including auto square off orders, are charged at ₹50 per order.
    • NRI Brokerage Charges:
      • For NRIs, the charges are ₹100 per order for futures and options, 0.5% or ₹100 per executed order for non-PIS accounts, and 0.5% or ₹200 per executed order for PIS accounts.
    • Account with Debit Balance:
      • An account in debit balance will incur charges of ₹40 per executed order instead of the standard ₹20.
    • Delayed Payment Charges:
  • An interest of 18% per annum or 0.05% per day is charged on the debit balance in the trading account.

    Zerodha’s transparent and competitive pricing structure, along with its online presence and scalable trading platform, makes it a popular choice among traders and investors. The brokerage calculator and comprehensive list of charges available on Zerodha’s website further enhance the user experience by enabling customers to estimate their costs effectively.

Zerodha Additional Charges

In addition to the standard brokerage and account charges, Zerodha levies certain additional charges that are important for investors to be aware of. These charges can impact the overall cost of trading and investing, so let’s break them down:

  • Call & Trade and Auto-Square Off Charges:
    • For orders placed through Zerodha’s Call & Trade service, a charge of ₹50 per order is applicable.
    • If trades are not squared off before the auto-square off time, a charge of ₹50 + 18% GST is levied.
  • DP (Depository Participant) Charges and Off-Market Transfers:
    • When selling shares from your equity holdings, Zerodha charges ₹13.5 + 18% GST per scrip, regardless of the quantity sold.
    • Off-market transfer charges are either ₹25 or 0.03% of the transfer value (whichever is higher).
  • Pledging and Corporate Action Order Charges:
    • Pledging charges for collateral against loans are ₹30 + GST per pledge request.
    • Corporate action order charges, such as for offers for sale (OFS), buybacks, and takeovers, are ₹20 plus GST.
  • Physical Requests and Payment Gateway Charges:
    • The first request for a physical copy of the Client Master Report (CMR) is free, with subsequent requests incurring a charge of ₹20 + ₹100 (courier charge) + 18% GST.
    • Payment gateway charges amount to ₹9 + GST per transaction.
  • Delayed Payment and Account with Debit Balance Charges:
    • If your account has a debit balance, a daily interest of 0.05% or an annual rate of 18% is charged on the amount.
    • Orders placed when the account has a debit balance are charged at ₹40 per executed order.
  • Optional Value-Added Services:
    • Services like Tickertape, Smallcase, Streak, and Kite Connect come with their own charges. For instance, Tickertape Pro is ₹249 monthly or ₹2399 annually, while Streak’s regular plan is ₹690 + GST and the ultimate plan is ₹1400 + GST.
  • NRI Specific Charges:
    • NRI non-PIS accounts are charged 0.5% or ₹100 per executed order for equity trades (whichever is lower), and NRI PIS accounts are charged 0.5% or ₹200 per executed order for equity trades (whichever is lower).
  • Additional Transaction Charges:
    • For market trades, there are no charges for buying, but selling involves a transaction charge of ₹8 + ₹5.50 (CDSL charges).
  • Demat and Remat charges are ₹150 per certificate plus ₹100 courier charges, and failed instruction charges are ₹50 per instruction.

    It is crucial for traders and investors to consider these additional Zerodha charges when calculating the total cost of their investment activities. Being aware of these expenses helps in maintaining a clear understanding of one’s financial outlay and can assist in making more informed decisions in the trading and investment process.

Other Zerodha Charges

In our exploration of Zerodha charges, it’s important to consider the various other fees that could affect your trading costs. Let’s dive into some of these additional charges.

Other Charges in Zerodha

  • Securities and Commodities Transaction Taxes:
    • When you buy or sell securities on the exchanges, the government levies a tax known as the Securities/Commodities transaction tax.
  • Transaction/Turnover Charges:
    • These are fees charged by the exchanges (NSE, BSE, MCX) based on the value of your transactions.
  • Goods and Services Tax (GST):
    • GST is a tax imposed by the government on the services rendered, including brokerage services.
  • Stamp Charges:
    • These are government charges as per the Indian Stamp Act of 1899 and vary depending on the state where you reside.
  • SEBI Charges:
    • The Securities and Exchange Board of India imposes a charge for regulating the markets, which is ₹10 per crore + GST.
  • DP Charges:
    • Whenever shares are sold from your demat account, a depository participant charge of ₹13.5 + GST per scrip is applied, irrespective of the quantity sold.
  • Pledging Charges:
    • If you pledge securities for collateral against loans, Zerodha charges ₹30 + GST per pledge request.
  • Corporate Action Order Charges:
    • For specific transactions like offers for sale (OFS), buybacks, and takeovers, a fee of ₹20 plus GST is charged.
  • Off-Market Transfer Charges:
    • Transferring securities off-market incurs a charge of ₹25 or 0.03% of the transfer value, whichever is higher.
  • Physical CMR Requests:
    • The first request for a physical copy of the Client Master Report (CMR) is free, but subsequent requests will cost you ₹20 + ₹100 (courier charge) + 18% GST.
  • Payment Gateway Charges:
    • For using the payment gateway facility, a charge of ₹9 + GST per transaction is levied, although this is not applicable for transfers done via UPI.
  • Delayed Payment Charges:
    • If your trading account has a debit balance, an interest of 18% per annum or 0.05% per day is charged on that amount.

      It’s also worth noting that Zerodha does not charge for rejected orders, and they do not offer margin funding, meaning customers must pay the full margin as prescribed by the stock exchanges [2]. These details can help you manage your trading costs more effectively and avoid any surprises when it comes to the fees associated with your transactions.

Zerodha Charges List 2024

Conclusion

This article examines Zerodha’s fee structure in detail. It covers all charges from account opening fees to AMC details, brokerage charges and various other related charges. This helps in creating a clear investment strategy while investing with Zerodha and increases the potential for financial success.

Appreciating transparent pricing and additional value added services, one can invest with Zerodha with greater confidence and accuracy. If you are facing high charges with another broker then you can definitely consider Zerodha. Also for those who are just starting their trading journey, now is the time to act. Start your journey today and open an account with Zerodha.

Frequently Asked Questions

Q1. Does Zerodha impose brokerage fees for both buying and selling transactions?

No brokerage charges are charged for Zerodha Equity Delivery trading. However, for intraday trade, Zerodha charges Rs.20 per order whether it is for buy or sell orders.

Q2. What are the charges for opening an account with Zerodha?

The cost of opening a trading account with Zerodha is Rs 200, while opening a Demat account is free of charge. Zerodha also charges an Annual Maintenance Charge (AMC) of Rs 300 for the Demat account. Zerodha is a discount stock broker based in Bangalore that provides online trading services to retail customers.

Q3. Are there any brokers that do not require payment of an Annual Maintenance Charge (AMC)?

Upstox, Fyers, PayTM Money are some of the stock brokers that do not charge annual maintenance fees.

Q4. How can one avoid paying the Annual Maintenance Charge (AMC) at Zerodha?

If you use Zerodha Kite for trading and only open a trading account or a Zerodha commodity account, you will not be required to pay any AMC fees, thereby avoiding these charges.

Read the complete Zerodha Review 2024.

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