Zerodha's Nithin Kamath drops a big bomb about zero brokerage policy

Zerodha, the popular online brokerage firm, may soon start charging millions of its users for equity delivery trades—a service that has long been free—if regulatory pressures continue to weigh on its core business. In a detailed blog post marking Zerodha’s 15th anniversary, CEO Nithin Kamath highlighted the growing challenges facing the brokerage industry and the company’s need to adapt. He revealed that Zerodha’s brokerage revenue fell 40% in Q2 FY2025 compared with the same period last year.

• Increased Securities Transaction Tax (STT) on options
• Reduction in weekly options expiries
• Removal of exchange transaction charge rebates
• Higher limits for Basic Services Demat Accounts (BSDA)

Kamath emphasised that these changes have hit Zerodha’s primary revenue stream which is active options trading and is also forcing the company to reassess its business model.


Kamath in a blog post said, “Another year where I was pessimistic about the business has passed, and it’s been another year where I’ve been pleasantly surprised. That said, the regulatory actions, be it the drop in transaction charges revenue, the increase in STT on F&O, the proposal to make futures and options trading tougher, ASBA for trading, the increase in BSDA limit, etc., will have a significant impact on our revenues and profitability. The time has finally come for business to pivot.”

While rivals in the industry already charge for delivery trades, Zerodha has long maintained a zero-brokerage policy, helping it build a massive user base. However, Kamath cautioned that this model may no longer be sustainable.

Despite the revenue dip, Kamath reassured users about Zerodha’s strong financial position. The company has a net worth of Rs 13,000 crore, zero debt, and manages over 50% of client funds with its own capital. He also emphasized Zerodha’s commitment to privacy, transparency, and ethical product design, avoiding dark patterns and intrusive data practices.