Policy · Financial Services

Zerodha removes account maintenance fees and refunds transfer costs

What they do

Zerodha is a discount brokerage offering flat-rate trading and free equity delivery to retail investors in India

The company eliminated annual maintenance charges for new users starting June 1 and refunded up to ₹500 in depository fees

This move comes as revenue falls due to regulatory changes and rising competition from rivals like Groww and Dhan

Zerodha eliminated annual maintenance charges for new users effective June 1.
The company issued refunds of up to ₹500 per user for depository transfer fees.
These refunds apply to both new accounts and existing users consolidating their holdings.
The policy change aims to reduce friction for customers entering the platform.
Zerodha maintains its model of flat ₹20 intraday and F&O trades.
Equity delivery and direct mutual fund investments remain free of charge.
The firm serves over 1.8 crore customers with significant market presence.
It holds a 15% share of daily retail exchange volumes in India.

Revenue declined 12% to ₹8,847 Cr in FY25 amid tighter regulations.
Net profit fell 23% to ₹4,237 Cr due to increased STT costs.
Competitors like Groww saw strong user growth while Zerodha's active users dropped.
SEBI imposed stricter rules on F&O trading affecting broker profitability.
The company is considering charging fees for equity delivery to boost income.

Zerodha operates as a discount brokerage focusing on low-cost trading.
It offers the Kite trading platform with demo and API access via Kite Connect.
Users can manage HTTP orders, data streams, and accounts through its APIs.
The ecosystem includes Varsity for financial education and TradingQ&A community.
Tools like Nudge and Kill Switch help users manage risk and habits.
The company has invested in over 30 fintech startups across the sector.
It generates revenue primarily from brokerage fees on equity and derivatives trades.
Direct mutual fund investments are offered without commission to attract long-term savers.
The platform supports high-volume retail trading with minimal transaction costs.