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Also this mentions for F&O positions. does this means equity cash trades are not subject to this?
Can zerodha support please provide confirmation. Want to know asap so that can plan accordingly.
@nithin please suggest what will be zerodha’s stance regarding brokerage charges for all scenarios.
Thanks
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Hey, this is true. You will probably get a message on the other account soon.
Why do it?
As the email states, if you pledge stock and don’t bring in at least 50% of the position in cash, you are essentially using our funds. So if you pledge a stock and take collateral up to Rs 1 lakh and don’t bring in any funds, and you take a position for Rs 1 lakh, you are using the broker’s capital for 50% of that, or Rs 50k.
But if we are funding you 50k and don’t make any money on it, we are essentially losing money on that. So we had to charge something on those trades. So if you have 50% in cash, we won’t charge any extra.
Btw, this was already in our T&C: we charge an additional brokerage if your account ever goes into debit. We had just not implemented this.
Why do it now?
The amount of collateral that people have kept with us, on which they take margin to trade, has gone up like bonkers. Also, since we started MTF, the book has gone up to over 5k crores in a short time.
We are at a point where we might have to borrow funds in the near future to provide collateral for you all. Borrowed funds come at a cost.
Why charge extra brokerage and not just a %fee?
The obvious thing would have been like many brokers charge a % fee for the day when the account goes into a debit. But we realised the impact due to that would be a lot more than charging a higher brokerage for the trades done only when your account is in debit, or you not having atleast 50% in cash when trading on collateral.
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I agree with you, first time even im thinking to move away from zerodha. Its mentally very stressful now with also increase in STT starting from 1st April+brokerage double. There are definitely pushing the traders away which is their main source of income.
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Hey @tradewealth
This is not applicable for intraday trades in the equity segment. For now, additional brokerage will be charged only in the F&O segment.
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So you have launched a product ( MTF) , which you had said in the past was not a good product as it mainly makes money for brokerage companies . This is now netting 15% on a book of 5k crore , after reducing the cost of funds , it is still a great outcome. Citing that reason , we all have to shell more money on top of the STT increase by the government ?
This is for a business with an operating profit margin of 63% .
Another funny thing is that most of the people use their full margin only 2 days a week , so the additional cost of any funding would only have to be applicable on these days .
Other major players are not charging interest or have changed their brokerage structure .
Anyway thanks , been a good ride .
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I think all the brokers already charge, or will charge, for this in some way or another. A bunch of brokers already charge 15%. A small bunch of brokers who are not charging, it is just a matter of time before they charge.
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@nithin - I’ve gone through your points, and I do understand the reasoning behind the change. However, the introduction of “double” brokerage for intraday F&O trades when the 50% cash component isn’t met is quite difficult for me to absorb, especially since I deploy close to 100% margin for intraday trades on most days of the week and have only 10% parked in cash or cash equivalent collateral.
For the first time since joining Zerodha in 2015, I’ve actually started evaluating other brokers. After speaking with a few, here’s what I’ve been offered:
- One broker is charging ~6% p.a. interest only on the shortfall in the 50% cash margin, and only for the day it applies.
- Two smaller brokers have said they won’t impose any additional charges at all, given my capital size, even if the 50% cash margin rule isn’t met.
In all cases, brokerage and other charges remain similar to Zerodha, and they’re also offering a dedicated RM for quick support via call.
Please don’t get me wrong- I’m a big fan of what the Kamath brothers have built, and Zerodha has been my go-to platform for years. But this “double brokerage” approach for intraday trades feels restrictive. Ideally, this should be a choice for users, whether they prefer to pay a reasonable interest cost on somedays like when the number of trades are higher one certain days (expiry days) and pay double brokerage on other days when the number of trades are lower (positional or 1DTE).
Zerodha has always been an industry leader, and with that comes the expectation of continuing to offer solutions that are not just compliant, but also innovative and user-friendly, and last but not the least Industry Leading like you’ve consistently done so far.
Hopefully, you can reconsider this approach and make more as per use or day-wise oriented plans, or something else innovative for all types of users.
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I’ve received the following reply from Zerodha Support:
To clarify, the 0.035% per day interest charge for cash shortfall now applies to intraday F&O trades as well. When you use pledged securities to meet margin requirements, regulations mandate that at least 50% of the margin requirement must be in cash or cash equivalents. If this condition is not met, even for intraday positions, Zerodha funds the cash shortfall, resulting in a debit balance in your account. Starting April 1, 2026, accounts in debit balance will also be charged ₹40 per executed order instead of the standard ₹20, until the debit is cleared.
I’m fine with ₹40 per executed order for cash shortfall. However, 0.035% per day interest charge for cash shortfall now applies to intraday F&O trades. is it true?
If it’s true, then it will increase trading cost 8-10x for me. Please provide details on it.
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No, for intraday shortfall interest is not charged, also can you DM me your ticket number.
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So Zerodha is doubling its brokerage charging ₹40 per order instead of the standard ₹20 when the 50% cash margin requirement isn’t met as a move to cover the costs of funding the cash shortfall.
While this logic holds for intraday orders (where interest on cash shortfalls hasn’t traditionally been charged), I have concerns regarding overnight positions. For carry-forward trades where a shortfall exists, will Zerodha now be ‘double-dipping’ by charging both the standard interest on the shortfall and double the brokerage fee?
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@siva There should’ve been an official announcement here about this with various scenarios instead of just an email to some - just like you’d announce exchange policy changes or any other news. This comes off as sneaky.
Yeah, will do.
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Hi. newbie here… this new rule of 50% is only for f&o right??.. not for mtf shares …anyone pls share thoughts
I want to understand the new brokerage structure for intraday FnO positions with 100% non-cash collateral.
If I take a trade when there is no debit balance and after taking the trade it shows a debit balance as margin is funded by non-cash, will I be charged? 20 or 40 Rs?
Entry side we won’t charge anything, only trades after cash balalnce going negative, so in this case for exit you will be charged 40.
For MTF collateral is not used so nothing changes for MTF trades, extra brok is only applied to fno trades.
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thank you
What happens to overnight trades ? If we take trades without 50% collaterals, we just have to pay 40 rs brokerage or interest will also be applied ?