Is Zerodha really free?
Overview of Zerodha fees and charges
It's safe to say that Zerodha's fees are low in general. They either don't charge a brokerage fee for things that other brokers do, or they only charge a small amount.
Here's a high-level overview of Zerodha's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Not available|
|EURUSD fee||-||Not available|
|US mutual fund fees||-||Not available|
|Inactivity fee||Low||No inactivity fee|
Zerodha fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.
This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:
- Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
- A commission is either fixed or based on the traded volume.
- A spread is the difference between the buy price and the sell price.
- A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.
We compare Zerodha fees with its closest competitors, Sharekhan and Interactive Brokers.
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Zerodha trading fees
Zerodha's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).
Let's break down trading fees according to the different asset classes available at Zerodha.
Zerodha's trading fees are low.
Stock fees and ETF fees
Zerodha has low stock trading fees.
Zerodha's forex fees are low.
|EURUSD benchmark fee||-||-||$7.4|
|EURGBP benchmark fee||-||-||$10.7|
Zerodha fund fees are .
|EU mutual fund||-||-||$4.4|
Zerodha has bond fees.
|US Treasury bond||-||-||$5.0|
|EU government bond||-||-||$10.0|
Zerodha's options fees are .
|US stock options||-||-||$6.5|
|US stock index options||-||-||$6.5|
|UK stock index options||-||-||$22.1|
|German stock index options||-||-||$13.2|
Zerodha's futures fees are .
|US micro e-mini stock index futures||-||-||$2.5|
|UK stock index futures||-||-||$22.1|
|German e-mini stock index futures||-||-||$9.6|
Zerodha non-trading fees
When it comes to non-trading fees, Zerodha is a rather cheap broker.
Non-trading fees include various brokerage fees and charges at Zerodha that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
Zerodha deposit fee
Usually, brokers don't charge anything for deposits, and Zerodha is no different.
Zerodha withdrawal fee
Zerodha generally doesn't charge a withdrawal fee.
|Withdrawal fee for bank transfer||$0||$0||$0|
Zerodha inactivity fee
Zerodha does not apply an inactivity fee, which is great because your account won't be charged even if you do not trade for an extended period (like several months or years).