Zerodha Raises F&O Charges to ₹40 Per Order: What Intraday Traders Need to Know

Zerodha Raises F&O Charges to ₹40 Per Order: What Intraday Traders Need to Know

If you trade futures and options (F&O) on Zerodha, you need to read this. From April 1, 2026, Zerodha is doubling its brokerage from ₹20 to ₹40 per executed order for certain intraday F&O trades. Not for everyone — but if you fall into the category affected, your trading costs just doubled overnight.

Who Is Affected?#

This increase applies only to traders who do not maintain at least 50% of their collateral in cash or cash equivalents for intraday positions.

SEBI mandates that for intraday F&O positions, traders must keep at least half their collateral in cash (or equivalents like liquid mutual funds). Many traders pledge stocks as collateral instead of keeping cash — this is more capital-efficient but doesn't meet SEBI's cash requirement.

Until now, when traders used pledged stocks without sufficient cash collateral, Zerodha would cover the shortfall using its own funds — absorbing the cost without charging extra. As of April 1, 2026, that free ride ends. Zerodha will now charge ₹40/order for those trades.

What Stays at ₹20?#

For all other intraday and F&O trades — where the SEBI 50% cash collateral requirement IS met — Zerodha's standard brokerage remains at ₹20 or 0.03% per executed order (whichever is lower). This flat fee applies to equity, currency, commodity segments, and all option trades.

Why Is Zerodha Doing This?#

Two reasons:

1. SEBI compliance cost — When traders don't maintain adequate cash collateral, Zerodha has to fund that gap from its own balance sheet. That's a real financial cost — interest on working capital — that has grown as F&O volumes have scaled
2. Declining F&O volumes + higher STT — Derivatives trading volumes in India have been declining since SEBI implemented stricter F&O regulations in late 2024/2025. On top of that, the government proposed a hike in Securities Transaction Tax (STT) effective April 1, 2026. Zerodha is recalibrating pricing in response to this changed economics

How Much Will This Cost You?#

Let's do the math for an active intraday F&O trader:

• If you execute 10 orders per day using pledged-only collateral (no cash): ₹40 × 10 = ₹400/day extra vs before
• Over 20 trading days: ₹8,000/month additional brokerage
• Over a year: ₹96,000 additional brokerage cost

For high-frequency traders doing 50+ orders/day, this adds up very significantly. For occasional traders doing 2-3 orders a week, the impact is minimal.

How to Avoid the ₹40 Charge#

Simple: maintain at least 50% of your F&O collateral in cash or cash equivalents.

• Cash in your Zerodha trading account counts
• Liquid mutual funds (like overnight funds) count as cash equivalents
• Pledged stocks alone do NOT meet the requirement

If you currently use only pledged securities as collateral, move some funds to cash before April 1 to maintain the 50% ratio and continue paying ₹20/order.

Context: SEBI's F&O Crackdown#

This change doesn't happen in a vacuum. SEBI has been aggressively tightening F&O trading rules since 2024:

• Increased margin requirements
• Restricted weekly expiry contracts (only one per exchange per week)
• Increased minimum lot sizes
• STT hike from April 2026

The message from SEBI is clear: retail participation in high-leverage derivatives trading should be reduced. SEBI's own data showed 90%+ of retail F&O traders lose money. Zerodha's pricing change effectively adds another nudge in that direction.

Zerodha vs Competitors#

Even at ₹40, Zerodha remains competitive vs full-service brokers. But discount broker competitors like Groww (₹20 flat), Upstox (₹20 flat), and Angel One (₹20 flat) may see some migration if Zerodha's pricing pushes volume traders away.

Quick Summary#