Zerodha has revised its brokerage for certain intraday F&O orders, raising the per-order fee for non‑cash collateral trades to ₹40 from ₹20 from April 1. The change targets clients who do not keep at least 50% of required margin in cash or cash‑equivalents and will affect active, leveraged intraday traders.
Details of the revised brokerage
Under the updated pricing, intraday futures and options orders where a trader’s margin shortfall is funded by the broker because it is backed by pledged securities or other non‑cash collateral will incur a ₹40 per order charge. Traders who maintain at least 50% of their margin in cash or cash‑equivalents will continue to be charged the lower capped rate previously applicable.
The revision does not apply to equity intraday trades and is limited to those F&O intraday transactions where Zerodha is required to fund the margin gap resulting from non‑cash collateral.
Why the change was introduced
The move reflects regulatory and cost pressures arising from the Securities and Exchange Board of India’s margining framework, which requires a defined portion of margin to be held in cash. When clients pledge securities instead of holding sufficient cash, brokers must bridge the shortfall, increasing their funding and operational costs.
Zerodha’s decision to introduce a straightforward per‑order fee for non‑cash collateral trades is positioned as a simpler alternative to more complex penalty or tiered structures, while passing through incremental funding costs to the subset of users that create them.
Who will be impacted
The change is likely to affect retail and high‑frequency traders who habitually take leveraged intraday positions using pledged securities as margin. For such participants, execution costs will rise, particularly for frequent, small‑ticket orders.
Analysts say the adjustment may encourage greater adherence to margin requirements and more conservative collateral practices. Some industry participants also expect other brokerages to consider similar pricing changes if funding costs continue to climb.
Practical steps for traders
- Maintain at least 50% of required margin in cash or cash‑equivalent instruments to retain the lower brokerage cap.
- Review intraday F&O trading strategies and order frequency to understand the cumulative cost impact of the revised per‑order fee.
- Consider using cash collateral where feasible, or reassess leverage and position sizing to limit funding exposure.
As India’s derivatives market matures, traders will need to balance leverage, collateral choices and regulatory compliance to manage costs and preserve trading margins.
