Zerodha is a popular online discount brokerage firm in India that offers its customers a range of trading and investment services. While Zerodha is known for its low brokerage fees, there are some additional charges that customers need to be aware of. In this article, we will discuss some hidden charges you may encounter while trading with Zerodha.

Zerodha hidden charges

Some additional or hidden charges are applicable for additional features and services. These charges are given below:

Position Squared-Off by Broker: Zerodha offers a range of trading products such as MIS, BO, and CO. These products are designed to provide leverage to traders, allowing them to take larger positions with a smaller amount of capital. However, if you do not square off your positions before the end of the trading day, Zerodha will square off your position on your behalf. This is known as an auto square-off. If your position is squared off by Zerodha, an additional charge of Rs 50 per executed order will be levied.

Call and Trade Charges: One of the charges that Zerodha levies are for the Call and Trade feature. This feature allows you to place orders over the phone with the help of a customer service representative. The charge for this service is Rs 50 per call. While the online trading platform is user-friendly and easy to use, some customers may prefer the Call and Trade feature to place orders. It is important to note that this charge is in addition to the regular brokerage charges.

Instant Payment Gateway Charges: Zerodha offers instant payment gateway services for fund transfers. If you use this service, an additional charge of Rs 9 per fund transfer will be levied. This charge applies to fund transfers to over 22 banks in India. While this charge may seem small, it can add up if you frequently transfer funds to your trading account.

Physical Contract Notes: Zerodha sends contract notes via email to all its customers. However, if you want a physical copy of the contract note, you can order it at an additional charge of Rs 20 per contract. In addition to this, courier charges will be levied if you opt for physical delivery. It is important to note that physical contract notes are not mandatory, and you can opt for the digital version to save on costs.

Trade SMS Alerts: Zerodha offers trade SMS alerts to its customers. These alerts are optional and can be activated from the user dashboard. These alerts charge Rs 1 for Equity, F&O, and Currency trade alerts and Rs 0.50 for Commodity trade alerts. While these charges may seem small, they can add up over time, especially if you are a frequent trader. It is important to note that these charges are in addition to the regular brokerage charges.

DP Charges: Zerodha charges a DP (Depository Participant) fee for selling delivery-based equity. The charge is Rs 13.5 + GST per transaction. This charge is levied by the depository participant and not by Zerodha directly. The DP charge is applicable only when you sell delivery-based equity and not for intraday trades.

Conclusion

While Zerodha is known for its low brokerage fees, it is important to be aware of the additional charges that may be levied. These charges can add up over time and impact your profitability. You should go through the charges carefully and factor them into your trading strategy.

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