Archive · 10 Dec 2025
Zerodha Explains Zero-Brokerage Fee Policy
Nithin Kamath, the co-founder of Zerodha, explained why his company doesn't charge a brokerage fee.
He said that Zerodha's clients trade much less compared to other platforms, which is actually good for them.
More trading doesn't always mean better returns; it can often lead to losing money.
Zerodha avoids pushing clients to trade more because it's better for their long-term success.
The company doesn't incentivize its employees based on brokerage revenue, which helps clients make better decisions.
People on X were impressed with Kamath's honest approach.
Zerodha's zero-brokerage fee policy leads to 75% less trading activity compared to peers.
More frequent trading often results in lower profitability for clients.
Zerodha avoids features that encourage excessive trading, such as push notifications and trending stocks.
The company does not incentivize employees based on brokerage revenue.
Netizens praised Nithin Kamath's honest approach to reducing trading activity for better client outcomes.
- Who
- Nithin Kamath, Zerodha co-founder
- What
- Explanation of Zerodha's zero-brokerage fee policy
- When
- Not specified
- Where
- X (formerly Twitter)
- Why
- To encourage less trading and more profitable outcomes for clients
- Company
- Zerodha
- Founder
- Nithin Kamath
- Brokerage Revenue
- 20-25% of listed peers
- Trading Activity
- 75% lesser than peers
- Platform Incentives
- No brokerage revenue incentives