Nithin Kamath, the founder and CEO of Zerodha, has revealed that the company’s zero brokerage policy on equity delivery trades has saved investors an estimated ₹2,000 to ₹20,000 crore over the past decade. This milestone, achieved since the policy’s introduction in December 2015, underscores Zerodha’s commitment to cost-conscious investing and its transformative impact on India’s brokerage industry.
A Decade of Savings
Kamath shared the figures in a recent post on X (formerly Twitter), highlighting how the zero brokerage initiative has benefited retail investors by eliminating a significant cost barrier. He noted that the policy was initially introduced to shift Zerodha’s image from a speculative trading platform to a long-term investment enabler. Despite challenges, including a decline in options trading volumes, the company has maintained its zero brokerage stance.
Investor-Friendly Approach
Kamath emphasized the importance of minimizing trading costs, which he described as one of the biggest drags on realized returns. He pointed out that even seemingly small brokerage fees can accumulate over time, eroding profitability. By waiving brokerage charges on equity delivery, Zerodha has not only saved investors substantial amounts but also encouraged a more cost-effective approach to investing.
Industry Impact
The zero brokerage policy has played a pivotal role in Zerodha’s rise as a market leader in India’s brokerage sector. The company’s innovative model has set a benchmark for transparency and affordability, attracting a large base of retail investors and reshaping the competitive landscape.
Looking Ahead
As Zerodha continues to prioritize investor welfare, its zero brokerage policy serves as a testament to the company’s vision of breaking barriers in financial markets. Kamath’s announcement has reignited discussions about the significance of cost-conscious investing and the need for industry-wide reforms to enhance accessibility and affordability.
Stay tuned for more updates on Zerodha’s initiatives and their impact on India’s financial ecosystem.
