Zerodha Brokerage of Rs 20 or 0.03% whichever is lower, what does this mean?

Zerodha, the discount stock broker offers commission-free equity delivery trading and Mutual Funds. It charges flat Rs 20 or 0.03% (whichever is lower) per executed order brokerage for trades in Intra-day and Equity, Currency and Commodity Derivatives (F&O).

• Intraday Trading

  You pay 0.03% (maximum Rs 20 per executed order). For example:

  • When you buy 100 shares of Rs 10 each share; your brokerage is Rs 3 (0.03% of Rs 1,000).
  • When you sell 10 shares of Rs 300 each share; your brokerage is Rs 9 (0.03% of Rs 30,000).
  • When you buy 250 shares of Rs 500 each share; your brokerage is Rs 20 (as 0.03% of Rs 125,000 is Rs 37.50 which is higher then Rs 20).
• Delivery Trading

  You pay Rs 0 brokerages. Yes, it's free with absolutely no hidden fee. Example:

  • Buy 100 shares of Rs 10 per share for delivery; the brokerage you pay is Rs 0.
  • Sell 100 shares of Rs 3000 per share for delivery; the brokerage you are charged is Rs 0.

When you are trading stocks and if you are trading volumes are lower you get the benefit of Rs 20 or 0.03% for intraday, whichever is lower.

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