“Zero brokerage” trading apps typically waive brokerage fees on specific segments like equity delivery, but other charges – STT, exchange fees, GST, and stamp duty – still apply, so understanding exactly what’s free matters before choosing one.
Key Takeaways
- Zero brokerage usually applies to equity delivery trades specifically, not necessarily to intraday, F&O, or other segments.
- Statutory charges like STT, exchange transaction fees, GST, and stamp duty apply regardless of a broker’s brokerage policy.
- Comparing the fine print across brokers matters, since “zero brokerage” claims can differ in scope between platforms.
- Some zero-brokerage models make up revenue through other fees, like account maintenance charges or interest on margin funding.
- Platform reliability, app experience, and customer support remain important factors beyond just the brokerage structure.
What “Zero Brokerage” Typically Covers
| Segment | Typically Zero Brokerage? |
|---|---|
| Equity Delivery | Often yes, across several discount brokers |
| Equity Intraday | Sometimes flat-fee rather than fully zero |
| Futures & Options | Usually flat-fee per order rather than zero |
| Statutory Charges (STT, GST, Stamp Duty) | Never zero – these are regulatory charges applicable regardless of broker |
Charges That Apply Even With “Zero Brokerage”
- Securities Transaction Tax (STT), levied by the government on specific transaction types.
- Exchange transaction charges, set by NSE or BSE and passed through to the trader.
- GST applicable on brokerage and certain other charges.
- Stamp duty, applicable on the transaction value as per state-level rates.
- Depository Participant (DP) charges, applicable when selling shares from your Demat account.
How to Compare Zero-Brokerage Apps Fairly
Rather than comparing brokers solely on the “zero brokerage” headline, it helps to look at the complete cost breakdown across the segments you actually plan to trade, along with account maintenance charges, margin funding rates if you use them, and the overall platform experience.
Frequently Asked Questions
Is trading really free with zero-brokerage apps?
Brokerage itself may be zero for certain segments, but statutory charges like STT, GST, exchange fees, and stamp duty still apply to every trade.
Does zero brokerage apply to F&O trading too?
Usually not fully – F&O trades often carry a flat per-order brokerage fee even at brokers offering zero brokerage on equity delivery.
Not necessarily hidden, but account maintenance charges, DP charges, and margin funding interest are separate fees worth checking upfront.
Do zero-brokerage apps offer the same platform quality as full-service brokers?
Platform quality varies by broker regardless of brokerage model – it’s worth evaluating the app experience independently of the fee structure.
Which trading segment benefits most from zero brokerage?
Equity delivery investors who buy and hold shares typically benefit most, since this segment is where zero-brokerage offers are most commonly available.
Should brokerage be the only factor when choosing a broker?
No – platform reliability, customer support, research tools (if needed), and overall user experience matter alongside brokerage costs.
Looking Beyond the “Zero Brokerage” Label
Zero-brokerage trading apps can genuinely reduce costs for certain types of trading, but understanding exactly what’s covered – and what isn’t – helps you compare brokers accurately rather than by headline claims alone.
See also our comparison of full-service vs discount brokers, our breakdown of Zerodha’s brokerage charges, or the Trade Day homepage.
This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Trading in securities, currencies, derivatives, and cryptocurrencies carries a high level of risk. Trade Day is not a registered investment advisor and has no affiliation with any broker, exchange, or platform mentioned unless explicitly stated. Do your own research and consult a licensed financial advisor before making financial decisions.
