Learn · 5 min read
Zero Brokerage: Is It Really Free? (2026 Reality Check)
Zero brokerage sounds free, but statutory charges, DP fees and other costs still apply. Learn what zero brokerage covers, what it does not, and how to compare.
What zero brokerage actually means
Zero brokerage means your broker does not charge its own brokerage fee for certain trades. It does not mean the trade costs you nothing.
Usually, the zero applies to one segment, commonly equity delivery, while intraday, F&O and other services are charged. Always read which segments the offer covers.
Charges that never go to zero
These are set by the government, SEBI or the exchanges, so no broker can waive them on your behalf.
- Securities Transaction Tax (STT)
- Exchange transaction charges
- SEBI turnover fee
- Stamp duty
- GST on applicable fees
Broker charges that may still apply
Even with zero brokerage, your broker may earn through other fees.
- DP charges when you sell from your demat
- Annual maintenance charges on the demat account
- Interest on MTF or debit balances
- Fees for auto square-off, call-and-trade or premium features
Pro tip: If you sell small quantities often, DP charges can matter more than brokerage. Factor them in.
Put numbers on it: see what your trades cost at every broker. Try the compare-all brokerage calculator
How do zero-brokerage brokers make money?
Brokers are businesses, so revenue comes from somewhere. Common sources include brokerage on other segments, interest on margin funding, account fees, and income on client funds within regulatory limits.
This is not necessarily bad. It just means you should look at the full picture of how you will use the account.
A quick illustrative comparison
Imagine two brokers (illustrative). Broker A has zero brokerage on delivery but a higher DP charge. Broker B charges a small flat brokerage but a lower DP charge.
If you buy and hold for years and rarely sell, Broker A may be cheaper. If you sell frequently in small quantities, Broker B could cost less overall. The label alone does not tell you which is cheaper for you.
Pro tip: Use our brokerage calculator and broker comparison to see your true cost across segments.
How to judge a zero-brokerage offer
Ask a few simple questions: which segments are free, what other charges apply, and how reliable is the platform? A free trade on an app that crashes during volatility is not a bargain.
Choose based on total cost, service quality and safety, not on the word free.
Frequently asked questions
Is delivery trading completely free with zero brokerage?
No. You still pay statutory charges such as STT, stamp duty and exchange fees, and DP charges when you sell.
Why do I see charges on my contract note if brokerage is zero?
The contract note lists statutory and exchange charges, which apply regardless of your broker's brokerage.
Are zero-brokerage brokers safe?
Safety depends on regulation and the broker's practices, not on pricing. Check SEBI registration and verify your balances regularly.
Can zero brokerage offers change?
Yes. Brokers can revise their pricing, usually with notice, so check the current tariff from time to time.
- 6 min readHow to Choose a Stock Broker in India (2026)
- 6 min readBrokerage Charges Explained: Every Fee on a Trade
- 5 min readHow to Read a Contract Note: Every Line Explained
Educational content, not investment advice. Investments in securities markets are subject to market risks.