Zerodha Revenue Model How Zerodha Make Money-1-getinstartup

Have you ever dabbled in investing or trading? If so, chances are very high that you’ve heard of Zerodha. It’s no secret that this platform has become the go-to for many traders in India, mainly due to its low charges as compared to other brokerage platforms. Well, we’re excited to welcome you all to our new blog where we’ll dive into the ins and outs of the Zerodha revenue model. Also, we will clarify how Zerodha make money to keep their business running. So, let’s get started and uncover the secrets behind the Zerodha revenue model.

Glims to Zerodha

Zerodha is India’s largest online stock brokerage firm founded in 2010 by Nithin and Nikhil Kamath. Known for its ‘zero brokerage’ model, it charges a flat fee per trade instead of a percentage of the trade value. With user-friendly technology like the ‘Kite’ trading platform and an emphasis on trader education through ‘Varsity,’ Zerodha has gained popularity among investors. They also offer services such as mutual fund investments through ‘Coin’ and support fintech startups through their incubator, ‘Rainmatter.’

Zerodha Revenue Model

Zerodha Revenue Model How Zerodha Make Money-2-getinstartup

Zerodha, India’s largest stockbroker, generates revenue through a straightforward and transparent model. Here’s an explanation of how Zerodha make money in easy-to-understand language:

Brokerage Fees: Zerodha charges its customers a small fee for every equity Inrta and F&O trade they make in the stock market. Whenever someone buys or sells stocks, they pay a small percentage of the trade value as brokerage. This is a significant part of the Zerodha revenue model, as many people trade in the stock market.

Demat Account Charges: Zerodha provides a place for customers to store their stocks electronically, called a Demat account. Customers pay an annual fee for using this account. It’s like renting a safe place to keep your valuable things, charging for a Demat account one of the major sources in the Zerodha revenue model.

Subscription Services: Zerodha offers premium services to some of its customers for a monthly fee. These services provide advanced tools and data to help traders make better decisions. It’s like upgrading to a better version of a software app. The subscription fees from these services contribute to Zerodha’s earnings.

Currency and Commodity Trading: Zerodha offers trading in currencies and commodities. They charge brokerage fees on these trades as well, which contributes to their revenue. Currency trading is one of the contributions to the Zerodha revenue model that helps them to earn money.

Margin Funding Interest: Zerodha also provides a service called margin funding. This allows customers to borrow money to trade in the stock market. Zerodha charges interest on the borrowed money, which adds to their revenue. It’s like taking a loan and paying interest on it.

How Zerodha Make Money?

How Zerodga make money is a bit complicated as they revealed only major sources but here are some of the extras that we have found for you.

Zerodha Revenue Model How Zerodha Make Money-3-getinstartup

Brokerage fees

How Zerodha make moeny? Well, the answer is the charges, as₹20 per trade for intraday equity and F&O trades. This is significantly lower than the fees charged by other brokers like Groww and Angel one, which typically charge a percentage of the trade value. For example, a traditional broker might charge 0.5% of the trade value for an equity trade. If you trade ₹1 lakh worth of shares, the traditional broker would charge you ₹500 in brokerage fees. Zerodha, on the other hand, would only charge you ₹20 in brokerage fees.

Interest on customer funds

Zerodha keeps customer funds in a bank account and earns interest on it. This interest income is a significant source of revenue for Zerodha. For example, if Zerodha has ₹100 crore in customer funds, it could earn around ₹7 crore per year in interest income at an interest rate of 7%. Zerodha’s interest income is important because it helps to offset the low brokerage fees that it charges.

Other fees

Zerodha also charges several other fees, such as account opening fees, annual maintenance charges, and DP charges. These fees are very small, but they can add up over time. Zerodha’s other fees are a relatively minor source of revenue, but they do help to contribute to the company’s bottom line.


How Zerodha make money through volume? It’s an off-track question, right? Well no, the more trades that its customers make, the more revenue Zerodha generates. Zerodha has been able to attract a large number of customers by offering low brokerage fees and a good user experience.

Zerodha Revenue Model How Zerodha Make Money-4-getinstartup


Zerodha has invested heavily in technology to streamline its operations and make them more efficient. This allows Zerodha to keep its costs low and pass on the savings to its customers.


How Zerodha make money through innovation? The answer is simple by constantly innovating and developing new products and services to meet the needs of its customers. For example, Zerodha was one of the first brokers to offer online trading in India. It has also developed several other innovative products and services, such as Kite, its mobile trading platform, and Console, its back-office platform.


In the end, we can see How Zerodha make money and also we go through the Zerodha revenue model, Zerodha’s success is due to several factors, including its low brokerage fees, its innovative technology platform, and its focus on customer service. Zerodha has made it easier and more affordable for people to invest in the stock market, and it has helped to democratize investing in India. Overall, Zerodha is a very profitable company and has a strong business model and a bright future too.

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