Nithin Kamath warns Zerodha may be ‘forced to charge brokerage’ fees to millions of users: Here’s why

Nithin Kamath, the founder and CEO of Zerodha, warned that the continuation of ongoing stock market winds may need to start charging fees of the mediator house, which leads to a free platform for millions of users.

In a recent blog, Nithin Kamath said that Zerodha had a 40 percent decrease in mediation income in June 26 years and accused the latest regulatory changes affecting the active option trade.

He said that the options may be at more risk, and whether the regulators can stop the weekly options well.

Kamath pointed out Zerodha for 15 years and said, ı If this was going to happen, we would have to start mediating for self -delivery to make the job startable.

Zerodha, due to the large customer base for years for users have maintained the zero mediation fee.

Kamath said that the situation was not under the control of the company.

“In any case, most of them are not really under our control. It depends on how much we earn market cycles, regulations and other factors.”

Risk Crystallized

In his long blog post, Zerodha CEO said, “Always the risk of regulators who question the benefit of the option turnover”.

Nithin Kamath said, “This risk was crystallized by reducing the two -week agreement on the option of the options in the STT and the option of the termination time.”

“With these changes, the increase in the boundary of the BSDA (Basic Services Demat account), the abolition of stock market fees and a general decrease in market activity, our income and profits took a hit last year as we expected,” he added.

Kamath said that the effect of these changes was felt during the 2nd Q2FY25 and that Zerodha reached its income in June 26 quarters.

Kamath said, “The effect of all these changes has begun to hit us from October 2024, so the figures do not fully reflect in the financial year of 2024/25. This year, we see a 40% significant blow in the intermediary revenues in the last quarter compared to the same quarter of the previous year.”