Zerodha’s Zero-Brokerage Model Saved Traders Billions, Says Founder
Indian stock brokerage Zerodha has revealed a staggering figure that highlights its impact on the country’s retail investing landscape. The company’s founder, Nithin Kamath, stated that traders using the platform saved a total of Rs 25,620 crore in brokerage fees between 2016 and 2025. This massive saving is a direct result of the firm’s pioneering zero-brokerage model for delivery-based equity trades.
The Math Behind the Massive Savings
Kamath shared the calculation publicly, providing transparency into the claim. The figure is based on the total delivery trading volume on the Zerodha platform over the nine-year period. In the traditional brokerage model, investors are charged a percentage fee, typically between 0.01% to 0.5%, for every trade they execute where they take delivery of the shares. By eliminating this fee entirely for delivery trades, Zerodha allowed its customers to keep that money. The accumulated savings for millions of traders now amounts to tens of thousands of crores of rupees that would have otherwise been paid as fees.
This model fundamentally changed the cost structure for retail investors in India. Before discount brokers like Zerodha emerged, high brokerage costs could significantly eat into the profits of small traders, especially those making frequent transactions. By removing this barrier, Zerodha made equity investing more accessible and cost-effective for a new generation of Indians.
Bootstrapped Structure Fuels Customer-First Approach
In his statement, Kamath credited the company’s bootstrapped and profitable structure for enabling this disruptive model. Unlike many tech startups that rely heavily on external venture capital funding, Zerodha grew its business using its own revenues. Kamath argues that this independence allowed the company to avoid aggressive monetization tactics often used to satisfy investor demands for rapid growth.
He specifically pointed to the absence of intrusive advertising, mandatory cross-selling of financial products, and hidden fees. The company’s primary revenue comes from a small fee on intraday and futures & options trades, and from interest on client deposits. This focus on a few, transparent revenue streams, Kamath says, has been key to maintaining low-cost trading and building high trust with users. The company’s success demonstrates that a customer-first philosophy can also be a powerful and sustainable business strategy.
Context and Lasting Impact on the Industry
Zerodha’s rise, beginning around 2010, triggered a revolution in the Indian brokerage industry. Its zero-brokerage promise forced established full-service brokers and sparked the creation of numerous other discount brokers. The entire market shifted towards lower costs and better technology, benefiting all retail investors. The reported savings of Rs 25,620 crore quantifies this broad consumer benefit in a very direct way.
For investors, this story underscores the profound effect that fee structures have on long-term investment returns. Even small, recurring charges can compound into a major drain on capital over time. Zerodha’s model highlighted the importance of cost efficiency, a principle that is now a major consideration for anyone choosing a financial services platform. As the industry evolves, the benchmark for value and transparency that Zerodha set continues to influence how brokers attract and retain customers.
