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TOPIC 10.14

F&O Brokerage — Zerodha, Upstox and Comparison

Brokerage Is the One Trading Cost You Negotiate Before Every Trade by Choosing Your Broker. Understanding the Full Cost Structure Reveals Why Discount Brokers Changed Indian F&O Trading.
DIFFICULTY LEVELBeginner to Intermediate|TIME TO COMPLETE5-10 Minutes

Introductory Context

"This topic provides the complete brokerage comparison across major Indian discount brokers, the calculation of total per-trade cost, and the framework for evaluating whether the brokerage structure of any broker is appropriate for the specific options strategies you are using. "

Zerodha Brokerage Structure for F&O 

Zerodha charges Rs 20 per executed order or 0.03 percent of the order value, whichever is lower, for all F&O trades. For most retail options trades (where 0.03 percent of the trade value is less than Rs 20), the brokerage is effectively Rs 20 flat. At what trade value does 0.03 percent exceed Rs 20? Rs 20 / 0.003 = Rs 66,667. Any single options order with a total value above Rs 66,667 has brokerage capped at Rs 20 (since 0.03 percent x Rs 66,667 = Rs 20.00). Below Rs 66,667, the brokerage is Rs 20 flat. In practice, most retail Nifty options trades (1 to 3 lots at Rs 80 to Rs 150 premium) have order values of Rs 6,000 to Rs 33,750 -- all well below Rs 66,667, so Rs 20 flat applies. 

Zerodha zero brokerage for equity delivery: stock purchases held for more than one trading session attract zero brokerage on Zerodha. This applies to equity shares, not to options or futures. All F&O trades (regardless of how long the position is held) are charged at the Rs 20 per order rate. 

Zerodha F&O Brokerage Summary

Equity Options: Rs 20 per executed order (buy and sell separately). Maximum brokerage per order: Rs 20. For 1 Nifty lot purchase: Rs 20 brokerage. For 3 Nifty lots purchase (single order): Rs 20 brokerage (same rate regardless of lots in one order). Per round trip (buy + sell): Rs 40 total brokerage. Equity Futures: Rs 20 per executed order. Equity Delivery: Rs 0 brokerage. Intraday Equity: Rs 20 per order or 0.03%, whichever lower.

Upstox Brokerage Structure for F&O 

Upstox charges Rs 20 per executed order for all F&O trades -- identical to Zerodha's structure. The Rs 20 flat fee applies regardless of the number of lots in a single order or the premium per unit. Upstox similarly charges Rs 0 brokerage for equity delivery trades. The brokerage comparison between Zerodha and Upstox for F&O is: equal at Rs 20 per order. Neither broker has a cost advantage over the other on brokerage alone for F&O options trading. 

Angel One Brokerage Structure for F&O

Angel One has undergone multiple brokerage structure changes in recent years. As of recent updates, Angel One charges Rs 20 per executed F&O order for standard accounts. Angel One's 'Angel One Pro' plan (a subscription-based model) offers reduced or zero brokerage across segments for a fixed monthly fee. For active options traders who place ten or more round-trip trades per month, the Pro plan subscription may be cost-effective relative to the per-order Rs 20 charge. Verify Angel One's current brokerage structure directly at angelone.in at the time of account opening, as pricing structures have changed multiple times and may change again. 

Other Notable Discount Brokers in Indian F&O

Dhan (dhan.co): Rs 0 brokerage on all trades including F&O, with revenue from other product fees. Paytm Money: Rs 0 brokerage on equity delivery, Rs 10 per F&O order -- lower than the Rs 20 standard. Groww: Rs 20 per F&O order. Fyers: Rs 20 per F&O order. 5paisa: Rs 20 per F&O order. The Rs 20 per order rate has become the de facto standard for Indian discount brokers, with variations at the margin (Rs 10, Rs 0) from brokers attempting to differentiate on brokerage cost. Evaluate non-standard brokerage brokers carefully against the other criteria (platform reliability, GTT support, option chain quality) before prioritising cost over operational capability.

The True Per-Trade Cost - Beyond Brokerage 

Brokerage is only one of five cost components in every F&O trade. The complete cost structure (detailed in Topic 10.15) includes: STT (Securities Transaction Tax), NSE turnover charges, SEBI fees, GST on brokerage and charges, and stamp duty. For a retail options buyer, the total round-trip cost (all components combined) typically ranges from Rs 80 to Rs 180 per lot depending on the premium level and the broker. Brokerage represents approximately Rs 40 of this total (Rs 20 x 2 orders). 

The brokerage-to-total-cost ratio highlights why broker selection on brokerage alone is incomplete: at Rs 40 brokerage out of Rs 120 total cost, optimising brokerage from Rs 40 to Rs 20 (by finding a broker with Rs 10 per order) saves Rs 20 per round trip -- a 16.7 percent reduction in total cost. Significant across many trades. But choosing a broker with Rs 10 brokerage that has poor GTT support, delayed option chain data, and a history of platform outages costs far more than Rs 20 per round trip in terms of execution quality and risk management capability. Cost optimisation should follow, not precede, operational capability evaluation. 

Call-and-Trade Charges Are Significantly Higher

All brokers charge a premium for orders placed through their customer service line rather than through the online platform (called 'call-and-trade'). Zerodha charges Rs 50 per order for call-and-trade. Upstox and others charge similar premiums. This call-and-trade cost is relevant when the primary broker's platform is experiencing an outage and the secondary broker account is not available -- you may need to call your primary broker to exit a position. Maintaining the secondary broker account eliminates this scenario and prevents the call-and-trade premium charge during platform outages.

Brokerage Impact on Strategy Profitability 

For strategies with low expected returns per trade, brokerage represents a larger proportion of the gross gain and can determine whether the strategy is net-profitable. A Nifty debit spread entered for Rs 4,350 per lot (net debit at Rs 58 per unit x 75) and exited for Rs 4,950 (net premium of Rs 66 per unit x 75) produces a gross gain of Rs 600. Round-trip brokerage of Rs 40 plus statutory charges of approximately Rs 60 to Rs 80 = total cost Rs 100 to Rs 120. Net gain: Rs 480 to Rs 500. The cost reduces the gross gain by approximately 20 percent. For strategies with expected gross gains below Rs 200 per round trip, transaction costs may consume a significant proportion -- making the strategy net-negative even with a positive gross expected value. 

The Rs 20 flat brokerage revolution changed Indian retail F&O trading structurally -- it made thousands of strategies viable that were uneconomic at percentage-based rates. But Rs 20 per order is only the starting point. The full cost calculation using all five components is what determines whether any specific strategy is net-profitable after all costs.

Calculate Net Expected Value Including All Transaction Costs for Any New Strategy

Before implementing any options strategy, calculate the full transaction cost per round trip (brokerage x 2 + statutory charges, per Topic 10.15) and deduct this from the gross expected value calculation. If the net expected value (gross EV minus total transaction cost) is positive, the strategy is net-viable. If not, the strategy needs either higher gross expected value (better entry criteria) or lower transaction costs (fewer legs, reducing the number of orders). The strategy selection process should always conclude with this net EV check rather than treating transaction costs as an afterthought.


Frequently Asked Questions

Quiz

A trader executes 10 round-trip options trades per month (10 buys + 10 sells = 20 orders). At Zerodha (Rs 20 per order), Upstox (Rs 20 per order), and a broker charging Rs 10 per order. What is the monthly brokerage difference between the Rs 20 and Rs 10 broker, and at what annual savings does the Rs 10 broker become worth switching to?

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Written By: Editorial Team

Disclaimer: While due care has been taken to ensure the accuracy, clarity, and relevance of the information, the content is intended solely for educational purposes. Financial terms and concepts are interpretative tools; readers are strongly advised to verify information from multiple sources and apply their own judgment. This content does not constitute financial, investment, or advisory recommendations of any kind.