Zerodha Slashes Brokerage Fees for NRI Investors, Simplifies Onboarding to Boost Indian Market Participation

Bengaluru, August 4, 2025 – Zerodha, India’s leading online brokerage platform, has announced a significant reduction in brokerage fees for Non-Resident Indian (NRI) investors using non-Portfolio Investment Scheme (PIS) accounts, alongside a streamlined onboarding process to make investing in Indian markets more accessible. The move, effective immediately, reduces brokerage charges for non-PIS NRI accounts to ₹50 or 0.5% per executed order, whichever is lower, down from the previous rate of ₹100 or 0.5%. Meanwhile, PIS accounts will continue to be charged ₹200 or 0.5% per trade due to operational complexities. This strategic initiative follows recent regulatory changes by the Securities and Exchange Board of India (SEBI) and aims to tap into the underutilized potential of NRI investments in India’s burgeoning equity markets.

Addressing NRI Pain Points

NRI investors have long faced hurdles when investing in Indian markets, primarily due to cumbersome paperwork, mandatory embassy visits for document attestation, and high brokerage costs. Nithin Kamath, founder and CEO of Zerodha, highlighted these challenges in a recent post on X, noting that “the number of NRIs interested in investing in Indian markets but held back due to paperwork and embassy visits is quite high.” He further emphasized the significant value of NRI accounts, which are, on average, ten times higher than those of resident Indian accounts, underscoring the potential for growth in this segment.

To address these barriers, Zerodha has introduced a redesigned onboarding process that minimizes paperwork and simplifies account opening for NRIs. The new flow allows NRIs to complete much of the application online, reducing the need for physical documentation and embassy visits. While NRI accounts still require offline submission of notarized documents—such as a valid Indian passport, visa, PAN card, overseas address proof, and, for NRE accounts, a PIS permission letter from partner banks (HDFC, Axis, IDFC First, Yes Bank, or IndusInd)—the streamlined process aims to make the experience more seamless.

SEBI’s Regulatory Shift Spurs Change

The fee reduction and onboarding overhaul were catalyzed by SEBI’s recent decision to eliminate the requirement for a Custodial Participant (CP) code for NRIs trading in the futures and options (F&O) segment. Previously, NRIs needed to partner with a custodian, such as Zerodha’s partner Orbis Financial Services, to obtain a CP code for F&O trading, adding complexity and cost. SEBI’s relaxation of this requirement has enabled Zerodha to lower brokerage fees for non-PIS accounts, which do not require RBI permission and can be linked to any Non-Resident Ordinary (NRO) bank account. This contrasts with PIS accounts, which involve stricter regulatory oversight through designated banks and are limited to Non-Resident External (NRE) or NRO accounts with specific partners.

Non-PIS accounts offer NRIs greater flexibility, allowing investments in equity shares, convertible preference shares, debentures, warrants, and mutual funds (except for NRIs in the US and Canada due to regulatory restrictions). The reduced brokerage of ₹50 or 0.5% per trade for non-PIS accounts makes it more cost-effective for NRIs to participate in India’s equity and derivatives markets. However, PIS accounts, which are subject to additional bank reporting and settlement processes, retain the higher brokerage of ₹200 or 0.5% per trade.

Strategic Move to Capture NRI Market

Zerodha’s initiative is a strategic response to the growing interest among NRIs in Indian equities, driven by India’s robust economic growth and stock market performance. Despite this potential, NRI participation remains underrepresented due to procedural complexities. Kamath noted that the simplified onboarding and lower fees are part of a broader effort to digitize and democratize the investing experience for NRIs, aligning with Zerodha’s mission to make financial markets accessible to all.

The company’s flagship trading platform, Zerodha Kite, along with tools like Coin (for mutual fund investments) and Console (for portfolio tracking), will continue to be available to NRIs with the same features as resident accounts. Additionally, Zerodha’s partnership with Orbis Financial Services ensures that NRIs can still access F&O trading through non-PIS accounts, albeit with a custodial account for settlement purposes.

Charges and Account Details

For non-PIS accounts, the brokerage is now ₹50 or 0.5% per executed order for equity delivery, with F&O trades at a flat ₹100 per executed order. PIS accounts are charged ₹200 or 0.5% for equity delivery and ₹100 for F&O. Other charges include an account opening fee of ₹500, annual maintenance charges (AMC) of ₹125 + 18% GST per quarter, and statutory levies such as Securities Transaction Tax (STT), exchange transaction charges, GST, SEBI charges, and stamp duty. For F&O trading, clearing charges through Orbis are ₹150 per crore for futures and ₹1,500 per crore for options, billed monthly.

NRIs can fund their accounts via UPI, instant payment gateways (₹9 + 18% GST per transfer), or IMPS/NEFT/RTGS, with funds credited instantly for non-PIS accounts. For PIS accounts, funds are transferred from the linked NRE/NRO account to the PIS bank account, with settlements reported to Zerodha by the bank on the next working day.

Tax and Compliance Considerations

Income earned from Indian capital markets is taxable for NRIs, with Zerodha deducting Tax Deducted at Source (TDS) for non-PIS accounts at 23.92% on equity sale proceeds, which is later adjusted based on actual capital gains. NRIs must file income tax returns in India to claim refunds if eligible, adhering to either the Old Tax Regime (with concessions) or the New Tax Regime. Additionally, NRIs must comply with tax regulations in their country of residence, and platforms like Wise can facilitate cost-effective fund transfers to and from India.

Impact and Future Outlook

Zerodha’s fee reduction and simplified onboarding are expected to significantly boost NRI participation in Indian markets, particularly among tech-savvy and high-net-worth individuals. The move aligns with SEBI’s broader efforts to liberalize market access while maintaining regulatory oversight. Industry observers anticipate that other brokers may follow suit, potentially sparking a wave of competitive fee reductions and process improvements to attract the NRI segment.

For NRIs, this development offers a cost-effective and user-friendly gateway to invest in India’s dynamic markets, leveraging Zerodha’s robust trading platforms and low-cost structure. As India continues to position itself as a global investment destination, Zerodha’s proactive measures could reshape the landscape for NRI investors, fostering greater diaspora engagement in the country’s economic growth.

For more details on opening an NRI account with Zerodha, visit zerodha.com or contact their dedicated NRI support team. To explore competitive remittance options, check wise.com.