Groww, one of India’s leading brokerage platforms, has announced a significant change in its fee structure, raising the minimum brokerage charge for equity trades from ₹2 to ₹5 per order—a 150% increase. This adjustment, effective from June 21, 2025, primarily impacts investors executing low-value transactions.
Reasons Behind the Fee Hike
- Regulatory Changes Impacting Profitability: The Securities and Exchange Board of India’s (SEBI) ‘true-to-label’ norms have eliminated hidden markups, which previously contributed significantly to brokers’ revenues. This regulatory shift has compelled brokers to reassess their pricing models to maintain financial viability.
- Increased Operational Costs: The cost of maintaining and upgrading technology infrastructure, coupled with compliance requirements, has escalated. These rising expenses necessitate adjustments in fee structures to ensure sustainable operations.
- Industry-Wide Trend: Groww’s decision aligns with a broader industry movement where other brokerage firms, such as Angel One, have also increased their fees in response to similar challenges.
Additional Fee Revisions
- Depository Participant (DP) Charges: Groww will revise DP charges from ₹18.5 per day per stock to ₹20 per sale transaction.
- Margin Trading Facility (MTF) Interest Rates: The interest rate for MTF will be adjusted to 14.95% per annum on the funded amount. Business Standard
Implications for Investors
While the fee increase may seem modest in absolute terms, it significantly affects small-scale investors who engage in frequent, low-value trades. These investors will experience a higher cost per transaction, potentially influencing their trading strategies.
Conclusion
Groww’s fee adjustments reflect the evolving landscape of the brokerage industry in India, driven by regulatory reforms and rising operational costs. Investors are advised to review their trading patterns and consider the impact of these changes on their investment strategies.
