Why is Groww raising brokerage fees by 150% for small trades?

By

Kairavi Lukka

, ET BureauLast Updated: May 22, 2025, 05:42:00 AM IST

Synopsis

Groww, a major Indian brokerage firm, will increase its minimum equity brokerage charges. The increase is from ₹2 to ₹5 per order. This change impacts smaller equity trades. The new fee structure will be effective from June 21. Other brokers like Angel One previously raised their fees. These changes follow regulations impacting brokerage profits.

Mumbai: Groww, India's largest broker in active clients, is set to increase its fees by 150% for low-ticket transactions as the profitability of discount broking firms has come under pressure in the face of tighter regulations.

The firm, in a communication to clients, said it will hike the minimum equity brokerage charges to ₹5 per order from ₹2, for equity trades from June 21. The move is expected to increase the trading costs of smaller transactions. The IPO-bound firm with about 13 million active clients will charge brokerage fees in the range of ₹5 to ₹20 per trade against ₹2 to ₹20, currently.

Agencies

Other larger brokers, like Angel One, also had increased their brokerage charges from 0 to ₹20 on equity trades late last year, after the Securities and Exchange Board of India's 'true-to-label' norms announced in July last year squeezed brokerages' profits. The new rules allow brokers to levy transaction charges on clients that they would pay the Market Infrastructure Institutions (MIIs) - stock exchanges, clearing corporations, and depositories.

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