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New Delhi: Zerodha's co-founder Nitin Kamath has explained in a social media post how his firm's zero-brokerage model is a win-win for investors. According to Kamath, the purpose of the platform is not to make customers trade more, but to protect them from losses. Kamath said that Zerodha's clients trade 75% less than clients of other brokerage firms.
Kamath said that investors benefit from his firm's zero brokerage model. He said that in most cases, more trading does not mean better returns. Rather, increasing the frequency of trading increases the chances of investors' accounts being 'blown out'. That is, the more activity, the greater the risk and harm. For this reason, Zerodha does not use things like notifications, trending stocks or dark patterns from the beginning. As a result, users visit the app again and again and make trades.
As a % of client funds, our brokerage revenue is 20-25% of our listed peers. That means our clients trade a lot less (75% lesser) as a proportion of their capital.
— Nithin Kamath (@Nithin0dha) December 9, 2025
Here's something counterintuitive but true: With few exceptions, the more frequently people trade, the lower their…
Kamath clarified that Zerodha's team has never been given incentives on brokerage revenue. It is the company's principle that the fewer trades the client makes, the more likely it is to survive longer and stay connected to the platform. He said that shortcuts make it easy to increase revenue, but the company bypassed this FOMO from the beginning.
Kamath's post quickly went viral on social media. One user wrote, “Less trading means more survival — it's rare to see a founder believe that. When incentives are not on the churn but on the long-term, then the trader can think, not just clicks.” Another user said, “The brokerage model that prioritizes customer well-being is refreshing. Less activity can also give better results. Maintain integrity.”
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
