Groww to Increase Brokerage Fees: Changes Effective June 21, 2025

India’s leading discount brokerage platform, Groww, has announced a revision in its fee structure, set to take effect from June 21, 2025. This move comes amid rising operational costs and regulatory changes impacting the brokerage industry.

1. Minimum Brokerage Fee:

• Current: ₹2 per equity order
• Revised: ₹5 per equity order

This adjustment represents a 150% increase in the minimum brokerage fee, primarily affecting small-value equity trades.

2. Depository Participant (DP) Charges:

• Current: ₹18.5 per day per stock, regardless of the number of sale transactions
• Revised: ₹20 per sale transaction

Previously, Groww absorbed certain DP charges on behalf of clients. With the revised pricing, these charges will now be directly applicable to clients for each sell transaction.

3. Margin Trading Facility (MTF) Interest Rate:

• Current: 15.75% per annum for amounts below ₹25 lakh; 9.75% for ₹25 lakh and above
• Revised: 14.95% per annum flat rate

The MTF interest rate has been standardized to a flat rate, impacting clients utilizing margin trading services.

The decision to revise the fee structure is influenced by several factors:

• Regulatory Changes: The Securities and Exchange Board of India’s (SEBI) ‘true-to-label’ norms have eliminated certain revenue streams for brokers, such as hidden markups and rebates, which previously contributed significantly to their income.
• Operational Costs: Increasing expenses related to technology infrastructure and compliance have put pressure on brokerage firms to adjust their pricing models.

Prakarsh Gagdani, CEO of Torus Financial Market, noted that the cost of doing broking business is compelling brokerages to hike rates.

Groww communicated these changes to its clients via email, detailing the revised charges and their effective date. The brokerage emphasized that the adjustments are necessary to maintain service quality amid changing market dynamics.

The fee revision has sparked discussions among investors and industry observers. Some clients have expressed concerns over the increased costs, especially for small-ticket trades. However, such adjustments are becoming common across the brokerage industry as firms adapt to evolving regulatory and economic landscapes.

Groww’s upcoming fee revisions reflect broader trends in the brokerage industry, where firms are recalibrating their pricing structures in response to regulatory changes and operational challenges. Clients are advised to review the new fee schedule and assess its impact on their trading activities.