Leading stock brokerage firm Zerodha has announced the decision to remove Rs 200 account opening fee for customers under 25 years of age.
“We have now also removed the Rs 200 account opening fee for customers under 25 years of age to encourage young people to think about investing early,” Zerodha said on its official blog on Tuesday (April 25, 2024).
The decision to waive the account opening fee for young investors has come after extensive internal deliberations, states the Zeordha update.
“We’ve been debating this internally for a while now — whether the account opening fee we charge was a barrier for youngsters to start investing,” the company said.
Zerodha acknowledges that this fee has been perceived as a potential barrier for youngsters looking to venture into investing. By removing this obstacle, Zerodha aims to encourage early participation in wealth-building activities. It wants to emphasize the importance of starting investments at a young age and making mistakes with minimal impact.
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India is having a robust economic growth and the prominence of its stock market is growing. Still, a considerable gap persists in the number of active investors.
There are only only approximately 9 crore unique investors in a population of 140 crore. There is, therefore, immense potential for expansion. Zerodha has recognized this opportunity and waived off account opening fee to attract customers.
Currently, only around 15% of Zerodha’s customers fall under the age of 25, indicating room for growth in this segment, according to the blog.
To facilitate the entry of young investors into the market, Zerodha has implemented various measures over its 13-year journey. These include providing user-friendly platforms, offering free investment options in stocks, ETFs, mutual funds, and government bonds. It is also offering comprehensive educational resources through Varsity.
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The move aligns with the broader industry trend of brokerage houses offering incentives to attract new customers. Other players in the market, such as Groww, Angel Broking, Motilal Oswal, 5paisa and FYERS, also provide free account opening facilities.
However, for investors, it’s essential to be mindful of other charges like AMC charges, delivery brokerage, intraday, and F&O brokerage, which may vary across different brokers.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing in market-linked instruments.
