Zerodha co-founder Nithin Kamath recently offered insights into the significant differences between brokerage companies in the United States and India concerning instant client withdrawal fees. In a post on X, Kamath detailed how US-based Robinhood Markets Inc. is projected to generate substantial revenue from these charges, estimating approximately $150 million, which could result in a clean profit of $100 million after accounting for processing costs of around $35–40 million.

Kamath highlighted a stark contrast between the two countries, noting that India lags considerably behind the US in terms of customers' readiness to pay for add-on services. He observed that while Indian startups, eager for revenue, venture into various non-core offerings like loans, insurance, and payments, these often fail to gain significant traction outside their primary services. This suggests a cultural or market difference where Indian consumers are less inclined to pay for additional financial services compared to their American counterparts.

Expressing his astonishment at the 1.75% transaction fees levied in the US for instant withdrawals, Kamath lauded India's Unified Payments Interface (UPI). He emphasized that UPI provides instant transactions free of charge, showcasing the efficiency and user-friendliness of the Indian payment system. He pointed out the perceived shortcomings of the US banking system, where fund transfers can still take several days, even in 2025, a stark contrast to UPI's real-time capabilities.

Kamath further elaborated on Robinhood's fee structure, mentioning a 1.75% charge per instant withdrawal transaction, with a minimum fee of $1 and a maximum reaching $150. He also noted that other prominent US brokers, such as Charles Schwab and Fidelity, similarly impose fees for instant withdrawals. In comparison, Kamath proudly stated that Zerodha does not charge its clients for deposits, thanks to UPI, or for instant withdrawals. He quantified this by revealing that Zerodha has processed over ₹50,000 crores in instant withdrawals in under two years, all at zero cost to the client.