New Delhi, Aug. 8 -- Nithin Kamath, co-founder of stock broking platform Zerodha, has highlighted that the Securities Transaction Tax (STT) is a significant cost for traders, affecting trading volumes in various markets.

In a post on the social media platform X, Kamath wrote, "Securities Transaction Tax (STT) is the biggest tax that traders pay, and it's much higher than brokerage fees. At Zerodha, the STT we collect and pass on to the government is higher than the brokerage we earn."

Stating the surge in options volumes caused by STT, which is a direct tax applied to each purchase and sale of securities listed in stock exchanges, he noted, "Trading volumes are highly sensitive to the STT. The level of STT also affects whether traders t...