Nithin Kamath, founder and CEO, Zerodha, has said that most investors actually stand to lose more money when they trade too often. His comments come at a time when many trading platforms encourage heavy activity, especially in volatile markets.
“As a percentage 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,” he said on X.
He added that this lower activity is not a weakness, but a sign of healthier participation.
FREQUENT TRADING RARELY LEADS TO PROFITS
Kamath explained that frequent trading rarely leads to better outcomes.
“With few exceptions, the more frequently people trade, the lower their odds of being profitable. More activity doesn’t mean better returns; it usually means a higher chance of blowing out your account,” he said.
His remarks point to a pattern often seen among new traders who believe that staying constantly active will help them earn more.
WHY PLATFORMS SHOULD PREFER LESS TRADING
Kamath also said platforms should actually encourage lower trading volumes for the sake of customer well-being.
“It’s in a platform’s best interest to get customers to trade less, not more,” he said. He explained that while pushing users to trade more may produce quick revenues, “it ultimately harms them in the long run.”
Kamath’s comments underline the long-standing position that slow and steady participation is better for most retail traders. IN other words, he says trade only when needed, and avoid the trap of constant activity.
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