Zerodha Review – Brokerage Charges, Demat A/C, Trading Platforms & More

By TBS Team | May 23, 2024

zerodha

Zerodha is the leading stock broker with highest number of clients. Zerodha is the one who first started the concept of discount broking in 2010. Zerodha charges zero brokerage fee for investment in equity and mutual funds and flat Rs 20 per trade for intraday and F&O. Lets take a look on our detailed Zerodha Review.

Zerodha has an overall client base of more than 10 lakhs and claims to manage daily turnover of INR 12k crores in equities and INR 1K crores in commodities. Zerodha is a prominent member of NSE, BSE and Multi Commodity Exchange (MCX).

According to the company’s financial results by Zerodha, It has acclaimed a Profit After Tax (PAT) of over INR 100 Crore for the financial year 2018-19.

These impressive figures clearly indicate how successful the discount broker is today’s stock broking market. The annual revenue of Zerodha is over $ 100 million.

Zerodha allows you trade and invest in the below given segments:

  • Equity
  • Derivative Trading
  • Currency
  • IPO
  • Mutual Funds
  • Commodities
  • Government Securities (Latest Inclusion)

In recent times, Zerodha has started offering 3-in-1 demat account in association with IDFC bank. Zerodha is largely considered as India’s first and no. 1 discount broker by volume, the customer base and overall growth.

Zerodha Customer Ratings

Criteria Ratings
Brokerage Charges & Fees 9.5 / 10
Research & Advisory 9.3 / 10
Product & Services 9.5/ 10
Trading Platforms 9.2 / 10
Broking Experience 9.7/ 10
Overall Rating 9.2/10
Customer Rating ★★★★★


Types of Zerodha Accounts

Primarily, Zerodha offers three types of accounts to its users.

Zerodha Demat Account –

A Demat Account is an account that enables investors to put their shares in an electronic form. Stocks in Demat account are maintained in dematerialized form. Dematerialization refers to the process of changing physical shares into electronic format. A demat account can be opened with no balance of shares.

If you have shares lying at any other broker, you can transfer the same to your demat account at Zerodha. In addition, there is an option to dematerialize your physical shares at Zerodha.

Zerodha Trading Account –

A trading account is what you need to buy or sell securities in the share market. Do remember that this account will be different from your demat account.

For intraday trading, you just need a trading account and demat account is not required. This system is applicable across all stockbrokers in India, though Zerodha may compel you to open a demat account in any form.

Zerodha Commodity Account –

If you’re planning to invest in commodities, you should open a commodity account with Zerodha separately. In addition, you would be needed to open a demat account as opening a commodity account separately won’t work.

Do keep in mind that charges for these accounts would be in two types – opening the account and maintaining the account.

How to open Demat Account with Zerodha?

Zerodha Account opening process is fully online and faster using Aadhar-Esign. Account opening generally takes 24–48 hours after submitting the application and here is step by step process to open a demat account with Zerodha.

  1. First you need to fill the pop up form to open a Zerodha demat account.
  2. Later you need Aadhaar Number, in case the online application form which will be electronically signed.
  3. PAN Card to ensure that the PAN Number and Name is entered in correctly,
  4. Scan of cancelled cheque with your name OR your latest bank account statement, which is required to be uploaded. Please note that in case the cheque does not include your name and in case the bank proof does not mention the IFSC & MICR code, your application will be rejected. It’s means cheque should be personalized.
  5. To enable the Futures and Options segment, either one of the following is to be kept ready which needs to be uploaded:
    • A copy of your latest 6-month Bank Statement or Passbook; OR
    • A Copy of your form 16; OR
    • A copy of your net worth Certificate; OR
    • A copy of your last salary slip; OR
    • A copy of your latest ITR acknowledgement; OR
  6. Personalized Signature
  7. After submitting all these things, wait for document verification, Once verification is successful you will receive your login credential to access your Demat or Trading Account.

Zerodha Account Opening Charges

We have listed all types of account opening and AMC charges charged by Zerodha.

Account Opening & AMC Charges
Trading & Demat Account opening Charges Rs 200
Trading AMC [Yearly] Rs 0 (Free)
Demat AMC [Yearly] Rs 300
Margin Money 75% Margin


Zerodha Trading Platforms

The competitive brokerage rates at Zerodha along with cutting-edge trading platforms make the discount broker a hot favorite option among both the investors as well as top traders. Zerodha came up with its in-house trading applications that not only allow it to gain more control over stock trading but also results into improved user experience, performance, usability and integrations.

Let’s look at Zerodha’s top trading platforms

Zerodha KiteZerodha Kite

Zerodha KITE is a leading trading software developed by Zerodha. It enables customers to trade in stocks at BSE, NSE and MCX. It’s a front-end application which is built in-house by Zerodha engineers. KITE platform has 3 main products, all for free to its customers:

  1. Kite Web

A web-based trading application (works on browser like a website) with streaming quotes, advance charts, keyboard shortcuts, elegant UI and all available orders.

  1. Kite Mobile App

Zerodha Kite App is available for Android and iOS. Kite Mobile is a sturdy and easy mobile trading app. The Kite Mobile App give provides access to all the features available in Kite Web.

  1. Kite Connect API

Kite APIs are easy HTTP/JSON APIs for developers who would like to develop their own front-end platforms or tools to trade. These API’s are provided as ‘platform as a service’.

Top Features of Zerodha Kite

Kite is a great trading platform loaded with several features which are not offered by any other discount broker. As Kite is under active development, Zerodha is taking in 100’s of new features every new version released. Here are a few key features which make Kite a distinctive trading experience.

  • Dashboard / Account Summary
  • Market Watches
  • Streaming Quotes
  • Market Depth View with Streaming Updates
  • Floating Order Window
  • Exit multiple orders/positions in one click
  • Multiple chart view (4 charts on the same screen)

Zerodha PI

Zerodha Pi 2Zerodha Pi

 

PI by Zerodha is a desktop trading application and boasts of features like trading, charting, scripting and analysis. One needs to download the software and install it on his computer system. Some of the great features of this trading application:

  • High speed order execution
  • Basic and technical analysis including charting with 70+ technical indicators
  • Market watch option
  • Customized alerts and notifications

Zerodha Trader

Zerodha Trader
Zeroddha Trader

It is basically a customized version of the terminal-based application – NEST Trader. The application allows you perform trading across segment including currency, commodity, equity, and derivatives. Its salient features are:

  • Market Watch
  • Multiple order types
  • Span calculator
  • Shortcut keys

Zerodha Coin

Zerodha Coin is India’s best mutual fund app that allows you buy direct mutual funds online with no commission pass back, straight from asset management firms. Your mutual funds, stocks, currencies, bonds, and more, all in your Demat account.

Zerodha Streak

Streak is really great, particularly for technical traders. Their backtest feature is really outstanding. Earlier people backtest by browsing through charts and it used to take a lot of time to really validate a strategy before delivery. But Streak has reduced hours and hours of work.

Zerodha smallcase

Zerodha smallcase is actually a bonding between the discount broker and smallcase with an objective to enable thematic investment options to clients. Users just need to open a demat account to access thematic investment options right on their portal.

This platform is best for those who find it difficult to carry out fundamental analysis and look for precise investment advisory.

Zerodha Sentinel

Zerodha has recently launched a platform known as Sentinel, to help the traders, invest efficiency and lucratively. The Sentinel platform is a trigger notification system which delivers notifications on any triggers included by the user in the Sentinel Platform.

Zerodha Varsity

Zerodha Varsity is an avenue where one can choose to learn how to read central of any specific stock for long term investment. And if you are day trader then they will make you learn what’s stop loss how to comprehend market trends and earn big from them. Being Rich from Stock market is not journey that has short cuts.

Zerodha Customer Care Review

Zerodha primarily offers customer services to its clients through following communication channels:

  • Phone
  • Email
  • Social Media

This is one area where Zerodha lacks its edge as there are limited communication channels to avail the customer service. This is the region where Zerodha needs to work a lot by improving their customer service support.

In some cases, even the CEO, Nitin Kamath has been seen involved into resolving some of the queries by the users. His direct involvement is really a benchmark that should be taken forward across the team.

Zerodha Pricing

Zerodha is the pioneer of the discount broking concept in India and is the largest discount broker in terms of active clients. Already 10+ lakh clients have chosen Zerodha. 5% of daily retail trading volumes across NSE, BSE, MCX.

Zerodha has a very easy pricing structure. They offer free equity (shares) delivery trades and charge a maximum for Rs.20 for intraday trading, F&O, currency and commodity trades. Their brokerage calculator makes it quite simple to calculate charges; a concept brought in the country by Zerodha.

Zerodha Brokerage Charges

At the point when the majority of the brokerage firms were charging a fortune, Zerodha made an imprint by offering all Equity and Mutual Funds Investment a brokerage charges free and 0.01% or Rs. 20 whichever is lower for each executed order.

Segment Brokerage Charges
Equity Delivery Rs 0 (Free)
Equity Intraday Flat Rs 20 or 0.03% (whichever is lower) per executed order
Equity Future Flat Rs 20 or 0.03% (whichever is lower) per executed order
Equity Options Flat Rs 20 per executed order (on Turnover)
Currency Futures Flat Rs 20 or 0.03% (whichever is lower) per executed order
Currency Options Flat Rs 20 or 0.03% (whichever is lower) per executed order
Commodity Flat Rs 20 or 0.03% (whichever is lower) per executed order
Mutual Fund Rs 0 (Free Unlimited Direct Mutual Fund)


Other Zerodha charges

  • STT – For Equity delivery, it is 0.1% on both buying and selling of the equities and for intraday trade, it is 0.025% on the selling side. In case of futures, it is 0.01% on the sell side and for options, 0.05% on the premium of the sell side
  • Transaction/turnover Charges – For equity delivery on NSE it is INR 325 for each 1 cr and on BSE it is INR 1 for each trade on both sides. For Intra-day, the charges are same on both the exchanges. For Futures, it is INR 210 per crore on NSE and INR 1 for each trade (both side) and for options, it is INR 5300 per crore and INR 1 on both side per trade on the premium of options.
  • GST – For both Intra-day and Delivery on Equity and F&O it is 18% on the sum of brokerage value and transaction charges.
  • SEBI Charges – INR 15 per 1 crore for both intra-day and delivery. It is same equity as well as F&O.
  • Stamp Charges – It is according to the rules of the state for both equities and F&O on both delivery and intra-day.

Zerodha Margins

Though there is not much scope of leveraging on buying or selling, there is still some space.

Equity 4 to 10 times for Intraday
Equity Futures 40% of exchanged prescribed margin
Equity Options 40% of exchanged prescribed margin for selling. No margin on buying
Currency Futures 100% of exchanged prescribed margin
Currency Options 100% of exchanged prescribed margin
Commodities 50% of exchanged prescribed margin

 

Zerodha Research

Zerodha has also joined hands with Thomson Reuters to make its clients access advanced reports termed as StockReports+. Using this, Zerodha clients can register to various paid plans and receive different reports of several listed firms.

These plans are based on particular frequency you look for to register with:

  • 1 month – INR 150
  • 6 months – INR 850
  • 1 year – INR 1440

Zerodha Referral Program Review

Zerodha referral program has helped lot of their clients to make earn through referral program. Also, it helped Zerodha to gain more client without putting money on advertisement, due to which they are able to operate at competitive cost and also charge less to their customer.

If you refer any of your family/relatives/friends to Zerodha, you earn 10% of the brokerage they pay to Zerodha. Suppose per order your friend is paying Rs 20/- , so you get Rs 2/- on his each trade.

The Conclusion

Zerodha Securities is one of the best discount brokers in India for trading in Stock, Currency Derivative and Commodity segments. As it brought the concept of discount broking in the country, it still rules the space in many aspects. Due to its strong focus on customer education, brokerage plans and other things mentioned in this Zerodha review like value delivery, Zerodha is a clear winner in the category.

However, customer service is what needs to be improved. This is because its clients still have complaints regarding unresponsiveness and unprofessionalism or the customer service department. So all the features define that the Zerodha is trustworthy or Zerodha is better for beginners.

FAQs About Zerodha Stock Broker:

  1. What are the benefits of ZERODHA?

Well-known Indian brokerage Zerodha provides a range of services to satisfy the needs of various investor types:

  • Zero Brokerage on Equity Delivery:

Zerodha is an excellent option for long-term investors since it provides commission-free equities delivery trades, encouraging economic portfolio management.

  • Competitive Prices:

Unlike established brokers, Zerodha guarantees affordability for intraday, futures and options, currency, and commodities trading at Rs. 20 or 0.03% (whichever is lower).

  • Clear Fee Structure:

Zerodha’s website displays all fees, removing any possibility of hidden costs and demonstrating their dedication to openness.

  • Advanced Trading Platforms:

Zerodha offers cutting-edge tools, including Kite online, Kite mobile, Pi for algorithmic trading, and Console for in-depth market analysis tailored to different trading styles.

  • Easy Account Opening:

The fully online account opening procedure streamlines investor onboarding, enabling trading to commence in just a few minutes.

  • Educational Resources:

Extensive information sources include articles, webinars, and video lectures to aid decision-making.

  • High User Volume

With more than one crore clients, Zerodha is the biggest brokerage in India and offers investors a trustworthy platform.

 

As a result of its ability to combine affordability, intuitive user interfaces, and educational support, Zerodha is a top option for investors of all skill levels.

  1. What are the charges for Options trading at ZERODHA?

Zerodha charges a fixed brokerage fee of Rs 20 per executed transaction, or 0.03%, whichever is lower for trading futures. Similarly, there is a fixed cost of Rs 20 for each completed order in options trading.

Furthermore, traders must pay taxes, including Stamp Duty, Securities Transaction Tax (STT), Transaction Fee, Goods and Services Tax (GST), and Securities and Exchange Board of India (SEBI) fees. It’s crucial to account for these related expenses while trading options and futures on the Zerodha platform.

  1. What documents does ZERODHA require?

Smooth account creation and trading experience on Zerodha, a well-known brokerage platform, require essential documentation. These records are vital for regulatory compliance, financial evaluation, and identity verification:

  • PAN card: Underneath it is a self-attested copy of the PAN card signed by the applicant.
  • Signature Scan: An authenticated scanned image of your signature, signed in black or blue ballpoint or ink pen.
  • Aadhaar Number: Giving the Aadhaar number to verify identification and adhere to legal requirements.
  • Bank Proof: A customized canceled check, bank statement, or passbook copy with the account number, bank logo, seal, MICR, and IFSC code.
  • Income Proof for Futures and Options (F&O) Trading: If you want to trade futures and options (F&O,) you must provide one of the following as proof of income:
  • Bank statements over the last six months show an average balance of more than ₹10,000.
  • The most recent pay stub shows a gross monthly income beyond ₹15,000.
  • Form 16 or an ITR acknowledgment if your gross yearly income exceeds more ₹1,20,000.
  • A certificate proving one’s net wealth above ₹10,00,000.
  • Ensuring transparency in investment portfolios, we provide a Demat Holdings Statement that reflects the current value of demat assets exceeding ₹10,000.

By providing these papers, Zerodha complies with regulatory requirements, expedites the account verification process, and provides clients with various trading options.

  1. Is ZERODHA a discount broker?

Indeed, Zerodha is a discount broker; its economic strategy has made it a trendsetter in India. Zerodha, a well-known provider of transparent pricing, offers direct mutual fund transfers and equities delivery for no brokerage. It is a financial sector disruptor that has been instrumental in redefining traditional brokerage models through its inexpensive services.

As a result, investors looking for low-cost trading solutions in the Indian market have found it a popular option.

  1. What is the annual maintenance fee of the ZERODHA Demat account?

Zerodha assesses an annual Account Maintenance Charge (AMC) of ₹300 for the Demat account, along with an additional 18% GST. Zerodha deducts this charge from the account balance every three months, starting with the opening of the account.

By guaranteeing continuing upkeep and services for the demat account, the annual maintenance fee gives consumers a clear idea of the costs involved.

  1. What are the account opening charges at ZERODHA?

Zerodha levies a one-time Rs 200 charge to create a trading account. This fee covers the initial account setup and trading platform access procedures. It is a one-time charge paid in addition to any other transaction or operating fees related to trading activity.

The account holder makes the payment at the time of account opening. Potential Zerodha customers must consider this little account opening fee when selecting a brokerage provider.

  1. How long does it take to withdraw money from ZERODHA?

The popular online trading platform Zerodha controls capital withdrawals via a well-defined processing schedule, depending on particular cut-off hours essential to the transaction’s smooth operation.

  • Investors must initiate weekday withdrawal requests for stock, futures, options (FO), and currency sectors by 10:00 PM.
  • Meanwhile, 8:00 AM is the cut-off time for commodities transactions.
  • If the company receives the request within the allotted period, we usually credit the money to the selected bank account 24 hours after the deadline. Ensures that the transaction will complete entirely.
  • On public holidays and weekends (Saturday and Sunday), Zerodha processes withdrawals the next working day, precisely adhering to the appropriate cut-off times for each segment.

In conclusion, timely submission of withdrawal requests within the designated cut-off hours is crucial to quickly processing fund withdrawals from Zerodha. It gives investors a structured and transparent means to retrieve their money.

  1. How to open your account with ZERODHA?

Zerodha offers a simple online account opening process that is convenient and efficient.

  • Go to https://signup.zerodha.com/, the official Zerodha Signup Page, to begin the account creation process. You must enter your cellphone number, email address, Aadhaar number, and PAN (Permanent Account Number) throughout the registration process.
  • After supplying the required data, one of the most critical steps is confirming your identification. Enter the One-Time Passwords (OTPs) provided to your email address and cellphone number to complete this task.
  • After verifying your identification, you will use an Aadhaar e-sign to electronically sign the account opening form to finish the e-sign procedure.
  • In the following step, submit the necessary paperwork. If applicable, upload scanned copies of all relevant papers, such as bank statements, PANs, and Aadhaar. Make sure the materials you’ve posted are correct and precise.
  • The verification starts when the documents are submitted, and Zerodha promises to activate your account within 24 hours of a successful verification.

For those wishing to trade and invest on Zerodha’s platform, this easy-to-use online approach expedites the account opening process and eliminates the need for paper documents.

  1. Can we trade commodities on ZERODHA?

Sure, under certain restrictions, commodities trading is permitted on Zerodha. It is necessary to have a separate commodities account from the equity and demat accounts. Zerodha Commodities Private Limited is in charge of managing commodity trade. Different management is essential for commodity funds. Commodity futures for metals, energy, and agriculture are tradable assets.

  1. Is ZERODHA registered with SEBI?

ZERODHA has a Securities and Exchange Board of India registration (SEBI). The organization guarantees compliance with the regulatory environment for securities dealing in India by adhering to SEBI laws.

By registering, ZERODHA has demonstrated its dedication to adhering to the legal and regulatory guidelines established by SEBI and offering investors a reliable platform for trading and investing operations.

  1. Is ZERODHA a good app?

A significant force in the Indian brokerage market, Zerodha is distinguished for having unique features that appeal to a broad spectrum of investors.

Pros:

  • Minimal Brokerage: Regardless of order size or segment, traders can choose to be affordable with Zerodha’s flat fee of Rs. 20 per executed order.
  • Highly praised trading platform: Easy Navigation and Comprehensive Features, such as Algorithmic Trading Capabilities and Advanced Charting Tools.
  • No Minimum Deposit: Zerodha does not require a minimum deposit, making it available to novices with little funds.
  • Emphasis on Technology and Innovation: As evidence of its dedication to technical progress, Zerodha often provides novel features like fractional shares and teaching materials.

Cons:

  • Limited worldwide Exposure: Investors looking for greater worldwide exposure and diversification may find Zerodha’s sole emphasis on the Indian market a disadvantage.
  • Limited Research and Support: Zerodha provides less comprehensive research and support services than some competitors, which may worry investors who need more direction.
  • Technical Problems: Although Zerodha is user-friendly, there have been reports of periodic outages or downtime.
  • Restricted Investment Products: Investors seeking a wider variety of investment products, such as bonds and mutual funds, may find Zerodha’s focus on stocks and derivatives restrictive.

 

  1. What are the brokerage charges at ZERODHA?

Leading brokerage company Zerodha charges competitive fees in several categories.

  • In the stock, categories are charged a fixed fee of ₹20 or 0.03% of the transaction value, whichever is less, for both intraday.
  • While equity delivery is free
  • There is a one-time fee of ₹20 for each completed order while trading equity options. Deliveries made with a premium account are subject to a fee of 0.05% on NSE and 0.005% on BSE of the transaction amount.
  • The fee for trading futures is ₹20, or 0.03%, for each executed order, which is lower.
  • The structure for trading options is also ₹20 per order.
  • Exchange transaction and clearing fees, established in compliance with exchange laws, are additional expenses. Meanwhile, intraday trades incur a securities transaction tax (STT), and all other costs are subject to the delivery of equities, goods, and services tax (GST).
  • Equity delivery trades are subject to stamp duty, and all dealings are subject to the charges levied by the SEBI.

Zerodha’s clear pricing structure, which combines percentage-based and flat fees, accommodates a range of trading preferences from its customers and encourages affordability and accessibility in the Indian stock market.

  1. Is trading free with ZERODHA?

Zerodha provides free trading for direct mutual fund investments with no brokerage fees and free trading for stock delivery on the NSE and BSE. However, there is a fixed cost of ₹20 or 0.03% (whichever is lesser) per completed order for intraday and F&O transactions.

Similarly, there is a fixed cost of ₹20 for each executed order in currency and commodities trading. While some investments are free, it’s vital to remember that extra expenses like GST, stamp duty, and SEBI fees may be applicable depending on the specific trading activity. Zerodha offers an affordable platform with distinct price schedules for various transactions.

  1. Does ZERODHA only offer free brokerage?

Zerodha, which is well-known for its affordable brokerage approach, provides a wide range of features in addition to reasonable prices. Interestingly, there is no cost for equities delivery transactions. On the other hand, there is a small flat price per completed order for intraday and F&O trading. Zerodha provides commission-free access to direct mutual fund investing.

ZERODHA provides zero brokerage along with additional benefits like:

  • Kite Platform: The leading online and mobile trading platform for Zerodha.
  • Kite Connect API: A framework for creating personalized trading applications.
  • Coin App: A smartphone app for investing in fractional US stocks.
  • Varsity: An online learning environment for trading and investment.
  • Console: A single dashboard for managing orders and portfolios.
  • Advanced Charting: Several technical indicators and drawing tools.
  • Historical Data: Ability to analyze large amounts of historical data.
  • Options Trading: A platform designed explicitly for complex options trading.
  • Themed Investments: Invest in carefully selected stock baskets based on themes.
  • Algo & Strategy: An automated strategy development and testing platform.
  • Trading in Bonds: The ability to purchase company and government bonds.
  1. Can you invest in an IPO with ZERODHA?

Of course! You can invest in an IPO through Zerodha:

  • Ensure you have an active Zerodha account with a linked PAN card and a UPI ID tied to your bank account to invest.
  • Open the Kite platform, select “Bids,” and then “IPO” to see what’s coming up.
  • For ASBA processing, choose the appropriate IPO, click “Apply,” select your investor type, and provide your UPI ID.
  • After checking the information, indicate the amount and cost and submit your application.
  • The easy-to-use Kite app and online platform from Zerodha make initial public offerings (IPOs) accessible and provide investors with a smooth experience.
  1. Is ZERODHA suitable for trading?

Indeed, Zerodha is a good trading platform. It is a well-known discount brokerage company in India that offers cutting-edge trading tools, minimal brokerage fees, and an easy-to-use interface. Zerodha provides various financial products, including equities, commodities, and derivatives, making it adaptable to diverse trading techniques.

The platform gives novice and seasoned traders access to real-time market data, analytical tools, and instructional materials. Due to its unique features and transparent fee structure, Zerodha has become increasingly popular with investors seeking an efficient and affordable trading experience in the Indian financial markets.

Disclaimer: This blog is written for educational purpose only. Data, Securities, Advisory and Quotes mentioned here are for guidance only. Doing research by investors itself is highly recommended.

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