This article zerodha review, is dedicated to provide detailed review for zerodha stock broker. Today zerodha has established itself as the highest growing discounted broker charging very low brokerage for trading and investing in stock market. It offers high end trading and investing platforms for desktop as well as for android and tablets free of charge to all its clients. You can open your account without any minimum balance. Zerodha provides high quality documentation for Indian stock market. Open your account on zerodha website directly. There is no practical reason you should not open your account with zerodha.
- Stock Market
- Full service stock brokers
- Discount stock broker
- Zerodha stock broker
- Zerodha Account Charges
- Zerodha Trading Brokerage
- Intraday & Delivery
- Zerodha brokerage examples
- Zerodha Platforms for trading
- Why you should choose Zerodha
- Why you should not choose Zerodha
- Addons for zerodha
Stock market is a hub for buyers and sellers of stocks, commodities, currency and other securities of a public listed company. These companies list themselves on a registered stock exchange and raise fund for their business by offering stocks (theoretically, a part of ownership in company) to public, in primary and secondary stock market. Buyers and sellers take help of a registered stock broker who eases the process of buying-selling of stocks and other securities. Stock brokers charge a fee to provide this ease. This fee is called brokerage. Whole stock market system is supervised by a regulatory authority. This authority protects the rights of traders and investors as well as makes rules and regulations to keep the system running without any flaw. In India this regulatory authority is called Securities and Exchange Board of India (SEBI).
Full service broker
For a long time full service stock brokers have ruled stock market by offering services like trading platforms, customer care services, financial advices in stock market and they charge a fee for that. These are called full-time brokers because of the full-fledged services they provide.
Discount stock broker
Discount brokers on the other hand minimize their brokerage by reducing some services which are not very much required ny every client and reducing their own unncessary expenses. E.g. they don’t provide stock market tips, some don’t do any advertisements on tv. By reducing these services discount brokers reduce their brokerage they collect from clients.
Zerodha Stock Broker
In 2010 SEBI brought a change to stock market by approving discount brokers. In August 2010, Nithin Kamath established Zerodha as India’s first discount broker. A discount broker charges much smaller brokerage than full service broker by reducing some services e.g. they don’t provide stock advices (which stocks to buy-sell). Anyways who today relies on the stock market tips when everyone has the access to the database and research done on stocks on internet. It is also well established that stock tips will never let you learn anything and you will lose more than you gain. FundsBase recommends to read why you should not follow expert’s advise too much. Zerodha soon became very popular in terms of its customers and volumes traded because of its simplicity of trading platforms and minimal brokerage. In India SEBI provides license to both discount brokers and full service brokers and both are regulated by SEBI.
Nithin kamath who started Zerodha states that Zerodha is make up of two words Zero + Rodha (means obstruction in sanskrit) , so zerodha means “zero obstruction”. He was a full time trader for over a decade and faced lots of complexities while trading. He found an opportunity to start zerodha and wanted his customers not to face the same obstructions he had faced while trading. Zerodha’s headquarter is in Bangalore (Karnataka) and its other branches are in Hyderabad (Andhra Pradesh), Pune (Maharashtra), Ahmadabad (Gujarat), Chennai (Tamil Nadu), Vijayawada (Andhra Pradesh), Hubli (Karnataka), Salem (Tamil Nadu), Coimbatore (Tamil Nadu), Kanyakumari (Tamil Nadu) and Kochi (Kerala).
There are lots of discount brokers in India and they have huge competition but no one stands near to zerodha in terms of customers, volumes traded and turnover. Zerodha is a member of NSE, BSE, MCX. As of 2017, it is the largest discount broker in India and contributes up to 5% of retail trading volumes on Indian stock exchanges, generating daily trading turnovers crossing $2 billion.
Zerodha Account Charges
- Trading Account Opening Charges (One Time): Rs 300
- Demat account Opening Charges (One Time): Rs 100
- Trading Annual maintenance charges (AMC): Rs 0
- Demat Account Annual Maintenance Charges (AMC): Rs 300 per year (payable upfront)
Trading account is the account from which you buy/sell stocks. A demat account is a separate account which holds your stock in case you do delivery based tradings, which almost everyone does.
Zerodha Trading Brokerage
Equity Delivery Brokerage – Rs 0 (Free Unlimited Equity Delivery Trades)
Equity Intraday Brokerage – 0.01% or Rs 20 per trade whichever is lower
Equity Future Brokerage – 0.01% or Rs 20 per trade whichever is lower
Equity Options Brokerage – 0.01% or Rs 20 per trade whichever is lower (on Turnover)
Currency Futures Brokerage – 0.01% or Rs 20 per trade whichever is lower
Currency Options Brokerage – 0.01% or Rs 20 per trade whichever is lower
Commodity Brokerage – 0.01% or Rs 20 per trade whichever is lower
Call & trade Charges
There is no hidden charges wioth zerodha. Here are two additional charges which you have to pay in case you use the service.
Additional charges of Rs 20 + GST per executed order. Currently Dec2017 GST is applied at 18%. So-
18% GST = 20*18/100= Rs 3.6.
Thus total Rs 23.6 will be charged.
- Orders placed support/dealing desk
- Intraday positions squared off before market closing by zerodha RMS team
In case your desktop/laptop/palmtop or internet is not accessible, zerodha provides the facility to call up the support desk and place orders on your behalf. This order will attract a fee of Rs 20 + GST per trade.
In case you forget to close your intra-day (MIS/BO/CO) positions, it will be automatically squared off by RMS team at zerodha. This square off by zerodha team will attract a fee of Rs 20 + GST per trade. RMS team at zerodha squares off the open positions at 15:20. Make sure you close your positions before that.
Intraday & Delivery
For those who don’t know what intraday and delivery, an intra-day is the trading concept in which you can buy and sell stocks the same day. E.g. if you buy a stock on Monday and you sell the same stock on Monday before market close. So using Zerodha if you buy a stock and sell it the same day, the brokerage you will pay will be 0.01% or Rs 20 whichever is lower.
In delivery, you don’t sell the stocks the same day instead you decide to keep it for some time. Deliery works on T+2 day basis, means if you buy a stock on Monday (Which is day T), you will get those stocks delivered in your demat account on T+2 day means Wednesday evening. You can sell those stocks on Thursday. You can sell those on Tuesday as well, which is called “Buy today sell tomorrow/ Acquire today sell tomorrow (BTST/ATST)”, but you can attract some trouble as you haven’t owned the stocks yet in your demat account. This trouble may come in terms of penalty in some cases. So its advised not to sell the delivery based stocks before T+2.
For intraday if you buy 500 quantity of a scrip at Rs 100 and sell it at Rs 110 total turnover becomes 1,05,000.
Brokerage charge on zerodha for this intraday on NSE and BSE is Rs 10.5.
For delivery if you buy 500 quantity of a scrip at Rs 100 and sell it at Rs 110 total turnover becomes 1,05,000.
Brokerage charge on zerodha for this delivery on NSE and BSE is Rs 0
Zerodha Platforms for trading
Zerodha provides three awesome online trading platforms. All these platforms are available free of cost to zerodha clients.
Zerodha web based trading platform – Kite
Zerodha Mobile (ZM)
Zerodha’s KITE is a very light weight web based HTML 5 trading platform which uses minimal system resources and internet bandwidth. Kite was launched in November 2015 and it became very popular among zerodha customers as it can be used on mobile, tablets and web browser. Zerodha also claimed that Kite used 175th internet bandwidth as compared to traditional trading platforms. Initially kite was launched in Kannada language, later English, Hindi, Kannada, Telugu, Tamil, Malayalam, Marathi, Bengali, Gujrati and Punjabi languages were also included. So currently zerodha kite can be used in 11 languages.
Kite has 100 technical charting indicators and unlimited data for all stocks. You don’t have to download zerodha kite. When you choose zerodha as your stock broker you get it right away in your browser after logging in with your login credentials.
This is a smartphone application for Android and blackberry provided free of cost to its customers.
Pi is the latest trading software revolution from zerodha. It is windows based full fledged trading platform. Pi was launched in July 2015. Zerodha Pi includes advanced charting, Algos, strategies, & backtesting. It is designed for technical analysis purpose and client can analyse 80,000 candles at a time if his/her system configuration and broadband permits. The best thing of Pi is that you can devise your own strategies, backtest them and if find good enough, can place order from them only.
Some other features are –
- 10 types of charts, 80 built-in indicators. Annotation can be done with over 30 drawing tools.
- A simple and powerful scripting language.
- Power traders can optimize through algorithms like neural networks and genetic algorithms.
Apart from these online trading platforms zerodha provides facility to trade over phone means you can place your buy-sell orders over phone by calling zerodha but it charges Rs 20/- per trade.
Zerodha Review – Why you should choose Zerodha
- Best discount broker in India.
- Minimum brokerage. For delivery based its completely free. For intraday its 0.01% or Rs 20 whichever is lower, per trade.
- Best online trading platforms with most advanced technology.
- Take advantage of 60day challenge. Be profitable for 60days and waive off your brokerage for those 60 days.
- Be profitable for 90 days and be featured as a star on opentrade, an initiative by zerodha. Get large portion of the money others pay to follow your trading style.
- Utilize the algorithm tool – Use this tool to create your own technical strategies and backtest them.
- Increased protection to open position as the ‘Bracket and Trailing Stop loss order’ is given to traders. Zerodha is the first to provide this offer in India.
- No hidden fees like other brokers have. Its the simplest brokerage model available.
- Every trading platform is completely free of cost to everyone.
- No minimum account balance is required to open an account.
- Write your own strategies with the help of simple script, backtest them and place order.
- Zerodha doesn’t give any advertisement on Tv or anywhere because they don’t need it. They have grown by word-spread. People never saw this much simple and transparent model.
Zerodha Review – Why you should not choose Zerodha
- You are seeking trading tips from your broker.
- No installable platform available for Linux and Mac. Still you can use Kite on your browser.
- Zerodha doesn’t provide margin funding to its customer. It allows you trade only when you have enough money in your trading account.
- 3-in-1 trading account is not available as Zerodha doesn’t provide banking. But any online bank can be linked to Zerodha trading account.
Addons of Zerodha
- Brokerage/Margin calculators available on the website.
- Reporting tool ‘Q’ that provides information on trades, positions, capital management and tax ready Profit & Loss (P&L) statements.
- Quant, a tool that gives statistical information based on your trading style.
- Zerodha has Blogs like ‘Z-Connect’, ‘Trading Q&A’ and ‘Pulse’.
- A stock market educational series called “Varsity”
- A contest called ’60 Day Challenge’. If a trader is net profitable in a 60 day period, all the brokerage charged to them is refunded.
- A privilege at “opentrade.in”. If you consistently make profit for 90 days and if you choose you will be featured as a star at opentrade and your trading style can be seen by the ones who buy the opportunity. You get a large portion from the package others choose and pay to follow your trading style.
Zerodha was started in 2010, since then it has been adding more and more addons for its clients, while sustaining the crown of charging one of the lowest discount brokerage of India. The best part you don’t have to pay any brokerage on delivery. You can experience it once you start trading on zerodha’s platform. Stop paying high brokerage to other brokers. Open your account on zerodha website directly.