It was just another mundane Monday morning when Raghu stumbled upon an online broking ad flashing zero brokerage trades. He clicked into it, hoping to save on his occasional stock market punts, but eventually ended up opening a full-fledged trading account with Zerodha that very evening!
Intrigued by the glitzy ad copies offering free equity delivery investing, Raghu dug deeper into scouting first-hand user reviews about Zerodha across forums. He was pleasantly surprised to discover upbeat feedback vouching for its robust trading platforms, minimalistic charges, and top-notch customer service. As Raghu went about systematically piecing together all review tidbits on features, apps, pricing, account opening, and support, he was convinced to finally take the brokerage plunge with Zerodha to kickstart his investing journey.
Through this exhaustive Zerodha review, we will walk potential customers through every salient aspect – account types and pricing, trading platforms offerings, customer support channels, user-friendliness quotient, key benefits as well as areas of improvement. So read this Zerodha review to make up your own mind!
About Zerodha
Zerodha Brokerage Discount
Established in 2010 by the visionary brother duo Nitin and Nikhil Kamath, Zerodha has swiftly emerged as the preeminent stockbroker in India, capturing the top spot in popularity and user preference. This brokerage platform was conceived with the mission to democratize trading, eliminating barriers and providing seamless access to the financial markets with cost-effective brokerage fees.
As a proud member of major Indian exchanges, including BSE, NSE, and MCX, Zerodha extends a versatile platform enabling traders to engage in a diverse array of financial instruments. From stocks and equity F&O to commodities and currencies, the platform caters to a comprehensive spectrum of trading preferences. Beyond the traditional avenues, Zerodha elevates the investment experience by offering additional products such as IPOs, direct mutual funds, bonds, G-Secs, and more.
Zerodha’s proprietary web and mobile trading platforms called Kite and Kite Mobile enable the smooth execution of equities, derivatives, and commodities trades across NSE, BSE, and MCX exchanges. The slick dashboards allow traders to zero in on scrips, analyze technical trends, place bracket orders, and set price alerts on the go. Some standout features include intuitive charts, capital calculators, margin trackers, investment guides, etc, to inform trading decisions.
Opening a Zerodha demat and trading account online is a breeze with seamless KYC verification, instant account activation, and free credit of mutual fund units. Once signed up, users can link bank/e-wallet accounts to kickstart paperless investing in their preferred assets.
Zerodha’s free Coin portal allows retail investors to discover, analyze, and invest in direct mutual funds across categories at NIL brokerage charges. Investors can take a pick from a curated list of high-performing schemes through SIP or lumpsum routes and make goal-based investments for retirement, kids’ futures, etc.
Zerodha caps equity delivery trades at zero brokerage, and imposes maximum Rs 20 intraday turnover charges, while futures, options, and commodity trades cost a flat Rs 20 per executed order. The highly competitive pricing has accelerated its user adoption among price-sensitive millennial traders. There are no account maintenance or renewal fees enhancing overall cost efficiency.
Thus, by blending robust trading tools with a disruptive zero or low charges model, Zerodha has emerged as the topmost discount broking choice, simplifying market access at minimal costs.
Account Types Offered by Zerodha
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Here is a detailed explanation of the various account types offered by Zerodha:
- Zerodha Demat and Trading Account
Zerodha provides an integrated demat and trading account to enable customers to seamlessly trade in equities, derivatives, currencies, and commodities across stock exchanges. Once KYC formalities are wrapped up, account activation takes place in a few hours, after which investors can get cracking.
The trading platform and mobile app provide a unified view of portfolio holdings, investment charts, order books, funds transfers etc, to aid decision-making. One can place intraday, delivery trades, brackets trades across segments, and monitor positions in real time.
While account opening is free, AMC and other ancillary charges apply. Digital transfers via UPI into Zerodha accounts are free, while payment gateway usage invites charges.
- Zerodha Commodity Trading Account
For commodity market enthusiasts, Zerodha allows add-on activation of commodity trading through existing accounts. Exposure limits get enhanced, and MCX trading rights are enabled, permitting agri futures, precious metals, and energy contracts dealings.
Brokerage is fixed at Rs 20 per executed order, irrespective of turnover size or commodity type. Integrated access eliminates the need for multiple logins, enhancing user convenience.
- Zerodha NRI Trading Account
NRIs keen on dealing in Indian equities can open exclusive PIS and NRO share trading accounts with Zerodha based on homeland ties and eligibility norms. Competitive brokerage, digital account opening assistance, and dedicated relationship management are offered to non-resident Indians.
IndusInd, HDFC, and Yes Bank provide PIS permissions to Zerodha, enabling seamless remittances through NRE/NRO accounts and overall portfolio monitoring.
- Zerodha Mutual Fund Investment Account
The zero-cost Coin portal by Zerodha aims to simplify direct mutual funds investing across categories and fund houses in a paperless manner. SIP registration, family linking, goal planning, etc, help newbie retail investors embark on a disciplined long-term wealth creation journey at zero recurring costs.
By offering diversified account types bundled with trading conveniences and each empowering specific investor needs, Zerodha plugs into every market segment spanning equities, commodities, currencies, and mutual fund assets to underpin its leading industry position.
How to open an Account on Zerodha?
Zerodha Brokerage DiscountHere is a detailed step-by-step guide to opening a Zerodha account online:
- To kickstart your Zerodha account opening journey, pull up the brokerage website and click on the ‘Open an Account’ or ‘Signup’ tab prominently flashed. This will redirect you to the account opening form.
- Plug in essential personal details like full name, mobile number, and email address as prompted. You will receive one-time passwords on mobile and email to verify ownership. These prelim details aid seamless KYC checking later.
- Your PAN number plays a pivotal role in establishing identity, so enter it carefully, along with linking your date of birth as per PAN records. This facilitates smooth e-KYC authentication, eliminating document uploads.
- With basics entered, you now need to shell out the account opening fees via net banking or UPI. Equity trading accounts attract Rs 200, while commodity trading rights require an additional Rs 100 charge.
- An innovative facet of Zerodha account opening is integrated DigiLocker access, allowing e-KYC with no paperwork. Grant relevant permissions for Aadhaar validation. Zerodha will pull your address, identity, and date of birth digitally.
- Link your core banking account to the Zerodha account by furnishing the account number and IFS code. This aids seamless settlement of funds on earnings or withdrawals later.
- If dealing in equity futures and options segments, you need to upload income-proof documents along with PAN, Aadhaar, canceled cheque, and passport photos for accelerated approval.
- A key account opening requirement is real-time verification done online via webcam. You will need to display an OTP flashed on the screen written on a plain sheet for identity corroboration.
- The final leg involves digitally signing your account opening form using Aadhaar-based OTP authentication. Post submission, Zerodha will swiftly open your account for trading!
Zerodha Trading Pros and Cons
Here is a detailed analysis of Zerodha’s pros and cons:
Zerodha Trading Pros
- Zerodha stands out by not levying any brokerage fees on delivery-based equity investments. This allows long-term investors to build portfolios across large and mid-caps without incurring any transaction costs.
- Intraday and F&O traders are charged a highly competitive flat fee of Rs 20 per executed order, irrespective of turnover volume or ticket size. This pricing disruption has enormously benefitted active traders.
- Zerodha’s Coin portal offers completely free online investing in direct mutual funds. Users can browse schemes, analyze portfolios, and invest lumpsum or via SIPs at zero costs through this facility.
- The broker emphasizes on an end-to-end digital, paperless account opening that gets wrapped up swiftly within a day. Seamless KYC verification, e-sign support, and video-based IPV ease onboarding.
- Kite and its mobile variant enable smooth order placement with advanced charting, multiple order types, margin tracking, etc. Streamed real-time market data aids intraday decision-making for active traders.
Zerodha Trading Cons
- Unlike a few players, Zerodha does not offer lifetime zero AMC accounts as of now. Investors must shell out Rs 300 per quarter towards account maintenance.
- Occasional system glitches have been reported in Kite, where charts or order placement get disrupted for brief periods, especially during peak market hours. This ends up being detrimental for intraday traders.
- Zerodha offers distinct platforms for equity and mutual fund asset classes. So, users need to flip between multiple apps/portals instead of a unified interface covering diverse products.
Thus, by adopting a transparent and low-cost pricing framework, Zerodha has struck a chord with price-sensitive individual clients. However, considering its market leadership positioning, technology and service quality need more fine-tuning.
Zerodha Customer Care info
As India’s largest retail stockbroker, Zerodha has ramped up investments in customer service to keep up with its exponential client base growth. Users can reach out to the support team through multiple modes, including calls, email, or digital self-help for prompt issue resolution.
Toll-Free Helpline: Retail investors facing account opening, platform usage, or settlement queries can ring up the toll-free number +91 80 4040 2020 during market hours and get through to dedicated relationship managers.
Response Support Email: For non-time-sensitive queries, customers can write to support@zerodha.com and anticipate email responses from the customer success team within 8-12 working hours.
Online Knowledge Portal: Zerodha’s expansive content portal ‘Varsity’ serves as a DIY self-help guide, allowing users to search for responses to platform glitches or how-to investment articles. With detailed tutorials, blogs, and video resources on trading concepts, Varsity enables self-resolving of basic troubleshooting issues.
Thus, by mobilizing phone, email, and digital helpdesk support channels manned by knowledgeable resources, Zerodha is pulling out all the stops to offer round-the-clock assistance and provide prompt resolutions, especially to newbie investors.
Zerodha Charges 2024
Zerodha Brokerage Discount
- Zerodha Account Opening Charges
For initiating the opening of a Zerodha account online, a fee of Rs 200 is applicable. Opting for offline account opening incurs a higher charge of Rs 400. Additionally, there is an annual charge of Rs 300 for the maintenance of the demat account.
| Transaction | Charges |
| Trading & Demat Account Opening | Rs 200 (online), Rs 400 (offline) |
| Trading Account AMC | Rs 0 |
| Demat Account AMC | Rs 300 per year |
- Zerodha Brokerage Charges (2023)
| Trading Segment | Brokerage Charges |
| Equity Delivery | Rs 0 (Free) |
| Equity Intraday | Flat Rs 20 or 0.03% per executed order |
| Equity Future | Flat Rs 20 or 0.03% per executed order |
| Equity Options | Flat Rs 20 per executed order (on Turnover) |
| Currency Futures | Flat Rs 20 or 0.03% per executed order |
| Currency Options | Flat Rs 20 or 0.03% per executed order |
| Commodity | Flat Rs 20 or 0.03% per executed order |
| Mutual Fund | Rs 0 (Free Unlimited Direct MF) |
- Zerodha Equity Charges
| Charge Type | Equity Delivery | Equity Intraday |
| Brokerage | Rs 0 (No Brokerage) | Flat Rs 20 or 0.03% (whichever is lower) |
| Securities Transaction Tax (STT) | 0.1% on both Buy and Sell | 0.025% on the Sell Side |
| Transaction / Turnover Charges | NSE: 0.00325% | BSE: 0.00375% per trade (each side) |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.0001% (Rs 10/Crore) | 0.0001% (Rs 10/Crore) |
| Stamp Charges | 0.015% (Rs 1500 per crore) on buy-side | 0.003% (Rs 300 per crore) on buy-side |
- Zerodha F&O Charges
| Charge Type | Equity Futures | Equity Options |
| Brokerage | Flat Rs 20 or 0.03% (whichever is lower) | Flat Rs 20 |
| Securities Transaction Tax (STT) | 0.0125% on the sell side | 0.0625% on sell side (on premium) |
| Transaction / Turnover Charges | NSE: 0.0019% (each side) | NSE: 0.05% (each side) (on premium) |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.0001% (Rs 10/Crore) | 0.0001% (Rs 10/Crore) |
| Stamp Charges | 0.002% (Rs 200 per crore) on buy-side | 0.003% (Rs 300 per crore) on buy-side |
- Zerodha Currency Charges
| Charge Type | Currency Futures | Currency Options |
| Brokerage | Flat Rs 20 or 0.03% (whichever is lower) | Flat Rs 20 |
| Securities Transaction Tax (STT) | No STT | No STT |
| Transaction / Turnover Charges | NSE: 0.0009% | BSE: 0.00025% |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.0001% (Rs 10/Crore) | 0.0001% (Rs 10/Crore) |
| Stamp Charges | 0.0001% (Rs 10 per crore) on buy-side | 0.0001% (Rs 10 per crore) on buy-side |
- Zerodha Commodities Charges
| Charge Type | Commodity Futures | Commodity Options |
| Brokerage | Flat Rs 20 or 0.03% (whichever is lower) | Flat Rs 20 |
| Securities Transaction Tax (STT) | 0.01% on sell side (Non-Agri) | 0.05% on sell side |
| Transaction / Turnover Charges | Group A: Exchange txn charge: 0.0026% | Rs 0 |
| Group B: Exchange txn charge: Pepper – 0.00005%, Castorseed – 0.0005%, Rbdpmolein – 0.001% | ||
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | Agri: 0.00001% (Rs 1/Crore) | Non-agri: 0.0001% (Rs 10/Crore) |
| Stamp Charges | 0.002% (Rs 200 per crore) on buy-side | 0.003% (Rs 300 per crore) on buy-side |
Note: SEBI charges for Agri products are 0.00001% (Rs 1/Crore).
Breakdown of Zerodha’s fee and charge structure
Here is a detailed breakdown of Zerodha’s fee and charge structure:
Mandatory Government Levies
As a registered brokerage, Zerodha is bound to collect certain statutory fees on behalf of authorities as part of trading transactions. These include –
- Securities Transaction Tax (STT): This is deducted upfront on executions to fund capital market regulation. Sell trades attract higher STT than buy orders.
- Exchange Transaction Charges: Billed as turnover fees by BSE/NSE for providing trading infrastructure like order matching platforms. Generally quite minimal on a per-trade basis.
- SEBI Charges: Collected at 0.0001% of the total turnover as investor protection fund contribution mandated by SEBI through brokers. Capped at Rs 10 per crore of trade value.
Indirect Taxes
Besides direct levies, clients must shell out GST at the prevailing 18% rate on the aggregated brokerage, exchange, and SEBI turnover charges billed per transaction. Being an indirect tax, GST adds to the overall cost burden.
Optional Value-Added Services
Additionally, Zerodha offers premium features like Call & Trade and trade alerts for which additional fees apply in the range of Rs 50 per instance or per alert. Investors must specifically opt in and subscribe to such bespoke facilities based on trading preferences.
Penalty Charges
As a risk containment policy, Zerodha charges penalties if client positions in futures & options get squared off due to margin shortfalls. Similarly, Demat account holders must incur charges for generating physical account statements beyond the free digital reports.
Thus, while Zerodha scores big on low headline brokerage, all-in costs to customers tend to accumulate due to exchange fees, taxes, and opt-in service charges – factors elaborated upfront in its zero brokerage plans. Nevertheless, overall fee dynamics still remain extensively reasonable for active traders and long-term investors amidst competition.
Zerodha Alternatives in 2024.
Here’s a more detailed overview of each platform:
- Upstox: Upstox is a prominent discount brokerage platform in India.
Key Features:
- Low-cost brokerage fees.
- User-friendly trading platform.
- Offers trading in equities, commodities, and currencies.
- Provides access to charts, technical analysis tools, and market research.
- Angel Broking: Angel Broking is a well-established brokerage firm in India with a significant presence.
Key Features:
- Offers both traditional and online brokerage services.
- Diverse investment options including stocks, commodities, and mutual funds.
- Provides research and advisory services to clients.
- User-friendly trading platform and mobile app.
- 5Paisa: 5Paisa is known for its low-cost brokerage services and is part of the IIFL (India Infoline) group.
Key Features:
- Competitive brokerage charges.
- Multiple investment options, including stocks, commodities, and mutual funds.
- Feature-rich mobile app for trading on the go.
- Research tools and educational resources.
- Sharekhan: Sharekhan is a traditional brokerage firm that has transitioned into the online trading space.
Key Features:
- Wide range of investment options, including equities, commodities, and mutual funds.
- Research reports and analysis tools.
- Personalized advisory services.
- User-friendly trading platform.
- Groww: Originally known for mutual fund investments, Groww has expanded its services to include stock trading.
Key Features:
- Simple and intuitive platform.
- Offers investment in stocks and mutual funds.
- Educational resources for beginners.
- Mobile app for easy access to trading and investing.
Remember, the best platform for you depends on your specific needs, preferences, and the type of investments you want to make.
Final take on Zerodha
Zerodha Brokerage DiscountAt the outset of 2024, Zerodha has clearly pulled ahead of the competition when it comes to catering to both casual investors and serious traders alike. Over the years, the brokerage has doubled down on technological firepower along with rock-bottom pricing to emerge as the platform of choice.
For high-volume intraday traders, Zerodha’s Kite platform ticks all the boxes when it comes to seamless order execution, real-time margin tracking, and sophisticated charting abilities. Integration of value-adding TradingView charts elevates technical analysis while stay orders allow users to place bracket orders across legs.
Long-term delivery traders also warm up to Zerodha owing to zero brokerage charges on equity investments. This allows portfolio scaling across various stocks through staggered buying without incurring any transaction fees at all. Add the convenience of native direct mutual funds to the mix and Zerodha covers all key asset classes.
More importantly, Zerodha also focuses extensively on trader education to pull newbies aboard the market bandwagon. User-friendly courses on equity, futures & options make even first-timers feel at home with cogent, jargon-free explanations about core concepts before urging them to deploy trading capital.
Backed by all these factors contributing immense value to end users, Zerodha seems poised to uphold its leadership mantle when it comes to facilitating profitable trades in the country. With a razor-sharp intent to democratize investing, it will likely continue to disrupt the status quo.
FAQs
Here are some frequently asked questions (FAQs) about Zerodha:
- What is Zerodha?
Zerodha is a prominent stock brokerage firm based in India, known for being a pioneer in the discount brokerage space. It provides an online platform for trading in equities, commodities, currencies, and mutual funds.
- How does Zerodha’s pricing structure work?
Zerodha follows a discount brokerage model, charging a flat fee per trade instead of a percentage-based commission. The brokerage charges are minimal, making it cost-effective for frequent traders. Additionally, Zerodha offers zero brokerage on equity investments.
- What trading platforms does Zerodha offer?
Zerodha provides multiple trading platforms, including Kite for web and mobile, Pi for advanced charting and analysis, and Console for back-office operations. Kite, in particular, is widely used for its user-friendly interface and comprehensive features.
- Does Zerodha offer research and educational resources?
Yes, Zerodha provides research tools, market insights, and educational resources to help traders and investors make informed decisions. The platform offers daily market reports, trading tutorials, and webinars to assist users in understanding market trends and strategies.
- How can I fund my Zerodha trading account?
Zerodha supports multiple methods for funding your trading account. Users can deposit funds through online banking, UPI (Unified Payments Interface), NEFT (National Electronic Funds Transfer), RTGS (Real-Time Gross Settlement), and more. The funds are credited to the trading account once the transfer is successful.
- What are Zerodha’s account opening requirements?
To open a Zerodha trading and demat account, individuals need to provide necessary documents such as PAN card, Aadhaar card, bank statements, and passport-sized photographs. The account opening process is largely online, and users can complete the KYC (Know Your Customer) requirements through Aadhaar-based e-Sign or in-person verification (IPV).