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Zerodha Review

Zerodha – Brokerage Charges, Trading Platforms, Pros and Cons

Zerodha has recently become the largest stock broker of India overtaking ICICI Direct. They are the first broker to introduce discount broking concept in India.

They have charge Zero brokerage for equity delivery and direct mutual fund investment. For all other segments like equity intraday, Futures and Options, Currency and Commodities, the brokerage is flat Rs20/trade in NSE, BSE and MCX stock exchanges.

In this Zerodha review, let us have more information about offerings from Zerodha, their account opening charges, trading platforms. We will also see what are the advantages and disadvantages of Zerodha broker.

Background of Zerodha

Zerodha was started as start up in year 2010 by Mr. Nithin Kamath in Bengaluru.

There are mainly two types of stock brokers operating in India, Full service and discount brokers.

Full service brokers charge higher brokerage charges but also provide wide range of service along with advisory (market tips).

Discount brokers does not provide or publish any research report. They dont have any advisory team itself. They have less branches. Because of this they are able to reduce the brokerage charges.

Without doubt, Zerodha has become best discount stock broker in India with more than 1.5million+ customer base. Their share in total traded volume across stock exchanges is more than 10%.

They also awarded with some of the prestigious awards like

  • National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)
  • Outlook Money “Retail broker of the year 2017”
  • Ernst & Young “Entrepreneur of the year (Startup) 2017”

Zerodha Account Opening and AMC Charges:

Zerodha, like all other brokers has separate account opening charges for Equity and Commodity segments. Here are the account opening charges of Zerodha,

  • Equity Trading and Demat account : Rs 200
  • Commodity Account : Rs 100
  • Demat Account Maintenance Charges (AMC) : Rs 300 per year

Zerodha Review : Brokerage Charges

As mentioned previously, all the investment based transactions are absolutely free.

Here are the Zerodha brokerage charges,

As you you can see, the maximum fee pay is capped at Rs20.

It is not the case with full service brokers who charge brokerage based on certain percentage (usually 0.03% to 0.1% for delivery) of total traded value.

So for example, if you trade Rs10 lakh worth of shares intraday, with 0.05% brokerage, brokerage for buy is Rs500 and again Rs500 for sell side.

But with Zerodha, total brokerage for buy and sell is Rs40. In this way, traders can save lot on brokerage by switching to discount brokers like Zerodha.

Zerodha Trading Platforms

When they started Zerodha, they offered third party trading platforms like NEST and NSE Mobile to their customers.

Later on they invested developing their own trading platform which are built completely in house. These platforms enhanced reputation of Zerodha as technological power house.

Because the tools are developed inhouse, they could add many useful features which were not present in third party tools. Hence, the competitors of Zerodha who still use these tools lagged behind.

KITE

KITE is a modern technology-based trading platform with streaming market data, advanced charts, an elegant UI, and more. It is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application.

The bandwidth consumption of KITE is less than 0.5 Kbps for a full market watch. It also offers extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and more

KITE Mobile

One can trade on the go with Kite mobile.The flagship trading platform Kite Web as an Android app is clean & intuitive UI, super fast and super light back-end for all investment and trading needs.

Pros and Cons of Zerodha

As with any other brokers Zerodha also has some advantages and disadvantages.

Cons of Zerodha demat account

  • No research reports and recomendations
  • Call and Trade is chargable at Rs20
  • 3-in-1 demat account is feasible but one need to have/open savings account with IDFC First Bank

Pros of Zerodha demat account

  • Zero brokerage charge on all investments including mutual funds
  • No advance brokerage requirement or turnover commitment
  • Both new comers and High Net Worth Individuals (HNIs) are treated identically with same brokerage plan for everyone
  • Easy to understand brokerage plan with Rs 20 across all segment except delivery
  • Z-Connect blog to reach out to management
  • Huge brand value as technology innovator.

Other Zerodha Products

  1. Zerodha Varsity : As Zerodha does not conduct any workshop like other full service brokers, they made up this gap by designing a online education platform. It contains many modules on technical analysis, fundamental analysis, risk management and trading psychology in simple to understand language. It is free for everyone including non customers.
  2. Trading Q&A : It is a online forum for people to ask questions and get answers from others and also from Zerodha team.

Other Third Party Products

They also offer some third party products which are called partner products and integrated with Zerodha account.

  1. Sensibull : Basically a Options trading platform which provides powerful trading tools. Sensibull aims to make options trading safe, accessible, and most importantly, profitable for all
  2. Smallcase : smallcases are modern investment products that help you build a low-cost, long-term & diversified portfolio easily. Created by professionals, each smallcase is a ready-made basket of stocks/ETFs that reflects a theme, strategy or objective

Final thoughts on Zerodha Review

Zerodha has grown leaps and bounds in very short amount of time. Indian customer accepted their services even there were minor hiccups.

From start up to to a reputed and well established company was not possible without good service and products.

And more over traders can save ton on brokerage because of the reduced brokerage. So you can consider Zerodha if you are looking for broker with good ratings.

We hope this Zerodha review helped in understand more about Zerodha and make up you mind to open or not open account with them. Please let us know your queries through comments if you need further information.

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