The Indian share broker Zerodha works as a pay per order broker. The broker offers to trade in the commodity, stocks, and currency derivatives. The best part of the brokerage firm is that it charges very low that is only Rs.20 or 0.01% per order no matter what the number of shares is. The maximum brokerage for any transaction is Rs.20.
The firm started its functions in 2010 and soon became the number one brokerage of India in terms of trade volume. According to Zerodha review, the platform has more than 10 lac clients, and it contributes more than 10% of daily trade volume in BSE, NSE, and MCX. It is one of the largest brokerage firms in India, having more than 1000 employees in its office at Bangalore.
Zerodha offers its services to buy, hold and sell Equity, commodities, currencies, stock futures, and options. It has its own trading application and back-office software called Kite and Console, respectively. It offers its trading software to its customers free of charge & also provides Good Till Triggered (GTT) order for its traders.
The structure of brokerage is easy to understand. Traders have informed 80 to 90 percent of savings in the brokerage since they moved to Zerodha. It is considered as one of the most advanced and low-cost stock brokers in India as per the Zerodha traders, It is an ideal trading platform for all kinds of investors – ones who execute trades occasionally in a month to the ones who execute hundreds of trades every day.
The amazing educational initiatives make it a unique trading platform. Customers can take good benefits of such a platform to interact with the team.
Pros and Cons of Zerodha Platform:
- Cheapest broker in India with no hidden charges.
- No minimum balance.
- Impressive referral programs.
- Low fees.
- Impressive research tools.
- It doesn’t provide research reports, recommendations, and stock tips.
- No trading software for Mac and Linux operating systems.
- There is no availability of monthly unlimited trading plans.
- Covers only the Indian market.
Reliability of Platform:
It has successfully gained the trust of new traders who like to use a modern-looking trading platform, know more about each trading platforms of Zerodha in our guide. As per Zerodha review, it is a reliable trading platform as it is one of the largest brokerages in India in terms of the number of clients and volume of trade. It has also been given the honor of ‘Retail brokerage of the year 2018’ by the National Stock Exchange, by Outlook Money, it received the award of ‘Retail broker of the year 2017’ and ‘Young Entrepreneur of the year 2017’ award by Ernst & Young.
Zerodha Trading Platform:
It allows its traders to trade in the following manner:
1. Kite 3.0: The web-based trading platform was launched in 2015. Kite 3.0 is a lightweight and fast trading platform. It has developed the Kite web platform, and since then, it has undergone various updates. It has extensive charting along with many indicators and chart types for trading at BSE, MCX, and NSE. Kite 3.0 is available for all its customers free of cost.
2. Kite Android/iOS: Zerodha app allows consumers to trade with mobile phones. The app is free for all its customers for trading and monitoring of their stocks and commodity markets. The mobile app shows the live streaming data from MC, BSE, and NSE, which makes it one of the most advanced trading apps ever available in India.
3. Console: It’s the back office platform of Zerodha. It’s the dashboard where customers can view and analyze their investments in mutual funds, stocks, derivatives, etc. They can get access to different reports, account statements, withdrawal requests, and contract notes. The console also offers its customers analytical tools like heatmap and trade book.
4. Zerodha Sentinel: It’s a cloud-based tool that allows the customers to set price alerts on futures, options, and stocks. The best feature of Sentinel is that here price alerts can be triggered any time even when the PC is off. Sentinel can offer trader real-time price alerts on more than 80,000 stocks, bonds, and derivatives.
5. Call and trade: For the customers who are not online, there is a service of call and trade which is available for an additional cost of Rs.50 per trade.
6. Coin: Coin is a mutual fund investment platform by Zerodha. Coin allows people to directly invest in Mutual Funds. It also offers savings for more than 1.5% on commissions per year. Mutual Funds get deposited in the Demat account, which is linked with the account.
Along with offering its tools and trading platform, From Zerodha review, we get to know that it also allows its traders to use products developed by other companies. These tools are already integrated by its Kite platform. These tools are Streak, Stock reports+, Sensibull, and Smallcase. All these tools have different utility, and they make trading a good experience on the Zerodha trading platform.
Zerodha Educational Resources
The educational resources available are amazing & provides a free trial of LearnApp Zerodha to its traders. The website also has a Q&A section. The section is designed in such a way that the traders can easily communicate with the team.
1. Zerodha Varsity: It is an education initiative where customers can educate themselves about the different trading strategies. The section has ten courses, and each one has multiple chapters on stock trading like technical and fundamental analysis, options strategies, and futures trading. The modules offered by the platform are amazing, and the financial aspects are very well explained.
2. Trading Q&A: The Q&A forum offered by Zerodha is free of cost. The customers can ask any questions that he likes related to its services and receive the answers from the available team members. The company representatives answer the questions in a timely manner.
Fees and Charges
Zerodha is known to have the lowest brokerage charges when compared to other brokers. It charges 0.01% or Rs. 20 per trade. Other fees that trading platform charges are:
1. Stamp duty: For equity delivery, the buy-side stamp duty charges are 0.015%, and for Equity Intraday, buy-side stamp duty is 0.03%.
2. Good and Service Tax: 18% GST is charged on the total cost of the brokerage in addition to transaction charges.
3. SEBI charges: SEBI charges Rs.10 per Crore.
4. Securities Transaction Tax: The tax is charged on the sell-side for F&O and Intraday trade. For delivery trades, the tax is charged on both sides.
The low trading fees of Zerodha makes it one of the best trading platforms. The company charges no inactivity fees. However, it charges Rs.300 with an additional 18% tax per year for Demat accounts and Rs.1000 with an 18% tax per year for corporate accounts. For commodity accounts, the company charges Rs.100 with an additional 18% tax per annum.
Deposit and Withdrawal in Zerodha
It uses only one base currency that is Rupees. If you don’t have Rupees, you can open a multi-currency bank account to save the conversion fee. From the comparison between Zerodha vs Sharekhan, we found that It charges no deposit fees, and a trader can make deposits through bank transfers, and UPI. Unfortunately, It doesn’t allow traders to use credit/debit cards. By our Zerodha review, we assure you that it doesn’t charge any withdrawal fees, and it takes almost two business days to make the withdrawal.
According to Zerodha vs Karvy, It allows its customers to reach them through email or call. The company representatives provide fast and relevant answers to the traders. However, the company fails to offer its customer service 24/7. Its customer support is available six days a week from 9 AM to 5 PM.
Opening Account with Zerodha
Opening an account is not fully digital, so the process is slow. However, the best part is that it has no minimum deposit. The firm charges INR 300 for opening a Demat and trading account and INR 200 for commodity account. It offers two types of accounts – the Demat & Trading account and the Commodity account.
As account opening is not fully digital, it takes more than one month to open an account. The process includes:
- Registering an account by providing your email address.
- Giving PAN number.
- Providing account opening fee.
- You can also link your identification details with Digi locker facility from which the website automatically pulls the needed online documents.
- Upload the bank statements.
- Digitally sign the documents and provide in-person verification.
- Email the needed documents to Zerodha.
For opening an account with Zerodha following documents are needed:
- Pan Card
- Bank Statements
- 5. Aadhar Card
The newly established broker Zerodha offers its premium services at low costs. Its web and mobile trading platform is impressive. The availability of a variety of analytical and research tools impresses us. However, the process of opening an account is a little slow. The trading platform is reliable, but one can only access the Indian market through Zerodha. If you are a trader who wants to trade in the Indian market with minimum brokerage fees, then It is for you.
1: What is Zerodha?
Ans: Zerodha is an Indian financial service firm that provides retail & institutional broking, currencies & commodities trading, mutual funds, and bonds.
2: How to open Zerodha account?
Ans: To open an account, you need to sign up using your mobile number on the website, and after that, you will receive an OTP to your mobile, and then you can start.
3: How to buy IPO in Zerodha?
Ans: You can buy an IPO through the platform using any supported UPI application.
4: How to change bank account in Zerodha?
Ans: To change your bank account, you need to provide a signed Account Modification Form to the platform along with proof of the new bank account.
5: What is GTT in Zerodha?
Ans: Good Till Triggered (GTT) is used for creating triggers to buy stocks for delivery on the Zerodha platform.