Zerodha is India’s first and largest online discount broker operating from 2009. It was started by Mr Nithin Kamath who was himself a trader before starting Zerodha. Besides low cost which most of the discount Brokers are known for, Zerodha is also credited for its technology initiatives which it brings first to the markets.
Zerodha trading software
Desktop Based Trading: Zerodha has finally in July 2015 released its next generation platform called ‘Pi’ which was long awaited. This is one of the most advanced charting software provided by any broker in India and best thing it is free of cost to all the clients who open account with them. In Pi you can view up to 50,000 candles, various chart types, over 70 indicators, inbuilt strategies and can even create your own strategies; back test them, trading directly from chart, quick order entry screen with many more options. Here are few screenshot of their awesome platform
Zerodha Mobile trading: In case you want to trade on Mobile, firstly they have Zerodha app which is linked to NEST platform. In case you have not traded in NEST before, it is a trading platform by Omensys and provides decent interface and basic trading functionality. Here are some screen shot for the same.
Apart from Nest, there is another proprietary trading HTML 5 light weight platform called KITE which can be used for trading on mobile as well as browser. It is little different from trading platform which you have used till now and take some learning but once you learn the basics it is easy to use.
Browser Based trading
For doing browser based trading, you can use NEST or Kites whichever you prefer. All the data is seamlessly integrated and any trade you do and mobile is instantaneously available on the browser platform. Kites and NEST should be usable even in offices.
Zerodha trading account opening
The account forms for Zerodha can be filled online and sent to their Head office in Bangalore. The account opening requires documentation including PAN card, home address proof and bank details. Once you fill the form online, you have to print the documents, sign them and send it with Rs 200 as trading opening account charges. They are among the first discount brokers to become a Depository participant, hence able to maintain Demat account for their clients. Once you courier them the document, it generally takes 2-3 business days to create a new account before you can start trading. Another thing to know about them is you will never receive a postal mail from them. All the communication is sent on your email which is provided by you while opening the account including your username and password. In case you need more information click on the button below and someone from team Zerodha will contact you.
Demat Account Opening: In case you also want to open a Demat account with then, you can do that. They are among the few discount brokers who are their own DP . There is a DEMAT account opening charge of Rs 100. In case you are a trader (F&O), you don’t need a DEMAT account but in case you plan to do delivery based trading you will need a DEMAT account.
Trading + Demat Account – So if you want to open Demat + Trading account, the charges for that is 300. In case you want to open commodity account also, the charge for that is an extra Rs 200.
Commodity Account opening : The charges for opening commodity account is an extra Rs 200.
See a video review of Zerodha website
Zerodha Brokerage Charges: The brokerage structure for Zerodha is very simple to follow and is as follows
• Equity Delivery Based Trades:
0.10% or Rs. 20 per trade whichever is lower. AS of Dec 1, they have made the delivery based trades to have ZERO brokerage. So there will be no brokerage charged for delivery based trades anymore. You can read more about Zerodha Zero Brokerage plan here.
• Equity Intraday Trades: 0.01% or Rs. 20 per trade whichever is lower
• Equity Future: 0.01% or Rs. 20 per trade whichever is lower
• Equity Options: 0.01% or Rs. 20 per trade whichever is lower (on Turnover)
This means that the maximum brokerage you can pay is Rs 20 per trade irrespective of the trade size or what you are trading in. In case you want to see the actual Brokerage which Zerodha will charge, you can see their Brokerage Calculator here.
Just to give you an example of how there brokerage structure works is if you trade 1 Nifty option you would be charged Rs 20 for buying and Rs 20 for selling compared to about Rs 190 charged by ICICI if you trade on different trading days. Also they charge on order basis and not on lot basis which make it cheaper for any trader which generally trades in multiple lots. Below are some of the screenshot of the brokerage and other charges details
STT: This is charged only on the sell side for intraday and F&O trades. It is charged on both sides for Delivery trades in Equity.
Stamp Duty for all states in India: Charged at .01% or Rs 50 per contract note but will depend on which state you are from
Transaction Charge: In very small and is in the range of .00325% for delivery based, .0021% for Futures and .053% for options.
Service Tax: This is charged at 14% of the total cost of brokerage plus transaction charges. So this will vary as the transaction charge varies based on the value of trade.
SEBI Charges: This is charged at Rs 20 per Crore.
Other Charges (Broker Hidden Fees):
Call and Trade feature is available at an extra cost of Rs 20/- per call.
Instant payment gateway charges for over 21 banks – Rs 9 per fund transfer.
DP charges for delivery based equity selling – Rs 8 per transaction.
The charges levied by Zerodha are very transparent and you can even calculate the exact brokerage which will be charged to you even before trading on their website.
Other Value Added service offered by Zerodha
Buy Mutual Funds on Zerodha
Zerodha has finally taken its Mutual funds platform online, which will allow all its clients to buy Mutual funds with them. You will not need to open any new account for trading in Mutual fund. It will provide you a consolidated view of your holding in Mutual fund and equity on one screen, making it easier for you to manage your portfolio.
There would be no brokerage while purchasing mutual funds with them.
They are also offering SIP (systematic Investment plan) in mutual fund where you can invest a specific amount of investment per month as per your selection. They have also offered conditional order for the first time, which will work like valid till cancel order. You can place the order and expect it to be live on the system until the price have not reached your order price. This will make sure that your order will be executed once the price is attained.
This is another value added service available to Zerodha clients. Using this you can make thematic investment. So for example you this that this year, rains were plentiful and stock dependent on rain would appreciate a lot. You can buy Monsoon theme which will have all the stock which would be benefited by this rainfall. Read our detailed review on Smallcase here
Most of the discount broker don’t provide advisory services and Zerodha is similar but they have a product for client who still want it. They have made Open trade which allows you to follow successful traders real time. To follow them, you will need to pay Rs 500 per month and once you follow a star, you will get real time update as and when he trades. You should understand that trades are not automated but you will get update of all the trades done by your star which you are following. It is upto you to manually place the order. Please see our review of Open trade on youtube below.
Other software/tools available on Zerodha
On their website you can find Easy to compute Brokerage/ Margin calculators. Advanced reporting tool called ‘Q’ provides all information regarding your trades, positions, capital management and provides tax ready P&L statements.
They also have analytics platform called Quant which is an analytics tools which shows thing like which of the days are best for trading for you based on past transactions and other things like that. Once you see this running it makes a lot of sense and if you start following it, maybe it can lead to more profits for you.
Other support initiatives like their blog ‘Z-Connect’, ‘Trading Q&A’ , ‘Pulse’ are also very popular. They also run a contest called ’60 Day Challenge’ where if a trader is net profitable in a 60 day period, all brokerage charged during that period is refunded back to the trader. Also 1 Lakh is given away every month for guessing the weekly close of Nifty on Zerodha’s initiative called ‘crowd.in‘. This works as an experimental leading indicator called crowd index.
They are also one of the first Discount Brokers which have started opening franchise offices in many cities in India including Bangalore (Karnataka) HQ, Hyderabad (Andhra Pradesh), Pune (Maharashtra), Ahmadabad (Gujarat), Bhopal(Madhya Pradesh) Chennai (Tamil Nadu), Vijayawada (Andhra Pradesh), Hubli (Karnataka), Salem (Tamil Nadu), Coimbatore (Tamil Nadu), Kanyakumari (Tamil Nadu) and Kochi (Kerala). So in case you have issue opening the account online, you can walkin these franchise office and get details. You can find addresses of their local franchise here.
Zerodha Complaints Details at NSE
Some people are concerned whether it is safe to trade with discount brokers and if they can run with their money. But now a day, SEBI is very strict with compliance and it is not easy to run with client’s money. In case you have some concern like this, you can open an account with just Rs 5,000 for trading and see how they work. Also the shares are kept in Demat account with CDSL,NSDL and your broker cannot touch them without your permission.
Exchange Financial Year Total Complaints
NSE 2015-16 1
NSE 2014-15 17
NSE 2013-14 8
NSE 2012-13 7
These are the number of complaints raised against Zerodha with SEBI. The number is small as compared to the number of clients which they have.
So as we have discussed above, Zerodha is a one of the best and largest discount broker of India. So I would suggest providing your details below by clicking on the buttom and someone from team Zerodha will give you a call.
And I can assure you that if you are a trader you can end up saving thousands of rupees in brokerage every year.
*Zerodha marketing partner