Zerodha launched in 2010 is India’s leading online discount broker. Mr. Nitin Kamath, a professional trader with ten years of experience, started Zerodha. From the beginning, the company had the simple aim of breaking cost & technology barriers for investors in India.
Zerodha was the first flat brokerage fee stock broker in India. By flat fee brokerage, we mean that Maximum brokerage charged PER TRADE HAS BEEN FIXED (Rs 20 – Since 2010).
So with Zerodha, irrespective of trade volume or trade turnover amount or trade frequency, the maximum brokerage per transaction is Rs 20(for any trade), and lowest brokerage is Rs 0 (for delivery based trades).
Today Zerodha has over 200 branches across India, and it caters to over satisfied 2.5 lakhs customers. Prominent traders with high trade turnover shifted their trading accounts to Zerodha to save on brokerage. Hence Zerodha has reached a daily turnover of over Rs 10,000 crores on the National Stock Exchange and over Rs 1000 crores in commodities within six years of starting date. Zerodha has received an Economics Times Start Up award as recognition of its achievements.
BSE, NSE, MCX, NCDEX & SEBI gave approval to Zerodha to offer broking service in following segments:
- Equities (also known as Stocks/Shares)
- Stocks & Index Derivatives (also known as Futures & Option)
- Currency Derivatives (Currency Futures)
- Commodities Derivatives (Commodities Futures)
- Mutual Funds (Via direct mode – using Zerodha Coin)
- Mutual Funds (Via regular mode)
Zerodha Demat and Account Opening Charging
Below are the details about Trading and Demat account opening and annual maintenance charges.
|Zerodha Trading Account Opening charges||Rs 300||Once|
|Zerodha Trading Account Maintenance charges (AMC)||Not applicable||Not applicable|
|Zerodha Commodities Account opening.||Rs 300||Once|
|Zerodha Demat Account opening charges||Rs 100||Once|
|Zerodha Demat Account Maintenance charges||Rs 300||Yearly|
Zerodha Brokerage Charges
Zerodha charges zero brokerage on delivery based trades(meaning if you buy a stock today and sell it tomorrow or later, you will not pay any brokerage). For all other trades like Intraday stocks (Intraday – you buy and sell the stock today), futures & options, commodities and currency derivatives the brokerage charged is lower of Rs 20 or 0.01% of total trade turnover, hence you will NEVER pay brokerage of more than Rs 20 for any trade.
Let us take an example of an Intraday trade (buy and sell on the same day):
For instance, a customer executes a total Intraday trade worth of Rs 100000 (ten lakhs).
If you had a traditional broker like ICICI direct, the brokerage charged would be 0.5% of total turnover amount. Hence the brokerage would be:
1000000 * .5/100 = Rs 500
Whereas for Zerodha the brokerage charged would be Rs 40. ( Rs 20 for buying + Rs 20 for selling).
Hence the total brokerage saved over would be over Rs 460 (Over 12 times).
Low brokerage translates into assured saving on every transaction and hence many customers have moved their trading accounts to Zerodha.
The below table illustrates the complete brokerage structure:
|Trading Segment||Brokerage if Turnover less than 2 Lakhs||Brokerage if Turnover more than 2 Lakhs|
|Equity Delivery ( Means you buy stocks today and sell tomorrow or later)||Rs 0||Rs 0|
|Equity Intraday (Means you buy stocks today and sell them today)||0.010% (Always less than Rs 20 )||Rs 20|
|Equity Options||0.010% ( Always less than Rs 20 )||Rs 20|
|Equity Futures||0.010% ( Always less than Rs 20 )||Rs 20|
|Currency Options||0.010% ( Always less than Rs 20 )||Rs 20|
|Currency Futures||0.010% ( Always less than Rs 20 )||Rs 20|
|Commodity Delivery||0.010% ( Always less than Rs 20 )||Rs 20|
|Commodity Futures Intraday||0.010% ( Always less than Rs 20 )||Rs 20|
If you would like to understand the details about brokerage charges and applicable taxes, please visit our link Zerodha Brokerage Charges & trading taxes.
Zerodha is one of the most preferred stock brokers among traders and hence Zerodha provides excellent margins for intraday trades, futures, options, commodities & currency across all indexes. Discussing margins is a huge topic and of most interest for traders, hence we have written a detailed article which explains margins and Zerodha’s margin offering.
Zerodha Trading Platform
When launched in August 2010, Zerodha gave customers access to NowOnline for online trading (NowOnline is an online trading platform from NSE (National Stock Exchange) available to all brokers registered with NSE). As the customers grew, Zerodha invested heavily in developing proprietary desktop trading software, trading website and native smartphone’s applications for execution of the trade. Being true to its vision, complete access to the developed software’s & tools were given to every customer for free with the sole aim to simplify trading.
Zerodha Kite Web-Browser Based Trading.
Kite is HTML 5 based trading website which works well on browsers like Chrome/Firefox on desktops, laptops, smartphones and tablets. Kite developed in HTML 5 is extremely lightweight and works well even on slow internet speeds.
The website supports extensive charting with over 100 indicators and 6 chart types to ease trading by technical traders. Kite also provides market-watch, widgets, market depth, universal search ( search stocks, mutual funds, futures, options all from one search box) for easy access to the market.
It also includes an extension for Chrome which once installed, provides an option to buy or sell stocks even from popular websites like Yahoo Finance, Google Finance. So you can execute trades directly from these websites.
Zerodha wanted to bring trading to all Indians and hence apart from English & Hindi; Kite supports ten additional regional languages of India ( Tamil, Telugu, Marathi, Kannada, Malayalam, Punjabi, Gujarati and Bangla) so that traders can trade in their mother tongue.
Zerodha Smart Phones Apps
Zerodha developed native Android and IOS application for trading on the move. You can download the application directly from Google Play store and IOS App store. Since most features available in Kite website are also available on these native applications, Zerodha named the native mobile applications as named Kite as well.
Zerodha Desktop Software
PI is Zerodha’s desktop trading platform with innovative features like advanced charting, backtesting, real-time stock price tickers, signals, alerts and much more for trading in Indian Stock Market. Like all other software’s, PI is also available for free to Zerodha Customers. With Pi’s Bridge technology customers can automate their trading strategies with third party platforms such as Ninja Trader, AmiBroker and more.
Zerodha’s advanced charting is best in the industry. With 10 different types of charts, 80 built-in technical indicators and over 30 drawing tools, traders can execute directly from charts by a single click. This feature is loved by most traders because it reduces order execution time.
Additional services provided by Zerodha
As we indicated earlier, Mr. Kamath a stock trader started Zerodha. Being a trader and with access to capital ( once Zerodha turned profitable), Mr. Kamath started investing in tools which he thought would help other traders. Let us look at few additional services which Zerodha provides all its customers for free.
Quant is a full personal trading journal, and it contains data compiled from your past trading behavior. In simpler terms, the Quant algorithm would look at your trading history and display details like trading size at which you made most profits, your most profitable stocks, most profitable weekdays, did you make more profit when you were trading with the market trend or against the market trend and much more.
These insights can help you while you make your next trading decision.
Q is the back office tool which is used to show a summary of all your accounts in one place. Zerodha customers can use Q to place a request for funds withdrawal from their trading accounts to their bank accounts. Since Q is the back office, it also gives you access to tax ready Profit/Loss statements.
Zerodha Varsity is an Initiative by Zerodha to promote stock market education among India. In varsity, you will find basics to advanced level course about how the markets work, trading, investing and much more. I recommend Varsity because complex topics are sub-divided into smaller, easily explainable modules and content is written in simple language.
Zerodha Coin is a platform that lets you buy direct mutual funds from AMC’s online using Zerodha’s platform. By taking the direct route to invest in mutual funds, you will save both up front and trailing commissions (paid yearly). Mutual funds bought via Coin will be in Demat form, hence you can track your entire portfolio of Mutual Funds, stocks bonds via your Zerodha account. Although you have to pay Rs 50 monthly fees to use Zerodha Coin(if your investment is over Rs 25,000), we would recommend using this service if you invest in mutual funds.
Zerodha Open Trade
Unlike almost all other brokers, Zerodha stayed away from providing any stock advisory service since inception. I do not follow any advisory services because they come with no credibility and no accountability.
A couple of years ago, Zerodha launched open trade, which I think is an excellent concept. The logic is that Zerodha traders who have positive track records ( are profitable in the stock market) can request to sign up as Zerodha-advisers (Star). The internal quality team at Zerodha reviews these applications (trade history, etc.) and after careful scrutiny approves few applications. Now Zerodha customers like you and me, can follow any of these stars ( for a nominal price like Rs 500) and receive the trades executed by them in real-time. Once you receive the trade details, you can initiate the same trade or neglect the call.
The best thing, I like about Zerodha OpenTrade is that the advisers are putting their money on every trade.
If you are a beginner in the stock market or if you are an experienced trader, we recommend opening an account with Zerodha. Main reasons for our recommendation are:
- Low Brokerage and excellent customer support.
- Best in class trading software ( in all areas – Desktop, Mobile Apps, and website ).
- Access to systems like Quant, Coin, Zerodha Varsity, Z-Connect and much more.
- Joining a company which is truly working towards redefining stock trading in India.
If you have any questions, please do leave them in the comments section below and our team will respond to them.