Zerodha is a Bangalore, India based Discount Broker (also known as Flat Fee Share Broker / Budget Broker / Pay Per Order Brokerage Company) for trading in Stock, Commodity and Currency Derivative. The Zerodha Review is published here to make a decision about choosing a broker.
Zerodha is India’s largest Discount Broker with a customer base of more than 01 Million and the Stock Broker is known for lower brokerage charges.
The Broker charges a flat brokerage fee of ₹20 per executed order, irrespective of the number of shares. Zerodha also offers free Brokerages on equity Delivery transactions. Zerodha charges a maximum brokerage fee for a transaction is ₹20 for per executed order irrespective of size & segment. The broker doesn’t offer minimum brokerage fee plans.
Zerodha was incorporated in 2010 and became No. 1 discount broker in India by volume, the number of customers and growth. As of Sep 2019, it has over 10 Lakh clients. Zerodha contributes to more than 10% of daily retail trading volumes across NSE, BSE, MCX. Recently It has taken over as the largest stock broking company in India based on the number of clients.
Zerodha is a member of BSE, NSC, MCX and MCX-SX and like other online stock trading companies, it offers trading services that allow you to trade in the following:it
- Mutual Funds
- Futures & Options (Equity, Currency & Commodity Segments)
- Govt. Securities
- Sovereign Gold Bond
Zerodha’s has its own trading application named ‘Kite’ and back-office software called ‘Console’. All trading software applications including trading terminal, website and mobile trading (android / iOS) are available to its customers for free.
Zerodha’s brokerage structure is extremely simple and very easy to understand because of its Flat Brokerage Fee nature. Customer who migrated to Zerodha from other Stock Brokers has reported 80% to 90% saving in brokerage in comparison to full-service brokers. it is among the most technologically advanced and most affordable stock broker in India for all kinds of investors including people who trade just a few times in a month to occasional traders who execute a bunch of trades each day.
Zerodha also has amazing educational initiatives like Varsity, Trading Q&A and Open trade which is freely available to everyone. These platforms are actively used by its customers to learn & interact with Zerodha team.
- Trading Q&A
Zerodha Trades In BSE, NSE, MCX & MCX-SX.
Zerodha’s Trading Platforms
The StockBroker is offering it’s customers the following platforms to trade with ease:
1. Kite 3.0 (Web-based Trading Platform)
Launched in November 2015, Zerodha Kite Web is a web-based HTML 5 lightweight & fast trading platform which can be used for trading on mobile, tablets, Laptop & Desktop via a web browser. Kite is in-house developed by Zerodha itself and since its launch has undergone various updates. Currently, the broker is offering Kite 3.0 web to its customers and is free to use. It offers full market watch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and much more for trading at BSE, NSE and MCX for free.
2. Kite Mobile
Kit Mobile is a smartphone application for both Android and iOS. Customers can trade on platform via this application with their Smartphones. Kite Mobile app is available for free all its customers for trading & monitoring stocks and commodity markets in India and can be downloaded from respective App Stores. Kite mobile offers live streaming data from BSE, NSE and MCX, and becomes the most advanced trading app available in India.
3. Console (Reporting Dashboard)
Console is the back-office platform offered by Zerodha. It’s a trade and reporting dashboard wherein customers can view and monitor all their investments- stocks, derivatives and mutual funds etc from a single dashboard. Customers can also access various reports, get account statements, place withdrawal requests and download contract notes via Console. The ‘Console’ also offers analytics tools such as tradebook and heatmap to its Investors & traders.
4. Zerodha PI (Installable Application)
Zerodha PI is an installable trading terminal provided by Zerodha which offers advanced charting, algos, strategies, & backtesting. A Trader can trade across segments at BSE, NSE and MCX using this application. PI is available to all of its clients for free.
5. Zerodha Sentinel
Sentinel is a cloud-based price alert tool that allows customers to set up price alerts on stocks, futures and options. The unique feature of Sentinel is that unlike other similar price alert tools that are machine-dependent and only provide an alert when the computer is on, but here on Sentinel price alerts can be triggered any time, even when the computer is off. Notifications are sent via Sentinel on Kite (both mobile & Web) and e-mail every time a price alert is triggered.
Zerodha’s Coin is a Mutual Fund investment platform offered by the broker. Coin allows people to invest in Direct Mutual Funds on their own. This means you could do commission-free direct MF investment & can save brokerage on Mutual Fund Investment. Coin offers savings of over 1.5% in commissions every year via its feature of Direct Mutual Fund Investing. Mutual Funds are deposited in the Demat account of the customer which is linked with the Zerodha trading account.
7. Call & Trade
Customers who are not using Zerodha’s online trading and investing platforms explained above can use Call & Trade service for an additional cost of ₹20 per trader.
Zerodha Account Opening & Maintenance Charges
|Trading Account Opening Charges||₹300|
|Demat account Opening Charges||₹100|
|Trading Annual maintenance charges (AMC)||₹0|
|Demat Account Annual Maintenance Charges (AMC)||₹300 per year|
Zerodha Pros and Cons
According to Zerodha Review by Nifty Outlook, it has the following Advantages:
- Most popular Broker – Zerodha is No. 1 Discount Stockbroker in terms of the number of active clients and daily trading volume.
- The best trading platforms & tools in the industry – Kite, Console, Coin, Varsity, Sentinel, Smallcase, Streak, Sensibull and GoldenPi are offered by Zerodha which makes it best trading platforms provider.
- Brokerage free Equity Delivery Trades – Investors don’t need to pay any brokerage when they buy shares using cash-and-carry (CNC).
- Cheapest share broker in India – They offer services under a simple pricing model at ₹20 per executed order irrespective of number of shares in any segment.
- Self-Clearing Broker – Zerodha is a self-clearing broker and they don’t charge clearing charges from customers.
- No Hidden Charges – Zerodha does not charge any hidden fees i.e. Software and services use charges.
- No Minimum Balance – required to open a Zerodha trading account.
- No Minimum Brokerage – This is helpful with small trades where 0.01% brokerage [one side] is applied.
- Pay as you go Brokerage Plans – Zerodha has simply pay-as-you-go brokerage plans because there are no prepaid brokerage plans available.
- Zerodha GTT orders – Set long-standing stop loss and target orders for your stock investments with Zerodha.
- Zerodha Kite 3 mobile – An all-new mobile app built for both, passive investors and active day traders, with significant speed and great user experience enhancements.
- IPO applications using UPI – You can apply for new IPOs (Initial Public Offerings) directly with a Zerodha account at no additional cost.
- Easy SIPs with e-Mandates – Using SIPs to regularly invest makes for a good personal finance habit with e-Mandates by Zerodha.
- Bracket Orders – with an option of Trailing Stop loss for both Equity and F&O available at Zerodha.
- Margin Against Share – Get a collateral margin for trading in Equity and Currency F&O segment with more than 1000 approved securities (Stocks & ETFs) to get the collateral margin.
According to Zerodha Review by Nifty Outlook, it has the following Disadvantages:
- GTC/GTD orders not available in the equity segment. Good Till Cancelled (GTC) and Good Till Date/Time (GTD) Orders are only available for commodity trading on the platform.
- For Bank Nifty (weekly settlement), CO/BO or trailing stop loss is not available.
- Margin against Shares is not available in the equity cash segment.
- An additional charge of ₹20 per executed order for MIS/BO/CO positions which are not square off by the customer.
- Call & Trade is not free. It is available at an additional fee of ₹20 per executed order.
- Trading software is not available for Mac and Linux operating systems.
- 3-in-1 trading account is not available as Zerodha doesn’t provide banking. Any online bank can be linked to the Zerodha trading account. However, recently it has partnered with IDFC First Bank to offer a 3-in-1 account wherein traders having an IDFC First Bank account can link their bank account with Zerodha trading and Demat account.
- Unlike most 3-in-1 accounts provider, Zerodha Back Office is not integrated with its trading platform. It’s a separate website and most data in the back office gets updated overnight.
- Lifetime free AMC demat account plans are not available.
Zerodha Exposure Margin / Leverage Margin
Zerodha leverage for intraday, delivery, options, currency and commodities.
|Equity Delivery||1x (no margin)|
|Equity Intraday||Up to 20x (based on the stock)|
|Equity Future||Intraday – 40%|
|Equity Options||Intraday – 40%|
|Currency Future||Intraday – 40%|
|Currency Options||Intraday – 40%|
|Commodity Future||Intraday – 40%|
You have gone through the Zerodha Review here on this page. I’ve tried to list all the features, type of account, trading platforms and trading apps in my Zerodha Review. After reading the Zerodha Review you got an idea about why it the best stockbroker in India in both the Full Service Brokers and Discount Brokers.
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