Zerodha is India’s first and largest discount broker which has been active since 2009. Here is a comprehensive review of this discount broker, as well as its products, offerings and services.
Started in 2009, Zerodha is officially recognized as India’s first and most prominent discount broker. It was founded by Nithin Kamath who had worked as a stock trader before starting his own broking house. Apart from bringing a competitive pricing model that made it the first of its kind, Zerodha is also acknowledged as a pioneer in technology for trading in India.
The broking house officially began its operations on 15th August 2010. As its name, mixing the English word ‘Zero and the Sanksrit ‘Rodha’ (Barrier), would suggest, Zerodha had the vision to break possible barriers that various traders, investors and various other aspiring money-makers face in the country’s economic scenario. In the last six years, the broking house has steadily grown with leaps and bounds, becoming one of the main players in the BSE, NSE, MCX-SX and the MCX with average daily turnovers of over Rs. 5000 crores.
As a broking house, Zerodha has consistently upheld its vision to assist retail traders and investors. It is now dedicated to provide more up-to-date and timely knowledge as well as hi-tech tools and platforms as well as constant customer support at competitive prices.
It is also perhaps the harbinger for the new spate of discount brokers in the country.
In 2015, Zerodha made another huge leap in the field of trading platform technology. This was by introducing its new in-house trading platform, called as Pi. It has also introduced extremely competitive and affordable pricing schemes for investors using its platforms. It has also developed innovative platforms for customer support. The Associate Program also enables the investors to refer more customers through their personal contacts. This has also boosted its popularity as a discount broking house in India.
Zerodha Brokerage Charges and Fees
The following is brokerage structure for Zerodha.
Equity Delivery Based trades will have no brokerage charges for them. This has been the rule set out by Zeodha since December 2015. For Equity Intraday trades, the applicable rates will be 0.01% to Rs. 20 per trade, whichever will be lower. For the equity options, the same rates will apply but in this case, the brokerage will be dependent on the turnover as well. The minimum brokerage will thus be Rs. 0.01 and the maximum rate will be Rs. 20 per trade. Zerodha also offers a live Brokerage calculator that will allow traders and investors to compute the rates of brokerage applicable to their investments and transactions.
There are some other charges that will be applicable for the investors and customers of Zerodha as well. The STT is a charge that is only for the sell side in intraday and F&O transactions as well. It will be charged on both sides
for Equity trades. There will also be the normal Stamp Duty charge for all the states of India and this changes as per the state in which the transaction takes place. The transaction charge is very small and falls somewhere between 0.00325% for Deliveries, 0.0021% for Futures and 0.053% for Options.
The service tax charge for all transactions will remain the standard 14% of the total amount. There is also the SEBI charge for Rs. 20 for every crore of the transaction.
Call and trade feature from Zerodha will come in at a cost of Rs. 20 per call. The Instant Payment Getaway is applicable for over 21 banks and will be Rs. 9 per transfer. There are DP charges for delivery based equity selling- Rs. 8 per transaction.
Overall, the expenses and fees charged by Zerodha are rather transparent in the structure. Zerodha offers you a free calculator to compute the charges on all trades and transactions.
The main offer of Zerodha is the DEMAT Account that they offer. They are one of the few major discount brokers in India who are their own DP. The charge of opening the account is Rs. 100. For Futures and Options, one will not need the DEMAT Account.
Zerodha customers also get the chance to use the advanced platforms and products of the company. There is also the attractive offer of Free Equity Investments. For other trades, there was the offer of a discount of Rs. 20. Also, investors could also use the advanced platforms like KITE and Pi for their trading and investing decisions. This is a major offer by Zerodha that is being promoted right now.
Zerodha Products And Services
The broking house offers a variety of technological add-ons and products that help the investors in stock and securities trading. Among its products are tools for bracket and stoploss orders. Using this product, the investors can place stoploss orders and even cancel them at the right time. The investors can also make cover orders so that they can get higher intraday averages. There are also different calculators for the investors. The SPAN Calculator will help you to evaluate and find out the margin requirements for investments. The Brokerage Calculator will allow investors to know all contract note charges and breakeven points to plan trades and investments more effectively. The B and S option calculator will help investors to calculate the fair value of equity options.
Zerodha also offers several initiatives to the investors. There is Varsity, a hub for education for investors on Indian Capital Markets. Trading Q&A is a question and answer site for the markets and stock trading. It is free and fully accessible for all the investors and traders.
ZConnect is a blog for investors on investments, trading and news updates on the market and stock exchanges as well. There is additionally a 60 day challenge for the investors, through which they can get their brokerage back. There is also an online link where they can also share their earnings.
Additionally, for investors, there are also many products for market intelligence. Pulse will help investors to stay updated about the latest happenings in business and finance. The Trading Holiday calendar will also give an idea about all the trading holidays. There are also circulars and newsletters for the clients.
Zerodha Trading Platforms
There are three major trading platforms by Zerodha. The first one is known as Kite Web. This is a speedy and efficient HTML5 trading platform that allows client to carry on trading without hassles. The minimalist yet functional trading platform is also responsive on all devices and helps in trading anytime anywhere.
Kite Android is yet another platform which is a simple and responsive UI serving as a reliable backend for investments. It is available for download as an app for Android devices and can be downloaded from the Google Play Store.
Finally, there is the brand-new Zerodha Pi. This unique platform provides traders and investors with in-depth tools for trading, advanced analysis and more. there are many charts and research reports available at the disposal of the investors and traders. This is what makes this platform much sought after by the investors. These platforms further cement Zerodha’s reputation in technology in trading in the country.