Zerodha Broker Review 2020
Zerodha is one of the top discount brokers in India and it is claimed by Zerodha that it is the No 1 broker in India. It offers a very competitive and cheap brokerage for investors. Offerings of Zerodha includes almost all the segments including Equity, Commodity, Currency, Futures and Options, Initial public offering and Direct Mutual funds.
One of the best service from Zerodha is that it offers Zero Brokerage for Equity Delivery and Direct Mutual funds. While you can invest in direct mutual funds with zero cost, in case of Equity delivery only the brokerage is Zero. This means that you still have to pay other charges such as Security transaction costs and others which will be discussed below. These extra charges are charged by the regulatory and the Stock exchanges and are not in control of any Broker and will be charged by all the brokers.
Zerodha kick-started operations on the 15th of August, 2010 with the goal of breaking all barriers that traders and investors face in India in terms of cost, support, and technology. The company Zerodha, a combination of Zero and “Rodha”, the Sanskrit word for the barrier.
Today, Zerodha’s disruptive pricing models and in-house technology have made it the biggest stock broker in India in terms of active retail clients.
Over 3+ million clients place millions of orders every day through its powerful ecosystem of investment platforms, contributing over 15% of all Indian retail trading volumes.
Review
Note: This review is updated constantly as possible based on the latest situation and service of the Brokerage company
At this point in time, it is the best brokerage in India, in comparison to all other brokerage firms especially for Retail investors. The brokerage that is charged by Zerodha is among the lowest in the industry and also the technology platforms that it offers makes the trade easy and interactive. Even new investors can easily start buying and selling with its easy to use User interface trading platform Named as KITE.
Some of the strengths of Zerodha are
- It is the largest Discount Stockbroker in India in terms of Active clients and also the trading volumes.
- Advanced Technology platforms and tools offered. These include KITE(Easy to Use Trading platform), COIN(Direct Mutual Funds investment platform), CONSOLE( Zerodha’s Back-office which includes everything like Transactions reports, profit and loss statements and other contracts notes etc.),
- Trusted Brokers in the markets. Got the trust of brokers with best customer service.
- ZERO Brokerage in case of Equity delivery and also Mutual funds. Most useful for beginning retail traders.
- Brokerage is very less when compared to TOP Full-service brokers in India.
- Educationals platform which includes all the beginner to advanced tutorials to learn.
- Zero Debt Company. Can trust the zero debt company as they are most profitable
Advantages and Disadvantages of Zerodha
Advantages
- One of the most popular, Safe and Reliable Broker in India. In stock market Trust is most important which Zerodha has gained from its users.
- Advanced and best Trading platforms developed by Inhouse Development team. These include KITE, COIN, VARSITY, CONSOLE.
- FREE brokerage in case of Equity Delivery trading. And also the lowest brokerage when compared to other peers in the industry.
- No prepaid brokerage charges. Unlike few which force you to prepay the brokerage, Zerodha is a pay as you trade type of brokerage model.
- Self-Clearing Broker – Zerodha is a self-clearing broker. They don’t charge clearing charges from customers.
- Online IPO Application – You can apply for new IPOs (Initial Public Offerings) directly with a Zerodha account.
- Online IPO Application – You can apply for new IPOs (Initial Public Offerings) directly with a Zerodha account.
Disadvantages
- No Unlimited free Trading Plans as provided by few peers which is useful to Intraday Traders as they trade in a large number of trades.
- Other Brokers provide Lifetime FREE AMC Brokerage account where as Zerodha charges ₹300 per year.
- No 3 in 1 account option which is provided by other brokerage houses.
- CONSOLE Zerodha’s back office which includes all the trade reports is not updated on real time and it is updated daily midnight.
Zerodha Charges
Account opening charges
Zerodha account opening charges are ₹200 for online account opening. If you choose to open an account offline, you will be charged ₹400. The demat account AMC is ₹300 per year.
| Account | Charges |
|---|---|
| Trading and DEMAT account | ₹200 |
| DEMAT Account maintenance charges | ₹300 per year (Charges as ₹75 per quarter) |
| Trading account AMC | ₹0 |
Zerodha Brokerage Charges
Zerodha follows a fixed brokerage model wherein it charges a flat ₹20 or 0.03% (whichever is lower) per executed order. It charges zero brokerage on equity delivery. The maximum brokerage chargeable per order is ₹20.
| Segment | Brokerage Charges |
|---|---|
| Equity Delivery | ₹ 0 |
| Equity Intraday | Flat ₹20 or 0.03% per executed order(Which ever is lower) |
| Equity Future | Flat ₹20 or 0.03% per executed order Which ever is lower |
| Equity Options | Flat ₹20 per executed order |
| Currency Futures | Flat ₹20 or 0.03% per executed order whichever is lower |
| Currency Options | Flat ₹20 or 0.03% per executed order whichever is lower |
| Commodity | Flat ₹20 or 0.03% per executed order whichever is lower |
| Direct Mutual Funds(Coin) | ₹ 0 (No brokerage, Free investing) |
Zerodha Equity Charges
Zerodha charges ₹0 (no brokerage) for equity delivery trades. For intraday trading, they charge flat ₹20 per executed order or 0.03% (whichever is lower) on both sides.
| Type of Charge | Equity Intraday | Equity Delivery |
|---|---|---|
| Brokerage | Flat ₹20 or 0.03% per executed order whichever is lower | ₹0(No Brokerage) |
| Security Transaction Cost(STT) | 0.025% on the Sell Side | 0.1% on both Buy and Sell |
| Transaction / Turnover Charges | NSE: 0.00325% and BSE: 0.003% per trade (each on both buy and sell side) | NSE: 0.00325% and BSE: 0.003% per trade (each on both buy and sell side) |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | ₹5/Crore | ₹5/Crore |
| Stamp Charges | 0.003% (₹300 per crore) on buy-side | 0.015% (₹1500 per crore) on buy-side |
Zerodha Currency Charges
Zerodha currency brokerage charge is flat ₹20 per executed order or 0.03% (whichever is lower). In addition to brokerage, the customer has to pay taxes like STT, Transaction Fee, GST, SEBI charges, and Stamp Duty.
| Type of charge | Currency Futures | Currency Options |
|---|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower) | Flat ₹20 or 0.03% (whichever is lower) |
| Securities Transaction Tax (STT) | No STT | No STT |
| Transaction / Turnover Charges | NSE: 0.0009% | BSE: 0.00022% | NSE: 0.035% | BSE: 0.001% (on premium) |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) | 0.00005% (₹5/Crore) |
| Stamp Charges | 0.0001% (₹10 per crore) on buy-side | 0.0001% (₹10 per crore) on buy-side |
Zerodha Futures and Options charges
Zerodha F&O brokerage charge is flat ₹20 per executed order or 0.03% (whichever is lower). You also have to pay taxes like STT, Transaction Fee, GST, SEBI charges, and Stamp Duty.
| Type of Charge | Equity Futures | Equity Options |
|---|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower) | Flat ₹20 or 0.03% (whichever is lower) |
| Securities Transaction Tax (STT) | 0.01% on Sell Side | 0.05% on Sell Side(on Premium) |
| Transaction / Turnover Charges | NSE: 0.0019% | BSE 0.003% (each side) | NSE 0.05% | BSE 0.003% (each side) (on premium) |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) | 0.00005% (₹5/Crore) |
| Stamp Charges | 0.002% (₹200 per crore) on buy-side | 0.003% (₹300 per crore) on buy-side |
Zerodha Commodity Charges
Zerodha commodity brokerage charge is flat ₹20 or 0.03% (whichever is lower) per executed order. Along with this, customers have to pay taxes like STT, Transaction Fee, GST, SEBI charges, and Stamp Duty.
| Type of Charge | Commodity Futures | Commodity Options |
|---|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower) | Flat ₹20 or 0.03% (whichever is lower) |
| Securities Transaction Tax (STT) | 0.01% on sell side (Non-Agri) | 0.05% on sell side |
| Transaction / Turnover Charges | Group A: Exchange txn charge: 0.0026% Group B: Exchange txn charge: Pepper - 0.00005%, Castorseed - 0.0005%, Rbdpmolein - 0.001% | ₹0 |
| Goods and Services Tax (GST) | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) | 0.00005% (₹5/Crore) |
| Stamp Charges | 0.002% (₹200 per crore) on buy-side | 0.003% (₹300 per crore) on buy-side |
Zerodha Other Charges
| Type of Charge | Charges |
|---|---|
| Call and Trade | ₹50 per call |
| Auto Square off MIS/BO/CO positions when not squared off before the specified timings of the dat | ₹50 |
| Physical Delivery of Contract notes | ₹20 per contract + Courier charges |
| DP charges for Equity Delivery (Only for sell side) | ₹13.5 + GST (per instrument per day) |
Zerodha Technology Tools and Trading Softwares
Kite
Kite is a sleek investment and trading platform built for modern times and sensibilities. Ground breaking innovations presented with excellent usability, investing in the stock markets has never been this easy. Really.
Universal instrument: search Search across 90,000+ stocks and F&O contracts across multiple exchanges instantly. Find your favorite stocks, bonds, metals, or derivatives, anything really, with absolutely zero latency.
Sleek User Interface: With a sleek and carefully designed UI, buying, selling, analysing, and managing your portfolio, everything’s just a click away. Navigate the app seamlessly with intuitively designed keyboard shortcuts.
20 market depth or level 3 data: Exclusive access to level 3 data, or 20 market depth. Level 3 data gives you deeper insights into market liquidity and allows you to develop sophisticated intraday trading strategies.
Advanced charting: Hundreds of indicators, studies, and tools on a powerful and customisable charting interface. Extensive historical data for stocks and F&O contracts. Nobody else offers as much data as we do.
GTT – Good Till Triggered orders: Place single-leg triggers to enter or exit stock holdings until your price condition is met, along with simultaneously placing target and stop loss (OCO or One Cancels Other) for your stock holdings.
Baskets: Create, manage, and execute multi-stock baskets. Use real-time margins to build F&O strategies and spread orders.
Kite Android
A clean, light, and fast app with an intuitive UI for all your investment and trading needs. A smartphone application for Android and iOS. This app allows customers to trade from their mobile phones. Kite Mobile app is available for free all its customer for trading & monitoring stocks and commodity markets in India. With live streaming data from BSE, NSE and MCX, Kite Mobile App is the most advanced trading app available in India.
Console
The central dashboard for your Zerodha account with in-depth reporting and analytics on your trades and investments.
Analytics: Multi-dimensional insights on your trades and portfolio presented as easy-to-understand visualisations.
In-depth breakdowns: Complete history breaks down of your stocks by the trade from the day of acquisition. Understand your trades better with per-trade charge breakdowns showing brokerage, STT etc.
Sentinel
Sentinel is Zerodha’s free real time markets alerts platform. Users can create conditions which when met will notify the users via email and on web platform.
Free realtime market alerts: Create powerful market alerts on the cloud for stocks, futures and options, and more for free.
Alerts reside on the cloud waiting to be triggered—today, tomorrow, or months from now, even when you’re away. Get notifications on Kite web, mobile and e-mail. Set simple alerts or write advanced triggers that combine multiple alerts with the Sentinel trigger language and editor. 20+ data points to set alerts on—last traded price, OHLC, bids and offers, and more. Set alerts on 80,000 stocks, bonds, commodities, derivatives, and more across exchanges
COIN
Free direct Mutual funds investment platform. The easy to user interface and complete analytics like the performance in the past and the rating of the fund will help users to make an informed choice while investing in the funds.
KITE Connect
KITE Connect gives API access to the trading platform for Developers. You can build Build full fledged trading platforms with HTTP/JSON APIs.
The Review
Zerodha
Zerodha is one of the top discount brokers in India and it is claimed by Zerodha that it is the No 1 broker in India. It offers a very competitive and cheap brokerage for investors. Offerings of Zerodha includes almost all the segments including Equity, Commodity, Currency, Futures and Options , Initial public offering and Direct Mutual funds.
PROS
- One of the most popular, Safe and Reliable Broker in India. In stock market Trust is most important which Zerodha has gained from its users.
- Advanced and best Trading platforms developed by Inhouse Development team. These include KITE, COIN, VARSITY, CONSOLE.
- FREE brokerage in case of Equity Delivery trading. And also the lowest brokerage when compared to other peers in the industry.
- No prepaid brokerage charges. Unlike few which force you to prepay the brokerage, Zerodha is a pay as you trade type of brokerage model.
- Self-Clearing Broker - Zerodha is a self-clearing broker. They don't charge clearing charges from customers.
- Online IPO Application - You can apply for new IPOs (Initial Public Offerings) directly with a Zerodha account.
CONS
- No Unlimited free Trading Plans as provided by few peers which is useful to Intraday Traders as they trade in large number of trades.
- Other Brokers provide Lifetime FREE AMC Brokerage account where as Zerodha charges ₹300 per year.
- No 3 in 1 account option which is provided by other brokerage houses.
- CONSOLE Zerodha's back office which includes all the trade reports is not updated on real time and it is updated daily midnight.
- Recently few customers have reported on social platforms about the reduced customer service due to increased client base
Review Breakdown
-
Review
