Zerodha 2022 Review – Brokerage, Trading Platform, and More: Zerodha is India’s largest discount broker, ideal for traders and investors looking for cheap commissions, a simple interface, and a dependable trading platform. For delivery equities and direct mutual fund investments, it charges no commission.
It charges a flat 20 rupees fee for all intraday, Futures & Options, currency, and commodity trades on the NSE, BSE, and MCX, regardless of the trading volume. You must pay a set low brokerage of Rs 20 for each trade, regardless of whether you trade for Rs 1 lakh or Rs 1 crore. As a result, if you use Zerodha as your broker, you can save a lot of money on your trades.
We’ll talk about brokerage fees, account opening fees, maintenance fees, trading platforms, products, my personal experience with Zerodha, and more in this Zerodha review. By the end of this article, you’ll know everything there is to know about Zerodha trading services and whether or not this broker is ideal for you. Let’s get this party started.
In India, there are two sorts of stockbrokers. There are two types of brokers: full-service brokers and discount brokers. The full-service brokers provide both a trading platform and consulting services. Their brokerage fees, on the other hand, are quite hefty. HDFC Securities, ICICI Direct, Motilal Oswal, and others are some of India’s top full-service brokers.
Discount brokers, on the other hand, provide trading platforms with low brokerage fees. Despite this, they do not provide consulting services. The primary benefit of a discount broker is that it saves traders and investors a lot of money on brokerage fees. On all other fronts, such as performance, automated trading systems, and so on, both companies provide equivalent services.
One thing to keep in mind is that all brokers in India, whether full service or discount, are licensed and controlled by regulatory authorities such as SEBI. In terms of daily trading volume, growth, and customer base, Zerodha is India’s top discount broker. It is one of the most technologically advanced and cost-effective stockbrokers on the market. Zerodha has over a million customers and accounts for over 10% of daily retail trading volumes on the NSE, BSE, and MCX.
Ironically, the word ‘Zerodha’ comes from a combination of English and Sanskrit. ‘Zero’+’Rodha,’ where ‘Rodha’ refers to a physical barrier. ‘Zero Barrier’ is the overall meaning of Zerodha.
It was founded in 2010 by Nitin Kamath, an engineer by training. Nithin bootstrapped and started Zerodha in 2010 to solve the challenges he had as a trader over a decade. For pioneering and developing discount broking in India, he was designated one of The Economic Times’ “Top 10 Businessmen to Watch Out for in 2016 in India.” Here are some of the notable honors that Zerodha has recently received:
1. ET’s Entrepreneur of the Year (2020)
2. “Retail brokerage of the year 2019” at the National Stock Exchange (NSE) (& 2018)
3. “Retail broker of the year 2017” according to Outlook Money
4. “Entrepreneur of the Year (Startup) 2017” by Ernst & Young
Zerodha Fees for Brokerage
In the equities, commodities, and currency segments, Zerodha provides trading services to buy and sell stocks, futures, and options. The following are the Zerodha brokerage fees:
1. Deliveries of free equity
All of your equity delivery investments (NSE, BSE) are completely free of charge – no commissions.
2. Rs. 20 per executed order on intraday equities, currency, and commodity trades across NSE, BSE, and MCX Rs. 20 or 0.03 percent (whichever is lower) per executed order on intraday equity, currency, and commodity trades across NSE, BSE, and MCX
3. In addition to brokerages, you must pay a few extra fees on your transactions, such as the Exchange Transaction Charge, STT, SEBI turnover costs, GST, and so on. These fees must be paid regardless of whose brokerage you use to trade stocks, and they must be paid on both sides of the transaction, i.e. when buying and selling. However, by using a discount broker, you can keep your brokerage costs down. In the instance of Zerodha, for example, the entire brokerage on both sides of intraday equity trading is Rs 40, despite the whole turnover being Rs 8.4 lakhs.
Zerodha Account Opening Fees & Annual Maintenance Charges
The following are the Zerodha account opening fees.
1. Rs 200 for an equity trading account
2. Account for Commodities: Rs 100
If you wish to trade both stocks and commodities, you’ll have to pay Rs 200 + Rs 100 = Rs 300 as an account opening fee. In any case, if you’re only interested in trading stocks, or equities, you can open a Demat and trading account for Rs 200. The annual maintenance charge (AMC) for a Demat account is Rs 300 per year.
Zerodha Features & Products
For its customers, Zerodha has developed its trading applications. It provides users with a variety of free trading terminals, websites, and mobile apps (Android/iOS).
1. Kite version 3.0
Kite 3.0 is a cutting-edge trading platform featuring real-time market data, comprehensive charts, a beautiful user interface, and more. Zerodha’s web and mobile trading applications are minimalistic, intuitive, responsive, light, and powerful. Kite offers a full market monitor with a bandwidth consumption of fewer than 0.5 Kbps, sophisticated charting with over 100 indicators and 6 chart kinds, complex order types like Brackets and Cover, millisecond order placements, and more. Overall, Kite provides an exceptional user experience through its ground-breaking technologies and easy-to-use interface.
2. Mobile kite
This is a mobile version of KITE that provides a consistent experience for mobile users on both Android and iOS devices.
3. Zerodha Coin Coin is a platform that allows you to acquire mutual funds directly from asset management firms over the internet. Since August 24, 2018, this platform has been completely free. You can make your investments here without having to pay any commissions.
You can have Direct mutual funds in DEMAT form with the ease of one portfolio across stock, MF, currency, and other assets with the help of Zerodha Coin. It also has a single capital gain statement, P&L visualizations, and other features. This Zerodha Coin has made SIP investments more simple and flexible.
4. Additional Affiliate Products
Aside from the items mentioned above, Zerodha also has a few more partner programs:
-Small case: Kite Connect APIs are used to enable this thematic investment platform. Small case assists users in investing in several themes by providing weighted baskets of stocks in each subject.
-Sensible: This is an options trading platform that provides sophisticated trading tools to simplify options trading for inexperienced investors. Sensible’s mission is to make options trading safe, accessible, and rewarding for everyone.
In addition, Zerodha has launched several educational activities aimed at improving financial literacy and increasing common people’s involvement in the financial sector. Here are some of Zerodha’s other goods.
-Zerodha Varsity: A platform for people to learn about investing and trading. Technical analysis, fundamental analysis, futures, options, risk management, trading psychology, and more are all available for free on Zerodha Varsity. Zerodha Varsity recently released its Varsity mobile app.
-Trading Q&A: A Zerodha-powered online community that answers people’s most difficult investing and trading queries.
Zerodha Discount Broker’s Advantages and Disadvantages
The following are some of the benefits and drawbacks of using Zerodha trading platforms:
Advantages of Creating a Zerodha Account
1. There are no delivery brokerage fees.
2. Intraday Charge is a one-time fee (Rs 20 or 0.03 percent whichever is lower per executed order for everything else)
3. Pricing is consistent across all exchanges.
4. There is no up-front charge or obligation to turnover.
5. Z-Connect, an interactive blog, and portal where you may get answers to all of your questions
6. Pi is a next-generation desktop platform that combines trading, charting, and analysis into one platform.
Kite is a web-based trading platform that is minimalistic, straightforward, and responsive.
8. There is no requirement for a minimum amount to start a Zerodha trading account.
9. Invest in direct mutual funds through coin with the same Demat account.
Cons of Opening a Zerodha Account
1. There are no advice services or research reports available.
2. No three-in-one account (savings, demand, and trading) is offered.
3. There is no way to invest in an IPO online. (Zerodha clients can now invest in initial public offerings (IPOs) using UPI payments.)
Note: The Zerodha IDFC FIRST Bank 3-in-1 account was newly launched by Zerodha. However, you must already have an IDFC FIRST Bank account to open a 3in1 account with Zerodha. Accounts can only be opened on the internet.
Does Zerodha have a good reputation as a stockbroker? Is it legal to invest for free?
Is it safe to invest in Zerodha for the long term? This is one of the most often asked questions by first-time investors. Large names in the broking industry like HDFC Securities, ICICI Direct, SBI cap, Kotak securities, and others have been around for decades. As a result, they enjoy a higher level of trust than Zerodha, especially among those who have never heard of it.
In any case, Zerodha, the cheap broker, was founded in 2010. As a result, if you haven’t been involved in stock market investing or trading in the last decade, likely, you haven’t heard of this broker. However, in a relatively short period, this broker has been able to outperform all of the major traditional brokers. Based on the number of clients (over 15 lakh), Zerodha is the largest stock broker in India, followed by ICICI Direct and HDFC Securities in second and third place, respectively.
To address your question, Zerodha is both safe and dependable. In reality, Zerodha has never had a major violation from SEBI or any of the other exchanges since its inception. It’s a cash-flowing private business with no debts or liabilities. Here are a few reasons why investors and traders should trust Zerodha.
1. Zerodha is a financial services company with no debt. There isn’t any form of borrowing going on.
2. There is no credit risk because Zerodha lends less than 5% of its own money to consumers in any form.
3. Zerodha’s own money in the firm account for more than a quarter of all customer funds combined.
4. They have one of the lowest ‘complaints to active clients’ ratios on the exchange.
5. Zerodha is a lucrative firm with sufficient reserves to survive even if the economy suffers a prolonged downturn.
Zerodha is also affiliated with Central Depository Services Limited. CDSL’s principal duty is to retain securities, either certificated or uncertificated, to facilitate book-entry securities transfers. As a result, you don’t have to be concerned about the security of the shares in your Zerodha Demat account. Stockbrokers are nothing more than depositories’ agents.
The central depositories, not the depository participants, hold your securities (brokers). As a result, even if something goes wrong with Zerodha, the equities in your Demat account are protected with CDSL. To summarize, Zerodha is a legitimate and trustworthy platform for trading and long-term investments in the stock market.
My personal experience with Zerodha
I’ve been using Zerodha for over three years and I’m happy with the trading services they give. Initially, I used ICICI direct as my broker, but I subsequently moved to Zerodha after realizing that I was overpaying for brokerage fees on my trading activities.
When calculating profits, the majority of newcomers overlook the brokerage fees. I used to do the same thing. That’s why, on many occasions, the final gains in my bank account (after deducting brokerage and other fees) disappointed me because they were far lower than what I had calculated in my head. I wish I had moved to a cheap broker sooner because it would have saved me a lot of ‘unnecessary’ brokerage fees, and the trading experience on Zerodha is even better. Regardless, I now utilize Zerodha to make all of my stock investments.
Furthermore, there was one ‘negative’ of utilizing Zerodha as a broker that had previously bothered me. It also lacked the ability for users to invest directly in Initial Public Offerings (IPOs) via the Zerodha dashboard. Zerodha, on the other hand, has a solution to this problem. Investors can now apply for initial public offerings (IPOs) directly from the Zerodha dashboard. The best aspect is that the procedure is quite straightforward.
Finally, several users argue that Zerodha lacks advice services and buy/sell calls. I believe that one should never invest or trade on the advice of a broker. There is a conflict of interest here because the brokers always make money whether you win or lose when you trade. As a result, they may always encourage traders to trade frequently. Overall, I’m not bothered by Zerodha’s refusal to provide consulting services. Furthermore, they prepare us for these disadvantages by providing educational opportunities like as Varsity.
By providing dependable and technologically advanced trading services over the last decade, Zerodha has won the trust and respect of the trading community. It is without a doubt India’s largest discount broker. Zerodha is one of the greatest options if you want to register a brokerage account with a renowned company that offers inexpensive brokerages and a quick trading interface.
This concludes this article. I hope you found this Zerodha review helpful. If you have any additional questions about Zerodha or would like to share your Zerodha review, you can do so on our forum. I’ll be pleased to answer any queries you may have. Have a wonderful day!