ZERODHA

4.5 Overall

Zerodha is a Bengaluru-based discount broker, who is providing the lowest brokerage & an advanced trading platform. Zerodha is at the top of the leading list of discount brokers in India, due to its large trading volume, the number of customers, and organization growth rate.

Brokerage Charges4.5
Platforms & Tools 4.5
Customer Service 3.0
Cons
  • Call and Trade is not free
  • Monthly plans not available
  • No Provision to Invest in IPOs

Zerodha Overview

Founded by Nithin Kamath in 2010, Zerodha is the first company to introduce the concept of discount brokerage in India. The company had a clear objective, to break down all the barriers that traders and investors face in India in terms of cost, support, and technology. 

Today, Zerodha is amongst the fastest growing, top volume contributors on NSE, BSE, MCX-SX, and MCX, with an average daily trading turnover of over Rs. 10,000 crores.

Nithin Kamath said, "The year 2017 was quite a year for us as a business. We became the largest retail broker in India by turnover on all the exchanges and segments, the biggest in India by monthly new client additions, and the largest standalone direct mutual fund platform in Coin." 


Zerodha Brokerage Charges

When most of the brokerage firms were charging a fortune, Zerodha made a mark by offering all Equity & Mutual Funds Investment a brokerage-free and 0.01% or Rs. 20 whichever is lower per executed order, for all other segments be it equities, intraday, currencies, FnO, or commodities.

Equity Delivery 0 (Free)
Equity Intraday 0.01% or Rs 20 Whichever is lower per Executed Order
Equity Futures 0.01% or Rs 20 Whichever is lower per Executed Order
Equity Options Rs 20 Per Executed Order
Currency Futures 0.01% or Rs 20 Whichever is lower per Executed Order
Currency Options Rs 20 Per Executed Order
Commodities 0.01% or Rs 20 Whichever is lower per Executed Order

Pay attention to the phrase whichever is lower, that’s what makes Zerodha different from others.

There are other brokers like SAS Online5Paisa.com & ProStocks who charge flat Rs 9 to Rs 15. The point to note here is that it's cheap when you place an order in a bulk quantity but it actually becomes expensive when you place small orders many times. With Zerodha you will pay the minimum, no matters whether you buy 1000 stocks in a single trade or in 10 trades (10×100). Lesser brokerage means low GST charges, which means lesser overall trade charges. 


Zerodha Other Charges

  • Depository Participant (DP) charges for delivery based equity selling charged only on sell-side - Rs 8 + Rs 5.5 = Rs 13.50 per transaction.
  • Call and Trade feature is available at an extra cost of Rs 20/- per call.
  • Digital Contract notes are sent via Email. Physical copies of contract notes can be ordered at an additional charge of Rs 20/- per contract + Courier charges.
  • Trade SMS alerts (optional) are charged at Rs 1 for Equity, F&O, and Currency trade alerts and Rs 0.50 for Commodity trade alerts.
  • Instant payment gateway charges for over 22 banks - Rs 9 per fund transfer.

ZERODHA ACCOUNT OPENING CHARGES:

  • Trading Account Opening Charges (One Time): Rs 200
  • Demat Account Opening Charges (One Time): Rs 100
  • Trading Annual maintenance charges (AMC): NIL
  • Demat Account Annual Maintenance Charges (AMC): Rs 300 Per Year
  • Commodity Account Opening Charges (One Time): Rs 200

Zerodha Platforms & Tools

Zerodha offers two platforms, a Browser-based/Mobile Application Kite and a Desktop platform PI, which is the company’s flagship product and a core focus area.

ZERODHA PI

The desktop platform PI encompasses everything an active trader could desire. The tools provided cater to every type of professional investor, including institutional investors such as hedge funds.

This is how PI application looks like

  • Advanced Charting: 10 chart types with more than 100 indicators. All of this without any cost for data is one of the biggest advantages of PI.
  • Algos, Strategies and Back Testing: Code advanced with a simple yet powerful scripting language. Use the free historical data to back-test our strategies and even semi-automated them.
  • Historical Data: 50,000 candles worth of FREE historical data for Stocks, Indices, F&O, Currency, and Commodity.
  • Expert Advisors: Real-time trade signals from Automated Expert Advisors by using our own strategies or strategies from others.
  • Trading from the Charts: We can place orders from Charts, for the first time in India.
  • PI Bridge: PI Bridge to give seamless and reliable connectivity from the charting or programming tool to the trading engine on PI. The plan is, regardless of your front end, we will help to fire orders using the bridge.

Technically, PI is top-notch in charting feature and in the way it provides the technical analysis for traders. The Back-testing is a great feature for research and technical analysis with fast speed and use of low bandwidth.

ZERODHA KITE WEB 

Kite is a very light, highly responsive, and a highly powerful web platform which works on any web browser, without the need for any installation or download. To access this application, the user simply needs to login to the official website, enter the login credentials, and proceed with the trading. 

The KITE web platform comprises of some significant features

  • A bandwidth consumption of fewer than 0.5 kbps for a full market watch
  • An extensive charting with over 100 indicators and 6 chart types
  • Advanced order types like Bracket and cover orders
  • Millisecond order placement

Kite web is one of the most commonly used web trading platforms. In terms of both performance & usability, it is considered to be the best web-based trading platform.

ZERODHA KITE MOBILE APP

The Kite Mobile application carries functionalities similar to the browser-based kite trading application

Here are some of the top-notch features of the mobile app: 

  • One-tap universal instrument search for all contracts across all exchanges - NSE, BSE, MCX
  • Live streaming data
  • Multiple market watch and live market depths
  • Advanced charts with more than 100 indicators
  • Years worth of free historical chart data

ZERODHA TRADING TOOLS

Zerodha has provided great resolution in technology by offering a number of user-friendly tools like - 


Zerodha Education & Research

Zerodha doesn't give any stock tips; however, it empowers by teaching how to trade through their initiatives like Varsity and Tradingqna.

  • Varsity: It is a free online course on Indian stock market
  • Trading QnA: Zerodha community answers to questions on trading and markets. 

It is about teaching a man how to fish, rather than giving him one.


Zerodha Customer Service

Zerodha offers the following communication channels for its clients to get in touch with them :

  • Email – support@zerodha.com.
  • Phone – (080)-40402020/33102020.
  • Web form - https://support.zerodha.com/

Zerodha should work on increasing the number of communication channels such as web chat, or toll-free numbers so that clients can have more options in case of any service requirements. 

However, as of now, the communication quality is fine but primarily the focus of the executives stays a little “disappointing". Thus, clients who trade regularly might find the overall quality below average.


Zerodha Closing Thoughts

Zerodha is a very well respected broker, competing among the largest brands in the online broker space. The backbone of Zerodha's success, specialty services, and trading platforms, will certainly continue to be upfront for many years to come.