list of discount brokers in India, due to its large trading volume, the number of customers, and organization growth rate. | investyogi.com"/>

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 and most popular discount broker in the country. This flat fee share broker is located in Bengaluru and is famous for trading in stock, commodity and currency derivative. 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 contributes 10% of daily retail trading volumes at National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE), and Multi-Commodity Exchange (MCX), with close to 10 lakh clients present across India. It is around 1000 employees alone in Bengaluru office.

Nithin Kamath said, "The year 2019 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.

Trading Segment Brokerage Charges
Equity Delivery Rs 0 (Free Unlimited Equity Delivery Trades)
Equity Intraday 0.01% or Rs 20 per trade whichever is lower
Equity Future 0.01% or Rs 20 per trade whichever is lower
Equity Options Rs 20 per executed order
Currency Futures 0.01% or Rs 20 per trade whichever is lower
Currency Options Rs 20 per executed order
Commodity 0.01% or Rs 20 per trade whichever is lower

"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

Zerodha Account Opening Charges
Trading Account Opening Charges Rs 200
Demat Account Opening Charges Rs 100
Commodity Account Opening Charges Rs 200
Trading Annual maintenance charges (AMC) Nil
Demat Account Annual maintenance charges (AMC) Rs 300
Commodity Account Annual Maintenance Charges (AMC) Nil
Zerodha Demat Charges
ID Transaction Charges
1 Demat Account Opening Charges Rs 0
2 Stamp Charges payable upfront (at actuals) Rs 50
3 Annual Maintenance Charges (AMC):
  a. Individuals Rs 300 Per Year + GST (Payable upfront every year)
  b. Corporates Rs 1000 + GST (Payable upfront every year)
4 Transaction Charges per ISIN (Market Trades):
  a. Buy (Receive) Rs 0
  b. Sell(Debit) Rs8 + Rs5.50 flat for every debit transaction
5 Inter Depository Transfer (Off-Market Trades):
  a. Buy (Receive) NIL
  b. Sell(Debit) 0.03% or Rs 25 whichever is higher
6 Demat (Per certificate) Rs 150
7 Remat (Per ISIN) Rs 150 (Per certificate) + CDSL Charges
8 Courier charges per Demat/ Remat request Rs 100
9 Pledge per ISIN Rs 20 + Rs 12 per request (CDSL Charges)
10 Unpledge per ISIN Rs 20 + Rs 12 per request (CDSL Charges)
11 Pledge Invocation per ISIN Rs 20
12 Periodic Statement:
  a. By Email Free
  b. Physical Rs 50 (Couier Charges)
13 Adhoc / Non Periodic Statement Requests:
  a. By Email Rs 10 per request
  b. Physical Rs 50 per request upto 10 pages. Every additional page at Rs 5 (+Courier charges at actual)
14 Delivery Instructions:
  a. First Delivery Instruction Book Free (10 leaves)
  b. Every Additional Booklet Rs 100 (10 leaves)
15 Cheque Bounce/ Per cheque Rs 350
16 Failed Transactions Rs 50 per ISIN
17 Modification in CML Rs 25 per request
18 KRA Upload / Download Rs 50
Zerodha Equity Brokerage
Charge Type Equity Delivery Equity Intraday
Brokerage Nil 0.01% or Rs 20 per trade (whichever is lower)
Securities Transaction Tax (STT) 0.1% on both Buy and Sell 0.0025% on the sell side
Transaction / Turnover Charges NSE: 0.00325% | BSE: 0.003% per trade (each side) NSE: 0.00325% | BSE: 0.003% per trade (each side)
Goods and Services Tax (GST) 18% on (Brokerage + Transaction Charge) 18% on (Brokerage + Transaction Charge)
SEBI Charges Rs 15/Crore Rs 15/Crore
Stamp Charges* State wise State wise
Zerodha Equity F&O Brokerage
Charge Type Equity Futures Equity Options
Brokerage 0.01% or Rs 20/Trade whichever is lower 0.01% or Rs 20/Trade 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 Rs 15/Crore Rs 15/Crore
Stamp Charges* State wise State wise
Zerodha Currency F&O Brokerage
Charge Type Currency Futures Currency Options
Brokerage 0.01% or Rs 20/Trade whichever is lower 0.01% or Rs 20/Trade whichever is lower
Securities Transaction Tax (STT) No STT No STT
Transaction / Turnover Charges NSE: 0.0009% | BSE: 0.00022% NSE: 0.04% | BSE: 0.001%(on premium)
Goods and Services Tax (GST) 18% on (Brokerage + Transaction Charge) 18% on (Brokerage + Transaction Charge)
SEBI Charges Rs 15/Crore Rs 15/Crore
Stamp Charges* State wise State wise
Zerodha Commodities Brokerage
Charge Type Commodity Futures Commodity Options
Brokerage 0.01% or Rs 20 per trade (whichever is lower) 0.01% or Rs 20 per trade (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%
Rs 0
Goods and Services Tax (GST) 18% on (Brokerage + Transaction Charge) 18% on (Brokerage + Transaction Charge)
SEBI Charges Rs 15/Crore Rs 15/Crore
Stamp Charges* State wise State wise

Zerodha Platforms & Tools

When it comes to trading applications, Zerodha has created a flawless app named Zerodha Kite which is famous among the users. It is highly interactive and user-friendly. All of Zerodha’s applications are available free of cost, and include trading terminal, website, and other mobile trading features that are compatible with both Android and iOS. Here are some details about the trading platforms provided by Zerodha:

  • Kite 3.0 (Web-based trading platform)
    It is a lightweight and fast-trading platform that can function smoothly on any mobile device. It offers full market watch, charting with over 100 indicators and 6 chart types, advanced order types like brackets and covers, millisecond order placements and more. Read More »

  • Kite Android/Kite iOS 
    An application for both Android and iOS. It helps to trade and monitor stocks and commodities in the market. Read More »

  • Console 
    t is Zerodha’s back office platform. Customers can view and monitor all their investments like stocks, derivatives, mutual funds, etc. They can also access various reports, get account statement, place withdrawal requests and download contract notes.

  • Zerodha Sentinel 
    A cloud-based tool wherein customers can set up price alerts on stocks, futures, and options. Notifications are sent every time there is a price change. Read More »

  • Coin (Mutual Funds Investments) 
    Customers can directly invest into mutual funds without paying any commission. Hence, they can save over 1.5% on commission annually. Read More »

  • Zerodha Pi
    It is a desktop platform that provides assistance to every type of professional investors, including institutional investors such as hedge funds. PI is top-notch in charting feature and in the way it provides the technical analysis for traders. Zerodha Pi offers the following features: Read More »

  1. Advanced Charting: 10 Trading from the Charts chart types with more than 100 indicators.
  2. Algos, Strategies and Back Testing
  3. Historical Data: 50,000 candles worth of FREE historical data
  4. Expert Advisors: Real-time trade signals from Automated Expert 
  5. Trading from the Charts: For the first time ever, customer can now place orders from Charts.
  6. Pi Bridge: PI Bridge gives seamless and reliable connectivity from the charting or programming tool to the trading engine on PI.
Zerodha Trading Tools

In addition, to the above mentioned trading platforms, Zerodha also offers a number of user-friendly tools like - 

  • Brokerage Calculator: To check the total brokerage charged
  • Margin Calculator: To check the margin requirement
  • Z-Connect: To provide initiative updates about Zerodha
Zerodha Funds Transfer

Zerodha offers multiple ways in which the investor can transfer funds to his or her trading account balance:

  • Zerodha Trader – Allows you to easily transfer funds from your linked bank account into your trading account. Trader is charged Rs 9 per trade
  • Back Office – Allows online fund transfer at a charge of Rs 9 per trade
  • Online, NEFT, RTGS, and Cheque are some more options enabling funds transfer

Fund withdrawals can be requested at the Zerodha back office. The withdrawal takes place through RTGS/NEFT transfer and it is free of cost.


Zerodha Education & Research

Zerodha doesn't give any stock tips; however, it has taken some unique initiatives of educating their clients about the stock market trends, and recommendations.

  1. Zerodha Varsity – Educates the customers on various topics of trading and investments. Varsity has 10 modules or courses, each having different chapters explaining about stock trading, technical analysis, fundamental analysis, options strategies, and futures trading, and other key financial concepts.

  2. Trading Q&A – On this platform Zerodha customers can interact with other members, and ask questions which are answered proactively by experts.

Advantages of Zerodha

Trading through a discount broker like Zerodha offers numerous benefits such as,

  • Offers the best trading platforms and tools

  • Offers equity delivery trades for free, which means you don’t pay brokerage while buying shares using Cash-and-carry

  • Offers the cheapest brokerage

  • Do not charge any clearing charges from the customers

  • Do not charge any hidden fees

  • No minimum balance is required to open a trading account

  • No minimum brokerage charged

  • No prepaid brokerage plans

  • Offers bracket orders

  • Offers margin against shares for trading in equity and currency F&O segment

  • Has PAN India presence

 Disadvantages of Zerodha

 There are some areas of improvement for Zerodha. Some of which are mentioned below: 

  • For bank Nifty, trailing stop loss is not available

  • Call and Trade facility is chargeable

  • Online IPO investment is not available

  • Trading platforms are not compatible with Mac and Linux operating system

  • Zerodha back office is not integrated with its trading platform

  • Plans like lifetime free AMC for demat account is not available


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 respected and reputed broker which offers the best trading plans to its customers. Zerodha's success will continue to attain new heights due to the specialty services, and trading platforms offered by the firm.