Trade With Zerodha – India’s Largest Online Stock Broker

By reading this insightful review of Zerodha by trading critique, you will have a deeper understanding of the world of trading and be able to determine if this particular broker aligns with your needs.

With over 50 million customers and a reputation for low brokerage fees, Zerodha is India’s largest discount broker. The Zerodha platforms have handled more than 15% of daily retail volumes across Indian stock exchanges. Apart from English, Zerodha can be accessible in 10 different regional languages, making the user experience enjoyable and convenient. It has been designed to support the primary languages of Oriya, Tamil, Punjabi, Hindi, Kannada, Malayalam, Bengali, Telugu, Marathi, and Gujarati.

Table 1: Overview of Zerodha

Zerodha Broker Review – An Intro

Zerodha is an Indian discount broker with extremely low costs. Its web and mobile trading platforms are excellent, with a large range of research tools. Zerodha is a real-time future vision. They have earned their current level of success and are always developing to become even better and help even more people.

Regulation & Reputation Review of Zerodha Broker

The company Zerodha, which is a combination of Zero and Rodha, is a Sanskrit word that means “barrier.” It was formed by Nithin Kamath in 2010 and is regulated by India’s main regulator, the Securities and Exchange Board of India (SEBI), as well as RBI regulations. It is registered with the Indian stock markets the Bombay Stock Exchange (BSE), the Central Depositary Services Limited (CDSL), the Multi commodity exchange (MCX), and the National Stock Exchange of India (NSE). Rain matter, a famous Indian fintech fund, and incubator, has invested in Zerodha. On the downside, it offers no investor protection nor protection against negative balances

Zerodha’s headquarters is in Bangalore. This company’s services are available in all main cities of India. Other Zerodha franchise locations include Coimbatore, Hyderabad, Pune, Kanyakumari, Ahmadabad, Chennai, Vijayawada, Hubli, Salem, and Kochi.

Who is Nithin Kamnath?

Nithin started Zerodha in 2010 to solve the challenges he had as a trader over the course of a decade which transformed the Indian broking sector completely. The Economic Times named him one of India’s “Top 10 Businessmen to Watch out for in 2016” for pioneering and expanding discount broking in the country.

Awards Review of Zerodha Broker

Table 2: Awards of Zerodha

Account Base Currencies Review of Zerodha Broker

The base currency of Zerodha is Indian Rupee (INR).

Review on Account Types of Zerodha Broker

Zerodha’s account opening process is far from simple. The procedure is time-consuming and not entirely computerized. There is no minimum deposit, which is a benefit.

• Trading account
• Commodity account
• Demo account
• NRI account

Trading account

The cost of opening a trading account is INR 200. A trading account is required to buy or sell assets on the stock market. Keep in mind that this account will not be the same as your Demat account. You only need a trading account for intraday trading. A Demat account is not required. Although Zerodha may push you to register a Demat account in any form, this technique applies to all stockbrokers in India.

Commodity account

The cost of opening a Commodity account is INR 100. If you want to invest in commodities, you’ll need to register a separate commodity account with Zerodha. You’ll also need to open a Demat account because a commodity account can’t be opened separately. Keep in mind that there are two types of expenses for these accounts: account opening and account maintenance.

Demo account

The cost of opening a Demo account is INR 200. Zerodha provides the option of opening a Demat account through CDSL membership, which allows for secure electronic transmission of equities and mutual funds. It offers a free Demat account with no account opening fee but charges a quarterly AMC of 300 rupees.

NRI Account

The cost of opening an NRI account is INR 500. This account is exclusively available to NRIs and is only available offline. NRIs can open a Zerodha Demat + Trading account by joining it to an NRE or NRO savings bank account at HDFC, Axis, IndusInd, or IDFC First Bank.

Equity derivative trading is accessible for $100 / order brokerage, whereas stock delivery trading is offered for $200 or 0.1%, whichever is lower.

Review on Fees and Commissions of Zerodha Broker

For every trade, you simply have to pay a flat brokerage of Rs. 20. If you trade in large volumes regularly, you can save a lot of money on brokerage fees. There are no brokerage fees associated with stock delivery.

At a time when the bulk of brokerage firms was demanding exorbitant fees, Zerodha earned a name for itself by providing free brokerage on all equities and mutual fund investments, as well as 0.01 percent or Rs. 20 every executed order, whichever is less.

Other charges Review of Zerodha Broker

Table 3: Fees and commissions of Zerodha

Deposit and Withdrawal Method Review of Zerodha Broker

The deposits and withdrawals can only be made via bank transfers. By using UPI and instant payment gateway, you may instantaneously transfer funds from your registered bank account for no cost. There is no deposit cost with Zerodha. Each fund transfer through the banks incurs a fee of INR. ₹9 + 18% GST

There are no withdrawal fees with Zerodha, but you may only withdraw money via bank transfers on each working day.

Table 4: Funding & withdrawal methods, charges, and processing time of Zerodha

Trading platforms Review of Zerodha Broker

Zerodha Kite is a popular web-based HTML5 trading software that can be used on tablets, smartphones, and web browsers.

• Web Trading platform
• Mobile Trading platform

Kite Web Trading platform

Kite Web is a free trading platform that may be accessed via a web browser on a desktop, tablet, or mobile device. It provides market watch features, technical charts, and indicators. It also provides complicated order types like Brackets and Covers Orders for trading on the BSE, NSE, and MCX.

Mobile Trading platform

The Kite App is accessible for both Android and iOS devices which is reliable and user-friendly. Kite provides a free mobile app for trading and monitoring stocks and commodities markets in India to its consumers. It is the most advanced trading app that provides live stream data from the BSE, NSE, and MCX. Kite and Coin are two mobile trading systems offered by Zerodha.

Zerodha Kite

Except for mutual funds, you can trade with all available assets on Zerodha Kite.

Zerodha Coin

If you want to trade mutual funds online, commission-free, and directly from asset management firms (AMCs), you’ll need to use Coin. Zerodha Coin is a completely free cryptocurrency. You can use the app after logging in with your Kite account. Every year, it saves more than 1.5 % on commissions. A Demat account, which is linked to a Zerodha trading account, is where mutual funds are kept.

Assets Review of Zerodha Broker

• Stocks
• Mutual funds
• Futures and options
• IPO
• Gift stocks
• Fixed income

Stocks

 Zerodha has more than 5000 stocks for delivery and intraday trading. The NSE and the BSE both listed many stock options.

Mutual funds

Without a distributor, Zerodha offers over 2,000 direct mutual funds. You can save up to 1.5 percent on commissions or brokerage fees by using this, and it’s available on Coin.

Futures and options

In the MCX and NSE, you can trade futures, and options, oil, metals, agricultural commodities, stocks, and indexes. This may be found in the Zerodha Margin Calculator, Sensible, Streak, and Kite apps.

IPO

Members of IPO can apply online and use their BHIM UPI app to invest in companies that are listed on the Indian stock exchange.

Gift stocks

Gift stocks are gold bonds, exchange-traded funds (ETFs), mutual funds, and stocks that you can give to your family and friends to get them started with long-term investing.

Fixed income

Zerodha offers a fixed income option where you may invest in gold and receive market returns as well as a 2.5% yearly return promised by the government of India. You can also invest in bonds, than bank FDs because it gives a high yield.

Leverage Review of Zerodha Broker

Based on the stock, the Zerodha margin for intraday trading is up to 20% of the trade value (max 5x leverage). At the NSE, BSE, and MCX, the F&O intraday trading margin is 1.3x for Currency, Equity, and Commodity trading. Zerodha F&O carry forward holdings and equity delivery trades are not eligible for additional margin.

Table 5: Leverage of Zerodha

Trading Hours Review of Zerodha Broker

The standard currency trading hours vary by the market which is 9 a.m. – 5 p.m. On the Zerodha website, traders may see the complete trading hours, as well as a calendar of trading.

Review on Placement of Orders in Zerodha Broker

Zerodha provides the following order types:

• Immediate or Cancel (IOC)
• Bracket
• Limit
• After Market
• Day
• Cover
• Market
• Stop-loss

Trading Tools Review of Zerodha Broker

• Console
• Call & Trade
• News tools
• Calculators
• Varsity
• Trading Q&A
• Sentinel
• Kite connect API
• Pulse
• Live charts

Console

For Kite connect users, a Console is a complete trade and reporting dashboard that lets you track and control your programmatic API access. You can pause, resume, or invalidate such access at any time, and you can keep track of every activity.

You can see and track all of their investments, including stocks, derivatives, and mutual funds. They can also acquire account statements, request withdrawals, and download contract notes, among other things. The Console offers Analytics tools such as trade book and heat map.

Varsity

Zerodha has launched the Varsity mobile app, which includes two modules: ‘Introduction to stock markets’ and ‘Technical Analysis,’ which provide highly structured and extensive notes on essentially everything you need to know about trading and investing.

It is a platform for people to learn about investing and trading. Risk management, trading psychology, Technical analysis, fundamental analysis, futures, options, and more are all available for free on Zerodha Varsity.

A free smartphone application that provides traders and investors with both online and offline educational content. By taking exams, you can create daily goals and assess your knowledge.

Trading Q&A

Trading Q&A is an open, community-driven platform where clients may ask questions about their trading and investment concerns and representatives will respond as needed.

Sentinel

Sentinel is used to setting up price alerts on futures & options and stocks. It will keep track of your stock for you and send you an alert even if you are not present, all for free. You can configure basic and complex parameters to send an alert for stocks, commodities, bonds, and derivatives,

Kite Connect API

You’d have programmatic access to data like profile and fund information, order history, positions, and live quotes, and you’d be able to make orders and manage your portfolio whenever you wanted. It is free for startups, however, it costs Rs. 2000 / month for retail.

Live charts

The app includes a feature called ‘Zerodha Kite Charts’ that displays a large number of live charts. The charts available in the Zerodha are Range Bars, Helkin-Ashi Charts, Renko Chart, Point & Figure Charts, Line break, and Kagi Charts.

Users can also access over twenty different types of sketching tools and over a hundred various technical indicators using the tools.

Call & Trade

Customers can use the Call & Trade service without the internet for an additional fee of Rs 50 per trader.

News Tools

For news and updates, Zerodha provides the following tools –

• Pulse
• Bulletin
• Z-Connect
• Circulars

Calculators

For its traders, Zerodha provides three sorts of calculators:

• Span calculator
• Brokerage calculator
• Black-Scholes options calculator

Other partner programs Review of Zerodha Broker

• Streak
• GoldenPi
• Small case
• Sensibull

Small case

The small case is the thematic investment platform of stocks that allows users to invest in stocks. An investor can choose from a variety of options in small cases such as Top 100 stocks, Electric Mobility, and Insurance which is based on his investing strategy.

Sensibull

Sensibull is an options trading platform that advises users on trading tactics based on their market outlook. Traders can use Sensibull to assess different strategies, evaluate their profitability, identify dangers, and then implement them directly from the platform. Traders can also build their options trading strategy.

Streak

Streak is a cloud-based end-to-end platform that allows retail traders to build algorithms without having to code them, backtest them on historical data, and execute them live. Other capabilities include real-time information, alarms, and the ability to manage positions.

GoldenPi

GoldenPi is a platform for trading bonds and debentures online. The technology-enabled, automated platform gives real-time updates on new investment alternatives, incoming interest payments to your account, and personalized help. Customers are not charged any fees by GoldenPi.

60 days challenge Review of Zerodha Broker

Zerodha offers a 60-day challenge to test the user’s trading skills and discipline. The purpose of the challenges is to remind traders that their time and effort should be well spent after the day. The main goal is to trade in equity, futures, currencies, and commodities for 60 trading days and emerge as a profitable trader. If you win, you will receive a certificate of achievement and recognition.

Bonus and offers Review of Zerodha Broker

The referral programme has been conducted for its clients to earn money through referrals. It also assisted Zerodha in gaining more clients without spending money on advertising, allowing them to operate at a lower cost and charge less to their customers. 

You also gain 300 points for each referral and can withdraw the 10% brokerage to your bank account. You may also use your reward points to obtain access to the different platforms and tools available in the Zerodha world section. Another noteworthy characteristic is that Zerodha operates based on a low-cost discount broker model. In contrast to other full-service brokers that spend money on advertising and client acquisition, Zerodha relies on word-of-mouth referrals to bring in new clients.

Education and research Review of Zerodha Broker

Zerodha provides essential data like financial statements, balance sheets, PE ratios, and other relevant data. Kite’s charting features were developed by Zerodha, however, you can also utilize Trading view, a third-party application. Both have roughly 110 technical indicators to choose from. If you wish to improve your financial knowledge, Zerodha has a lot to offer. Articles, Blogs webinars, and informative videos are all available. There is, however, no possibility to create a demo account.

You can learn through webinars, video tutorials, and articles. Varsity offers 11 investment courses, which contain 10 to 20 chapters. You can watch videos that are embedded in the website on Zerodha Educate, however, the majority of the videos are also available on Zerodha’s YouTube account.

Zerodha has also partnered with Thomson Reuters to provide advanced reports known as Stock Reports+ to its customers. Clients of Zerodha can use this to sign up for various paid plans and receive various reports from a variety of listed companies. These plans are based on the frequency with which you want to register which are INR 150 / month, INR 850 / 6 months, and INR 1440 / year.

Customer Support Review of Zerodha Broker

Customer service is provided by e-mail and phone, and they will respond quickly. But it does not provide customer service 24 /7. It is available from Monday to Saturday from 9 a.m. – 5 p.m.

The phone support is quick and helpful; in most circumstances, we received timely responses. Unfortunately, customer service is only provided to paying customers. The problems are resolved within 1-2 business days.

Table 6 : Customer support of Zerodha

Rewards & Risk Review of Zerodha Broker

Zerodha has both advantages and disadvantages which are listed in table 7.

Table 7 : Rewards and Risk of the Zerodha

Pros	Cons
Zerodha doesn’t charge consumers for clearing fees.	When compared to other brokers, Zerodha’s call and trading expenses are higher.
It is the only broker that offers Direct Mutual Fund Investment Plans.	They offer a variety of platforms such as Kite for Coin for mutual funds, stocks, and Golden Pi.
Golden Pi offers traders access to bonds and G-securities for investment.	Customer assistance can be sluggish at times.
Traders can get benefitted from free classes about the stock market and financial education.	Software difficulties occur from time to time due to the large consumer base.

In a Nutshell

• Zerodha is a financial services company with no debt.
• Because Zerodha lends less than 5% of its own money to consumers in any way, there is no credit risk.
• They have one of the lowest complaint-to-active-client ratios on the market.
• Zerodha is a profitable company with sufficient reserves to survive even if the economy suffers a prolonged downturn.
• It has reasonable pricing, making it a good choice for any trader (beginner or expert).
• As the original pioneer of the discount broking model in India, Zerodha introduced the notion of discount broking to our country, resulting in a significant shift in the entire dynamics of stockbroking.
• If you are a newbie or an experienced trader, Zerodha will always take the initiative.

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