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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 Highlights |
|
|---|---|
|
Foundation Year |
2010 |
|
Founder |
Nithin Kamath |
|
Headquarters |
Bangalore |
|
Regulation |
|
|
Base currency |
INR |
|
Minimum Deposit |
$0 |
|
Demo Account |
Yes |
|
Account Types |
Trading account Commodity account Demo account NRI account |
|
Leverage |
Up-to 5x |
|
Trading platforms |
Mobile Trading Platform Web Trading platform |
|
Trading Fees |
INR 20 |
|
Inactive Fees |
NO |
|
Deposit Fees |
NO |
|
Withdrawal Fees |
NO |
|
Assets |
Stock Direct mutual funds Futures & Options IPO Gift stocks Fixed income |
|
Customer Support (24/7) |
NO |
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.
Image 1: Home page of Zerodha website
Image Copyrights reserved to Zerodha
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.
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.
Table 2: Awards of Zerodha
 Awards |
 Awarded By |
|---|---|
|
Retail brokerage of the year 2018 |
Retail brokerage of the year 2018 |
|
Entrepreneur of the year (Startup) 2017 |
Ernst & Young |
|
Bootstrap Champ award 2016 |
Economic Times Startup Awards |
|
Startup of the Year 2020 |
Economic Times Startup Awards |
Image 2: Awards of Zerodha
Image Copyrights reserved to Zerodha
The base currency of Zerodha is Indian Rupee (INR).
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.
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.
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.
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.
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.
Image 3: Account opening charges of Zerodha website
Image Copyrights reserved to Zerodha
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.
Table 3: Fees and commissions of Zerodha
| Assets | Brokerage | STT/CTT | Transaction Charges | GST | SEBI Charges | Stamp charges |
|---|---|---|---|---|---|---|
|
Equity Futures |
Rs.20 or 0.01% / order whichever is lower |
0.01% on sell side (on premium) |
0.0019% |
18% on (Brokerage + Transaction charges |
Rs. 10/Crore |
₹200 / crore or 0.002% on buy side |
|
Equity Options |
Rs. 20 / order |
0.005% on sell side (on premium) |
0.05% |
Rs. 10/Crore |
0.003% or ₹300 / crore on buy side |
|
|
Equity Delivery |
Zero Brokerage |
0.1% on buy & sell |
NSE: 0.00325% BSE: 0.003% |
Rs. 10/Crore |
₹1500 / crore or 0.015% on buy side |
|
|
Equity Intraday |
Rs. 20 / order or 0.01% whichever is lower |
0.025% on sell side |
NSE:0.00325% BSE: 0.003% |
Rs. 10/Crore |
₹300 / crore on buy side or 0.003% |
|
|
Currency Futures |
0.03% or Rs. 20/executed order whichever is lower |
No STT |
NSE-0.0009% BSE-0.00022% |
Rs. 10/Crore |
0.0001% or ₹10 / crore on the buy side |
|
|
Currency Options |
0.03% or Rs. 20/executed order whichever is lower |
No STT |
NSE- 0.035% BSE-0.001% |
Rs. 10/Crore |
0.0001% or ₹10 / crore on the buy side |
|
|
Commodities Futures |
0.03% or Rs. 20/executed order whichever is lower |
0.01% - sell side (Non-Agri) |
Group A: PEPPER - 0.00005% RBDPMOLEIN - 0.001% KAPAS - 0.0026% CASTORSEED - 0.0005% Group B: 0.0026% |
Agri: ₹1 / crore Non-Agri: ₹10 / crore |
₹200 / crore on the buy side or 0.002% |
|
|
Commodities options |
0.03% or Rs. 20/executed order whichever is lower |
0.05% on the sell side |
0.05% |
Rs. 10/Crore |
0.003% or ₹300 / crore on the buy side |
Image 4: Fees for additional products on the Zerodha website
Image Copyrights reserved to Zerodha
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
| METHODS | CHARGES | TIME TAKEN |
|---|---|---|
|
Cheque |
Free |
3-5 working days |
|
IMPS |
Free, Bank charges may apply |
10 minutes during market hours |
|
NEFT/RTGS |
Free, Bank charges may apply |
2-10 hours |
Zerodha Kite is a popular web-based HTML5 trading software that can be used on tablets, smartphones, and web browsers.
Image 5: Kite trading platform of Zerodha website
Image Copyrights reserved to Zerodha
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.
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.
Image 6: Mobile trading platform of Zerodha website
Image Copyrights reserved to 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.
Image 7: Zerodha coin of Zerodha website
Image Copyrights reserved to Zerodha
Zerodha has more than 5000 stocks for delivery and intraday trading. The NSE and the BSE both listed many stock options.
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.
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.
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 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.
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.
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
| ASSET | LEVERAGE | MARGIN |
|---|---|---|
|
Equity Intraday |
5X |
Up to 20% of trade value |
|
Equity Delivery |
1X |
100% of trade value |
|
F&O [ Equity, Currency & Commodities] |
1X |
100% of NRML margin (Span + Exposure) |
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.
Zerodha provides the following order types:
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.
Image 8: Console of Zerodha website
Image Copyrights reserved to Zerodha
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.
Image 9: Varsity of Zerodha website
Image Copyrights reserved to Zerodha
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.
Image 10: Trading Q & A of Zerodha website
Image Copyrights reserved to Zerodha
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,
Image 11: Sentinel of Zerodha website
Image Copyrights reserved to Zerodha
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.
Image 12: Kite connect API of Zerodha website
Image Copyrights reserved to Zerodha
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.
Customers can use the Call & Trade service without the internet for an additional fee of Rs 50 per trader.
For news and updates, Zerodha provides the following tools –
For its traders, Zerodha provides three sorts of calculators:
Image 12: Partner platforms of Zerodha website
Image Copyrights reserved to Zerodha
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 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 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 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.
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.
Image 14: The 60-Day challenge of the Zerodha website
Image Copyrights reserved to Zerodha
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.
Image 15: Bonus & offers on the Zerodha website
Image Copyrights reserved to Zerodha
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.
Image 16: Education platform of Zerodha website
Image Copyrights reserved to Zerodha
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
 Customer support of Zerodha |
|
|---|---|
|
|
|
 Instagram |
|
 Facebook |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 Phone |
Call & Trade: 080 4718 1888 [Monday-Friday -9:00 AM - 11:30 |
|
Account opening: 080 4719 2020 [Monday-Friday -9:00 AM – 07:00 PM] 080 7117 5337 |
|
|
Support: 080 4718 1888 / 1999 [Monday-Friday -8:30 AM - 05:00 PM] 080 7190 9543 / 9545 |
|
|
|
#153/154, 4th Cross, J.P Nagar 4th Phase, Opp. Clarence Public School, Bengaluru - 560078 |
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. It is the only broker that offers Direct Mutual Fund Investment Plans. Golden Pi offers traders access to bonds and G-securities for investment.
Traders can get benefitted from free classes about the stock market and financial education. |
When compared to other brokers, Zerodha's call and trading expenses are higher. They offer a variety of platforms such as Kite for Coin for mutual funds, stocks, and Golden Pi.. Customer assistance can be sluggish at times. Software difficulties occur from time to time due to the large consumer base. |
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