Zerodha Review 2020 : India’s Largest & Most Prominent Discount Broker

Zerodha Review 2020

Sign up & stay updated about the financial markets

Promise – we don’t spam.

Active since 2010, Zerodha has been one of the newest as well as the largest stockbrokers on the basis of the base of total active clients. Zerodha Review 2020 talks about the emergence of the discount broker as an officially recognized pioneer broker by offering a perfect blend of conventional financial services and technology. This brought about a boost in India’s industry of conventional derivative and equity trading.

And, not to forget, the Zerodha Trading Platform offers one of the most competitive pricing models for trading across a range of instruments across exchanges. Nitin Kamath gained industry experience as a stock trader before launching this broking house whose operations began officially on August 15, 2010.

With its headquarters in Bangalore, Zerodha has grown into an iconic broking house with a user base of over 1.6 million clients. On top of this, the discount stockbroker’s contribution to India’s retail order volumes has grown to over 15%.

Since the stockbroker has been known for regular innovations and disruptions in the financial industry for a long time, go through this comprehensive Zerodha review to know more about the service provider and its products.

Read: Zerodha Review for the year 2019


Open Account and Start Trading

Congratulations!

You have taken the first step.
An expert will call you shortly.


Why Zerodha?

The answer is that it is the best industry trading tools and platforms and most importantly it is one of the cheapest brokers in India. Today, Bengaluru-based Zerodha has an active user base of 1.02 million clients who trade derivatives worth a total of Rs11,000 crore turnover every day, 12k crores in equity, 1k crores turnover daily in commodities and also offers 8% everyday retail trading volumes on all BSE, MCX, and NSE. Zerodha has done a great job of pushing the boundaries in the brokerage space. Old-school brokers are now having a difficult time keeping up with discount brokers like Zerodha.

Zerodha has been awarded:

  • India’s Best Retail Brokerage for 2018 by NSE
  • Retail Broker of the Year 2017 by Outlook Money
  • Zerodha founder Nithin Kamath awarded Young Entrepreneur of the Year 2017 (Startup) by EY
  • ET Startup Awards 2016

To trade with the best discount broker of India – Zerodha, Click Here.

Types of Accounts:

Equity Demat Account

A Demat Account is an account that allows investors to hold their shares in an electronic form. Dematerialization is the process of converting physical shares into electronic format. Furthermore, if you own shares with any other broker you can easily transfer them to zerodha.

The whole process of opening a Demat account with Zerodha is very easy as it can be done online in a few clicks.

Presently in India, we follow a T+2 rolling settlement cycle for Delivery based trading. What it means is that if you buy 100 shares of Reliance on Monday (T day as we call it) for delivery, the shares will come to your Demat Account only on T+2 day (Wednesday evening). Similarly, when you sell stocks from your Demat Account, you’d be able to withdraw the money (Sale credit) only on Wednesday (T+2 day), you can, however, use the credit on T day itself to make a fresh purchase of Equities.

Equity & Derivatives Trading Account

A trading account can be any investment account containing securities, cash or other holdings. Most commonly, a trading account refers to a day trader’s primary account. These investors tend to buy and sell assets frequently, often within the same trading session, and their accounts are subject to special regulation as a result.

With Zerodha, you can easily open a trading account with a few clicks at a minimal cost of Rs 200. Also remember, it is not possible to open a trading account in isolation if you are a day trader as zerodha forces you to open a Demat account as well.

All settlements on a Trading Account happen on T+1 day. So what it means is if today (T day) you make a profit of Rs. 10,000, you will be able to withdraw this profit only on T+1 day. You can, however, utilize the Rs.10,000 profit to take a fresh position on the same day (T Day).

Commodity Account

A Commodity Trading Account is what you open with a Trading Member (Commodity Broker as you call him) of recognized Commodity Exchange (MCX, NCDEX etc. in India).

As the name suggests, this account is opened by traders who want to trade in commodities or hedge their risk using commodity derivatives namely commodity futures and commodity options.

All settlements are done on a T+1 basis, so if you make a profit you will get the money in your account the next day. Again, important to note that a commodity trading account cannot be opened in isolation.

Online Zerodha Trading Platforms

Zerodha currently offers customers access to these platforms: Zerodha Kite 3.0 (Online Trading Software), Zerodha Kite Mobile (Mobile-based for Android and iOS users), Zerodha Coin (Web-based platform for mutual funds investments) and Zerodha Coin Mobile (App based). Zerodha customers have access to all of these platforms regardless of account minimums or trade activity.

KITE WEB

Zerodha’s Kite is a robust online trading software that offers its customers a modern, sleek, and innovative platform in addition to providing excellent usability making it very easy to trade across all markets. Kite is also a very good Zerodha trading platform for placing normal buying & selling orders, SL, SL-M, Bracket order, Cover order, Trailing stop-loss order & Aftermarket order. So basically kite covers all the order types that you need in your trading.

Zerodha Kite Web

Here are some salient features of KITE:

  • Extensive charting techniques with a large number of indicators
  • Extremely fast application allowing quick order placements
  • Easy to use User Interface, allowing users to easily choose and analyze stocks
  • Search across a wide array of stocks and F&Os at zero latency

KITE Mobile:

Kite Mobile is a minimalistic and intuitive mobile trading app designed for the tech-friendly Indians who like to choose and analyze their investments on the go. Here are some features of the mobile app:

Zerodha Kite Mobile
  • Live streaming data
  • Multiple MarketWatch and live market depths
  • Advanced chart with 100+ indicators
  • Years worth of free historical chart data
  • Trade Equities, F&O, Commodities, Currency
  • Various order types: Regular, AMO, BO (Bracket orders), CO (Cover orders)

How to use Kite Mobile?

Marketwatch: It provides a list of top 40 stocks you want to keep an eye on so that you don’t miss out on possible investment opportunities.

Funds: You can add and withdraw funds from and to your bank account using a payment gateway via the Funds section of the app.

Orders: You can place Buy/Sell orders using this window.

Portfolio: You can use this section to view your holding and check your Live P&L.

Charting: Over 100 indicators, 6 different chart types, 19 drawing tools, and pop out as many charts at a time. Set chart templates, intraday data from 2014 and daily charts for over 7 years for stocks, commodities, F&O, and currencies.

Kite Connect API

Zerodha’s Connect API is a set of APIs built over their digital platform KITE which can be used by developers to gain programmatic access to execute real orders, obtain live market data, manage portfolios, and more. There are 2+ million trades per day executed using Kite API.

Kite Connect is a way to leverage Zerodha’s cutting edge technology to its tech-savvy clientele who demand a personalized investment experience that is beyond the capabilities of the trading platform.

Zerodha Connect API

Zerodha Varsity

Zerodha Varsity is the education platform provided by the zerodha to everyone. If you want to learn how the stock market works. This is one of the best educational websites available on the internet. In zerodha varsity, you will learn from basics to advance the concept of the stock market. A dedicated mobile app for Varsity also joined the Zerodha Trading Platform group in April 2019.

Zerodha Coin

When you come to the stock market then you don’t only want to invest in stocks but different financial products like Mutual Funds, IPO, etc. Zerodha coin is the direct mutual fund service provided by zerodha where you can invest in the mutual funds of your choice without having to pay upfront or trail commission that most mutual fund distributors charge for.

Just like in stocks, here also Zerodha is offering deep discounts to its users in the mutual fund’s category which is not usually given in the mutual fund industry.

Zerodha Coin

Don’t have a Zerodha account? Click here to open one!

Sentinel

Sentinel is a cloud-based platform that provides stock market updates on your mobile, web browser, and email once you have created an account with zerodha. It also provides price alerts to its customers whenever there is a movement in price.

Clients can also set alerts for correlated price movement in the stocks, for example, setting up an alert when the price of Infosys moves ahead of its rival TCS.

Zerodha Sentinel

Small Case:

Smallcase, a startup backed by discount brokerage Zerodha has launched thematic groups like ‘GST basket’, ‘monsoon cheer’, and ‘rural demand’. The thematic basket consists of stocks in different proportions, which can gain most of the bet on the theme plays out.

The platform has been created by Bengaluru-based Smallcase Technologies, which allows investors to take exposure to professionally researched, diversified theme-based portfolios with their existing trading and demat accounts. For eg,

you can invest in the Rising Rural Demand small case, a readymade portfolio of around 15 stocks that derive a chunk of revenues or volumes from the hinterland. While some brokers offer curated small cases, others allow investors to create their own small cases.

Small Case

Streak:

Streak is a web-based platform for retail investors who like to code and create algos for their own strategy. You can also backtest your algorithm and check if its a winning strategy and then invest in the markets.

Sensibull:

Options trading has long been a black box for most Indian investors given its a pretty recent phenomenon in the Indian banking space which is the reason most flounder and lose their money when trading options.

Sensibull from Zerodha is here to make Options trading easier, accessible, and most importantly profitable for Indian investors by providing them with Option chain, Live Option Prices, and Open Interest tables. You can also get your hands on Greeks (Delta, Theta, Vega, etc) and Put-Call ratio which are essentials for good risk management.

Zerodha Sensibull

Pricing:

One of the primary reasons why zerodha is a top stockbroker in India with the largest number of clients is due to its very low pricing as compared to its competitors.

In this section of Zerodha review, we will discuss in detail Zerodha’s account opening charges and their brokerage structure which very less than what many full-service brokers charge.

Zerodha Account Opening Charges:

If you want to become one of Zerodha’s customers and avail their state of the art technology you will have to pay the following online account opening fees:

  Trading Account Opening Charges (One Time)200
  Trading Annual Maintenance Charges0
  Demat Account Opening Charges (One Time)100
  Demat Annual Maintenance Charges300 + 18% GST

If you opt for an offline account opening, an additional Rs. 300 will be charged.

Zerodha Brokerage Charges:

As you already know that zerodha is India’s first discount broker and doesn’t even require its clients to have a minimum balance in their accounts meaning its brokerage charges are lower than most of the other brokers. Here is a detailed brokerage structure followed by zerodha across various segments:

EQUITY DELIVERY:

ZERODHA CHARGESBrokerage Charges
BROKERAGEZero Brokerage
STT/CTT0.1% on buy & sell
TRANSACTION CHARGESNSE: 0.00325%BSE: 0.003% per trade
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore
  

EQUITY INTRADAY

ZERODHA CHARGESBrokerage Charges
BROKERAGE0.01% or Rs. 20/executed order whichever is lower
STT/CTT0.025% on the sell side
TRANSACTION CHARGESNSE: 0.00325%BSE: 0.003% per trade
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore

EQUITY FUTURES

ZERODHA CHARGESBrokerage Charges
BROKERAGE0.01% or Rs. 20/executed order whichever is lower
STT/CTT0.01% on sell side
TRANSACTION CHARGESNSE:Exchange txn charge: 0.0019% 
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore

EQUITY OPTIONS

ZERODHA CHARGESBrokerage Charges
BROKERAGEFlat Rs. 20 per executed order
STT/CTT0.05% on sell side (on premium)
TRANSACTION CHARGESNSE:Exchange txn charge: 0.05% (on premium) 
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore

CURRENCY FUTURES

ZERODHA CHARGESBrokerage Charges
BROKERAGE0.01% or Rs. 20/executed order whichever is lower
STT/CTTNo STT
TRANSACTION CHARGESNSE:Exchange txn charge: 0.0009%BSE:Exchange txn charge: 0.00022% 
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore

CURRENCY OPTIONS

ZERODHA CHARGESBrokerage Charges
BROKERAGE0.01% or Rs. 20/executed order whichever is lower
STT/CTTNo STT
TRANSACTION CHARGESNSE:Exchange txn charge: 0.0007%BSE:Exchange txn charge: 0.001% 
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore

COMMODITY FUTURES

ZERODHA CHARGESBrokerage Charges
BROKERAGE0.01% or Rs. 20/executed order whichever is lower
STT/CTT0.01% on sell side (Non-Agri)
TRANSACTION CHARGESGroup AExchange txn charge: 0.0026%KAPAS – 0.0005%Group B:Exchange txn charge:PEPPER – 0.00005%CASTORSEED – 0.0005%RBDPMOLEIN – 0.001%
GST18% on (brokerage + transaction charges)
SEBI CHARGESAgri:Rs. 1/croreNon-Agri:Rs. 10/crore

COMMODITY OPTIONS

ZERODHA CHARGESBrokerage Charges
BROKERAGE0.01% or Rs. 20/executed order whichever is lower
STT/CTT0.05% on sell side
TRANSACTION CHARGESExchange txn charge: 0
GST18% on (brokerage + transaction charges)
SEBI CHARGES₹10 / crore

Apart from trading services, zerodha also provides its customers with state of the art optional value-added services, here are the charges applicable to customers who use these services:

ServiceBilling FrequencyCharges
SentinelMonthly / Bi-annually / AnnuallyFree
StockReports+Monthly / Bi-annually / Annually150/810/1440
ScreenerMonthly / Quarterly / Bi-annually / Annually100/285/540/960
SmallcasePer transaction100
SensibullMonthlyFree: 0 | Lite: 800 | Pro: 1300
StreakMonthlyBasic: 500 | Premium: 900 | Ultimate: 1400
Kite ConnectMonthlyConnect: 2000 | Historical: 2000
Pi BridgeMonthly500

Zerodha Complaints:

Complaints are a way to gauge customer satisfaction among the client base. Here are the number of complaints registered against Zerodha over the years:

ExchangeFinancial YearActive ClientsTotal Complaints
NSE2018-19868360244
NSE2017-18540905345
NSE2016-1716558499
NSE2015-166197025
NSE2014-153037917
NSE2013-14175238
NSE2012-1379967

If you want the detailed comparison of Total Complaints by customers against the broker, kindly Click on this link

Zerodha Review 2020

Best Broker India

Customer Service
Web Trading Platform
Mobile Platform
Educational Material
Brokerage

Overall Rating

4

Sign up & stay updated about the financial markets

Promise – we don’t spam.

Related Articles