Zerodha Review -2017
Zerodha was started by Mr. Nitin Kamath, a trader by himself in 2010. It is one of the first online discount brokers of India and currently leads the rest of the pack both in terms of number of customers and daily turnover on the exchanges and has better reviews compared to its competitors. The number of customer as on May 2017 exceeds 2,50,000 (Two Lakh fifty thousand) and the daily turnover of more than 10000 crores, which accounts around 5% of NSE total turnover. For more details visit 20 awesome Reasons that you should not miss about why to Trade with Zerodha put up on their website
Zerodha Background Information: It was 2010, many traders were disappointed when Reliance money discontinued their Prepaid Brokerage card and started charging based on the turnover. Many of them had to forfeit what ever the balance they had on the prepaid card and some of them even had around Rs10000. Only Reliance Money was the affordable broker at that time and that led many traders to lookout for brokers to match their trading profile.
Two of the new kids in the block, Zerodha Brokerage and RKSV started making lots of news in the trading forums and other online platforms.
Zerodha grabbed the attention by its unusual name. By the way Zerodha = Zero + Rodha (meaning “Barrier” in Sanskrit)
If somebody has been associated with them from last few years, surely he/she will agree that Zeodha has evolved tremendously. From support for bank account of a single bank to accounts of five banks. From web based “nowonline” trading platform to “Zerodha Pi”. From single office at Bangalore to 10+ spread across multiple cities!.
Update: Earlier they used to provide only trading account and for demat account, they had tie up with IL&FS. Now they have started their own Demat services which will help the investors in seamless and hassle free transfer of funds and Securities and also reduced DP Charges.
Starting from 01st December 2015, all the delivery based transactions done through them are totally free of brokerage charges. Then how does they make money?. For this, you need to visit this page
If you still have any queries, you can request a free call back from Zerodha here
It is quite evident from the below graph that, Zerodha is able to generate tremendous interest over the time when compared to some of the biggest names of brokerage houses in India.
Zerodha Brokerage Charges
They charge Flat Rs20 per executed order or 0.01% (Rs Zero for delivery) irrespective of number of shares. When traders first read “Rs20/order”, many of them thought this as another scam building up to suck small investors!. But the new age discount brokers made it possible and revolutionized the way Indians trade.
People started calculating how much they can save by switching to discount brokers like Zerodha or RKSV. For example, compare the brokerage with that of a full service broker who are charging 0.05% on the total turnover (Rs 9001000 in the below example). It was coming around Rs4500 just in brokerage, leave alone other charges. Straight away you will be in the indirect profit of Rs4510 (Rs4500 – Rs40 = Rs4510) as soon you opened your position.
Just see the difference, Rs12Lakhs vs Rs10600/- . Savings of almost 12 lakhs by just switching the broker!
We advice you to check out your savings too using the “Zerodha Brokerage Savings calculator“
The biggest advantage you can observe is, you need to sell your positions for just 1 point above your buying price to find yourself profitable. If you had to sell your positions with 1 point with traditional brokers, you would find yourself in deep loss just because of brokerage. And Options segment was still worse as they charge between Rs60 to Rs100 per lot!.
You can also find out your exact break-even point using their “Zerodha Brokerage Calculator“.
Checkout our handy table of Zerodha Brokerage Fees for various segments for your quick reference.
Zerodha Trading Platforms
When Zerodha was started, “nowonline” was the only platform offered which was basically from NSE and not Zerodha. They introduced many resources one after another. Infact their main strategy was to introduce many interactive tools and customer services to attract more clients as they had no resources to advertise and promote.
Today they offers many trading platforms like Zerodha Trader, Zerodha Z5, Zerodha Mobile etc. Zerodha Pi and Kite are the latest addition from them. Kite and Pi are the homegrown products of Zerodha whereas the earlier mentioned ones are from Omnesys Technologies Ltd. Most of the other discount brokers still offer the products from Omnesys. However development of inhouse products has given an edge since they have complete control over them in case of any customization or feature enhancement is required. They dont have to depend upon the third party like Omnesys.
1) Zerodha Kite
Zerodha Kite is a light weight HTML 5 based proprietary trading platform developed by them most suitable for trading through browsers, Mobiles and tablets. One can use this platform in 11 languages and Zerodha is the first broker to offer trading in Indian regional languages. The web version of Kite is suitable for someone trading behind the Office firewall and also where installation of external software is prohibited. It is also best suited for the user having low Internet speed of less than 512Kbps. Mobile version of Kite is available for Android and as well as iOS phones.
2) Zerodha Pi
Pi is next generation trading platform which offers many features such as Integrated Charting with upto 50000 candles, more than 80 technical analysis indicators etc.
The most important feature is, you can backtest your strategies with the Pi. This something you usually do with buying third party charting software.
You can find out more about this advanced trading platform at Zerodha PI- Trade like it is 2020
And at last, If you are not a technology freak and uncomfortable with advanced platforms, you can still use “nowonline”. Only disadvantage though is, you can not buy stocks on BSE since the platform is basically from NSE.
And you have good old Call and Trade, but you will be charged Rs20 per order.
Zerodha in comparison with other Stock Brokers:
Check out how they equates with other brokers
Zerodha Comparision Matrix
Zerodha Vs CompositEdge
Zerodha Vs HDFC Securities
Zerodha Vs ICICIDirect
Zerodha Vs SAS Online
Zerodha Vs ShareKhan
Zerodha Vs Religare
Zerodha Vs RKSV Securities
Zerodha Vs TradeSmartOnline
Zerodha Vs TradeJini
There are few issues related to them in discussion forums and social media. However it is the case with any other broker, and we as a traders have to live with this. We just have luxury to choose best among these and must go with the one who atleast addresses our concerns proactively.
We can expect this only from a CEO who thinks that, success or failure of his firm as question of his own life and death. We have seen Mr. Nitin Kamath answering the concerns of his customers. You can not expect this kind of connect from a larger brokerage firms headed by some board of directors.
Is Zerodha Brokerage Right for “YOU”?
Zerodha is not for you:
* If you are trader expecting some tips from your broker
* If you like to like to see trading account and back office under single platform. Zerodha backoffice is separate entity and you need to login to see it to access it.
Zerodha is for you:
We have already discussed both many positives and negatives of trading with them.
There are many other positives you find in them against other discount brokers. They have many branches compared to very few branches which other discount brokers has. It makes them more accessible.
60 day challenge : Take up this challenge and if you come up profitable at the end of 60 days, your entire brokerage will be refunded. You will also get certificate and recognition apart from an opportunity to become full time trader with them!. So you can trade on Zero Brokerage for 60 days. More details can be found at 60 day challenge – Meet previous Winners and find out their trading secrets
Bracket and Trailing Stop loss order: It will never be a complete review if we don’t mention about the “Bracket and Trailing Stop loss order” offered by them. This is one feature which normally offered by Forex brokers worldwide and they are the first to offer it in India. With this you can have increased protection to your open position.
Varsity: Its their attempt to solve the two biggest problems of novice traders, “Lack of knowledge” and “Access to knowledge”
Trading qna: It is another initiative by them leveraging vast knowledge existing among the trading community. It is a forum like platform where in members answer each other queries.
Algorithm Development; With Zerodha Trader you code your technical trading strategies and back test it. This algorithm trading tool is available for free to all the customers.
Zerodha platform provides a plug-in for the widely used technical analysis software AmiBroker, You can directly trade through AmiBroker in the semi-automated or fully-automated way.
How to open Zerodha Demat and Trading Account?
The quickest and easiest way to open the trading and demat account with them is “Online”. Entire account opening process is online except sending the duly signed form to them through courier.
The first step to open the account would be to visit Zerodha Account Opening page and register yourself as shown below. The biggest advantage of registering is that, you can fill your application at your leisure, that is, if you don’t have any of your personal data right now, you can save the current filled form and relogin at any time to continue the application.
Once you fill up all the details, download and print the forms. Sign across at all the necessary places and send it to the address provided at the end of this article.
Following are the documents required for opening the account:
a) PAN Card
b) Address Proof
c) 2 passport Size color Photograph
d) 2 Cheques : 1. One Cancelled cheque 2. One Cheque favoring them amounting to account opening fee
If you want to trade derivatives then 1 copy of any of the following documents:
e) Pay slip (latest)
f) Form 16 / IT Returns ( latest)
g) 6 month Bank statement (latest)
Zerodha Account Opening Charges:
* If you want to open only Trading Account: Rs 300/-
* If you want to open Demat Account: Rs 850/- (It Includes Rs400/- Annual Maintenance Charge of first year)
* If you want to open only Commodity Trading account: Rs 300/-
Zerodha Fund Transfer:
Pay in (Deposit): You can transfer funds into your Trading Account via the following methods.
1. Through Zerodha Trader – You can transfer the funds from the linked bank account through the this trading platform. Your account will be immediately reflected with the fund transferred. But mind you it will cost you Rs.9 per transfer.
2. Through Backoffice– You can transfer the funds from the linked bank account through the their Backoffice. Your account will be immediately reflected with the fund transferred. It will also cost you Rs.9 per transfer.
3. Through nowonline.in – This is the cheapest and quickest mode of fund transfer if you are still using nowonline. You can transfer the funds from the linked bank account through the nowonline.in. Your account will be immediately reflected with the fund transferred. This mode of fund transfer is free of cost.
4. NEFT/RTGS – Funds can be transferred electronically to your trading account from any of the linked bank via NEFT/RTGS. You will not be charged for NEFT/RTGS transfers
5. Cheque Deposit – You can transfer funds to your trading account by cheque from any of your linked bank account. You are required to send the scanned copy of the cheque to them
Pay out (Withdrawal): A payout can be requested through thier back office. Your withdrawal request will be processed by RTGS/NEFT transfer. Fund withdrawals are totally free of cost. You can not withdraw funds through nowonline.in
If you still have any queries, please fill your details and the query in the form below, a dedicated representative from Zerodha will guide you about account opening procedure in detail and clear all the queries,in language of your own preference
Table of Products and Services offered by Zerodha
Zerodha Exposure Margin:
Below table gives the details of the intraday margin (leverage) requirements for various segments like equity, F&O etc.
Margin Benefit 4-10 times 40% of the exchange prescribed margin None for buying. depends upon the strike price for selling 100% of Exchange prescribed margin 50% of Exchange prescribed margin
Margin Time 9:15 to 3.10 9:15 to 3.00 9:15 to 3.00 9:15 to 4.45 25 minutes before the close
If Shortage Positions will be squared off automatically Positions will be squared off by RMS Admin Positions will be squared off automatically Positions will be squared off automatically Positions will be squared off automatically
Margin Against Stock 4-10 times based on the Zerodha's valuation of clients portfolio Margin provided if MTM losses can be brought in on the same day Margin provided if MTM losses can be brought in on the same day Margin provided if MTM losses can be brought in on the same day
Registration and Contact Information:
Zerodha SEBI Registration NSE CM: INB231390627| NSE F&O: INF231390627 | NSE CDS: INE231390627 | BSE CM: INB011390623 | BSE F&O: INF011390623 | MCX-SX CM: INB261390620 | MCX-SX FO: INF261390620 | MCX-SX CDS: INE261390620 | MCX Membership Number: 46025 | FMC Code: MCX/TM/CORP/1945| CDSL: IN-DP-CDSL- 00278209 | NSDL: IN-DP-NSDL-11496000 NCDEX Membership Number : 1138 | FMC Code: NCDEX/TM/CORP/111
Zerodha Contact: Registered Address: #153/154, 4th Cross, Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bengaluru, Karnataka 560078 Contact Number : +91 80 4913 2020 E-mail : email@example.com Zerodha Complaints or Grievances : firstname.lastname@example.org
That’s about the review of the Zerodha Brokerage. Finally we leave you with the link to the information about the team behind Zerodha: Beautiful people behind Zerodha.. If you already have account with them, let us know your experience (good or bad) and ratings/critics or any problems/issues faced through the comments. Also do you recommend them? If yes, Why Zerodha?
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*Zerodha Marketing Partner