Zerodha Review 2020: Best Brokerage and Demat Account?

Zerodha is considered to offer one of the best Demat accounts in India. With Zerodha you can trade in NSE, BSE and MCX, with minimal brokerage charges.

Zerodha is the first choice among Indian traders when they look for a reliable trader. With different trading platforms and efficient trading tools, Zerodha makes trading easy for beginners.

About Zerodha

Zerodha, established in 2010, was one of the first online brokers of India that introduced the concept of discount brokerage and trader support for its users.

With the passing years, it has become much more than just a discount broker. Today, it has given its users unbeatable technical support to ease out the trading process. In fact, it has broken the barrier of trading among amateurs.

Zerodha houses over a million traders every day in its powerful ecosystem of investment platforms. Around 10% of all the Indian retail volumes are its contribution.

Zerodha Review 2020: Why Consider Zerodha?

Zerodha has some really amazing features that make it an extremely desirable platform.

ZERODHA Review

1) Low Brokerage

The first thing that attracts traders to Zerodha is its low brokerage charges. To promote equity delivery it charges nothing for the trade and Rs 20 or 0.01% (whichever is lower) for the other segments.

A detailed brokerage plan is discussed in a later section.

2) No Hidden Charges

Unlike many other online brokers, it doesn’t charge you for anything that is not already mentioned.

They do not have any upfront fee, turnover commitment or minimum contract charge.

3) A Range of Tools

Zerodha offers its traders a number of trading tools, including the brokerage calculator, to make their trading experience reliable and efficient.

They are easy to get your hands on and even easier to use.

4) Range of Support Platforms

Trader satisfaction is what Zerodha is all about. There is a big reason why they have managed to stay on top for so long, customer support being the obvious reason.

They have a number of online platforms through which new or even experienced traders can seek help, the most popular being Z-connect. It is their interactive blog open for all the queries and the traders can learn from the useful and insightful articles regularly updated on the blog.

Their customer support team comprises of more than 1000 members, so your call never goes unanswered.

5) A Trading Platform for Everyone

Zerodha has multiple trading platforms that are suitable for every trader.

A web-based platform equipped with various trading, charting and analysis tools to make it easier for the traders to study the market and plan their strategies.

The mobile-based application provides trading on-the-go for busy traders who want a look at the market at every hour of the day. And lastly, a desktop-based software that gives online market updates and is equipped with advanced trading tools for expert traders.

Getting Started with Zerodha

Opening an account with Zerodha is one the fastest and easiest when compared to all the online brokers. Their website is easily navigable and you don’t have to be a tech-genie to access it. The whole process will take around 30 minutes to get completed.

Make sure you have a scanned copy of these documents.

  • PAN card
  • Aadhar Card
  • Passport size photo
  • a cancelled cheque or your latest bank account statement.

After you submit your documents, Zerodha officials will verify them and you will have a trading account within a day.

Types Of Accounts

There are three main types of accounts one can open with Zerodha.

1) Trading Account

The trading accounts let the user trade in equity and currency derivatives.

2) Demat Account

Demat account for taking delivery of stocks.

3) Commodity Accounts

Commodity account is necessary if you want to deal with commodity futures on MCX.

Zerodha Account and Other Charges

The current brokerage plan (2019).

Account Opening Charges

  1. Trading account opening charge – Rs 300
  2. Demat account opening charge – Rs 100
  3. Trading account annual maintenance charge – nil
  4. Demat account annual maintenance charge – Rs 300

Brokerage charges on Various Segments

Trading SegmentBrokerage
Equity deliveryRs 0
Equity Intraday0.01% or Rs 20 (whichever is lower)
Equity Future0.01% or Rs 20 (whichever is lower)
Equity Options0.01% or Rs 20 (whichever is lower)
Currency Futures0.01% or Rs 20 (whichever is lower)
Currency Options0.01% or Rs 20 (whichever is lower)
Commodity0.01% or Rs 20 (whichever is lower)

Zerodha Fee Structure

  • Securities Transaction Tax (STT) – Charged on the sell side of Intraday and Futures and Options trade. Charged on both buy and sell side for equity delivery.
  • Stamp duty for all states and NRIs – It can vary from state to state. Stamp duty is higher for NRI traders.
  • GST – The goods and services tax is applicable on all segments.
  • SEBI Charges – Charged Rs 15 per crore.

Additional Charges

  • Rs 20 per call if you opt for call and trade feature.
  • For MIS, BO and CO positions, an extra Rs 20 per order.
  • Physical copies of contract notes are charged Rs 20 per contract with additional courier charges.
  • Trade SMS alerts – Rs 1 for equity, currency, F&O trades and Rs 0.50 for commodity trades.
  • Instant payment gateway charges – Rs 9 per fund transfer.
  • DP charges for equity delivery – Rs Rs 8 per transaction.
  • NSE charges
  • Transaction charges
  • Statutory levies.

Types Of Trading Platforms

Zerodha has advanced technology and some really amazing trading platforms to reduce your work and give you the best returns.

1) Kite 3.0

Kite 3.0 is a web-based platform built by Zerodha developers. With its sleek designs, it provides clear and updated market analysis which makes it easier for traders to take the right decisions.

It comes with more than 100 indicators, studies and tools, including well-detailed charts. The platform comes in multilingual formats with around 11 languages.

Kite 3.0 is best for professionals and even beginners. If you are serious about trading and earning good money from it then it is best that you use Kite as it gives you access to the international market and you can trade with more than 90,000 stocks.

2) Kite Mobile

Kite mobile is basically the mobile version of the above mentioned web-based trading platform. Kite mobile may not have as many indicators as the Kite 3.0 but it shows you real-time updates and quick buying and selling features.

With the mobile application, you can keep an eye on the stock market at all times. Moreover, it has several one-tap solutions for various trading actions, like searching, reviewing, buying and selling.

You can place every kind of order from the mobile application as you can from the website. And not to forget, it also has the fund transfer facility.

3) Zerodha Pi

Zerodha Pi is an installable trading software recently introduced by the company for professional traders. The software can run efficiently on low internet and shows real-time analysis of the stock market.

Some of its amazing features include-

  1. Advanced Charts – From minutes, hours to days, you can customize your timeline and receive a detailed chart of all your trading activities.
  2. More than 80 indicators to help you customize your wall and focus on the aspects that you want to consider.
  3. Intraday data can be stored for up to 365 days and historical data for 5 years.
  4. Place direct orders with a hassle-free process.
  5. Optimize your strategies.
  6. The stock screener helps you focus on the trading segments you wish to deal in rather than making a cluster of products.

4) Zerodha Coin

Zerodha coin is a mutual fund platform that lets the user invest directly into different funds. One of the many benefits is that Zerodha doesn’t cost any commission and helps you keep a check on the NAV of the invested funds.

Zerodha coin

Mutual funds are directly credited into the user’s demat account and you can avail single reports including the capital gain statements and P&L visualisations for all the investments from the platform itself.

Moreover, you don’t have to go through long procedures to get reports of your SIPs. And lastly, with Zerodha coin you can increase or decrease your SIP investment whenever you want.

Products By Zerodha

1) Console

Console by Zerodha is a central dashboard that brings all the traders’ information to a single place. You can keep an eye on all the segments that you are dealing in, with a chart showing all the important information.

Through the dashboard, you can get the gist of your overall account holdings, margins, holdings and other details.

2) Sentinel

Sentinel is an application that lets the traders set alerts on the underlying. The trader can set a price alert on the underlying and when the price reaches the set price, the trader will be automatically alerted through SMS or email.

Setting an alert is super easy. You land on the alert creation page as soon as you log into the application. From here you just set the price and specify a few details, the rest will be handled by the application.

Sentinel makes trading super easy and less hectic when you don’t have to worry about missing the right chance.

Partner Products

Zerodha has also partnered with different companies to create applications and help traders get a more comfortable way of trading.

1) Small case

The smallcase trading platform lets the users invest in stocks through fast one-click solutions.

With smallcase’s advanced technology, the trader can maintain a detailed portfolio and keep a check on his or her investments at a single place.

Smallcase helps you in-

  1. Staying in control of your investments by remaining in contact with the market.
  2. Reducing the risk by analysing and planning your strategies.
  3. Diversifying your investments
  4. Increasing returns by lowering fees (it doesn’t have a management fee).

2) Streak

Streak is another one-of-a-kind product, introduced by Zerodha.

With Streak, the traders can create algos without having advanced computer knowledge as it doesn’t require the user to know to code.

The traders can also create backtest algos on historical data.

3) Sensibull

Another popular Indian trading platform, Sensibull offers amazing features to help the trader increase his or her returns.

The trading platform is easy to understand and anyone can get through the basics quickly. It gives you access to different kinds of stocks so you can decide the best one to invest in and what may suit you the best.

With Sensibull, it is very easy to increase your returns and minimize your losses by pre-planning your strategies and getting a first-hand view on all the stocks.

4) StockReports+

StockReports+ is a software created for professional traders. It creates a well-researched market and stock reports for the traders and helps them compare the future of different products.

The traders can analyse different trends in the industrial rankings and decide the best course of action for themselves.

But the 10 page in-depth analyses may not be for everyone. You should opt for StockReports only if you have thorough knowledge about trading and if you are genuinely interested in trading. It is not suitable for casual traders.

Who Should Go For Zerodha?

Zerodha is a trading platform that is suitable for everyone. From amateur traders who are just trying their hand at trading, to professionals.

It offers advanced features that are easy to use and understand so the user is never blank while using their platform.

Summing Up

Here are the final advantages and disadvantages of the platform.

Advantages of Zerodha

  1. They are the most reliable online brokers in India with millions of traders trading on their platform every day.
  2. They have a number of platforms to cater to the needs of every trader.
  3. A large number of segments to invest in.
  4. Zerodha, currently, is the cheapest share broker in India.
  5. No brokerage on Equity Delivery.
  6. They charge you as you go. You do not have to pay in advance for anything except for opening your account.
  7. No hidden charges.
  8. Excellent customer support.
  9. They have branches across all the major cities in India.
  10. No clearing charges.

Disadvantages of Zerodha

  1. GTC and GTD orders are not available.
  2. They charge you Rs 20 per call for the call and trade option.
  3. Since the broker doesn’t provide banking services, they do not have a 3-in-1 account.

Zerodha Review: Make the Right Decision

Deciding to step foot into the stock market is not easy and Zerodha, at many levels, had made the experience easier for new traders. It has offered a number of support systems for its users but individual needs are always unique.

Before jumping into trading, make sure you have completed your research and you are extremely sure of the choices you are making. Find the broker that will suit your needs.

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