Zerodha – Company Info
Zerodha was founded in 2010, by Nithin Kamath and his brother Nikhil Kamath, with intraday traders as their target customer base. In ten years, it has evolved to become the largest retail stock broker in India, with an active customer base of around 12,00,000 clients.
The key reason for this growth could be attributed to the strong technology platform they could build over this period. This helped them provide a seamless customer experience to its clients through their flagship products – Kite, Coin and Streak. A part of this credit goes to Kailash Nadh, the present CTO, who joined them in 2012.
Zerodha entered the unicorn club in June 2020, when it valuated itself at $1 Billion. The company undertook an ESOP buyback activity at a value of Rs. 700 per share (Price to book value > 4 times)
Awards: Economic Times Startup Awards 2016, Emerging Equity Broking House Award in 2014 and 2015, NSE “Retail Broker of the Year” award in 2018
Founders: Nithin Kamath(CEO), Nikhil Kamath
Headquarters: Bengaluru
Zerodha – Key Metrics for Evaluation
1. Brokerage Charges
| Type | Brokerage | STT/CTT | NSE Transaction | BSE Transaction | GST | SEBI Charges | Stamp Charges |
|---|---|---|---|---|---|---|---|
| Minimum Charge | Nil | – | – | – | 18% | ₹5 / crore | 0.015% or ₹1500 / crore on buy side |
| Equity Delivery | Nil | 0.1% on buy & sell | 0.00325% | 0.003% | 18% | ₹5 / crore | 0.003% or ₹300 / crore on buy side |
| Equity Intraday | 0.03% or ₹20 per trade* | 0.025% on the sell side | 0.00325% | 0.003% | 18% | ₹5 / crore | 0.002% or ₹200 / crore on buy side |
| Equity Futures | 0.03% or ₹20 per trade* | 0.01% on sell side | 0.0019% | Nil | 18% | ₹5 / crore | 0.003% or ₹300 / crore on buy side |
| Equity Options | ₹20 per trade | 0.05% on sell side | 0.05% | Nil | 18% | ₹5 / crore | 0.003% or ₹300 / crore on buy side |
| currency Futures | 0.03% or ₹20 per trade* | Nil | 0.009% | 0.00022% | 18% | ₹5 / crore | 0.0001% or ₹10 / crore on buy side |
| Currency Options | 0.03% or ₹20 per trade* | Nil | 0.035% | 0.001% | 18% | ₹5 / crore | 0.0001% or ₹10/ crore on buy side |
| Commodity Futures | 0.03% or ₹20 per trade* | 0.01% on sell side | A: 0.0026% B: 0.0005% | A: 0.0026% B: 0.0005% | 18% | Agri: ₹1 / crore Non-agri: ₹5 / crore | 0.002% or ₹200 / crore on buy side |
| Commodity Options | 0.03% or ₹20 per trade* | 0.05% on sell side | Nil | Nil | 18% | ₹5 / crore | 0.003% or ₹300 / crore on buy side |
| A/C Opening | ₹200 | – | – | – | Included | – | – |
| Demat AMC | ₹300 | – | – | – | Included | – | – |
| Trading AMC | Nil | – | – | – | Included | – | – |
| Margin | Nil | – | – | – | – | – | – |
2. Technology Platforms
a. Kite: Trading platform with multilingual support for equities, commodities and currency trade
Compatible with:
- Desktop Windows
- Desktop Mac
- Mobile – Android (mobile app available)
- Mobile – iOS (mobile app available)
- Tablet – Android and iOS
b. Coin: Desktop and mobile platform for mutual fund and bond purchase (including sovereign gold bonds)
Compatible with:
- Desktop Windows
- Desktop Mac
- Mobile – Android (mobile app available)
- Mobile – iOS (mobile app available)
- Tablet – Android and iOS
c. Streak: A newly launched app focused on algo trading, which uses the power of algorithms to create, identify, or scan for the right trades and execute them in a single click.
Compatible with:
- Desktop Windows
- Desktop Mac
- Mobile – Android (mobile app available)
- Mobile – iOS (mobile app available)
- Tablet – Android and iOS
3. Products
- Equity Delivery and Intraday trading, Futures and Options
- Currency Futures and Options
- Commodity Futures and Options
- Mutual Funds
- Bonds and Sovereign Gold funds
4. Services
- Demat and Trading
- IPO Subscription
- Mutual Fund Services
- Intraday Support
- Educational Services through – Varsity by Zerodha
- Interactive Charts
- SMS Alerts
- Email Alerts
- Portfolio Dashboard
5. Advisory
Zerodha does not offer any advisory services
6. Support
- 24×7 customer care
- Email Support
- Chat Support
Note: The company doesn’t offer a dedicated RM, toll free customer care number and does not have any brick and mortar (physical) branches.
Investor Suitability
- Investors who are tech savvy and have a prior knowledge of the equity markets
- Investors looking for a seamless interaction on mobile and web-platforms
- Investors who want a one-stop shop for all investment services including mutual funds, sovereign gold bonds etc.
- Investors who are not looking for advisory services
- Intraday traders who deal in large volumes and would like a low brokerage option
- Long-term investors who are focused on value investing and are on lookout for a zero brokerage option for stock delivery
- Not suitable for first time investors, who are looking for advisory support from the broker
For a detailed comparison with other discount providers, visit our Broker Comparison page.
Pros and Cons:
Pros:
- Ideal for tech savvy and knowledgeable investors who prefer a digital platform
- Seamless and robust technology platform options – Kite, Coin and Streak
- One-stop shop for all investment services – equity, commodity, currency, mutual funds, and bonds
- Best low cost alternative for long-term investors as they could ideally make all transactions at zero brokerage
Cons:
- Non-availability of physical branches, which may not be preferred by a few conservative investors
- Absence of Toll-free customer support like a full-service broker
- Absence of advisory (however their client based falls under a different segment altogether, and hence, it is not a parameter of significant importance for its selection)
