Zerodha Broking: Detailed Review

Brokerage Charges, Demat/Trading Account, Trading Platforms, Products and Services, Pros and Cons, comparisons, How to apply for a Demat etc.

Zerodha – Company Info

Zerodha

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

TypeBrokerageSTT/CTTNSE TransactionBSE TransactionGSTSEBI ChargesStamp Charges
Minimum ChargeNil18%₹5 / crore0.015% or ₹1500 /
crore on buy side
Equity DeliveryNil0.1% on buy
& sell
0.00325%0.003%18%₹5 / crore0.003% or ₹300 /
crore on buy side
Equity Intraday0.03% or
₹20 per trade*
0.025% on the
sell side
0.00325%0.003%18%₹5 / crore0.002% or ₹200 /
crore on buy side
Equity Futures0.03% or
₹20 per trade*
0.01% on
sell side
0.0019%Nil18%₹5 / crore0.003% or ₹300 /
crore on buy side
Equity Options₹20 per trade0.05% on
sell side
0.05%Nil18%₹5 / crore0.003% or ₹300 /
crore on buy side
currency Futures0.03% or
₹20 per trade*
Nil0.009%0.00022%18%₹5 / crore0.0001% or ₹10 /
crore on buy side
Currency Options0.03% or
₹20 per trade*
Nil0.035%0.001%18%₹5 / crore0.0001% or ₹10/
crore on buy side
Commodity Futures0.03% 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 Options0.03% or
₹20 per trade*
0.05% on
sell side
NilNil18%₹5 / crore0.003% or ₹300 /
crore on buy side
A/C Opening₹200Included
Demat AMC₹300Included
Trading AMCNilIncluded
MarginNil

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)
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