- March 3, 2021
- Posted by: Umesh Paliwal
- Categories: Blog, Featured
Zerodha is India’s leading stockbroker. It is the largest and most popular broker offering online flat fee discount brokerage services to invest in equity market, currency market, commodity market, primary market (IPO) and direct mutual funds.
Zerodha charges Rs. 0 brokerage for equity delivery trades and direct mutual funds. For intraday and Future and Options (F&O), it levy charges at a flat rate of Rs 20 or 0.03% (whichever is lower) per trade.
With Zerodha, the maximum brokerage you pay for any transaction is Rs 20 for an order (for any size, amount or segment). Zerodha operates via its trading platform called kite, accessible via both mobile application or web.
However, Zerodha is not the sole discount broker in the country, but it has revolutionized the broking industry and trading experience for the new and millennial investors.
The easy and convenient user interface makes Zerodha one of the best stock brokers. They offer an excellent online trading platform, charge a low brokerage fee, and are amongst the most transparent stock brokers.
The constant quest for improvement and innovation marks them in the list of the fastest-growing fintech company in India. Zerodha boasts the highest number of active demat accounts in the country.
Let us at some key highlights that makes Zerodha a distinct and class apart trading platform:
1. The largest stockbroker by active clients, market volume and new customer acquisition.
2. Safety, reliability and trusted broker which safeguards your financial interests.
3. Equipped with most advanced online trading tools at minimal charges.
4. Charges zero brokerage fees for delivery based equity transactions and mutual funds.
5. The maximum brokerage charged is Rs 20 per trade. Traders and investors can save up to 90 per cent of brokerage compared to traditional brokers.
6. Offers up to 20x leverage on intraday trading.
7. Zero commission on direct mutual funds.
8. Suitable for all kinds of investors. Ease of operation lures active and passive investors, beginners, active traders and algo traders.
Zerodha is a leading and technically advanced broker in the country. Zerodha has built its own trading softwares for different uses. It owns Zerodha Kite (web and mobile trading app), Coin (mutual fund investment platform), Varsity (investor education program), Trading Q&A and many other tools.
Zerodha also offers Smallcase (thematic investment platform), Streak (algo & strategy platform), Sensibull (options trading platform) and GoldenPi (bonds trading platform).
Here are some key factors that makes Zerodha a prudent and kingpin for investment
1. Lower ratio of active clients to complaints on the exchange
2. A debt free entity.
3. It doesn’t offer Margin Funding.
4. No pooled account for clients securities.
5. No proprietary trading with client hard-earned money.
Zerodha Demat Account opening charges
You can instantly open your demat and trading account with Zerodha for Rs 200. Commodity Account is offered at Rs 100. However, if you wish to open an offline account, charges will be doubled and you will have to pay Rs 400. The annual maintenance charges (AMC) for demat account is Rs 300 per year.
Zerodha Brokerage Charges
Zerodha follows a fixed brokerage model per executed order. It charges zero brokerage on equity delivery. The maximum brokerage chargeable per order is Rs 20.
Trading Segment Brokerage Charges
|Equity Delivery||Rs 0 (Free)|
|Equity Intraday||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Equity Future||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Equity Options||Flat Rs 20 per executed order (on Turnover)|
|Currency Futures||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Currency Options||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
|Commodity||Flat Rs 20 or 0.03% (whichever is lower) per executed order|
Zerodha Equity Charges
1) Charge Type = Equity Delivery Equity Intraday
2) Brokerage = Rs 0 (No Brokerage) Flat Rs 20 or 0.03% (whichever is lower)
3) Securities Transaction Tax (STT) = 0.1% on both Buy and Sell 0.025% on the Sell Side
4) Goods and Services Tax (GST) 18% (Brokerage + Transaction) 18% on (Brokerage + Transaction)
5) Stamp Charges 0.015% (Rs 1500 /crore) 0.003% (Rs 300 per crore) on buy-side
For more details you can click on the THIS LINK
Zerodha Hidden Charges
Zerodha brokerage hidden charges include call & trade charges, position squared-off by broker and SMS trade alerts as explained below:
1) Call and Trade feature is available at an extra cost of Rs 50/call.
2) Additional charge of Rs 50 per executed order for MIS/BO/CO positions which are not square off by the customer.
3) Physical copies of contract notes can be ordered at additional charge of Rs 20 per contract. Courier charges are extra.
Trade SMS alerts (optional) are charged at Rs 1 for Equity, F&O, and Currency trade alerts and Rs 0.50 for Commodity trade alerts.
4) DP charges for delivery based equity selling: Rs 13.5 + GST (18%) per transaction.
How to open a Zerodha Account online?
If you wish to open a demat account with Zerodha via online procedure, here is a step by step manual for you for it:
Step 1: Visit the Zerodha website and go to the Zerodha Demat account opening page.
Step 2: Enter the mobile number to begin signing up
Step 3: You will receive an OTP on the entered mobile number.
Step 4: Enter the OTP to verify the details
Step 5: Enter details like full name and email ID. (Your name shall match as given in Aadhar Card, PAN Card and Bank)
Step 6: Enter details of the PAN card and Date of Birth (DOB).
Step 7: Proceed further by paying the Zerodha Demat Account Opening Fees (Rs 200 for Equity and Additional Rs 100 for commodity)
Step 8: After completing the payment process, it will ask to connect Aadhaar details via Digilocker
Step 9: On completion of Aadhar verification a new screen will be displayed in which you are asked to enter your bank details.
Step 10: The next step involves the IPV verification (In-person Verification) over webcam or phone.
Note: IPV or In person verification is a process where a Depository Participant in personal verifies documents and other details as per the law by SEBI. It is Compulsory for every investor to go through the in-person verification (IPV) process before opening a trading and a Demat Account.
11. The next step is the submission of the signature. You will be provided with two options either signing the page digitally with Aadhaar or print the form and courier it.
12. Another step is the submission of documents. Scan all the necessary documents like Bank Account Proof, signature, PAN card, income proof if applicable.
13. E-Sign in comes next. Click on eSign Equity and move further to the next step. Enter the Security Code that you receive on the registered mobile number and click on the Submit button.
14. Open the next window and enter your Aadhaar number. Mark tick on the checkbox and click on the button ‘Request OTP’. This will complete the whole process
Important Note: However, in the online method, to complete the eSign process, you will have to authenticate it with an OTP. So, make sure you have the number linked to your Aadhaar. If not, you will not be able to complete the process.
How to open a Zerodha Account offline?
For filling the form offline, you need to download the application form from the official website of Zerodha. Fill it up and sign it. You can send it to the head office of Zerodha via courier or post or you can call an official at your place. However, as a measure towards the safety of employees from the Covid-19, the company has temporarily discontinued form pick-ups.
You have to send the application forms over to the below address:
Zerodha HO [#153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase, Bangalore – 560078
What do you require to open an account offline?
1. One passport size Photograph
2. A self attested copy of PAN Card
3. An address proof, which too need to be self attested (Driving License, Voter ID, Passports, Aadhar Card, Bank Statement)
4. A self attested copy of income proof self-attested (latest salary slip, ITR, Form 16, 6-month bank Statement, etc. Needed for derivatives trading(FO, CDS, and MCX)
5. Bank proof such as a personalized cancelled cheque (name printed on it) or bank statement or bank passbook copy(With visible bank account number, MICR and IFSC code)
Using the online method, you can open your account with Zerodha within 15 minutes, if you have all the required documents.
What are the cons of Zerodha?
Despite ample pros, there are some cons of Zerodha as well. Take a look at some of them
1. Doesn’t provide stock tips, research reports or recommendations.
2. No plans for unlimited monthly trading plans.
3. No plans for AMC demat account.
4. An additional charge of Rs 50 per executed order for MIS/BO/CO positions which are not square off by the customer.
5. A 3-in-1 trading account is not available as Zerodha doesn’t provide banking services.