Zerodha is one of the stock broker in the Indian brokerage industry providing various services to its customers. It provides an online trading platform. Zerodha has a lot of clients. Zerodha is basically known for its trading volume, app and several other features. This is the thing which disturbs me a lot as although it has a lot of clients but this discount broker hardly takes care of them instead it focuses on more and more.
It’s headquarter is located in Bangalore. Being a high turnover discount stock broker, Zerodha has its office in almost all major cities of India. This firm allows the clients to trade in various trading segments ranging from futures, options, and commodity.
Zerodha provides multiple trading platforms like:
- Zerodha Kite app
- Web namely Z5
- Call and trade option
- Desktop application
So there is nothing special in this as every second discount stock broker comes up with these things. Isn’t it?
Now coming to the brokerage charges which make them different from other brokers out there in the market:
- Equity Intraday charge of 0.01% or 20/- per trade whichever is lower.
- Equity options charge of 0.01% or 20/- per trade whichever is lower.
- Equity future charge of 0.01% or 20/- per trade whichever is lower.
- Equity delivery charge of 0.1% or 20/- per trade whichever is lower.
These are the some of the Zerodha brokerage charges which it takes from its customers. So maximum brokerage associated is 20/- per trade which is in fact higher as compared to other brokers out there in the market and is sufficient to bear a hole in the pocket in the long run.
In fact they provide a call and trade service at the rate of 20/- per call which is high as compared to other brokers.
Let’s compare the Zerodha brokerage charges with other leading brokers in the market.
|Broker||Account opening charges||Demat account AMC||Brokerage Charges||AMC|
|Zerodha||200/-||300/-||20 per trade||Free|
|5 paisa||650/- + GST||400/-||10 per trade||Free|
|Upstox||150/- for equity and 150/- for commodity||150/-||20 per trade||Free|
|Wisdom Capital||Free||999/- Lifetime||9/- per trade||Free|
|Fyers||Free||400/-||20/- per trade||Free|
Now you are wise enough to estimate whether you should go with this firm or not. On an average basis, the charges per trade are high. What is this? It becomes very hefty when you are a frequent trader. Isn’t it? Thus, Zerodha brokerage charges are more as compared to other stock brokers.
In fact the Zerodha Demat account charges are also high. Thus, one needs to take note of it. Moreover, it has annual account opening charges associated with it. Then the question is what is Zerodha’s advantage when it is taking this much amount? Think on it.
Zerodha Demat account: Traders have to fill the form and send it to the office of Zerodha along with the trading form. Zerodha demat account charges include account opening fees of Rs 400/- and for the first year zerodha charges Rs 350/-. Thus it provides an access to its trading platform later on. In fact there is a lot of variation in the charges of trading account depending upon the segment of trading.
Hidden Charges by Zerodha :
STT (Security transaction tax): It is charged on the sell side for various trading segments.
Stamp Duty: Charged with 0.01% pr Rs per contract.
Transaction fee: 0.00325% for delivery based, 0.021% for futures and 0.53% for options.
Service tax: Charged at 14% of the whole fee.
SEBI charges: 20/- per trade.
You will not like Zerodha if:
- You are looking out for any financial advice from its end.
- Zerodha does not provide 3 in 1 account facility to the traders i.e. banking+ trading + Demat. So avoid in case you need all these.
- One will get depressed with Zerodha if he/she is looking for investing your money in funds, IPP and FPO.
In order to open a trading account, one needs to fill up the form and send it to the Bangalore headquarter of Zerodha. Opening account charges are 350/- for the trading account. It nearly takes 2 to 3 business days to complete the process of application and then Zerodha intimates the clients through a mail after the successful completion of the process.
Fund transfer system:
Funds can be transferred from your linked bank account to the trading account that takes a transaction charge of 9/-. Fund transfer is done quickly, cheaply and smoothly. There is no transaction charge when it is done online.
Withdrawal of funds: The withdrawal request is done by the client to the Zerodha back office and is mage through NEFT process.
Things required to open an account:
- PAN card
- Passport sized photograph
- 2 cheques.
User opinions about Zerodha
Although it has grown a lot on an overall basis but the satisfaction which it gives to its clients is not up to the mark according to client’s feedback.
Features of Zerodha:
- Strong support team
- Active community
- Online educational content
- Online blog
- Most effective trading platform and tools
- Trading via Kite app
- Tech savvy features
- Zerodha coin platform
So overall it’s good to have a trading account with Zerodha but you need to be wary of the brokerage charges and even the margin they provide is not up to the mark. Thus have a look at their margin and brokerage calculator before investing your hard earned money in it.