Zerodha Review 2022 : Pros & Cons

Zerodha is a well-known brokerage firm in India. It is the first discount brokerage firm in India. It provides an online platform to its customers, using which they can invest in commodities, currency derivatives, and stocks. This article is about the Zerodha Review, where I will share all the relevant information about it.

Zerodha has shown impressive growth after it came into existence in 2010. It got established by a stockbroker and entrepreneur named Nithin Kamath. He started Zerodha with an aim to have a trading platform, which is high tech on one side and affordable on the other. It shows a daily trading volume of about 15% of the total trading, occurring at NSE, BSE, and MCX, with its 3.4 million active customers over NSE. Today it is the best stock broker firm in India and the number one stockbroker in terms of active clients and trading volume.

Talking about the primary features of Zerodha, it is a member of BSE, NSE, CDSL, and MCX. With Zerodha, you can trade in currency, equity, commodity, and derivatives. It offers investment services using mutual funds and Demat services using CDSL. The well-built feature about Zerodha is its low brokerage charges. In addition to that, there are no charges for equity delivery. The maximum brokerage charges that you would need to pay using Zerodha are Rs. 20, which is lesser than any other brokerage firm anyhow. The intraday margin is up to 20 times however, there is no exposure for delivery.

Additionally, Zerodha offers different convenient products. These include Zerodha Console, Coin, Varsity, Sentinel, and Kite. You will know more about these products in this article on Zerodha Review. Also, there are some partner products, i.e., Streak, Smallcase, GoldenPi, and Sensibull.

Zerodha also has a mobile-compatible trading application called Kite3. Users can perform mobile trading through this application for free. The mobile app can be downloaded and installed on both android and iOS devices. India’s top regulator, the Securities and Exchange Board of India, regulates Zerodha making it safe to use and invest. Read this article to get detailed Zerodha Reviews and decide whether you should start investing in Zerodha or not.

Types Of Zerodha Accounts

Zerodha majorly offers three types of accounts. These accounts include Demat Account, Trading Account, and Commodity Account. Each of these accounts has its own benefits. Let’s have a look at each account separately. These accounts are as below:

1. Demat Account

A Zerodha Demat Account allows the users to put their shares in an electronic form. Stocks kept in the Demat Account are taken care of in the dematerialized form. Here, dematerialization stands for the procedure of switching the shares from physical to electronic form. It is not necessary for investors to have any share balance for opening a Demat Account.

If any of the investors hold some shares at any other broker, he can get them transferred to Zerodha Demat Account with ease. Additionally, the physical shares also can be dematerialized at Zerodha.

2. Trading Account

The Zerodha Trading Account allows its users to buy or sell securities in the stock market. The Trading Account is not like a Demat Account as it is different. The users do not require a Demat account for intraday trading. They only need a trading account.

That is the system, which all the Indian brokers follow. Hence Zerodha may force their users to open a Demat account in any format.

3. Commodity Account

The users should start a Zerodha commodity account individually if they are interested in trading in commodities. The users would have to open a Demat account because opening only a Zerodha commodity account would not be enough.

Always remember there are only two types of charges, which include maintaining the account and opening the account.

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Other Zerodha Products

Below are some products offered by Zerodha:

1. Zerodha Console

Zerodha Console is a dashboard and a back-office platform for Zerodha customers. With its assistance, the customers can check analyze and check their investments as well as trades. They can also view different reports and download their daily contract notes in Console. Here, customers can apply for IPO and place requests for money withdrawal. Overall, it is the best product of Zerodha.

2. Zerodha Coin

The Coin is a platform for Mutual Fund Investment of Zerodha. The clients can save their commission, (which they need to pay at any other mutual fund platform) by purchasing mutual funds directly using Zerodha Coin. The mutual funds that the clients buy using Coin are kept in a Demat Account of Zerodha.

3. Zerodha Sentinel

Sentinel is a free price alert tool that is based on a Cloud. The clients can set alerts for options, futures, and stocks using Sentinel. The clients receive the notifications of price alerts on email, mobile, and Kite web. In Zerodha Sentinel, the clients can set alerts on over 20 data points. There are around 80,000 bonds, derivatives, and stocks, where the customers can set price alerts.

4. Zerodha Varsity

Varsity is a free program of Zerodha for investor education with a huge collection of stock market lessons. It is available on the official website of Zerodha. The clients can also access it for free in the mobile application for iOS and Android devices. The Varsity consists of 12 modules that include fundamental analysis, future trading, technical analysis, optional approaches, and more.

Partner Products of Zerodha

In addition to the above products offered by Zerodha, it also provides some partner products. Read below to know these partner products:

  1. Smallcase: Small Case is an investment product that allows investors to invest in readymade portfolios. It consists of predefined ETFs and stocks. It consists of 2 to 50 securities.
  2. Streak: It is a cloud-based platform where traders are able to write the algorithms and perform backtesting without actual coding. It allows the customers to get actionable alerts and track the real-time market.
  3. Sensibull: It is the trading platform in options, where one can trade using simple options for beginners to powerful trading tools for the pro users. It aims to provide secure trading, which is profitable and accessible to everyone.
  4. GoldenPi: It is another trading platform that allows trading through debentures and online bonds. There is no fee for trading through GoldenPi. GoldenPi is an automated platform where one can get live updates about the latest investment options. The interest payment gets directed to the account. Customers also get personal assistance using GoldenPi.

Opening a Demat Account with Zerodha

Opening a Demat Account with Zerodha is very simple. It is fully an online process. The process of account opening normally takes 1 to 2 days after completing the application. It requires only Aadhar-e-sign. Follow the steps given below to start a Zerodha Demat Account:

First of all, enter the details asked on the popup application form for opening a Demat account with Zerodha.

In case of filling an online form that is signed electronically, you need your Aadhar Number.

PAN Card is required to make sure that the Name and PAN Number are correctly entered.

You need to provide and upload a scan of the canceled cheque having your name on it or a recent bank statement. If the bank statement or proof does not include MICR and IFSC code or canceled cheque does not mention your name, the application for account opening will directly get rejected. So, make sure that these things have been taken care of.

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You may require some documents to enable the options and futures segment. Below are the documents: 

  • The bank statement of last six months
  • A copy of the net worth certificates
  • A copy of the recent income tax return acknowledgment
  • A copy of the last salary slip
  • A copy of form 16
  • A personalized signature

There is a document verification step once you submit all the documents required. You will get your login details of the Trading or Demat Account once verification is complete.

Brokerage Charges of Zerodha Account

The brokerage charges in Zerodha are just straightforward and easily understandable. Here is the Zerodha Review on its brokerage charges. The brokerage charges are very less that makes Zerodha the cheapest broker in India. The charges are either 0.03% or Rs 20 for each executed order, whichever amount comes to be lesser. I have saved around 80% brokerage amount after I moved to Zerodha. Check the Zerodha brokerage charges on different segments:

Zerodha Account segmentZerodha Brokerage Charges
Equity IntradayRs. 20 or 0.03%, whichever amount is lower
Equity DeliveryNo Brokerage
Equity OptionsRs. 20 for every executed order
Equity FuturesRs. 20 or 0.03%, whichever amount is lower
Currency OptionsRs. 20 or 0.03%, whichever amount is lower
Currency FuturesRs. 20 or 0.03%, whichever amount is lower
Commodity FuturesRs. 20 or 0.03%, whichever amount is lower
Commodity OptionsRs. 20 or 0.03%, whichever amount is lower

Statutory Charges in Zerodha for Equity and Future & Options

Zerodha Charges TypeEquity DeliveryEquity IntradayEquity FuturesEquity Options
Securities Transaction Tax (STT)0.1% for both sell and buy0.025% for sell0.01% for sell0.05% for sell (Premium)
Transaction ChargesNSE: 0.00325%   BSE: 0.003%NSE: 0.00325%   BSE: 0.003%NSE: 0.0019%NSE: 0.05%
Goods and Services Tax18% on brokerage and transaction charges18% on brokerage and transaction charges18% on brokerage and transaction charges18% on brokerage and transaction charges
SEBI ChargesRs. 5 per CroreRs. 5 per CroreRs. 5 per CroreRs. 5 per Crore
Stamp Charges0.015% for each buy0.003% for each buy0.02% for each buy0.03% for each buy

Additional Zerodha Charges

  • Rs. 50 for every order for Call & Trade feature
  • Rs. 50 as auto square off charges
  • Rs. 13.5 as delivery transaction charges for each script per day
  • Rs. 9 and additional GST charges if doing fund transfer using an instant payment

Zerodha Account Opening Charges

Zerodha account can be opened by following both the online and offline processes. The online process is fast and takes only 20 minutes. The mobile number should be linked to the Adhar card for the online process. In an offline process, customers have to download and print the form, fill it and submit it at the corporate office of Zerodha in Bangalore along with other required documents.

Refer to the below table to understand the Zerodha account opening charges:

Zerodha Account TypeDemat and Trading (With Commodity)Demat and Trading (Without Commodity)
OnlineRs. 300Rs. 200
OfflineRs. 600Rs. 400
NRI (Offline)NARs. 500

Apart from the Zerodha account opening charges, users need to pay Rs. 300 + GST as the account maintenance charges every year.

Pros of Zerodha Account

Below are the pros that the Zerodha Trading account offers. Check these advantages to understand if Zerodha Account is suitable for your investment requirements:

  • Popular Broker: Zerodha is the largest and most popular broker in India based on the trading volume and the active number of clients. It is the most reliable and safest platform to invest in the share market.
  • Best Trading Platforms: Zerodha provides some of the best trading platforms that are very beneficial to the investors and are the best in the industry. These include Console, Coin, and Kite.
  • No Brokerage on Equity Trades: Zerodha charges no brokerage when shares are bought using the cash and carry option. It works directly with the Demat account, i.e., bought shares deliver to the Demat account, and the sold shares also debit from the Demat account.
  • Most Cheap Broker: The pricing model of Zerodha is so simple. The charges are 0.03% or Rs. 20 for each executed order, whichever amount is lower. The maximum brokerage amount that Zerodha charges are Rs. 20 irrespective of the trade size.
  • Referral Program: Zerodha offers a brokerage share of 10% if we refer a friend.
  • No Clearing Charges: Zerodha takes no clearing charges from its customers.
  • Pay as you go: As there are no prepaid brokerage plans, we can simply use the brokerage plan using pay as you go system.
  • Kite3 Mobile: This is a mobile-friendly app that both active day traders and passive investors can use with enhanced user experiments.
  • Initial Public Offerings: Zerodha account also permits to apply for the new Initial Public Offerings.

Cons of Zerodha Account

In addition to the number of advantages offered by the Zerodha Trading account, there are also some disadvantages. Check the below disadvantages. However, the pros of the Zerodha Account outweigh the cons it offers:

  • There is no option to get the stock tips or any recommendations in Zerodha.
  • Zerodha does not offer any unlimited trading plan.
  • Zerodha does not offer the Demat Account Plan with free lifetime account maintenance charges.
  • Users need to pay an additional Rs.50 for each executed order in MIS/CO/BO, and these are charges that are not square off by users.
  • Customers also need to pay additional Rs. 50 to use the Call & Trade feature.
  • There is no 3-in-1 Zerodha trading account due to the lack of banking services in Zerodha.

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Zerodha Review – FAQs

Q1: What are the Zerodha brokerage charges?

A: Customers who are in the trading business know that whenever they sell or buy shares through Zerodha, they need to pay the brokerage charges. Below are the brokerage charges of equity, currency derivatives, and commodities trading for Zerodha:

Flat Brokerage Plan for Zerodha

Q2: What are the benefits of Zerodha?

A: There are a number of brokers in the stock market, but Zerodha offers you more than anyone else. Check out the benefits that anyone can get by trading through Zerodha:

  • Rates are the same for Currency, Equity, and commodity on BSE, MCX, MCX-SX, and NSE.
  • There are no turnover commitments or upfront fees.
  • No charges for equity delivery trading, and INR 20 or 0.1% each order executed.
  • No forced trades, relationship managers, sales, or brokerage targets.
  • More than half a million clients with over INR 8000 crores turnover, on each day.
  • Zerodha offers over 250 teams of experts, making sure to solve the queries quickly through phone or email.

Q3: Is opening an account with Zerodha free?

A: Almost all the brokers charge a fee for opening an account. If anyone offers a free account opening, but with some instructions or hidden charges. Hence it would be a good option to choose the best where you can get more benefits by paying less. What is the benefit of opening an account for free and then pay a massive amount as brokerage charges? Zerodha provides the best service with minimum account opening charges with transparency of each trading.

Q2: What are the benefits of Zerodha?

A: There are a number of brokers in the stock market, but Zerodha offers you more than anyone else. Check out the benefits that anyone can get by trading through Zerodha:

  • Rates are the same for Currency, Equity, and commodity on BSE, MCX, MCX-SX, and NSE.
  • There are no turnover commitments or upfront fees.
  • No charges for equity delivery trading, and INR 20 or 0.1% each order executed.
  • No forced trades, relationship managers, sales, or brokerage targets.
  • More than half a million clients with over INR 8000 crores turnover, on each day.
  • Zerodha offers over 250 teams of experts, making sure to solve the queries quickly through phone or email.

Q4: Is Zerodha a reliable stockbroker?

A: Thousands of customers have been dealing and trading with Zerodha for many years. There is nothing to worry about in working with Zerodha as it is one of the reliable brokers in the market. You can check its rating and reviews online before investing in it. Your money is totally safe. If any of their users have problems, they can directly contact with Zerodha support team. They will solve your query within the fastest turnaround time. All in all, Zerodha is the safest platform in the stock market.

Q5: Can we use Zerodha Kite free of cost?

A: One of the top-notch stockbrokers in India is a Zerodha Kite platform. This web-based trading platform is user-friendly. The customers can easily use it on mobile, computer, or laptop as it is also lightweight. It is easy to sign in by entering the client id and password. Zerodha Kite is well-equipped with the latest tools that a trader requires for trading. This service provided by Zerodha is totally free. If you want to use this service, then forget about paying any charges or fees. Just enjoy using it.

Q6: Are there any charges for the canceled orders with Zerodha?

A: The clients working with Zerodha need to keep one thing in mind that there is only a single charge for canceled orders or brokerage. And, Zerodha clearly states it.

There are no extra charges for canceled orders or brokerages. Zerodha is one of the top-notch and largest stockbroker platforms in India and provides a wonderful service. If any of the Zerodha customers cancels or is planning to cancel the orders due to any reason, then do not worry at all as Zerodha does not charge any fee or charges for the same. It is totally free of cost. It is also an advantage that attracts the clients towards Zerodha.

Final Verdict

I have been using Zerodha for many years, and I am very satisfied using it. I started my trading journey with ICICI Direct, but later I switched to Zerodha when I realized that I am paying too much brokerage. Since then, I have not been disappointed using it. The only thing that I did not like about Zerodha is that it does not provide any tips or advisory services. Of course, Zerodha has the lowest brokerage charges, but only the brokerage charges cannot bring a broker to number one.

There are many other favoring factors. It started in 2010 and has shown tremendous growth since then. The pricing factor, good customer support, and helpful products are reasons that make it the best. Even beginners can start trading with Zerodha as varsity provides investors the education about investing. Management is also very transparent. Overall, Zerodha is a great trading platform for trading. I hope you will like my Zerodha Review. Happy Trading!!

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