Zerodha – 2019 Brokerage Charges & Trading Platforms

Zerodha – 2019 Brokerage Charges & Trading Platforms

About Zerodha:

Zerodha was founded in 2010 and is a Banglore, India based company known as the Discount Broker Company for trading in commodity, stock, and currency derivatives. It is also a member of both NSE, BSE, and Multi Commodity Exchange.

They have an average client base of more than 7 lakh and
claims to handle daily turnover of ₹ 10k
crore to 12k crore in equity and 1k crore in commodities.Some of the
investment products are listed here:

  • Stocks: You can trade stocks for delivery or intraday on over 5000 stocks which are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
  • Direct Mutual Funds: You can invest in over 2000 direct mutual funds directly without any middle-man and save up to 1.5% in commission each year.
  • Fixed Income:Government Securities: You can also invest in bonds with yields which are better than bank FDs and it is guaranteed by the Government of India.
  • Sovereign Gold Bonds: Also, the investment can be done in Gold electronically where it is gain market returns + fixed 2.5% per year on the invested amount which is guaranteed by the Government of India.
  • Futures & Options: Trade metals, oil, and agri commodities on MCX and stock and index futures and options on NSE.

Why trade with Zerodha?

As Zerodha is targeting 3 million clients by 2020, it has
created brand trust among its clients and potential client base. Here are some
facts and information about Zerodha which should be considered before you start
to trade.

  • It also offers a brokerage of 0.01% or ₹ 20 per executed order irrespective of the number of
    shares and their prices which seems to be lower than many other stockbroking
    companies. And the best part is that with Zerodha maximum brokerage you
    pay for any transaction is just ₹ 20 for an order. It offers no minimum
    brokerage as well.

    • Zerodha was reported
      a PAT (Profit After Tax) of ₹ 100 crore+ for the financial year 2018-19
      at SEBI which clearly indicates it is decent profit making and fastest growing
      stockbroking company in India.
    • It offers incredible
      educational initiatives like Varsity, Trading Q&A and also Opentrade.
      Varsity contains topics to help and guide the beginners, investors and the
      active traders. It consists of:
  • Introduction to Stock MarketsTechnical AnalysisFundamental AnalysisFutures TradingOpen strategiesMarkets & TaxationRisk Management &Trading PsychologyTrading Systems
  • Also, there is an
    analysis tool known as Console which consists of a dashboard that displays the
    complete trade and reporting console to you. It is one of the most efficient
    tools for the traders which can guide them accordingly.

Salient features of Zerodha:

  • Absolute
    Zero Pricing: Zerodha is also known for its simple pricing structure
    which
    makes it first preference for most of the clients and beginners.As it
    charges ₹ 20 for intraday trading, F&O,
    currency and commodity trades. Also, the concept of brokerage calculator was
    introduced by Zerodha which makes it easy to calculate charges.
  • Excellent
    Platforms:
    Zerodha has got one of the best technology and its platforms are
    remarkable to work on. Some of them are for both teaching and guiding purposes
    for traders and beginners and investors.
  • Advanced Charting: The best part is that
    it keeps on evolving and enhancing technologies. So, it consists of 10
    different types of charts with around 80 built-in technical indicators and 30+
    drawing tools.
  • Kite Extension: Using this feature, you can easily buy and sell stocks which are
    listed on NSE directly from the major finance websites such as Google Finance,
    Yahoo Finance, NSE India, Marketsmojo and many more.
  • Margin calculator: Same as Brokerage Calculator, it is also the
    first online tool which lets you calculate the margin requirements for option
    writing or multi-leg F&O strategies while trading in equity, F&O,
    commodity, and currency before starting a trade.
  • Brokerage
    calculator:
    The first online tool to calculate the charges and profit/loss
    which are incurred while trading using brokerage calculator.

Trading Platforms and Products:

It is the first and the largest discount
broker in India which has created many innovative products, tools and trading
platforms with significant features. Here is the list of the different types of
platforms and products provided by Zerodha to its client.

Trading Platforms:

Pi – It is one of the most powerful desktop trading application which consists of features like market tracking, online trading, charting, chart pattern scanners, Expert advisor, Algo trading, high-speed order execution, personalized notifications and alerts and much more. Download Now!(https://zerodha-common.s3.apsouth1.amazonaws.com/Downloads-and-resources/Pi_setup_latest_release.zip)

kite-web-zerodha

Kite (Web-based Trading Platform)– It is a simple HTML 5 web-based trading application which is both powerful and compatible with mobile and web with millisecond order placement, the complete market watch with minimum bandwidth consumption, advanced order types, charting with 100+ indicators & tools and much more. This particular platform is used by over 70,000 clients and serves over 5 million requests a day. Sign Up now(https://zerodha.com/open-account?c=RAINMT&utm_source=kite&utm_medium=web&utm_campaign=account)

kite-app-zerodha

Kite Mobile: It is the mobile application and also a version of Kite web-based application with the same functionalities present in it. Such as live streaming data, years worth of free historical data, multiple market watch and live market depths, advanced orders, extensive charting & tools, one tap instrument to go through all contracts across all changes (NSE, BSE, MCX and much more). Android (https://play.google.com/store/apps/details?id=com.zerodha.kite&hl=en_IN), iOS (https://itunes.apple.com/in/app/kite-by-zerodha/id1124408790?mt=8)

kite-api-developer

Kite API – It is also termed as ‘Platform as a Service’. This tool is a set of simple APIs which is built on top of Zerodha’s web-based trading Platform, Kite. It allows clients to code and create their own personalized trading platform or system with Kite API. At the same time, it enables the clients to manage the portfolio as well as place orders at their convenience. (https://kite.trade/)

coin-zerodha-app

Coin (Mutual Fund Investment) – It is the recent investment of Zerodha which allows the clients to buy mutual funds online, completely commission-free, directly from asset management companies. It is most preferable for those who want investment to be less risky and get reasonable returns for the same. Android (https://play.google.com/store/apps/details?id=com.zerodha.coin&hl=en_IN), iOS (https://itunes.apple.com/in/app/coin-by-zerodha/id1392892554?mt=8)

OpenTrade – This platform is a unique platform by discount brokers where clients can get real-time updates on trade from profitable traders and is allowed to select and follow profitable, expert stock investor & traders. This improves the trading skills of the clients and it is exclusively used only by discount brokers. (https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders)

console-zeordha

Console– It is the back-office platform of Zerodha and consists of trade and reporting dashboard where clients can view all their investments at the same time. They also get access to various reports, account statements can place withdrawal request and download contract notes. It also offers analytic tools such as tradebook and heatmap. (https://console.zerodha.com/)

Partner Products from Zerodha:

smallcase-zerodha

Smallcase– This particular platform is powered by Kite Connect APIs, this is India’s first thematic investment platform which lets gives users enough power with a single click. Such as buy, track & manage smallcases – low-cost portfolios of stocks based on themes & trends and much more. (https://smallcase.zerodha.com/)

streak-zerodha

Streak: As its slogan suggests, ‘Algo Trade without Coding’, the streak is the first end to end platform in the world on which retail traders can create algos without coding. You can backtest algos on historical data and deploy them to live in the market. (https://streak.zerodha.com/)

sensibull-zerodha

SensiBull: It is India’s first options trading platform which offers its clients everything from a simplified trading option for beginners to powerful trading tools for the active traders. It aims to make trading safe, accessible and profitable. (https://sensibull.com/)

stockreports+-reuters-zerodha

StockReports+: It is a comprehensive stock, market, and industry research/Analysis from Thomsan Reuters for as many 3000+ Indian stocks which are updated on a daily basis.  (https://stockreports.zerodha.com/)

Investment Options and its Brokerage Charges:

Zerodha Account Opening Charges:

Trading Account Opening Charges ₹ 300
Demat Account Opening Charges ₹ 100
Trading Annual Maintenance Charges (AMC) ₹ 0
Demat Account Maintenance Charges (AMC) ₹ 300 per year (payable
upfront)

Zerodha Demat Charges:

ID Transaction Charges
1 Demat Account Opening Charges ₹ 0
2 Stamp Charges payable upfront (at actuals) ₹ 50
3 Annual Maintenance Charges
a. Individuals ₹ 300 per year +GST
(payable upfront every year)
b. Corporate ₹ 1000 +GST (payable
upfront every year)
4 Transaction Charges per
ISIN (Market trades)
a. Buy (Receive) ₹ 0
b. Sell (Debit) ₹ 8 + ₹ 5.50 flat for
every debit transaction
5 Inter Depository Transfer (Off Market trades)
a. Buy (Receive) NIL
b. Sell (Debit) 0.03% or ₹ 25 whichever is
higher
6 Demat (per certificate) ₹ 150
7 Remat (per ISIN) ₹ 150 (per certificate) +
CDSL Charges
8 Courier charges per Demat / Remat request ₹ 100
9 Pledge per ISIN ₹ 20 + ₹ 12 per request
(CDSL Charges)
10 Unpledge per ISIN ₹ 20 + ₹ 12 per request
(CDSL Charges)
11 Pledge Invocation per ISIN ₹ 20
12 Periodic Statement
a. By Email ₹ 10 per request
b. Physical ₹ 50 (Courier charges)
13 Adhoc / Non Periodic Statements Request
a. By Email ₹ 10 per request
b. Physical ₹ 50 per request up to 10
pages. Every additional page at ₹ 5 (+Courier charges at actual)
14 Delivery Instructions:
a. First delivery instruction book Free (10 leaves)
b. Every additional booklet ₹ 100 (10 leaves)
15 Cheque Bounce / Per cheque ₹ 350
16 Failed transactions ₹ 50 per ISIN
17 Modification in CML ₹ 25 per request
18 KRA Upload / Download ₹ 50
  • Equity:
Zerodha  Charges Equity Delivery Equity Intraday Equity Futures Equity Options
Brokerage 0 0.01% or ₹ 20/ executed
order whichever is lower
0.01% or ₹ 20/ executed
order whichever is lower
Flat ₹ 20 per executed
order
STT/CTT 0.1% on buy/sell 0.025% on sell side 0.01% on sell side 0.05% on sell side(on premium)
Transaction Charges NSE: 0.00325%
BSE: 0.003%
NSE: 0.00325%
BSE: 0.003%
NSE: Exchange txn charge: 0.0019%
BSE: 0.003%
NSE: Exchange txn charge: 0.05% (on premium)
BSE: 0.003% (on premium)
GST 18% on (transaction charges + brokerage) 18% on (transaction charges + brokerage) 18% on (transaction charges + brokerage) 18% on (transaction charges + brokerage)
SEBI Charges ₹ 10 / crore ₹ 10 / crore ₹ 10 / crore ₹ 10 / crore
  • Currency:
Zerodha Charges Currency Futures Currency Options
Brokerage 0.01% or ₹ 20/executed
order whichever is lower
0.01% or ₹ 20/executed
order whichever is lower
STT/CTT No STT No STT
Transaction Charges NSE: Exchange txn charge: 0.0009%
BSE: Exchange txn charge: 0.00022%
NSE: Exchange txn charge: 0.0007%
BSE: Exchange txn charge: 0.001%
GST 18% on (brokerage + transaction charges) 18% on (brokerage + transaction charges)
SEBI Charges ₹ 10 / crore ₹ 10 / crore
  • Commodities:
Zerodha Charges Commodity Futures Commodity Options
Brokerage 0.01% or ₹ 20/executed
order whichever is lower
0.01% or ₹ 20/executed
order whichever is lower
STT/CTT 0.01% on sell side (Non-Agri)  0.05% on sell
side
Transaction Charges Group A: Exchange txn charge: 0.0026%
BSE: Exchange txn charge: PEPPER – 0.00005%
CASTORSEED – 0.0005%
RBDPMOLEIN – 0.001%
Exchange txn charge: 0
GST 18% on (brokerage +
transaction charges)
18% on (brokerage +
transaction charges)
SEBI Charges Agri:
₹ 1 / crore
Non-Agri:
₹ 10 / crore
₹ 10 / crore

Pros and Cons

  • Advantages:
    • Equity delivery is
      provided at no cost and it has minimum cost in other segments too.
    • It offers the best
      technological trading platforms and tools in the entire industry
      and all of
      them are a built-in house, available free to all of its clients.
    • Zerodha is also the Cheapest share broker in the
      whole country. Also, they are a self-clearing broker which means they
      don’t charge any clearing charges.
    • No minimum balance is required to open a Zerodha Trading Account.
    • Though Zerodha
      is considered as a discount broker company, still it provides offline presence
      across 75 locations in India.
    • Zerodha has recently
      launched an initiative of ‘60 days Challenge’ which also acts as a unique
      proposition for the clients.
    • No hidden charges are involved along with free software
      usage.
  • Disadvantages:
  • GTC (Good Till
    Canceled) /GTD (Good Till date) orders are not available in the equity segment.
    Orders only come from commodity trading.

    • Call and Trade option
      is not free and requires an additional fee of ₹
      20 per executed order.
    • 3 in 1 Trading Account
      is not available as Zerodha doesn’t provide banking.
    • Online IPO Investment is also not available with Zerodha.

Complaints received by Customer:

  • The year 2015: Total
    complaints were 17 and it was able to resolve 100% of the complaints.

    • The year 2016: Total
      complaints were 33 and it was able to resolve 100% of the complaints.
    • The year 2017: Total
      complaints were 306 and it was able to resolve 100% of the complaints.
    • The year 2018: Total complaints were 166 and it was able to resolve 89% of
      the complaints. Rest 11% remained unsolved.

FAQs (Frequently Asked Questions):

Q1. Can Kite be accessed from a
mobile phone?

A1. Yes, Kite can be accessed from mobile phones. Zerodha Kite has an
android app and also IOS app. In windows, phone Kite can be accessed through
web browser visiting kite.zerodha.com.

Q2. Zerodha Pi OR Kite which platform is better?

A2. Zerodha Pi and Kite both are different platforms catering to a different
set of people. Pi needs installation and hence require a desktop or laptop,
while Kite is lightweight can be accessed even from a tab or mobile phone and
can be used on the go.

Q3. Can we execute advanced orders like
bracket OR cover orders in Zerodha Kite?

A3. Yes, we can
execute bracket and cover orders in Kite platform.

Q4. Can we do Algo trading OR
automated trading in Zerodha Kite?

A4. Yes, Algo trading
or automated trading can be done in Zerodha Kite using Kite Connect API.

Q5. Does Zerodha Kite require
broadband?

A5. No, Zerodha Kite
can be used even on 2G data.

Contact Zerodha:

The link given below directs you to the Contact and Branch locator Page in which information regarding Branch offices addresses across India are being located with contact information. https://zerodha.com/contact

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