Zerodha Review 2020

Zerodha is one of the biggest stockbrokers in India having an active customer base. Zerodha was established on 15th August 2010 and is authoritatively recognized as India’s first prominent discount broker. Nithin Kamath established Zerodha to overcome the hurdles he faced during his decade long stint as a trader. Besides, by bringing in a competitive pricing model, Zerodha is likewise recognized as a pioneer in technology, especially for traders in India.

Features

  • Currently, Zerodha’s disruptive pricing features and internal technology have made them the greatest stockbroker considering active retail customers.
  • Additionally, Zerodha runs various open online community initiatives and educational activities to assist retail investors and traders.
  • Zerodha’s Fintech fund and incubator, Rainmatter, had invested in various fintech startups intending to develop the Indian capital markets.
  • The organization has been acknowledged for the ‘Retail brokerage of the year 2018’ award given by the National Stock Exchange, ‘Young Entrepreneur of the year (Startup) 2017’ award by Ernst and Young and ‘Retail broker of the year 2017’ award given by Outlook Money.

Zerodha’s more than 1.5 million customers add to over 15 percent of retail order volumes in India by investing and trading in

  • Futures and Options
  • Stocks & IPOs
  • Currency derivatives
  • Commodity derivatives
  • Direct mutual funds
  • Bonds and Government Securities

Opening an Account

Opening an account with Zerodha normally takes 3 to 5 business days. Indian residents, as well as non-resident Indians (NRI), can open an account.

Account types

Two kinds of accounts can be opened with Zerodha:

  • Demat and trading account, used for equity and currency trading
  • Commodity account used for commodity trading

Pricing

Zerodha’s Pricing is given below:

  • Free for equity investments and flat Rs.20 for intraday and F&O trades
  • Free equity delivery
  • Free brokerage for equity delivery investments in NSE, BSE
  • Intraday and F&O trades

For Intraday trades, flat Rs.20 or 0.01 percent (whichever is lower) per executed order over commodity and currency trades.

  • Free direct Mutual fund

Further, all mutual fund investments are free of commissions and DP (Depository Participant) charges.

Deposit funds

According to SEBI guidelines, the trader needs to keep separate balances for the Equities and Commodities accounts, so Zerodha has two distinctive bank accounts to expedite this. There are two distinct modes to deposit funds to the account.

  • UPI

    The trader can transfer funds quickly from any bank account using UPI without any charge. The trader needs to ensure that all UPI transfers are done from the payment gateway so that the funds are added to the Zerodha accounts instantly.

  • Instant payment gateway

    The trader can transfer funds directly from the trading platform, like Kite/Pi using the instant payment gateway facility. This comes at a charge of Rs.9 plus taxes, with the advantage of instant credit.

Withdrawing funds

  • The trader can place a withdrawal fund request by signing into Console or from Kite.
  • Withdrawal requests for EQ/Currency are processed from Monday to Friday at 8:30 PM.
  • Withdrawals for commodities are processed from Monday to Friday at 8 AM. Request placed after the stipulated times are handled next working day.
  • All withdrawal requests need to be placed only online and may take 24 hours to be credited to the bank account.
  • Besides, withdrawal requests placed on the second and fourth Fridays will be credited by Monday because of banks being closed on the second and fourth Saturdays.

Products offered by Zerodha

Kite 3.0 (Web-based Trading Platform)

  • Zerodha Kite Web, which was launched in November 2015, is a web-based HTML 5 lightweight and quick trading platform that can be utilized for trading on tablets, mobile, as well as on an internet browser. Kite was developed internally by Zerodha.
  • From the day of its launch, it has experienced different updates. At present, Kite 3.0 web platform is offered by Zerodha.
  • Zerodha Kite Web offers full market watch, broad charting with more than 100 indicators, 6 chart types, advanced order types like cover and brackets, millisecond order placements, and substantially more for trading at BSE, NSE, and MCX. Besides, Kite Web 3.0 is accessible for free for all its clients.

Console – Reporting Dashboard

  • Console can be described as the back-office platform of Zerodha. Further, it is a trade and reporting dashboard where Zerodha clients can view and screen all their investments, stocks derivatives, mutual funds, etc.
  • Users can likewise get access to different reports, get account statements, place withdrawal requests and download contract notes. Moreover, console additionally offers analytics tools like a tradebook and heatmap.
  • Moreover, console crunches several billions of rows of historical trade breakdowns to monitor corporate activities, splits, transfers and several more to calculate the most precise profit and loss statements (P&L) for the trader’s portfolio.

Zerodha Coin – Mutual Fund Investment platform

  • Zerodha Coin is a mutual fund investment platform of Zerodha, which was launched in April 2017. Coin permits individuals to invest resources into Direct Mutual Funds. This implies that the trader can do commission-free direct investment in Mutual Fund.
  • It offers savings of 1.5 percent on commissions each year. Besides, mutual funds are deposited in the Demat account connected with the Zerodha trading account.
  • Over the last few months, 100,000 plus customers have invested over Rs 2000 crores in direct mutual funds and saved several amounts of funds in commissions that they would have generally paid in a standard mutual fund platform.

Kite Connect API

Zerodha helps to build a powerful trading platform for new startups with its simple HTTP/JSON Application Program Interface. Zerodha can build an investment app and showcase it to their customers.

Kite Publisher

With the help of Kite Publisher, embedding few buttons on apps and website will allow users to execute the trades. Moreover, the Kite Publisher buttons can be incorporated into the website by adding a few lines of HTML and Javascript. With the help of Kite publisher, 1.5 million clients of Zerodha can use the trade buttons on the app or the website to execute the trades.

Varsity

Varsity is an education initiative offered by Zerodha for its customers and all others for free of cost. Besides, Varsity is the biggest online stock market exchange training book on the globe, which covers everything from the fundamentals to advanced trading. Easy to learn, an assortment of stock market exchange topics is also provided by Zerodha for the benefit of its users.

Free Market Alerts

  • Zerodha allows the user to create strong market alerts on the cloud for futures, stocks and options and several more for free.
  • Moreover, alerts stay on the cloud waiting to be triggered either today, tomorrow, or months from now, even when the trader is away. The trader can get notifications through Kite web, email, and mobile.
  • The trader can set basic alerts or write advanced triggers that can combine multiple alerts with the Sentinel trigger language and editor.
  • Besides, more than 20 data points can set alerts on OHLC, last traded price, bids, and offers and several more.
  • The user can set alerts on 80,000 stocks, commodities, bonds, derivatives, and more across exchanges.

Zerodha Kite Web – Web-Based Trading Platform

  • Zerodha implements in-house created mobile trading platforms, known as the Kite and Coin. On Kite, the trader can trade with assets aside from mutual funds. In case the trader wants to trade with mutual funds, they need to utilize Coin.
  • Kite Web is an HTML 5 based browser empowered trading platform that stands as a part of the overall system of remote trading platforms. These are platforms that are offered by Zerodha over different operating platforms and devices.

It has the following features –

  • Multi-Lingual Platform
  • Lite Weight & Low Internet Requirement
  • Accurate Search Results
  • Live Charts
  • Multiple Segments
  • Single Click Order
  • Critical Analysis
  • Watchlist
  • Short-cut Key Function

Zerodha Kite Mobile Trading App

Kite Android / Kite iOS (Mobile Trading App)

  • Kite iOS is a smartphone application for Android and iOS. Traders can trade and monitor commodities and stock markets in India using the Kite Mobile application for free.
  • Moreover, with live streaming data from stock exchanges like BSE, NSE, and MCX, Kite Mobile App is an exceptional trading application accessible in India. These applications can be found in Google’s Play Store and Apple App Store by the name of ‘Kite by Zerodha.’
  • Zerodha’s system of remote trading platforms includes Kite Android and Kite IOs, which are both excellent mobile-based trading platforms and comes stacked with the features like Kite Web as both the platforms have the same user interface and development stack such as –
    • In-Built Search
    • Interactive Charts
    • User Experience
    • Push Notification

Partner Platforms of Zerodha

Zerodha allows the trader to further their trading and investment experience with their partner platforms such as –

  • Thematic investment platform
  • Algo & strategy platform
  • Options trading platform
  • Bonds trading platform

Zerodha Sentinel – Cloud-based Price Alert Tools

Sentinel is a cloud-based tool that enables Zerodha clients to set up price alerts on stocks, futures, and options. The exclusive feature of Sentinel is that, like similar price alert tools that are dependent on the machine and possibly trigger when the PC is on, here the price alerts can be activated anytime, even when the PC is off. Moreover, notifications are sent on Kite and email each time, when a price alert is triggered. With the help of Sentinel, a trader can set real-time price alerts on stocks, bonds, derivatives, etc over exchanges.

Zerodha Utilities cover the following

  • Brokerage calculator
  • Margin calculator
  • Holiday calendar

Z-connect

Z-connect is a blog concerning trading and investing with Zerodha. Every new update concerning the platform, announcements, products, initiatives and several other announcements from Zerodha are posted here. The trader can ask any number of questions concerning the articles, which would be replied by Zerodha agents.

Referral program

Zerodha offers Referral program for its clients. They can refer to their family and friends to get free access to their paid products. The trader can earn 300 reward points for every referral. The trader can redeem the reward points by gaining access to various platforms and tools in the Zerodha Platform.

Call and Trade

  • The call and trade feature is offered by Zerodha, which comes at the expense of Rs.20 for every call. The Instant Payment Getaway is appropriate for more than 21 banks and will be charged Rs.9 per transfer. There are DP charges of Rs.8 per transaction for delivery-based equity selling.
  • If the registering party applies for a Demat Account, at that point another Rs.300 per annum should be paid, with regards to annual maintenance charge for the same.
  • However, Zerodha does not demand any yearly maintenance charge regarding trading account and there is additionally no mandate for registered clients to keep up any minimum margin amount.

Zerodha Tools

  • Among its products, there are tools for bracket and stop-loss orders. By utilizing this product, the traders can place stop-loss orders and even drop them at the perfect time. Besides, the trader can likewise make cover orders so that they can get higher intraday averages.
  • Also, there are various calculators for traders. The SPAN Calculator will assist the trader to calculate and find out the margin necessities for the investments.
  • Additionally, the Brokerage Calculator will enable investors to know all agreement note charges and breakeven points to plan investments and trade more efficiently. The B and S choice calculator will assist investors to calculate the fair value of equity options.

Zerodha Hidden Fees

There are a few hidden fees charged by Zerodha, which are discussed below:

  • Zerodha offers Call and Trade feature at an additional expense of Rs.20 for each call.
  • An extra charge of Rs.20 for every executed order for MIS/BO/CO positions which are not squared off by the client.
  • Moreover, digital contract notes are sent through email. Physical copies of the contract notes can be requested at an extra charge of Rs.20 per agreement. Courier charges are extra.
  • Trade SMS alerts (which are optional) are charged at Rs.1 for F&O, Equity, and Currency trade alerts and 0.50 paise for Commodity trade alerts.
  • Zerodha charges instant payment gateway for more than 22 banks, Rs.9 for each fund transfer.
  • Rs.8 for DP charges for delivery-based equity selling for each transaction.
  • Standard transaction charges, NSE charges, and statutory levies are charged.

Zerodha Customer Care

Zerodha does not have any physical presence as far as branch offices are concerned. However, it provides services identified with online trading, 24/7 support, email support, and Chat Support through its several remotely open trading platforms.

Zerodha Drawbacks

Few of the drawbacks concerning Zerodha are discussed below:

  • Zerodha is a completely a tech-based firm with no physical presence. This can appear to be a problem for the traders who are inclined toward the traditional way of trading.
  • Zerodha does not provide any kind of research and advisory.
  • Zerodha’s account opening procedure is slow and not entirely online.
  • Zerodha covers only the Indian market.
  • Zerodha does not offer investor protection.
  • Great Till Cancelled (GTC) and Good Till Date/Time (GTD) orders are accessible only for commodity trading, not for the equity section.
  • For Bank Nifty (for weekly settlement), CO/BO or trailing stop loss is not available.
  • In the equity cash segment, margin against shares is not available.
  • An extra charge of Rs.20 for each executed order for MIS/BO/CO positions which are not squared off by the client.
  • Call and Trade are not free; it can be accessed at an extra expense of Rs.20 for every executed order.
  • Trading software is not available for Mac and Linux operating frameworks.
  • As Zerodha does not provide banking, a 3-in-1 trading account is not available.
  • Lifetime free AMC Demat account plans are not provided by Zerodha.

Wrap up

Zerodha is a well-settled discount broker in India. Considering the advantages, Zerodha has low charges. The web and mobile trading platforms are good. Besides, there are many research tools the trader can use. Zerodha charges low fees and no inactivity fees are charged to the clients. Zerodha has earned the trust and respect of its clients by offering safe and technologically advanced trading services. Either you are a beginner or experienced trader, Zerodha supports all, by offering educational materials for their use, which can be added as a major advantage.

Zerodha

8.7

REPUTATION

7.8/10

USER EXPERIENCE

9.8/10

PAYMENT OPTIONS

8.6/10

SECURITY

7.9/10

SUPPORT

9.5/10

Pros

  • Greatest stockbroker considering active retail customers.
  • Zerodha runs various open online community initiatives and educational activities.
  • it provides services identified with online trading, 24/7 support.

Cons

  • Zerodha covers only the Indian market.
  • Zerodha does not offer investor protection.
  • In the equity cash segment, margin against shares is not available.
  • Zerodha is a completely a tech-based firm with no physical presence.
  • Zerodha does not provide any kind of research and advisory.