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Compare the pros vs cons of investing with one of India's largest online discount brokers.
Zerodha is one of the largest online discount brokers in India, offering a low-commissions trading platform to more than three million investors daily.
This review takes a look at the features of a Zerodha trading account, and its pros and cons relative to other brokers in the market to help you decide if Zerodha has the right investment account for you.
What markets can I trade with Zerodha?
Here are some popular markets you can trade with Zerodha.
- NSE (National Stock Exchange of India)
- BSE (Bombay Stock Exchange)
- MCX (Multi Commodity Exchange of India)
Other than trading stocks, equity futures, equity options, index futures, index options, commodities and currencies on the above exchanges, Zerodha lets you directly invest in mutual funds, IPOs, bonds and government securities.
Zerodha account features
Here are the features that you can look forward to with a Zerodha trading account.
- Four trading platforms to choose from.
- Kite. Kite is Zerodha’s flagship trading platform, with a sleek interface and range of professional trading tools —including advanced charts, Level 3 Market Data as well as GTC/GTT orders. Kite is available on both the Android Play Store and the iOS App Store.
- Console. Console is Zerodha’s desktop trading platform that comes with a central dashboard to help you monitor your investments at a glance. With its in-depth reports and helpful visualisation tools, Zerodha’s Console makes it easy for traders to track their holdings.
- Coin. With Coin, you can purchase mutual funds from Zerodha directly and have them delivered to your demat account. Coin is available on both the Android Play Store and iOS App Store.
- Kite Connect API. Other than its three standard trading platforms, Zerodha offers the Kite Connect API for you to build your own trading platform. This is great for startups and enterprising individuals who find standard trading platforms lacking.
- Extensive customer support. Zerodha has a helpful FAQ bank which you can consult when an issue arises. If you still have any unresolved queries, you can open a ticket directly on Zerodha’s support portal.
- Alerts. Set customisable alerts with Zerodha Sentinel to be notified of changes to a stock’s conditions.
- Zerodha Varsity. Varsity is a free online module that teaches you how to trade and invest. You can also get weekly market reports and stock analysis to learn the ropes of being a trader.
What are Zerodha’s fees?
Trading fees are fees related to the purchase and sale of financial products. Fees can include the cost of currency conversion, commission paid to the broker or spreads due to poor market liquidity.
- Flat ₹20 or 0.03% (whichever is lower) fee per intraday trade for equities, currencies and commodities
- Free equity delivery investments for stocks on the NSE and BSE
- Free mutual fund investments
These fees are costs incurred from account-related activities or taxes.
- Securities transaction tax: 0.025% – 0.2% of your total returns
- SEBI turnover charges: ₹5 per crore
- Stamp Duty: Ranges from ₹300 per crore to ₹1500 per crore
- GST: 18% of the total charges you owe
Do note that the list of fees above is not exhaustive. The amount you could incur with Zerodha depends on your trading amount and investment decisions. Do get in touch with Zerodha before opening an account so that you can get a better understanding of how much you could end up paying.
The figures stated in this article are correct as of 05 January 2021.
Pros and cons
- Competitive trading fees
- Powerful trading platforms and APIs
- No minimum account balances
- Helpful features like live chat customer support and Zerodha Varsity
- No access to cryptocurrency
- No margin against shares for added leverage
- No margin trading
Is Zerodha safe?
Zerodha is an authorised financial services company under SEBI and a registered broker with NSE, BSE and other exchanges. Zerodha also has a comprehensive financial risk management policy that is publically available on Z-Connect, Zerodha’s product blog. It is therefore considered to be safe and largely protected from default.
Note: Investing and trading itself always carries risks which you should be aware of, so read up before you start investing. Do your research and compare brokers in India before signing up with any trading platform.
How do I sign up for a Zerodha account?
Indian residents and non-resident Indians are welcome to register for a Zerodha account.
Sign up with Zerodha by visiting their website and clicking the “sign up” button, which can be found at the top right-hand corner of the page. Provide your mobile number and authenticate your registration using the OTP number you receive, then follow the steps below.
- Fill up the online registration form, providing information like your full name, email address and bank account details.
- You will be asked to submit supporting documents. This may include a copy of your PAN card, salary slips, Aadhaar card, proof of residence and a passport-sized photo.
- Verify your identity either in person at the Zerodha office or online through your webcam.
It will take a few business days for your application to be approved. Following this, you’ll receive an email with your account details and you can start trading immediately.
Zerodha goes above and beyond the standard offerings of discount brokers, providing interesting features like the Kite Connect API and Zerodha Varsity education platform. It further offers a range of financial instruments for you to trade at a low cost. This makes Zerodha a great pick for investors looking to trade without breaking the bank.
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