Zerodha is a Bangalore, India based Flat Fee Share Broker (Also called Budget Broker / Discount Broker / Pay Per Order Brokerage) for trading in stock, commodity and Currency derivative. It charges brokerage of 0.01% or Rs 20 per executed order, whichever is lower, irrespective to number of shares or their prices (Except equity delivery trades that is free). With Zerodha maximum brokerage you pay for any transition is Rs 20 for an order (of any size and in any segment). Zerodha does not have minimum brokerage.

Incorporated in 2010; Zerodha is 1st and No. 1 discount broker in India by volume, number of customers and growth. in short span of 3+ years, Zerodha contributes to over 2 (Rs 4 to 6k Cr) of the NSE total turnover; among 10,000+ brokers offering services to retail investors and traders.

Like other online stock trading firms, Zerodha offers trading services to buy & sell stocks, futures & options (in Equity, Currency & commodity segments). Zerodha’s share trading platform is powered by Omnesys ‘NEST Trader’. All trading platforms including trading terminal, website and mobile trading are made available to its client for free of charge.

Zerodha’s brokerage structure is very simple and very easy to understand. customer who moved to Zerodha has reported 80 – 90th saving in brokerage they pay to full-service brokers. Zerodha is among the most technologically advance and cheapest stock broker in India for all quite investors including trader simply a few times during a month to day traders who execute 100’s of trades daily.

Zerodha Trades In: BSE, NSE, MCX-SX, MCX

Zerodha Brokerage Charges & Zerodha Demat Account Reviews

Zerodha’s Trading Platforms

A customer can trade with Zerodha in following ways:

Zerodha trader – an installable application powered by ‘Omnesys NEST Trader‘ is downloaded and installed on your computer. this is often a totally functional trading terminal allowing fast execution of orders with real time monitoring. This simple to use trading terminal is available to all or any its client for free.

Web based trading platform – Kite -Launched in Nov 2015, Zerodha KITE may be a internet based html 5 light weight platform which might be used for trading on mobile, tablets similarly as browsers. using KITE paltform one will trade in language of their own choice. Zerodha has launched this platform in ten languages that makes trader a lot of confortable as most of the time english isn’t their primary language. initially it had been available in kannadda and currently available in English, Hindi, Kannada, Telugu, Tamil, Malayalam, Marathi, Bengali, Gujrati and Punjabi.

Zerodha claimed “KITE” is light weight and uses 175th of the web bandwidth comparision to traditional trading platform. it’s advanced technical anlysis charting with over 100 charting indicators and unlimited data for all stocks. KITE searches through 70,000 stocks across multiple exchanges.

Zerodha Mobile – a smart phone application for android and BlackBerry. This app allows customers to trader from their mobile phones.

Zerodha Pi – Launched in july 2015, PI is zerodha’s new and unique software featuring advanced charting, Algos, strategies, & back testing. It’s available at no cost to all zerodha’s clients. they have ten chart types with over 80 indicators. using this software trader will read up to 50,000 candles based on their system speed and configuration. they have inbuilt strategies and quick order entry screen so you’ll create your own strategies, back test them and trade directly from chart.

Call & Trade – Customers who don’t seem to be online; will use call & Trade service for an additional cost of Rs 20 per trader.

Automated Trading through AmiBroker

Zerodha online trading platform provides a plug-in for AmiBroker, the popular Technical Analysis software system. Through this a trader will trade directly from AmiBroker software within the semi-automated or fully-automated method based on his own strategies. The trader should buy the separate license from AmiBroker to use this feature. Zerodha has become the first broker in India to offer automated trading through this plug-in. Google ‘AmiBroker’ to know more about AmiBroker software system.

Trade Mutual Fund with Zerodha

Recently Zerodha has added new feature of trading in mutual fund that was one of the nice element missing with discount brokers. If you’re an existing client of Zerodha you do not need to register to buy/sell mutual funds. All mutual fund investments made through Zerodha are wholly free means that there’s no brokerage, execution costs, or hidden fees. you simply have to pay for the units of mutual funds you purchase, once purchased you’ll track the NAV of your mutual fund directly on the MF platform or q. trader will begin investing in mutual funds in demat kind along with stocks, ETFs, commodities, and currency with Zerodha.

Zerodha has an online order placement and confirmation facility for their clients to buy and sell mutual funds directly from their platform with simply a few clicks. Zerodha’s mutual fund platform is directly connected to the exchange so you’ll execute your buys and sells faster than the conventional mechanism. only SEBI regulated mutual funds are available for investment through Zerodha thus you’ll be sure about what you are purchasing.

Zerodha Brokerage Charges 2016

  • Trading Account Opening Charges (One Time): Rs 300
  • Demat account Opening Charges (One Time): Rs 100
  • Trading Annual maintenance charges (AMC): Rs 0
  • Demat Account Annual Maintenance Charges (AMC): Rs 300 per year (payable upfront)

Trading Brokerages

  • Equity Delivery Trading Brokerage: Rs 0 (Free Unlimited Equity Delivery Trades)
  • Equity Intraday Trading Brokerage: 0.01% or Rs 20 per trade whichever is lower
  • Equity Future Trading Brokerage: 0.01% or Rs 20 per trade whichever is lower
  • Equity Options Trading Brokerage: 0.01% or Rs 20 per trade whichever is lower (on Turnover)
  • Currency Futures Trading Brokerage: 0.01% or Rs 20 per trade whichever is lower
  • Currency Options Trading Brokerage: 0.01% or Rs 20 per trade whichever is lower
  • Commodity Trading Brokerage: 0.01% or Rs 20 per trade whichever is lower

Zerodha Brokerage Charges

Zerodha Charges EQUITY Delivery EQUITY Intraday
Brokerage Rs 0 0.01% or Rs 20/Trade whichever is lower
STT 0.1% on both Buy and Sell 0.025% on the Sell Side
Transaction / Turnover Charges NSE: 0.00325% | BSE: 0.00275% | MCX-SX: 0.002% NSE: 0.00325% | BSE: 0.00275% | MCX-SX: 0.002%
Service Tax 15% on (Brokerage + Transaction Charge) 15% on (Brokerage + Transaction Charge)
SEBI Charges 20 Rs/Crore 20 Rs/Crore
Stamp Charges* State wise State wise
Zerodha F&O Brokerage Futures Options
Brokerage 0.01% or Rs 20/Trade whichever is lower 0.01% or Rs 20/Trade whichever is lower
STT 0.01% on Sell Side 0.05% on Sell Side(on Premium)
Transaction / Turnover Charges NSE: 0.0021% | BSE: 0.0007% | MCX-SX: 0.0014% NSE: 0.053% | BSE: 0.0027% | SX: 0.027% (on premium)
Service Tax 15% on (Brokerage + Transaction Charge) 15% on (Brokerage + Transaction Charge)
SEBI Charges 20 Rs/Crore 20 Rs/Crore
Stamp Charges* State wise State wise
Zerodha Charges Currency Futures Currency Options Commodity
Brokerage 0.01% or Rs 20/Trade whichever is lower 0.01% or Rs 20/Trade whichever is lower 0.01% or Rs 20/Trade whichever is lower
STT No STT No STT 0.01% on Sell Side (Non-Agri)
Transaction / Turnover Charges NSE: 0.00135% | MCX-SX: 0.0013% NSE: 0.044% | MCX-SX: 0.037% Non-Agri: 0.0031% | Agri: 0.00175%
Service Tax 15% on (Brokerage + Transaction Charge) 15% on (Brokerage + Transaction Charge) 15% on (Brokerage + Transaction Charge)
SEBI Charges 20 Rs/Crore 20 Rs/Crore 20 Rs/Crore
Stamp Charges* State wise State wise State wise

 

Zerodha Charge / Fee Structure:

  • STT: This is charged only on the sell side for intraday and F&O trades. It is charged on both sides for Delivery trades in Equity.
  • Stamp Duty for all states in India and NRIs: *: Charged based on the state where customer lives. Visit Zerodha website to check the stamp duty in your state.
  • Service Tax: This is charged at 15% of the total cost of brokerage plus transaction charges.
  • SEBI Charges: This is charged at Rs 20 per Crore.

Other Charges (Zerodha Hidden Fees):

  1. Call and Trade feature is available at an extra cost of Rs 20/- per call.
  2. Digital Contract notes are sent via Email. Physical copies of contract notes can be ordered at additional charge of Rs 20/- per contract. Courier charges are extra.
  3. Trade SMS alerts (optional) are charged at Rs 1 for Equity, F&O, and Currency trade alerts and Rs 0.50 for Commodity trade alerts.
  4. Instant payment gateway charges for over 22 banks – Rs 9 per fund transfer.
  5. DP charges for delivery based equity selling – Rs 8 per transaction.
  6. Standard NSE charges, transaction charges and statutory levies are charged.

Zerodha Demat Account Charges:

Zerodha also provide Demat account DP services. Zerodha’s charges for demat account transitions are as below:

ID Transaction Charges
1 Demat Account Opening Charges Rs 0
2 Stamp Charges payable upfront (at actuals) Rs 50
3 Annual Maintenance Charges (AMC):
a. Individuals Rs 300 Per Year (Payable upfront every year)
b. Corporates Rs 1000 (Payable upfront every year)
4 Transaction Charges per ISIN (Market Trades):
a. Buy (Receive) Rs 0
b. Sell(Debit) Rs 8 + Rs 5.50 flat for every debit transaction
5 Inter Depository Transfer (Off-Market Trades):
a. Buy (Receive) NIL
b. Sell(Debit) 0.03% or Rs 25 whichever is higher
6 Demat (Per certificate) Rs 10
7 Remat (Per ISIN) Rs 15
8 Courier charges per Demat/ Remat request Rs 50
9 Pledge per ISIN Rs 20 + Rs 12 (depository charges)
10 Unpledge per ISIN Rs 20 + Rs 12 (depository charges)
11 Pledge Invocation per ISIN Rs 20
12 Periodic Statement:
a. By Email Free
b. Physical Rs 50 (Couier Charges)
13 Adhoc / Non Periodic Statement Requests:
a. By Email Rs 10 per request
b. Physical Rs 50 per request (up to 10 pages). Additional page at Rs 5 + Rs 50 (Couier Charges)
14 Delivery Instructions:
a. First Delivery Instruction Book Free (10 leaves)
b. Every Additional Booklet Rs 100 (10 leaves)
15 Cheque Bounce/ Per cheque Rs 350
16 Failed Transactions Rs 50 per transaction
17 Modification in CML Rs 25 per request
18 KRA Upload / Download Rs 50

 

Zerodha Pros and Cons

Zerodha Advantages

  • Zerodha provide equity delivery trades for free. This mean you do not pay any brokerage after you buy shares using cash-and-carry (CNC). CNC are delivery trade using CNC with no leverage. Once bought, shares can get delivered to your demat account and if sold, shares can get debited from your demat account.
  • Zerodha is among the most affordable share broker in India. they provide trades under an easy model wherever they charge 0.01% or Rs 20 per executed order, whichever is lower, regardless of the trade size.
  • Zerodha don’t charge any hidden fees i.e. software uses charges. Except brokerage, investor should pay various taxes on the truncations that is exactly same as other broker’s charges i.e. STT, Transaction/Turnover Charges, Service Tax (ST), Education Cess, higher education Cess, SEBI Charges and Stamp Charges.
  • No minimum amount balance needed to open a Zerodha trading account.
  • There is ‘No Minimum Brokerage’ with Zerodha. this can be useful with small trades wherever 0.01% brokerage [one side] is applied. Brokers like ICICIDirect charge minimum brokerage of Rs 35 if your calculated brokerage is less than that.
  • Unlike several other brokers who advertize fixed brokerage of Rs 5 per trader however ask you to however a prepaid plan of Rs 1 lakh in advance, Zerodha is that the only discount broker who does not sell any prepaid brokerage plans. It’s simply pay as you go brokerage firm.
  • algoZ; a tool on Zerodha trader allows you to code technical analysis strategies. This algorithm trading tool is available for free to all the customers.
  • Zerodha Referral Program is available for all customers. you’ll make 100% of the brokerage paid by people you refer or Rs 2 on each trade executed by your referral. This further reduces the brokerage you pay to Zerodha.
  • Zerodha offers ‘Bracket Orders’ with an option of ‘Trailing Stop loss’ for each Equity and F&O. Zerodha is that the 1st broker to offer this to retail investors in India.
  • Zerodha offers Collateral Margin or ‘Margin Against Share’ for trading in Equity and Currency F&O phase. Over 1000 approved securities (Stocks & ETFs) ar available to get collateral margin.
  • Zerodha Branches: Bangalore (Karnataka), Hyderabad (Andhra Pradesh), Pune (Maharashtra), Ahmadabad (Gujarat), chennai (Tamil Nadu), Vijayawada (Andhra Pradesh), Hubli (Karnataka), Salem (Tamil Nadu), Coimbatore (Tamil Nadu), Kanyakumari (Tamil Nadu) and Kochi (Kerala).
  • Zerodha offers facility to invest in mutual fund that generally does not offer by any discount broker.
  • Zerodha number of Customers: higher than 75,000 (as of Mar 2016).
  • Zerodha daily turn over: Rs 7000 Cr

Zerodha Disadvantages

  • 3-in-1 trading account isn’t available as Zerodha does not provide banking. Any online bank will be linked to Zerodha trading account.
  • Zerodha does not give facility to invest in ipo, FPO and offer for sale (OFS).
  • Call & Trade is available at additional Rs 20 per executed order.
  • Unlike most 3-in-1 accounts provider, Zerodha Back office is not integrated with its trading platform. it is a separate website and most data in the back office gets updated overnight.
  • Good till cancelled (GTC) and good till Date/Time (GTD) Orders are only available for commodity trading. they’re not available for equity segment.
  • Zerodha does not give margin funding to its customer. It allows you trade only when you have enough money in your trading account.
  • Zerodha doesn’t give Margin Against Shares in equity cash segment.
  • Trading clients don’t seem to be available for operating system mac and linux.
  • Zerodha does not offer trading in currency derivatives at BSE. BSE low transaction charges in this segments makes currency trading with BSE really cheap in comparison to NSE. NSE levies a transaction charge of Rs 110 on turnover of Rs 1 crore whereas BSE charges Rs 10 per crore.

Zerodha Complaints received at BSE / NSE:

Number of customer complained against Zerodha share broker. The Zerodha consumer complaints provide the summary of grievance which went to exchange for resolution.

Zerodha consumer complaints
Exchange Financial Year Number of Clients * Total Complaints **
BSE 2015-16 5,377 3
NSE 2015-16 61,970 25
NSE 2014-15 30,379 17
NSE 2013-14 17,523 8
NSE 2012-13 7,996 7
NSE 2011-12 1,163 4

* Number of active clients the broker or trading member has. As per SEBI guidelines each broker reports the newly added clients to the exchange though unique client code (ucc) process. The informaiton on this page is provided by the exchange.

** The total number of complaint received against the broker at the given exchange.

Whats new at Zerodha?

Date: 01 Dec 2015

Zerodha to offer brokerage free (Rs 0 brokerage) Equity Delivery Trades.

Date: 4th Sept 2015

Zerodha has launched its own DP business (Demat Account Services).

New Trading Account and Demat Account (T&D) forms, and only demat forms have both been updated on its website.

Zerodha will charge Rs 100 for demat account opening. The AMC is Rs 300, but we will collect it at end of the year.

Account opening fees detail:

  1. If a client is printing the T&D forms, Rs 200 for Trading + Rs 100 for Demat, total Rs 300.
  2. If a client is filling our forms, Rs 300 for trading + Rs 100 for demat, total: Rs 400
  3. If a client opts for priority, Rs 350 for trading + Rs 100 for demat, total: Rs 450

DP charges: Rs 8 + Rs 5.5 (CDSL)

For all those clients who already have trading account with Zerodha and want to migrate to Zerodha demat account, demat forms are available in the download section of our website. No account opening fees for demat for existing clients. Clients with existing ILFS demat accounts can send a closure letter along with new Zerodha demat account opening forms.

Also from now, if someone is opening only T&D or T&D&C only one copy of PAN and Address proof is required.

Onboarding clients from now should be a much better user experience.

Zerodha Exposures

  1. Zerodha Exposure for Intraday Trading – Zerodha offers 5 to 20 times exposure or leverage for stocks on which F&O trading is allowed. For most other stocks; Zerodha gives 5 times exposure. Margins are given only for Intraday trading.
    • Equity & Index futures – 40% of NRML(Normal) margin (Order squared off at 3:20pm)
    • Commodity futures – 50% of NRML(Normal) margin
    • Currency futures – 50% of NRML(Normal) margin (Order squared off at 4.30pm)Zerodha Exposure for trading in Futures – Zerodha lets clients take MIS (Margin Intraday Squareoff) positions with following margin:
  2. Zerodha Margin for Options – Zerodha doesn’t offer any margin for buying Options.

Short Selling

  1. Equity F&O Segment – Zerodha allow intraday and overnight short selling in F&O segment.
  2. Equity Cash Segment – Zerodha allows short selling only for Intraday, but not for overnight positions.

Zerodha’s Membership Information

  1. Zerodha NSE Member ID:
    • Capital Market (CM) – INB231390627
    • Future & Options (F&O) – INF231390627
    • Currency Derivatives (CDS) – INE231390627
  2. Zerodha BSE Member ID:
    • Capital Market (CM) – INB011390623
    • Future & Options (F&O) – INF011390623
  3. CDSL: IN-DP-CDSL-00278209
  4. NSDL: IN-DP-NSDL-11496000