Zerodha Review 2021: Brokerage Charges, Pros & Cons

Zerodha Review: It is one of my favorite discount broker. if you are someone who has been in the game for while or who do intraday trading then I highly recommend you to open your demat account with Zerodha.

Zerodha has a whole ecosystem of modern investment apps that are tailored to meet your specific needs. 

It was not one of the first brokerage firms but it surpassed all of the old and established players after its launch. Low Brokerage fees, Simple but professional User Interface, transparency, and many more features are reasons for it to rise to the top.

In this post, I have done an in-depth review of Zerodha to help you get detailed insights into it. 

Zerodha Review 2021: In a Nutshell

Founded a decade ago, Zerodha is the No.1 brokerage firm in the country. The platform has 5 million+ clients as of 2021 which contribute 15% of India’s daily retail order volume. The firm is firmly gripped in the market with valuing itself at $1 Billion as of 2020.

Zerodha lets you trade in Stocks & IPOs, Bonds & Government Securities, Commodity derivatives, Currency derivatives, Futures & Options, and Direct mutual funds. The fees on all of it are a bare minimum and that is why it has a wider client base than any other brokerage firm in the stock market.

Zerodha offers 3 products on its platform.

  • Kite: Kite is a trading and investment platform available on both browsers and Smartphones that takes modern needs into consideration and Combines cutting-edge innovation for ease of use.You can easily trade in the share market using Kite.
Kite by Zerodha
  • Coin: Coin by Zerodha is India’s biggest private equity fund platform, allowing you to buy direct mutual funds on the go online without direct refunds from asset management firms.
  • Varsity mobile: It is an easy-to-understand database of stock exchange tutorials and e-books with detailed descriptions and illustrations. The content is divided into small index cards so that you can learn anytime, anywhere on the go.
Varsity By Zerodha

Key Features that Make Zerodha stand out.

  • Zerodha Watchlist: This feature allows users to add their favorite stocks and indices to a watchlist that is easily accessible and you don’t need to search for every stock every time. All your marked stocks listed in the stock market are in one place.
  • Create your own Small case: Zerodha has an integrated smallcase feature that gives you access to 60+ readymade portfolios. Each is associated with market themes and investment strategies , which will help you make informed decisions about the flow of your funds. At the same time, it can be seamlessly integrated into Zerodha, allowing you to purchase and manage investment portfolios with just 2 clicks.
  • After Market Option: The AMO function allows you to place an order in the stock marker for the next trading day. This feature is useful for those investors who cannot actively monitor the stock market activity during the real-time trading hours of 9:15 in the morning to 3:30 pm.
  • Systematic Investment Plan (SIP): This function aims at automating your investment by establishing an order basket of your trades. Users can set up 5 schedules daily for every half hour between the stock market operating hours i.e 9:30 in the morning to 3 pm.
  •  Deposition of Funds: Adding funds to your Zerodha account is easier than ever. Zerodha allows addition through UPI and with instant payment gateways through NEFT/ IMPS/ RTGS methods.
  • Tagging feature: This feature is designed for analyzing your transactions/investments.  It helps to track the specific rationale for trading on the P&L declaration or the holdings/positions page. Therefore, it works as your trade notebook to show your up-to-the-mark performance.
  • Kill Switch Feature: To save its users from the dangers of over-trading, Zerodha has come up with ‘kill switch.’ If you are losing, this new function can assist you to deactivate trading and control risks instantaneously, and force you to stop trading in the stock market. When a section is disabled, only 12 hours later may you re-enable it. 

Leading-edge over competitors

  • The ecosystem: Zerodha has a well-built ecosystem spanning from mobile applications to web-based tools and even open-ended APIs. This umbrella of Zerodha allows you to trade from anywhere at any time.
  • Lowest brokerage rate: Zerodha has the lowest brokerage rates in the market. The maximum it charges is Rs 20 for every trade, which is 60 to 90% economical as compared to traditional trading charges.
  • Free market education: Varsity by Zerodha is free to use, open database of content related to financial education. It is available for everyone and is one of the biggest databases of its sort on the whole internet.
  • Trading tools: Zerodha has tons of indicators such as Relative Strength Index (RSI), Moving Average Convergence and Divergence (MACD), Stochastics divergence, to name a few. You can even mix up indicators if you wish by adding one over the other. Charts of historical data and future assumptions along with other drawing tools make Zerodha rich in terms of trading tools.
  • User Interface: With a stylish yet sophisticated user interface, you can do buying, selliing, analyzing and managing your portfolio with just a few clicks. The ability to use intuitive keyboard shortcuts to easily navigate the applications makes it more convenient and user friendly.
  • Partner platforms: Zerodha has partnered with Smallcase (Thematic investment platform), Sensibull (Options trading platform), Streak (Algo and strategy platform) and GoldenPi (Bonds trading platform). All these platforms will help you to choose a diversified basket of stocks according to your preference.

Zerodha Fee structure

Account opening : 

Task Fees 
Trading and Demat account opening Rs 200/300 depending on your trading type.
Trading account yearly maintenance FREE
Demat account yearly maintenance Rs 300 p.a.
NRI Account Opening (offline only)Rs. 500

Brokerage Charges : 

Segment Fees 
Stock Delivery FREE Rs 0
Stock Intraday Rs 20 or 0.03% (whichever is lower is charged) for every executed order 
Stock FutureRs 20 or 0.03% (whichever is lower is charged) for every executed order 
Stock Options Rs 20 for every executed order.
Currency Future/ Currency Options Rs 20 or 0.03% (whichever is lower is charged) for every executed order 
Commodity Rs 20 or 0.03% (whichever is lower is charged) for every executed order 
Mutual Funds (Direct)FREE (Unlimited quantity) 

List of some hidden charges by Zerodha:

  1. Call & Exchange requires an extra charge of Rs 50 rupees per call.
  2. The digital notes of a contract are sent via email. But a physical copy of the same can be requested at an additional cost of 20 rupees per contract. The courier fee will be paid separately.
  3. SMS transaction alert (optional) has a calculation fee of 1 rupee for stock, Future, and Options, and foreign exchange transaction alerts, and a calculation fee of 0.50 rupee for commodity transaction alerts.
  4. Instant charge gateway fees for 22+ banks: 9 rupees for every transaction.

Check the detailed list of every fee charged Here

Account Opening process with Zerodha

To open a Zerodha account, you need to first visit their official website.

i) Once you’re there, enter your mobile number and then the e-mail. Both will be verified using an OTP.

ii) After the verification of both, you’ll be asked to enter your Pan Card details. Fill them correctly and continue further.

iii) In this step, you’ll have to make a payment for your account.

Pay the sum via your preferred payment mode and it’s done. You’ve successfully opened your account with Zerodha.

iv) However, It doesn’t end there. You need to complete a few formalities like link your Aadhar (through Digi locker) and submit your bank details along with a digital copy of your PAN.

A photo verification will also be done.

That’s all of it. The account opening process is not much of a hassle.

Frequently Asked Questions

Q1. Is Zerodha good for beginners?

Ans: Zerodha is a trading platform for people who can independently trade without anyone’s help. Zerodha as a platform is very user-friendly and clear even for beginners but Trading is subjected to market risks for everyone. So make sure you have proper knowledge of what you’re doing before actually investing through Zerodha.

Q2. How long will it take to open a Zerodha account?

Ans: Once you’ve successfully completed your KYC process, Your account should be up and running in 24-48 hours of working days. If there is an issue with your KYC documents, it may cause a delay.

Q3. Can I open 2 Demat accounts with Zerodha?

Ans: No, It is not possible to open more than one individual account with Zerodha. However, if you want another Demat account, you can open it with some other broker.

Q4. Can I open a Zerodha Demant and Trading account without Aadhar card?

Ans: Yes, it is possible to open a Zerodha Demat and trading account without Aadhar, but only via an offline method. Aadhar is mandatory if you want to open an account via the online method.

For an offline method to open a Zerodha Demat and Trading account click here.

Q5. Is my money safe with Zerodha?

Ans: Absolutely Yes. Zerodha is regulated by SEBI (Securities and Exchange Board of India) which is under the Ministry of Finance. Zerodha is also a debt-free company and has not been involved in any violation to date.

Final Thoughts

Zerodha is the No.1 broker company in the country because I personally feel that it offers unmatched quality at an economical price. The users are so satisfied with it that the company has the lowest complaints to active clients ratio in the market.

Investing with Zerodha is very safe and secure, not just that, the company is totally debt-free. I would recommend Zerodha to all of our users without a second thought. 

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