Zerodha Review 2022

Zerodha is the leading stockbroker in India with the highest client base of over 50 lakh users. 

Zerodha started the discount brokerage model in 2010 to provide brokerage services at cheaper rates. 

Earlier, full-service brokers like Motilal Oswal, Sharekhan, or ICICI Direct were charging very high percentage based brokerage plans. You can see such plans today as well, like ICICI Direct charges 0.55% on stock delivery and 0.275% on intraday. 

Zerodha was the first to offer a flat fee of Rs. 20 per order irrespective of the trade volume. 

Let’s have a quick go-through with the Pros and Cons of Zerodha before we go into a detailed review discussion.

Pros

  • Low brokerage fees
  • Free stock delivery 
  • Easy to use advance trading platforms
  • Fast account opening process
  • Good customer support

Cons

  •  Sometime servers slow down during the peak trading hours

Zerodha Charges Details 

#1. Zerodha Account Charges 

Type of ChargesDetails
Account Opening ChargesEquity – Rs. 200
Commodity – Rs. 100
Maintenance ChargesRs. 300 annually (Rs. 75 per quarter)

If your mobile is not linked with your Aadhaar card, you can open the account offline but you have to pay higher  charges

  • Offline account opening charges – Equity: Rs. 400 and Commodity: Rs. 200

So, I would suggest you to open the demat and trading account online which would take 24 hour to 48 hour on completing the account opening process. 

#2. Zerodha Brokerage Charges Details 

Zerodha charges a lower of Rs 20 or 0.03% of the trade volume. For example if you make trade Rs 50,000 then the brokerage charges would be Rs 15 

Lower of Rs 20 (fix brokerage) or 0.03% of 50,000 = Rs 15 

SegmentBrokerage Fee
Equity DeliveryFree
Equity IntradayRs. 20 per executed order or 0.03% (whichever is lower)
Equity FuturesRs. 20 per executed order or 0.03% (whichever is lower)
Equity OptionsRs. 20 per executed order
Currency Futures & OptionsRs. 20 per executed order or 0.03% (whichever is lower)
Commodity F&ORs. 20 per executed order or 0.03% (whichever is lower)

#3. Value-Added Services Charges

Zerodha Value Added Services Charges

#4. Other Charges

  • Depository(DP) Charges – Rs. 13.5 (charged by CDSL + Zerodha on the selling of stocks bought in delivery)
  • Pledging Charges – Rs. 30 
  • Call and Trade Charges – Rs. 50 per order
  • Off-market transfer charges – Rs. 25 or 0.03% of the transfer value (whichever is higher).
  • Payment gateway charges – Rs. 9 per transaction except for UPI (No charges on UPI)
  • Delayed Payment Charges – Interest charged 18% a year or 0.05% per day on the debit balance 
  • Mutual Funds Commission – Zero
  • GST – 18%

About Zerodha 

Zerodha started its operations on 15 August 2010 and became the first broker in India to  start a discount brokerage system. 

Zerodha offered the flat fee brokerage system by introducing Rs. 20 per order brokerage.

In 2020, Zerodha became the largest broker in India with 50 lakh clients. Zerodha claims to contribute over 15% of daily retail orders in India through trading and investing.

Zerodha offers a high-end trading platform “Kite” that they have improved a lot over the years, and work is still going on. 

You can also invest in other assets like mutual funds investments, bond investment, and IPO subscriptions through Zerodha. 

Zerodha has partnered with other companies like Sensibull or SmallCase for options trading and strategy-based stock investment. You have to pay additional fees for that. 

Zerodha Margin Details

Delivery Margin 

Zerodha doesn’t provide margin on equity delivery (NRML). You can only get margin in intraday (MIS) and cover orders (CO).

Intraday Leverage

SegmentMargin Leverage
Equity52% of the VaR+ELM+Adhoc mandated by the exchange
Index F&OTotal of 52% of (SPAN + Exposure)
Stock F&OTotal of 52% of (SPAN + Exposure)
Currency Futures2X(52% of NRML margins)
Commodity Futures2X(52% of NRML margins)

Cover Orders Leverage

SegmentLeverage /Margins
Equity30% of the VaR+ELM+Adhoc mandated by the exchange
Index F&O2X(52% of NRML margins)
Stock Futures2X(52% of NRML margins)
Currency Futures2X(52% of NRML margins)
Commodity Futures2X(52% of NRML margins)

 

Zerodha Trading Platforms

#1. Zerodha Kite Web

Zerodha Kite

Zerodha Kite is an easy-to-use trading platform with a minimalistic design. You get everything in one place such as market overview, orders, holdings, positions, and funds details.

You can use shortcuts to quickly navigate the platform. Use shortcuts like 

  • Press “o” from the keyboard to move to the orders section. 
  • “P” for the positions section, 
  • “f” for funds, 
  • “a” for the dashboard.

You can also access Level 3 data up to 20 bids and offers for better analysis of market trends.

Market depth Zerodha

You get above 100 charting indicators such as Candlesticks, Bollinger bands that help you access the market trends in advance. 

Pros of Zerodha Kite

  • Sleek user interface
  • Even works at slow internet speed
  • In-depth market analysis
  • 100+ technical indicators 
  • Integration with other platforms such as coin, console 

Cons of Zerodha Kite

  • Backtesting of strategies not available
  • Can’t buy IPO from Kite. You need to go to “Console”

#2. Zerodha Kite Mobile

Zerodha Kite app

Kite app is a lightweight and fast mobile app designed for mobile traders. You can trade stocks, invest in mutual funds, and learn about stocks in varsity through the Kite app.

Kite has integrated with other apps like Coin, Varsity, and Console making it one place to access other apps.

Pros of Zerodha Kite

  • Minimalistic app UI
  • Lightweight, faster app
  • Multi apps integration like coin and varsity
  • Invest in IPO as you can open the Console from the Kite app

Cons of Zerodha Kite

  • App stutters in peak hours sometimes

Zerodha Additional Product  

#1. Console

Zerodha Console

The Console is a central reporting dashboard that provides you with the details of your trading, profit & loss statements, contract notes, and many other reports.

You can also invest in IPOs (Initial Public Offering) through the console. You can pay through  UPI for placing IPO bids.

#2. Coin

Zerodha Coin

Zerodha’s coin is India’s largest direct mutual fund investment platform with 2000+ commission-free direct mutual funds from more than 40 mutual fund houses.

You can check out various fund schemes like equity, debt, ELSS and sector-wise data to make your understanding before investing.

#3. Varsity

Varsity Mobile

You can also learn about stock investment through Zerodha’s Varsity Mobile app. You get in-depth knowledge about stocks through cards and illustrations. 

Varsity has three difficulty levels to make your stock learning interesting. You get a quiz at the end of each lesson to recall what you learned.

You also get a virtual certification on completion of each module to boost your morale.

#4. Sentinel 

Sentinel

Sentinel allows you to create personalized market alerts on 90,000+ stocks, bonds, commodities, F&O contracts, and currencies across various exchanges.

You can set up basic alerts based on price, trade quantity, volume, and open interest. 

You can also create advanced alerts using mathematic expressions similar to ExcelFormulas.

For example, suppose INFYcurrent price is 700, you can set the condition as below –

LastTradedPrice(‘NSE:INFY’) >= 800

When INFY touches or crosses 800, the trigger will generate an alert for you. There’s no time limit, so you can set your alerts for future prices.

Zerodha Partner Products 

Zerodha has partnerships with other companies to provide wider investment opportunities to the customer. You can directly link your Zerodha account with the partner products to start using the portals. 

#1. Sensibull

Sensibull

Sensibull is designed for option traders to build option trading strategies. 

You can compare different “options” side by side to know which will work best for you. You can run various complex strategies such as Spreads, Butterflies, and Condors with a single click.

Sensibull also allows you to do virtual trading so that you can practice options trading without putting your real money at risk.

Sensibull has now introduced the “Social trading” option to copy strategies of other experts, get your trades on WhatsApp, and execute with a single click from your phone’s notifications.

#2. Small Case

Small Case

If you don’t have a fundamental knowledge of stocks, but you want to invest in stocks for the long term, then you can go with SmallCase.

You can build a diversified portfolio in stocks through theme-based investment strategies.

Where you can invest through readymade strategies such as

  • All-Weather Investing – Long-term investment strategy that invests in equities, debt, and gold.
  • Top 100 Stocks –  Invest in top 100 market cap companies using Nippon India ETF Nifty Bees and Nippon India ETF Junior Bees.
  • Dividend Aristocrats – investing in companies that pay high dividends

You can access hundreds of other strategies as per your requirements.

#3. Streak 4.0

Streak 4.0

Zerodha streak is a cloud-based Algo-trading platform, where you can create your stock trading strategies. 

You can not only backtest your strategies but also, you can pick readymade strategies and then edit, backtest or deploy those strategies as per your requirements.

The Streak has 3 sections –

  • My Strategies – You can create your own strategies.
  • Discover – Streak publishes strategies for user understanding
  • My Picks – Strategies that you picked from the Discover 

#4. GoldenPi

GoldenPi

Zerodha has partnered with Golden Pi to help its clients invest in debt securities such as bonds, and treasury bills.

You can also invest in Sovereign gold bonds, PSU or corporate bonds if you prefer safer investments. 

Golden Pi allows you to invest in the categories below –

  • Ultra short term bonds
  • Tax free bonds
  • Public sector bank bonds
  • Highly safe bonds
  • Bonds for senior citizens
  • State government guaranteed bonds

Zerodha Customer Care

Discount brokers are still lagging behind the full-service brokers for providing customer support. But if we compare Zerodha’s customer service to other discount brokers, then it is far better than any other discount brokers. 

You may come across some tweets on Twitter complaining about the Zerodha platform. 

Issues happen with Zerodha’s trading platform, especially at peak times. But the best part is Zerodha customer support responds to your queries. 

Zerodha has a 48 hour timeline to close a ticket. So, they respond to every ticket raised.

If you have a complaint, then the best way is to raise a ticket and tweet mentioning your ticket number.

#1. Raise a Ticket

You can raise a ticket with the log-in Zerodha support team to resolve your issue. You can visit Zerodha Support portal to create a ticket.

  • Select any relevant topic from the given list.
Zerodha ticket topics
  • Scroll the page down and click on “Create a ticket”.
Zerodha ticket
  • Now select “Yes or No”, if you have a Zerodha account or not.
Zerodha account yes no
  • If you are a Zerodha user, you can login with Kite. Otherwise, fill the details as given in the snapshot and click on “Create a Ticket”.
create ticket zerodha

The customer support team will call you back once your ticket is created. 

#2. Customer Care Number

Account OpeningTrading SupportCall & Trade
080 4719 2020 
080 7117 5337
080 4718 1888
080 4718 1999
080 4718 1888 

You need a “Support Code” while calling Trading Support and enter the code when the IVR machine asks you so. Only then you can reach out to the trading support representative.

You can find your “Support Code” in your Console panel. 

Steps to get the support code –

Step 1 – Go to Console.zerodha.com and log in with your “Zerodha Kite” credentials. 

Step 2 – Click on the Account menu.

Console dashboard

Step 3 – In the Account section, you can locate the hidden support code. Click on “View” to unhide the code.

Zerodha Support Code

Note down the support code to use with customer support.

Zerodha Advantages

  • No brokerage charges on equity delivery
  • Low brokerage is ideal for the heavy trader
  • Level-3 historical data and 100+ indicators for better analysis
  • Create personalized alerts
  • Also invest in IPOs, mutual funds, and bonds 
  • No commission on the mutual funds’ investment
  • Better customer support
  • Partnered with other high-end platforms like Sensibull, GoldenPi, and SmallCase for options trading and long-term investing.

Zerodha Disadvantages

  • Server crashes sometimes during peak hours
  •   No Margin leverage on delivery

Check out – Motilal Oswal vs Angel Broking

Zerodha Account Opening Process

Step 1: Visit Zerodha Signup Portal

Go to the Zerodha website and click on “sign up now”. 

Zerodha homepage

Step 2 : Enter Your Details 

#1. Enter Mobile Number

Enter your Mobile Number and Click on ‘Continue’. You will receive an OTP (One Time Password) on the same mobile number.

Zerodha signup page

Enter the OTP, and click on ‘Confirm’.

You will be redirected to another page to fill in your details.

#2. Email Address 

Enter your Full name, email id and Click on ‘Continue’. You will receive an OTP on your email address.

Zerodha email otp

Fill that OTP and click on ‘Continue’.

Step 3: Enter Your Pan Card Details

Enter your PAN card number, Date of Birth and click on “Continue”.

Zerodha Pan and dob

Step 4: Fees To Be Paid

You have to enter your account opening fee. You get 2 options here –

  • Equity: 200 rupees
  • Commodity: 100 rupees

Equity is a must if you want to invest in the stock market. The commodity is optional. You can go with the commodity option if you want to invest in commodities.

Zerodha charges

You can select either UPI or Netbanking/Cards to pay the fee. Enter details and click on ‘Pay & Continue’.

Step 5: Bank Account Details

Once the payment process is completed, you must enter the bank account details such as savings account number and IFSC code.

Zerodha Link Bank

Step 6: Fill Background Information

#1. Enter personal information

Entered the background details such as mother’s name, marital status, and occupation details.

Zerodha background details

#2. Give your consent

Tick on all the 4 checkboxes for your consent & declaration. Then click on “Continue”.

Zerodha consent

Step 7: In-Person-Verification (IPV)

Now you have to complete your In-Person-Verification.

If you are filling in your form from your smartphone you can use the front camera to complete the verification.

Otherwise, you need a webcam if you are filling through a desktop or laptop.

Write the shown OTP on blank paper or your mobile phone screen and stand in front of the webcam.

zerodha-IPV

Your face and OTP both must be in the frame and visible, then click on “Start IPV” and then “Take Video”.

Step 8: E-Sign Application

You have to digitally sign the application using your Aadhaar card and click “Continue”.

Zerodha-Digital-Sign

You’ll be redirected to the “Digio or Digilocker” website to save your documents and e-sign the form.

Zerodha Digilocker

Signup with digilocker and allow it to access your documents. 

Note: You can click on the “I’ll print & courier” option if you want to open the account offline.

#9. Upload Your Document Proofs

#1. Upload Bank Proof

Canceled cheque – Upload a personalized canceled cheque as bank proof. 

A personalized canceled cheque is that cheque that has your name printed on it and you write a big “CANCELED” across it.

Bank Statement – You can also upload a bank statement if you don’t have a personalized cheque. But make sure your bank statement must contain –

  • Your name
  • Bank account number
  • IFSC and MICR codes
Zerodha Upload documents

#2. Income Proof

If you want to trade in the Commodity, you have to upload the latest income proof. 

That could be – 

  • Copy of your latest ITR
  • Last month’s salary slip
  • 6 months bank statement

Step 10: E-Sign Equity

After document uploading, scroll down the page, then you will see an option to eSign Equity

Zerodha esign

NSDL Verification

You’ll be redirected to the NSDL website for Aadhaar verification. Enter your Aadhaar number and click on “Send OTP”.

NSDL verfication

You’ll receive OTP on your mobile number linked with your Aadhaar card. Make sure your mobile is already linked.

Fill in the OTP and click on verify OTP. 

A new window will be opened and You’ll see an application form. Scroll down to click on “e-sign now”. 

Final Words – Why You Should Open a Zerodha Account?

Zeroda is an ideal discount broker for beginners as well as advanced traders. Zerodha brokerage plans and educational resources are suitable for beginners and fully equipped trading platforms are best suited for the advanced traders’ needs. 

Zerodha provides you a seamless online account opening process that allows you to open an account within 48 hours.

Open Zerodha account due to 

  • Free stock delivery 
  • Lower brokerage fees for trading 
  • Advance trading platforms 
  • Better customer service

FAQs

#1. Is Zerodha good for beginners?

Yes. Zerodha is good for beginners as well as professional traders because you have to pay less brokerage fees and you get an easy-to-use platform.

#2. What are Zerodha brokerage charges?

Zerodha charges 0.03% or Rs. 20 per order whichever is on the lower side.

#3. Can I open a Zerodha account online?

Yes. You can open your Zerodha account online by visiting the Zerodha website.

Make sure that your mobile number is linked with your Aadhaar card.

Secondly, you have access to the mobile number linked with your Aadhaar card when you fill the Zerodha application form online.

#4. Can I open a Zerodha account without Aadhaar?

Yes. You can open a Zerodha account without an Aadhaar number but you have to follow the offline process.

In which, you will signup with Zerodha and fill the form online. You’ll get the option of the “I’ll print and courier” option at the last point.

You just print the application form. Duly sign and send the form to Zerodha head office along with supporting documents.

#5. Can I open a Zerodha account on Sunday?

Yes. You can apply for a Zerodha account on any day of the week and at any time throughout the day. 

If you apply on Sunday, your application will be processed within the next 2 working days.

#6. Can I open a Zerodha account without Income Proof?

Yes. You can open a Zerodha account without income proof as well. Income proof is required if you want to trade in Future and Options or Commodities.

Then you have to produce your last 6 months’ income proof.

#7. Can I open a Zerodha account in lockdown?

Yes. Since the Zerodha account opening process is online and you can easily open your account from the comfort of your home.

But make sure your mobile number is linked with an Aadhaar card to complete the online KYC process.

#8. Can I close the Zerodha account?

You can close Zerodha accounts by visiting their website and raising a ticket

There’s no complete online process for account closing but you can do the initial steps online and then print the form and courier it to Zerodha head office.

#9. Can Zerodha be used for mutual funds?

Yes. You can use Zerodha for commission-free direct mutual fund investing. 

Earlier Zerodha used to charge Rs. 50 per month for mutual funds investment but now it’s free.

#10. Why Zerodha is better than Upstox?

Zerodha is better than Upstox in the points below –

  • Easy user interface for trading platforms
  • Low brokerage percentage than Upstox. Upstox charges 0.05% or Rs. 20 per order but Zerodha demands 0.03% or Rs. 20 per order
  • Better customer support. Zerodha deals the ticket raised within 48 hours but Upstox customer support is slow in resolution.

#11. How is Zerodha brokerage calculated?

Zerodha charges brokerage at 0.03% or Rs. 20 per order (whichever is lower) and Zero brokerage on equity delivery.

Scenario #1. Stock Delivery

Suppose you are investing Rs. 1,00,000 in 1000 stocks for the long-term. You buy all your stocks on delivery at Rs. 100 per share price.

Total brokerage = ZERO.

Scenario #2. Low Volume Trading

Buying

Suppose you bought 100 stocks at Rs. 100 per stock. Your cost of stocks would be Rs. 10,000.

If calculates with 0.03%, the brokerage would be 10,000 X 0.03% = Rs. 3

Since Rs. 3 is lower than Rs. 20, you would pay Rs. 3 as brokerage.

Selling

Now you sold all the 100 stocks on the same day at Rs. 105 per stock. Total amount Rs. 10,500.

The brokerage would be 10,500 X 0.03% = Rs. 3.15

Total brokerage = Rs. 3.00 + 3.15 = 6.15.

Scenario #3. High Volume Trading

Buying

Suppose you bought 1000 stocks at Rs. 100 per stock. Your cost of stocks would be Rs. 1,00,000.

If calculates with 0.03%, the brokerage would be 1,00,000 X 0.03% = Rs. 30

But you would pay for the lower side. 

Means Rs. 20 only as brokerage on buying the stocks.

Selling

Suppose you sold 1000 stocks at Rs. 105 per stock. Your selling amount would be Rs. 1,05,000.

You have to pay Rs. 20 as brokerage at the time of selling as well.

Total brokerage = Rs. 40.

About Raghav

Raghav is an investment analyst with a commerce education background who loves to write & share his investment ideas.

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