If you are looking to trade in stocks in India or have already started, chances are you are familiar with Zerodha.
And why not? It is by far the most popular and well-known discount broker in India. People, who have less money to invest and don’t want to give much amount as a commission to a brokerage broker, often choose a discount broker.
There are numerous discount brokerage firms in India, and if we talk about the leading one, the name that comes up is Zerodha.
So, in this article, we will dig deeper and will walk you through an in-depth review of the company, and its features that grab so many investors to join with them.
Besides, you will come to know about the pros and cons of Zerodha in various aspects.
So, let’s start the context with,
What is Zerodha?
Zerodha is one of the most popular and trusted online brokers in India, offering low-cost trading and investment services to millions of customers. Zerodha was founded in 2010 by Nithin Kamath, a former stock trader who wanted to create a platform that would democratize access to the financial markets and empower retail investors. In terms of number of users, Zerodha is currently at the top in India. A big reason, people prefer to choose Zerodha, is as it offers free investment options in various mutual funds and equities.
The platform offers a very clean and intuitive online investment interface. Zerodha has been recognized as one of the best brokers in India by various media outlets and industry awards. Zerodha has also been praised for its customer service, transparency, and social responsibility.
Zerodha has a dedicated support team that is available 24/7 via phone, email, chat, and social media. Zerodha also publishes its financial statements and other relevant information on its website for the public to see.
Pros of Zerodha:
Zerodha is one of the leading online stock brokers in India, offering a range of services and products for investors and traders. Here are the pros,
Advanced trading platforms:
Zerodha provides multiple platforms for different types of users, such as Kite (web and mobile), Console (back office), Coin (mutual funds), Varsity (education), Streak (algo trading), Sensibull (options trading), and more. These platforms are user-friendly, fast, and feature-rich, offering various tools and analytics for trading and investing.
Trusted company:
Zerodha has taken the crown for the most popular discount broker for a while and it makes them very trustworthy. The first point that investors should look at before joining any discount broker, is whether it is trustworthy or not. If your discount broker is not legitimate, you may face various troubles after joining. They offer the largest number of investors and they all use Zerodha for a good reason.
Zerodha is a member of NSE, BSE, MCX, and NCDEX, and is regulated by SEBI. They follow strict compliance and security measures to protect their client’s funds and data. They also disclose their financial statements and other relevant information on their website for public scrutiny.
Now let’s talk about the brokerage charges.
Low charges:
As you already know discount brokers charge minimum and new investors with little capital can start their journey with them. However, there are two types of discount brokerage firms available.
- One that charges a percentage for the amount of trade.
- The second one is, they charge a fixed amount on each trade.
Zerodha charges a flat fee of Rs. 20 or 0.03% (whichever is lower) per executed order for equity delivery, intraday, futures, options, commodity, and currency trading. This is significantly lower than most other brokers who charge a percentage of the trade value or a minimum amount per order.
No matter what amount you are putting and pulling back, you only need to pay a fixed Rs.20 per trade. That makes it very lucrative for investors. No matter how big amount it is. For buying the shares you need to pay Rs.20 and to sell you need to pay Rs.20. Rs. 40 a day as the brokerage charge. Now, if you trade 25 days a month, that would be 25×40= 1000 only. For a year, it is 12000. Compared to other discount brokers, it saves a huge.
Complete online account opening:
Another great benefit with Zerodha is, you do not need to complete any paperwork to open your account. Now, most of the companies in this financial line are offering the online account opening process, be it opening a bank account or something else. Hardly the video KYC and that’s it, you don’t even need to visit the bank. That’s too with Zerodha. They offer a 100% paperless process for account opening. However, there is an account opening charge, and depending on the type of demat account, the amount is charged.
More surprisingly, there are no brokerage charges for delivery-based transactions at all.
Cons of Zerodha:
Zerodha is one of the leading online stock brokers in India, offering low-cost trading and investment services to millions of customers. However, like any other service provider, Zerodha also has some drawbacks that you should be aware of before opening an account with them. Here are some of the cons of Zerodha:
No 3-in-1 accounts:
Zerodha does not offer 3-in-1 accounts, which means you need to link your bank account and demat account separately with Zerodha. This can be inconvenient for some users who prefer to have everything in one place.
Charges are not great for small trades:
Zerodha charges a flat fee of Rs. 20 per order for intraday and F&O trades, regardless of the order size. This can eat into your profits if you trade in small quantities or low-value stocks.
No reports and recommendations:
Zerodha does not provide research reports, recommendations, or advisory services to its clients. You need to do your own analysis and research before placing any trades on Zerodha’s platform.
Poor customer support as claimed:
Zerodha’s customer service is often criticized for being slow, unresponsive, or unhelpful. Many users have complained about facing technical issues, glitches, or delays while using Zerodha’s website or app, and not getting timely or satisfactory resolution from the customer support team.
No margin funding:
Zerodha does not offer margin funding or leverage for delivery trades, which means you need to have sufficient funds in your account to buy or sell stocks. This can limit your trading opportunities and returns if you do not have enough capital to invest.
Zerodha products and features:
To offer the clients a super and easy trading experience, Zerodha has built its own trading application which is called Kite. This application not only offers a website experience but also, offers service to smartphone users of both Android and iOS users.
It is basically a powerful and next-generation trading platform that streamlined all marketing data and offers them intuitive and easy-to-understand charts. Be it desktop, Android, or iOS, you get a responsive and super-fast user experience.
Just like Kite, Coin is yet another platform that allows you to buy mutual funds online. It is also offered by the Zerodha. Once you join Zerodha, you do not need to go somewhere else to invest in various mutual funds.
Are you interested in Zerodha and want to join? it’s very simple. Here are the steps.
- Visit the Zerodha website and click on the “Open an account” button.
- Fill in your personal details, such as your name, email, phone number, PAN, Aadhaar, and bank account details.
- Â Upload the required documents, such as your identity proof, address proof, income proof, and signature.
4. Pay the account opening fee of Rs. 200 for equity and Rs. 100 for commodity segments.
5. Complete the e-sign process using your Aadhaar-linked mobile number.
6. Wait for the verification and activation of your account, which may take up to 24 hours.
7. Once your account is activated, you will receive your login credentials and access to the Zerodha platforms, such as Kite, Coin, Console, and Varsity.
Verdict:
Zerodha is an online brokerage firm that offers low-cost trading and investment services in India. Like all other platforms, it has some advantages and disadvantages. Besides all of the cons, it is a trusted platform that offers an excellent discount brokerage experience with its innovative and high-class products.
Hope you find this Zerodha review helpful. Explore similar content below.
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