Zerodha Review 2020
Zerodha Review 2020, here, is intended to discuss about the Zerodha brokerage and other traits associated with it. Let us start with basic introduction, Zerodha is an Indian stock broker(member of NSE, BSE, MCX, and MCX-SX) that allows flat-fee equity investments and trading in currencies and commodities market. The Zerodha review of the year 2010, had notified the discount pricing version and revolutionary approach of Zerodha. The stock broking company is headquartered in Bangalore and has the physical presence in many Indian cities like Hyderabad, Pune, Ahmadabad, Chennai, Vijayawada, Hubli, Salem, Coimbatore, Kanyakumari, and Kochi etc. Being the member of NSE’s consultative committee for developing the enterprise, it has been well known for low brokerage rate i.e. Rs 20 per executed order.
Account Opening Procedure of Zerodha
To Open the New Account in Zerodha, Following Documents are required
- Address proof of client (PAN Card)
- Passport size photograph of client
- 2 cheques – one canceled cheque and other cheques filled with account opening fees.
Demat Account Opening: If you want to open a Demat account with them, you can do that. There’s a Demat account opening charge of Rs.200. In case you are a dealer (F&O), you don’t need a Demat account however in case you plan to do transport primarily based trading you’ll need a Demat account. You need a Demat Account only to trade in delivery based equity trading. The shares will be displayed in your Demat Account on T+2 day. If you are trading in F & O whether you’re an Intraday trader or a positional trader, you don’t need a trading account. AMC is Rs 300.
Trading+ Demat Account – So if you want to open the Demat + Trading account, the charge here is Rs. 300. If you want to open commodity account additionally, the additional fee for this is Rs. 200. The stock broker offers an online trading account to trade in stocks, derivatives, indices, and currencies on NSE and BSE. Trading can be done through a web based platform or a mobile app and Call & Trade option. All settlements on a Trading Account takes place on T+1 day. There are no Annual Maintenance charges (AMC) for Trading Account.
Commodity Account Opening: The charges for opening commodity account are an additional Rs. 200. There are no Annual Maintenance charges for Commodity Account opened in Zerodha. There is no need for a Demat Account for trading Commodities. The Account opening charges for commodity trading is Rs 300. Commodity Options are still not commenced in India.
Zerodha Brokerage Charges
|Equity Delivery||0.10% of turnover or Rs. 20 per trade whichever is lower|
|Equity Intraday||0.01% of turnover or Rs. 20 per trade whichever is lower|
|Equity Future||0.01% of turnover or Rs. 20 per trade whichever is lower|
|Equity Options||0.01% of turnover or Rs. 20 per trade whichever is lower|
|Currency Futures||0.01% of turnover or Rs. 20 per trade whichever is lower|
|Currency Options||0.01% of turnover or Rs. 20 per trade whichever is lower|
|Commodity||0.01% of turnover or Rs. 20 per trade whichever is lower|
Other Hidden Charges related to Zerodha
STT (Security Transaction Tax): This is charged simplest on the sell side for intraday and F&O trades. It’s far charged on both aspects for delivery trades in equity.
Stamp Duty for every state in India: Charged at .01% or Rs. 50 per contract but however will depend on which state you are from.
Transaction fee: In very small and is within the range of .00325% for delivery based totally, .0021% for futures and .053% for options.
Service tax: That is charged at 14% of the whole fee of brokerage plus transaction prices. So this could vary as the transaction fee varies based on the price of change.
SEBI expenses: that is charged at Rs 20 per crore.
Trading Platform & Mobile Apps
Zerodha Review also highlights Trading Platforms List:
- Zerodha Trader (Desktop application) Platform
- Web (html5) called Z5 Trading Platform
- Mobile Trading Platform
- Offline Trading Platform (Call and trade with a cost of Rs. 20/call)
- Plug-in provided with AmiBroker
Customer Support Services
The customer care services are not good. The brokerage firm has decent client base but it is found that the stock broker is unable to fulfill and resolve clients’ queries on time. Clients are often found complaining about the delays in resolving problems. So the broker can do better in terms of client based services.
Compilation of the Zerodha’s offerings:
- It Charges Rs 20 per executed order for trading in F&O, stocks, commodity, and currency.
- It supports desktop based, web-based and mobile based trading platform in India.
- For Demat account and nominee declaration, you will have to sign few forms and submit them via courier.
- It has emerged as a pioneer in offering NRI trading services.
- It has introduced its new multi-language, a low bandwidth web-based trading platform which is named as Zerodha KITE.
- You can take advantage of 60-day challenge offered by Zerodha, where you can uprise your trade graph, otherwise, brokerage refund option is available.
- Zerodha PI is the highly technical trading platform commenced by the firm.
- In equity delivery, It offers trading which is free of charge.
- SPAN Calculator, Option Strategy, algoZ, Market Monitor are the advanced tools extended by Zerodha.
- It has put forward Less brokerage and low upfront fee with no contract charges.
- It has its own DP Service.
- In Zerodha Coin, you can invest in mutual funds, recently launched feature of Zerodha.
- It has emerged as a pioneer in offering NRI trading services.
Zerodha Review considering other facts
- The motivational strategy like “60-days challenge” makes it eminent in its field.
- Minimal transaction charges and lowest brokerage plan.
- User-friendly trading platform and margin calculators.
The review discusses Zerodha’s concerns here:
- Doesn’t have monthly plans.
- It doesn’t provide the feature to invest in IPO.
- Its customer care service is average.
Some other Charges associated with the broker:
- Digital Contract notes are sent via Email. Physical copies of contract notes can be ordered at an additional charge of Rs 20/- per contract + Courier charges.
- Payment gateway charges for more than 22 banks – Rs 9 per fund transfer.
- Rs 20/- per call is charged for Call and Trade facility.
- Optional Trade SMS alert feature which costs Rs 1 for Equity, Currency trade, F&O and Rs 0.50 for Commodity trade alerts.
- .NSE charges involved.
- Transaction charges and statutory levies are charged.
Zerodha and its Challenges
As we know, Zerodha has established itself as a popular stockbroker in terms of brokerage rates, trading guidance to its clients or trading platform etc, but there are few issues related to it, which limit its horizon. For example, No monthly plans that are profitable for heavy traders, No 3-in-1 trading account option is available, No exposure value against shares. Being a discount broker, it has gained its pace from the very beginning. It has a team of highly professional people, who work day and night to take it to the top level by enhancing promotions through social media etc. But later on, its clients face many challenges. Today many people are praising it for its technology platform. But, according to a recent survey, we have found that, Although as per Zerodha Review, the stockbroker is fine in terms of brokerage still its clients are facing some problems. This is akin to its paying request, if you make a payout request today, then forget that u will get that on next day only. Zerodha’s site displays 3-4 hours delay but it’s not like that. It delays even for a day or two. Similarly, in terms of margin, it was found that they are giving nearly 5 times intraday leverage on all NSE stocks and in FNO stocks segment they provide 10 times. Clients have enjoyed such margin but suddenly they found that it has started to ask for full margin in Z stocks. When its customer support was contacted for the advantage being served earlier for the same script leverage, the fact was denied from their side. After posting the issue on Zerodha thread, some of the clients got the answer about stopping the same facility as clients were misusing it. This type of sudden notification waste so much time in the process of trade pursued by some novice traders. It throws negative effect on their side.
- It is the pioneer in bringing the chain marketing concept in broking.
- It has commenced the referral system, where alluring benefits are mentioned, so as to elongate the horizon of its brokerage firm. When this system was introduced by Zerodha, many people like bloggers, traders, newsletters etc have appreciated the move and promoted the concept in the best way they could. But later on, when everything took place according to the planned strategy and when it became eminent among other stock brokers, it has disappointed the same mob by implementing unexpected terms and conditions.
- The other thing which has contributed to its full-fledged growth is software. The tools introduced by this broker, in recent years are described below:
Zerodha Review telling you about PI
Let’s have look at, what Zerodha PI holds:
It is featured with all-time market watch provision.
- Top level charting with 70 plus technical indicator.
- Order execution takes place so quickly.
- You will get notifications and alerts time to time.
- Code advanced strategies with a simple and powerful scripting language.
- Use the free historical data to backtest your strategies, and you can even semi-automate them.
- Floating index feature.
- It has highly advanced pattern recognition method, where you can draw a pattern and allow PI to find a chart accordingly.
By using various programs, you can pave your way to trading.
What are the functionalities available in Pi Bridge?
- Request Pending Orders
- Request Admin Positions
- Request Completed Orders/Trades
- Request Funds Available
- Request Equity Holdings
Pi bridge will be useful only to those who have the idea of programming. It will be more effective for those who have a programming background. You can resolve your query related to the bridge via Tradelab.
Zerodha has forged ahead a new web-based flexible, integrated HTML 5 trading platform, named as KITE. With Zerodha Kite, you can accelerate trading on mobiles, tablets and web browsers. Zerodha Kite is aimed at placing the order in no time. It is available in 10 languages. These features make it quite noticeable among some of the leading tools offered by Zerodha.
Some of the key features of Zerodha KITE are given below:
- Live streaming quotes.
- It has simple buy and sells panels.
- Live ticking charts.
- Market depth data delivered with HTML5 Web Sockets for tracking different financial instruments.
- With the use of only one search box, you can search for various market segments and exchanges.
- Charts variety includes Candlesticks, bars, baseline data, Line etc.
- From total 80 indicators of Zerodha kite application, some features are Darvas Box, Moving Average, stochastics, MACD etc.
Earlier, offline trading was carried out in India, where trader had to go to broker’s place and exchange required documents manually. This process was quite a time taking and not that much profitable. After that, when the technology was upraised, the trend of online trading came into existence. It is a fast way of trading and preferred by numerous traders. With the latest trading platforms introduced by such stock broking houses, intraday trading became popular and moved few steps ahead of delivery trading.
While selecting any stockbroker, consider the commissions and other pricing that broking firm charges. That can now be easily calculated through Zerodha Brokerage Calculator. Akin to this fact, In case of eminent broker like it, you should first understand the services offered and how true they are. You can check the same with points mentioned in this Zerodha Review 2018. Various brokerage houses have at least two plans. One is basically for intra-day traders and the other for long-term investors. Zerodha is also called as a budget broker.
- Keep a Check on Minimum Trades
3 in 1 accounts are available with a savings account. In such an instance, some banks do have rules and regulations about certain maintenance balance.
- Research Reports
Most of the full-service brokerage firms like Zerodha, also cater research services. This allows investors to go through the analysts’ reports on sectors and companies of interest or have a look at data on companies. Just find out in case you need such services, as these might help you make good choices on buying and selling the shares and mutual funds.
Overall rating of Zerodha
Rating as per following traits:
|Safety of funds||6|
|Safety of funds||10|
|Overall rating points||8|
Comparison of Zerodha with some other eminent stock brokers in India
Several Benefits of Choosing it as a broker:
- It charges a fixed rate of Rs 20/executed order for buying and selling in stocks, F&O, currency, and commodity.
- One can calculate exact brokerage through Zerodha Brokerage Calculator.
- Zerodha PI, the maximum develop buying and selling platform brought by means of Zerodha.
- Zerodha KITE is a lightweight, low bandwidth, multi-language net base trading platform.
- Supports laptop base, internet-based and mobile base buying and selling platform.
- 60-day challenge contest by means of Zerodha in which you alternate profitably and get full brokerage refund.
- Progressive and specific trading tools – SPAN calculator, algos, options strategy, marketplace display and so forth.
- No advance fee, no minimal brokerage and no minimum contract costs.
- Free buying and selling in the equity delivery.
- Own DP provider.
- Invest in mutual funds.
Disadvantages of Zerodha Brokerage firm are as follows:-
- Worst customer Services.
- Trading Terminal PI hangs very frequently.
- High Brokerage.
- Low Intraday Exposures or Leverages.
Alternatives to Zerodha:
- Upstox, as both are offering similar brokerage rate.
- Wisdom Capital
- Which trading platform or trading software is used frequently by Zerodha?
NEST, KITE, PI
- Does the broker offer 24×7 customer service?
No; Zerodha doesn’t provide all time support services.
- What is the Intraday Square-off Time for Intraday Trading in Equity segment at Zerodha?
- Does the broker offer customer service through local branch offices?
- Does it provide customer support through live chat on a website?
No; Zerodha doesn’t provide this type of customer support.
- Does this stock broker have a toll free phone number for support?
No; Zerodha doesn’t provide the same.
- Is Zerodha Kite is efficient for Android users also?
Yes, with the 3G connection, dashboard and all worked well.
- Is it working properly, when the market is volatile?
No, it doesn’t work properly when the market is volatile, and after that when customer support team is contacted, they don’t pick up the phone, making it a bad experience.
- How much does Zerodha charge for Demat Account opening?
- What is Zerodha brokerage rate in Equity Delivery Trading?
There is no brokerage charge associated with Zerodha’s equity delivery trading.
- What are Zerodha Currency Derivatives (Future) Brokerage Charges?
Rs 20 per trader
- Does Zerodha offer Currency Derivative Trade service?
Yes, currency derivative segment is available.
- What is the bandwidth required for Zerodha Trading Terminal?
The trading terminal provided by Zerodha requires nearly 512 Kbps internet connection for fine performance.
14.If online fund transfer fails due to internet disconnect, is there any charges involved after that?
No, It doesn’t charge any amount, if fund transfer fails due to some reason.