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ZERODHA REVIEW

Zerodha Outlook

Zerodha is an Indian financial services broker (member of NSE, BSE, MCX, and MCX-SX) that provides brokerage-free equity investments, retail and institutional dealer, and currencies and commodities trading. In 2010, Zerodha is thought for its discount pricing version and revolutionary use of era. It has headquartered in Bangalore and has the physical presence in all important Indian cities like Hyderabad, Pune, Ahmadabad, Chennai, Vijayawada, Hubli, Salem, Coimbatore, Kanyakumari, and Kochi etc. It is also a reputable member of NSE’s consultative committee for developing the enterprise. As of January 2017, Zerodha contributes as much as 5% of retail trading volumes on Indian stock exchanges, producing each day buying and selling turnovers crossing approx $2 billion.

Image result for zerodha ONLINE TRADING

 

Zerodha Account Opening Procedure

To Open the New Account in Zerodha, Following Documents are required –

  1. Address proof of client (PAN Card)
  2. Passport size photograph of client
  3. 2 cheques – one canceled cheque and other cheques filled with account opening fees.Image result for zerodha ONLINE TRADING

Account Opening with Zerodha

Demat Account Opening: If you also want to open a Demat account with then, 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 trading account. AMC is Rs 300.

Trading+ Demat Account – So if you want to open the Demat + Trading account, the charges for this is Rs. 300. If you want to open commodity account additionally, the fee for that is an additional Rs. 200. Zerodha offers online trading account to trade in stocks, derivatives, indices and currencies on NSE and BSE. Trading can be done through web based platform or a mobile app and Call & Trade option. All settlements on a Trading Account takes place on T+1 day. There is 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 of a Demat Account for trading Commodities. Account opening charges for commodity trading is Rs 300. Commodity Options is still commenced in India.

 

Zerodha Brokerage Charges

Equity Delivery0.10% of turnover or Rs. 20 per trade whichever is lower
Equity Intraday0.01% of turnover or Rs. 20 per trade whichever is lower
Equity Future0.01% of turnover or Rs. 20 per trade whichever is lower
Equity Options0.01% of turnover or Rs. 20 per trade whichever is lower
Currency Futures0.01% of turnover or Rs. 20 per trade whichever is lower
Currency Options0.01% of turnover or Rs. 20 per trade whichever is lower
Commodity0.01% of turnover or Rs. 20 per trade whichever is lower

 At most brokerage fees can be only Rs.20 per trade

 

Zerodha Other Hidden Charges

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.

 

Zerodha Trading Platform & Mobile Apps 

Image result for mobile trading platform

Several Trading Platforms Presented by Zerodha are given below:

  • 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

 

Zerodha Customer Support Services

Zerodha has a consumer base of more than 200,000 customers and handles common each day turnovers of around 10,000 – 12000 crores in equities and Rs. 1000 crores in commodities. The corporation offers commodities trading thru its fully owned subsidiary, Zerodha Commodities Private Limited. It has gained the “Economics time’s startup awards 2016” in the “bootstrap champ” class. Nithin Kamath, the founder and CEO, gained the 2013 confederation of Indian industry rising entrepreneur award for pioneering the discount broker version in India. The corporation additionally gained the BSE-D&B “rising fairness broking house award” in 2014 and 2015 respectively. It is the best online source of free online trading in India.

 

Zerodha’s offerings:

  • It Charges Rs 20 per executed orderfor trading in F&O, stocks, commodity and currency.
  • In equity delivery, Zerodha offers trading which is free of charge.
  • 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, 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 the highly technical trading platform commenced by Zerodha.
  • 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.
  • It Coin: You can invest in Mutual Funds using recently launched feature of Zerodha.
  • It has emerged as a pioneer in offering NRI trading services.

 

Some additional attributes of Zerodha

  • 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.

Concerns associated with Zerodha

  • Doesn’t have monthly plans.
  • Zerodha doesn’t provide feature to invest in IPO.
  • Its customer care service is average.

Some other Charges associated with Zerodha:

  • 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.
  • 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’s Challenges

As we know, Zerodha has established itself as a popular stock broker 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 technical platform. But, according to a recent survey, we have found that, Although Zerodha is fine in terms of brokerage still its clients are facing some problems. This is akin to its  payin request, if you make payout request today, then forget that u will get that on next day only. Zerodha’s site displays 3-4 hours delay but its 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 Zerodha 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.

 

Unique selling point:

  1. Zerodha is the pioneer in bringing the chain marketing concept in broking.
  2. 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 best way they could. But later on, when every thing took place according to the planned strategy and when Zerodha became eminent among other stock brokers, it has disappointed the same mob by implementing unexpected terms and conditions.
  3. The other thing which has contributed to its full fledge growth is software. The tools introduced by this broker, in recent years are described below:

 

Zerodha Pi

Let’s have look at, what Zerodah pi holds:

  1. It is featured with all time market watch provision.
  2. Top level charting with 70 plus technical indiacators.
  3. Order execution takes place so quickly.
  4. You will get notifications and alerts time to time.
  5. Code advanced strategies with a simple and powerful scripting language.
  6. Use the free historical data to backtest your strategies, and you can even semi-automate them.
  7. Floating index feature.
  8. It has highly advanced pattern recognition method, where you can draw a pattern and allow PI to find a chart accordingly.

 

Zerodha: PI Bridge

By using various programs, you can pave your way to trading.

What are the functionalities availabl in Pi Bridge ?

Place Orders

Requests:

  • 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 programming background. You can resolve your query related to the bridge via Tradelab.

 

Zerodha Kite

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 order in no time. It is available in 10 languages. These features makes it quite noticeable among some of the leading tools offered by Zerodha.

Some of the key features of Zerodha KITE are given below:

  1. Live streaming quotes.
  2. It has simple buy and sell panels.
  3. Live ticking charts.
  4. Market depth data delivered with HTML5 Web Sockets for tracking different financial instruments.
  5. With the use of only one search box, you can search for various market segments and exchanges.
  6. Charts variety includes Candle sticks, bars, baseline data, Line etc.
  7. From total 80 indicators of Zerodha kite application, some features are Darvas Box, Moving Average, stochastics, MACD etc.

 

Zerodha’s horizon

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 time taking and not that much profitable. After that, when the technology was uprised, trend of online trading came in to 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 stock broker, consider the commissions and other pricing that broking firm charges. Akin to this fact, In case of eminent broker like Zerodha, you should first understand the services offered and how true they are. 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 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 take  good choices on buying and selling the shares and mutual funds.

 

Overall rating of Zerodha

Rating as per following traits:

BrokerageTrading SoftwareMobile AppLeverageSafety of fundsCustomer SupportOverall rating pointsOverall rank
799610783

 

Compare Zerodha with some other eminent stock brokers in India

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Wisdom Capital vs Zerodha                       Trade Smart Online vs Zerodha 

Zerodha vs Sharekhan                                  Zerodha vs Motilal Oswal

Angel Broking vs Zerodha                           Ventura Securities vs Zerodha

Zerodha vs Astha Trade                                Zerodha vs Vikson

 

Zerodha Pros:

Several Benefits for Choosing Zerodha

  • Free buying and selling in the equity delivery.
  • It charges fixed rate of Rs 20/executed order for buying and selling in stocks, F&O, currency and commodity.
  • 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 base 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, algoZ, options strategy, marketplace display and so forth.
  • No advance fee, no minimal brokerage and no minimum contract costs.
  • Own DP provider.
  • Invest into mutual funds.

Image result for BENEFITS WITH ZERODHA

Zerodha Cons:

Some of the cons of Zerodha Broker are as follows :-

  • Worst customer Services.
  • Trading Terminal Pie hangs very frequently.
  • High Brokerage.
  • Low Intraday Exposures or Leverages.

Alternatives of Zerodha:

  1. Upstox, as both are offering similar brokerage rate.
  2. Wisdom Capital
  3. SAMCO

 

Questionnaire

  1. Which trading platform or trading software is used frequently by Zerodha?

           NEST, KITE, PI

  1. Does Zerodha offer 24×7 customer service?

          No; Zerodha doesn’t provide all time support services.

  1. What is the Intraday Square-off Time for Intraday Trading in Equity segment at Zerodha?

          3:10 PM

  1. Does Zerodha offer customer service through local branch offices?

          No

  1. Does Zerodha provide customer support though live chat on website?

           No; Zerodha doesn’t provide this type of customer support.

  1. Does Zerodha has a toll free phone number for support?

           No; Zerodha doesn’t provide the same.

  1. Is Zerodha Kite is efficient for android users also?

          Yes, with the 3G connection, dashboard and all worked well.

  1. Is it working properly, when market is volatile?

          No it doesn’t work properly when market is volatile, and after that when customer support team is             contacted, they don’t pick up the phone, making it a bad experience.

  1. How much does Zerodha charge for Demat Account opening?

         Rs 100

  1. What is Zerodha’s brokerage rate in Equity Delivery Trading?

          There is no brokerage charge associated with Zerodha’s equity delivery trading.

  1. What are Zerodha Currency Derivatives (Future) Brokerage Charges?

           Rs 20 per trader

  1. Does Zerodha offer Currency Derivative Trade service?

          Yes, currency derivative segment is available.

  1. What is the band width required for Zerodha Trading Terminal?

          The trading terminal provided by Zerodha requires nearly 512 Kbps internet connection for fine                 performance.

  1. If online fund transfer fails due to internet disconnect, is there any charges involved after that?

          No, Zerodha doesn’t charge any amount, if fund transfer fails due to some reason.

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