Zerodha was incorporated in the year 2010 by Nitin Kamath, an entrepreneur. The idea behind the firm was to offer high quality services to a huge chunk of population at low cost, and Zerodha is very well known as pioneer of discount model in India.
Zerodha is a member of BSE, NSE, MCX, MCX-SX which enables the firm to offer a huge spectrum of services like trading in bonds, stocks, commodity futures, options, mutual funds to name a few, and the company offers this to both individual and retail clients. It is safe to say that the company has more or less not only stayed true to its initial vision, but also has achieved its set goals. As of 2019, Zerodha was the largest retail stock broker in India, has a workforce of more than 1100 employees and a self-valuation of about $1 Billion, which makes each share of the company around Rs. 700.
So, to really sum it up, its popular, its cheap, and it still falls under the purview of India’s market regulator Securities and Transaction Board of India (SEBI) so Zerodha is pretty safe as well. Let’s get to more advantages and disadvantages of using Zerodha.
Zerodha: Advantages
One of the most obvious advantages with Zerodha is the fact that it is cheap. It doesn’t really charge any brokerage on equity delivery, and charges a mere Rs 20 (or 0.03%, whichever is less) which is kind of negligible, It also doesn’t really have a minimum balance requirement, and provides access to a huge array of investment avenues.
Over and above that, the firm offers top-notch and regularly updated trading technology, which also offer a ton of different analytical tools. These tools are designed for both investors and traders alike, offering everything from mobile application to trade stations.
Moreover, Zerodha also offers a responsive and helpful customer service, which is not something entirely new for its industry but still a notable value addition. The staff is accessible online, on call as well in person over the vast network Zerodha boasts of. It also provides a free for all education portal called Zerodha Varsity. To sum up,
- Low costs
- Free Equity Delivery
- Top-notch trading facilities
- Reliable customer service.
Zerodha: Disadvantages
Despite its obvious cost disadvantages and educational offerings, Zerodha isn’t for novice traders per se, given the fact that while it offers a very intricate platform for trading, it doesn’t really offer much research. Coming to the account opening process, the process is not completely digital and is absolutely not instant.
The firm also has a one-time account opening charge, which is optional for the types of instruments you want to trade in. To sum up,
- No research reports
- Lack of relationship managers for institutional clients.
The Bottom Line
Zerodha, despite its limited cons, is still the most favoured platform offering great services in the market right now. In terms of volume and number of clients, and the way it is growing, it is very likely to stay ahead of other discount brokers in India
The stockbroker provides a seamless trading experience, and the applications offered are easy to use. There are no limitations unless you start to nitpick on the services it has to offer. The user interface is simple while providing a bundle of features that makes your trading experience as smooth as possible.
Opening a Demat and trading account with Zerodha offers several advantages, especially for cost-conscious and tech-savvy investors. Zerodha provides zero brokerage on equity delivery trades and a flat, low brokerage on intraday and F&O trades, making it highly economical compared to traditional brokers. Its trading platform Kite is user-friendly, fast, and equipped with advanced charting and real-time data, suitable for both beginners and experienced traders. I
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