Zerodha: Overview
Zerodha, a Bangalore based company, a pioneer in stock broking, is the biggest and one of the best and most popular stock brokers in India. The one of its kind, discount broking model was introduced by this leading broker few years back. And, now there’s no looking back! It’s online flat fee discount brokerage model has set an example to be followed by various other trading platforms across India. Ranked amongst the Top Discount Brokers in India, Zerodha holds a very strong position in terms of trading volumes and a massive and growing customer base.
Zerodha: Overview
Incorporated in the year 2010 by Nitin Kamath, an engineer turned stock broker cum budding entrepreneur who nurtured the company with his ideas and innovation, Zerodha gained huge popularity within a short span. It has turned to be the leading stock broker in India, may it be determined by volume, number of active customers or the overall growth rate. Surprisingly, 3+ million Zerodha clients are contributing to over 15% of the aggregate retail trading volumes across BSE, NSE and MCX. That’s a pretty good number to display!
Zerodha, one of the best discount brokers with over 1 crore clients is also the largest stock broker in India.
A technologically advanced and fully functional broking firm offering a plethora of services and products. The services include investing and trading in Equity, Currency, Commodity, IPO and Direct Mutual Funds. So, this online trading platform lets you invest in stocks, derivatives, mutual funds, and much more.
As far as, brokerage fee is concerned, Zerodha charges ₹0 brokerage on equity i.e. FREE equity delivery trades. So, the maximum intraday and F&O brokerage you pay for a transaction is ₹20 for an executed order.
Zerodha has established itself in the topmost places in the list of reliable & trustworthy brokers in India. And why not, its level of services and highly advanced and updated investment tools and apps are very much appreciated by its users.
Zerodha Trading Tools
These are the numerous trading tools provided by Zerodha:
- Zerodha Coin (A mutual fund investment platform)
- Streak (algo & strategy platform),
- Sensibull (An options trading platform)
- Zerodha Varsity (An investor education program)
- Trading Q&A
- Smallcase ( athematic investment platform)
- GoldenPi (bonds trading platform)
Let’s keep exploring more details on this discount broker and discuss further about it.
Zerodha: Account Opening Process
If you wish to trade in stocks, commodity or currency or to invest in stocks and mutual funds with Zerodha, you are required to open a trading account and a demat account. However, if you are planning to trade only in derivatives, a demat account is not mandatory.
Zerodha offers 3 types of accounts namely:
-
A Trading account for equity and currency derivatives.
-
A Demat account to take delivery of stocks.
-
A Commodity account to trade commodity futures on MCX.
-
Zerodha also offers a 2-in-1 Demat and trading account.
Although, a customer account has access to all the segments. But, you have to share your preferences for trading in which segment that shall be enabled separately at the time of account opening or at later point of time.
How to Open a Demat & Trading Account with Zerodha?
To open account with Zerodha, you can access the instant account opening link and add your contact information there. A Zerodha representative shall contact you in a short while and walk you through you through the steps and process of opening a Demat and Trading account.
Zerodha offers a quick, easy and convenient online account opening process. You can fill the information online, and get started with the account opening formalities.'s a quickly.
Zerodha Account Opening Process
Let’s have a complete view of the Zerodha Account Opening Process:
In case you want to open a new account with Zerodha, follow the following steps:
Step 1: Visit the Zerodha website via your phone, desktop, or tablet and click on the ‘sign up’ button on the upper left-hand corner
Step 2: Fill in your mobile number. You will revive a 6 digit OTP on the same.
Step 3: Enter the OTP and hit confirm.
Step 4: Follow the same process to verify your email address.
Step 5: It will then ask for your PAN number and Birth date. Fill in the details and hit continue.
Step 6: It now directs you to a payment portal with many options like Net Banking, UPI, etc.
Step 7: On your bank page, complete the payment process. You have to select from the \Equity\ and \Commodity\ account choices, so you’ll be charged a fee accordingly. The fee for Equity Trading & Demat account is Rs.200 only. And, if you tick the commodity part also, a fee of Rs.100 is charged for it. After completion, you are redirected to the Zerodha website.
Step 8: Here, you would need to sign in to DigiLocker, a government enabled digital locker where you can safely store all your important documents. Download the Digilocker application if you do not have it.
Step 9: After signing up to Digilocker, enter the OTP received and press submit.
Step 10: Put in your security PIN code. If you don’t have one, simply click on Forgot PIN and reset it in seconds.
Step 11: It asks to share a copy of your Aadhar card succeeded by a page asking for your personal details.
Step 12: Fill in the correct information related to personal contact, background, and bank account details.
Step13: Tick all the check boxes related to residency in India and hit continue. You will be lead to IPV webcam i.e In-person verification.
Step14: Write the given OTP on a piece of paper and hold it in from of the webcam for facial verification.
Step 15: Go to E-sign and upload the following documents: Aadhar Card, a canceled cheque with your signature, and your income proof (if you wish to trade in Futures and options), then click on e-sign equity.
Step 16: This takes you to the NSDL page wherein you have to again verify your email id, put in your security code and press submit.
Step 17: Have a complete look at the profile! then you will be given the last OTP after clicking on sign-up. Enter your OTP and your Aadhar number.
Step 18: You have successfully signed an online form. Now, go to the dashboard and scroll down to find the nominee form. Download it if you wish to add a nominee to your account.
Step 19: The process is now complete. A representative from Zerodha would contact you after the process or you may receive an account activation email (if all your documents are in place).
Step 20: In case of any queries, you can contact the Zerodha support service on their website or call them on their customer service numbers.
Zerodha: Account Opening Charges
| Charge Type | Amount |
|---|---|
| Trading Account Opening Charges | ₹200 (Equity) + Rs.100 (Commodity) |
| Demat Account Opening Charges | ₹0 (Free) |
| Trading Account AMC | ₹0 (Free) |
| Demat Account AMC | ₹300 per year |
Zerodha: Trading Account Charges
Zerodha offers a range of trading platforms and tools for traders to analyze and trade. It leverages new technologies to power its trading platforms and is known for introducing new trading features.\n\nZerodha is a member of Central Depository Services Limited (CDSL) and offers depository services such as demat account opening and other related services. It also offers online investment services in Mutual Funds and Fixed Income Bonds.
Zerodha: Equity Trading Charges
Equity Delivery Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | ₹0 (No Brokerage) |
| STT | 0.1% on both Buy and Sell |
| Turnover/Transaction Charges | NSE: 0.00325% |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Equity Intraday Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower) |
| STT | 0.025% on the Sell Side |
| Turnover/Transaction Charges | NSE: 0.00325% |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Futures Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower) |
| STT | 0.01% on Sell Side\t |
| Turnover/Transaction Charges | NSE: 0.0019% |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Options Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower) |
| STT | 0.05% on Sell Side(on Premium) |
| Turnover/Transaction Charges | NSE 0.05% |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Zerodha: Commodity Trading
Zerodha Brokers pioneered the Discount broking space in India and still continues to be one of the top investor preferences. The word Zerodha or ‘Zero’ ‘dha’ meaning Zero cost or free of charge transactions. It was the first discount broker to offer the no-brokerage policy to encourage more and more people to try their hand at trading. It offers trading in multiple securities. So, let’s dig the commodity trading section of Zerodha and what plans it offers. But before getting into it let’s revise what commodity trading actually is.
Commodity Trading: Meaning
What is a commodity? Generally, it is any goods bought with a monetary value like grins, oil, gas, etc. however In the financial world. It is an asset in the form of exchangeable securities within the stock market. The prices of the commodities fluctuate in the market but are less volatile than equity securities. They are used as a tool to diversify one’s portfolio and protect the funds in case of a bear market.
Some common commodities that are traded in bulk every day in the exchanges are Metals including Gold, silver, platinum and copper, Energy-based commodities like Crude oil, natural gas, gasoline, etc, livestock commodities and Agricultural such as wheat, cocoa, cotton, and sugar.
Zerodha Commodity Trading
Zerodha Trading Platforms offer commodity trade in Metals such as Gold, Silver, Copper, and Zinc in addition to one energy commodity, Crude Oil. It facilitates trading in commodities through the Multi Commodity Exchange of India and if often referred to as MCX options Trading.
You can use all the available trading platforms for commodity trading. However, it is ardent for you to go and register on Zerodha’s lightweight website portal first or logging into your Zerodha Kite account, before beginning commodity trade. This step is compulsory for all traders to carry out commodity trading with this discount broker.
There is no preposition for market orders on the Zerodha Trading site and thus no leverage is given. Orders of only \Limit\ and \NRML\ can be placed with the MCX exchange. This means that no ‘bracket’ orders can be placed, only ‘cover’ orders with an advanced segment are facilitated by this stock broker. To place an exit order, you have to do so on the market or limit the price.
Zerodha MCX Expiry Date
When trading in commodities, a legal agreement is made between the broker and trader stating all the relevant details of the trade including prices, order type, exchange type, and expiry date. To put it in simple terms, it means, that after the set expiry date you cannot trade in that commodity until a renewable is done. If the expiry date happens to be a national holiday, then it pre-pones to a day earlier. Thus you need to keep in check the expiry date of the commodities you’re trading in.
For this purpose, all the expiry dates are listed on the company’s bulletin and are also notified to their customers. In case you miss the expiry date you can either opt for a cash settlement that means the trade of the particular commodity on the given market price, or the physical delivery settlement wherein the commodities you own are delivered to you from a company warehouse.
You can’t have physical delivery settlement of commodities at Zerodha, so that’s an important point to keep in mind.
Zerodha Kite Commodity Trading
Can you do commodity trading with Zerodha Kite? A very common question! Well, the answer to it is YES! If you are a Zerodha client and have activated MCX in your account, you can do commodity trading with Kite.
How to Trade commodity with Zerodha Broker?
Now, if you already have a Zerodha account, all you have to do to start trading in Zerodha commodities is to enable the MCX option from Zerodha Kite. In case of a new account you can visit their website, fill up the open account form and an executive will get in touch with you. Note that across all Zerodha platforms, the login credentials of an investor remain the same.
Specific trading time is allotted to trading commodities in Zerodha other than the equity segment, that is, From 9 am to 11 pm allowing a range of up to 14 hours to analyze, monitor, and trade in commodities. The trading form is easily accessible on the company website.
Commodity Futures Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower)\t |
| STT | 0.01% on sell side (Non-Agri)\t |
| Turnover/Transaction Charges | Group A: Exchange txn charge: 0.0026% Group B: Exchange txn charge: Pepper - 0.00005%, Castorseed - 0.0005%, Rbdpmolein - 0.001%\t |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Commodity Options Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower)\t |
| STT | 0.05% on sell side |
| Turnover/Transaction Charges | ₹0 |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Zerodha: Currency Trading
Zerodha is probably one of the biggest discount brokers out there. That is for good reason. Zerodha’s emphasis on customer experience at low cost is probably unparalleled in the sector, so it is no surprise that it has moved to an expansionary stage. Zerodha also offers currency trading, but first, let’s understand what currency trading is all about.
Zerodha: Currency Trading
Zerodha offers currency trading in form of derivatives from NSE and BSE. It offers the following pairs of trading.
- Yen/Rupees (JPY/INR)
- Pound/Rupees(GBP/INR)
- Euro/Rupees(EUR/INR)
- US Dollar/Rupees(USD/INR)
You might have noticed that all the pairs have quotation price in rupees. It is because of the fact that cross-currency exchange is not allowed in India.
Because currency trading is only in the forms of derivatives, Zerodha offers it in two types of derivatives – futures and options. Before that, here’s some information that is common for both of them.
Trading Hours : 9 AM to 5 PM, Monday to Friday
Final Settlement Day: Last business day of the month
Daily Settlement: T + 1
Final Settlement: T + 2
SEBI Charges : Rs 10 per Crore
Now that we have gotten that out of the way, let’s discuss each one in detail.
1. Futures
The brokerage levied is as per Zerodha’s central model, i.e lower of 0.01% or Rs 20. No Securities Transation Tax or Commodity Transaction Tax is levied, however GST is levied at 18%. Along with that, there is also exchange transaction charge for this levied at different rates by both exchanges.
For NSE : 0.0009%
For BSE : 0.00022%
2. Options:
The brokerage levied is similar, i.e. lower of 0.01% or Rs 20. Again there is no CTT or STT, but GST @ 18%.
The exchange transaction charges are as follows
For NSE : 0.0007%
For BSE : 0.001%
Zerodha Currency Trading : Using Leverage
Zerodha provides a Currency Derivatives Span Margin Calculator, which also gives details about the contracts, expiry dates, prices, normal margin and Margin intraday Square-Off (MIS). Note that all Intraday positions are automatically squared off by 4 PM, if not done prior. However, MIS doesn’t have a compulsory stop loss, which from a procedural point of view. There are, however, two more types of orders available which are a little bit more secure.
- Cover Orders: This is a type of intraday trading where one can buy and sell market orders, with a compulsory stop loss. The amount of margin allowed to you would be based on this stop loss.
- Bracket Order: Bracket order is a specific type of order, which basically works by entering a new position along with a target/exit and a stop-loss order. When the main order is executed, the system will place two more orders, one of which is profit taking and the other stop loss.
Currency Futures Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower)\t |
| STT | No STT\t |
| Turnover/Transaction Charges | NSE: 0.0009% |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Currency Options Brokerage
| Charge Type | Amount |
|---|---|
| Brokerage | Flat ₹20 or 0.03% (whichever is lower)\t |
| STT | No STT\t |
| Turnover/Transaction Charges | NSE: 0.04% |
| GST | 18% on (Brokerage + Transaction Charge) |
| SEBI Charges | 0.00005% (₹5/Crore) |
| Stamp Duty | State wise |
Zerodha: Demat Charges, Reviews, Details
A Demat account is used for holding your financial securities like stocks, mutual funds, bonds, etc. Similar to as we have bank account to store our money, a demat account is used to store securties in electronic form.
Talking of Zerodha or any of the stock brokers in India, Demat account is one of the prime services they offer. While some like Zerodha, provide a 2-in-1 account that includes an integrated trading account and a demat account to allow seamless transactions between them. There are others like banking institutions providing a 3-in-1 bank account, demat, and trading account facility. Further, Zerodha is a depository participant (DP) with the Central Depository Services Limited (CDSL) depository.
Zerodha Demat Account Features
- You can have an quick online access to your portfolio of shares, mutual funds etc.
- Zerodha 2-in-1 demat and trading account gives a seamless transaction experience between your trading and demat account.
- You can enjoy low transaction charges for stock and mutual funds.
Zerodha: IPO
Earlier Zerodha asked its customer to apply for IPO using ASBA (Application Supported by blocked amount) with their respective bank account’s net banking portal or by submitting a physical copy for the IPO application at the bank branch. However, it changed last year to make it more convenient.\n\nApplying for an IPO using Zerodha is a now a simple three-step process wherein you make a UPI id, Login on Console with that UPI id, and then check for the mandate notification.\n\nLet’s look at the process in detail:\n\n## Step1: Create a UPI id\n\nYou most likely already have one since the digital mode of payments is now a part of our lifestyle but if not, you can create an id easily with any UPI application. Zerodha supports BHIM, SBI pay, Axis pay, Imobile( ICICI), HSBC simple pay.\n\nHere, the question arises,\n\n## Can I issue an IPO if I do not have UPI?\n\nWell, yes. you can still issue an IPO the traditional way through ASBA service by your bank but the UPI process is recommended because f its user-friendliness as all the details are mapped out in the process and all you have to do is make a bid and enter the UPI code.\n\n## Step2: Apply using Kite Console\n\n1. Login to your Zerodha Kite account and go to the console.\n\n2. Go to< Portfolio< IPO\n\n3. An IPO list appears with start and end date, price range, and face value. Select the one you want to buy among the open issues.\n\n4. More details of the selected IPO will appear. Mark the terms and conditions block to proceed to the next page.\n\n5. Here, enter your UPI ID, the number and price of shares you wish to buy, and click verify\n\nYour application is submitted with Zerodha broking lTD.\n\n## Step3: Accept the mandate\n\nOnce you have completed all the steps, placed bids, and submitted, you will receive a mandate request on your UPI application. when you accept this request, the process is completed. This will enable you to keep a sufficient amount in your bank till the allotment period. If you receive an allotment, money would be debited from your account, and shares of the selected IPO would be credited automatically.\n\n