“Is Zerodha Best for Trading?” is a question of many new traders, and in this post, I will try to address this question by sharing my personal experience of using the trading platform. By the end of the post, you will have gained good clarity about Zerodha and decide if it's the best trading platform for your requirements.
Is Zerodha Best for Trading: What Trading Features Do Most Indian Traders Need
Before jumping into my experience of trading on Zerodha, let us quickly think of the features that we, as traders, need the most for our trading. You will need a trading platform with a user-friendly interface as a trader. Besides, you will need fast order execution since a delay in order execution can turn winning trades into losing trades.
Irrespective of the trading you are into, you will need good charting tools like ChartIQ or Tradingview for your technical analysis. Advanced order types like GTT and BO can be useful as well. Besides, you will need market-depth fundamental and technical data for your trading accuracy. Options traders will also need Option Chain data to correctly determine the Demand and Supply zones.
Further, you must consider charges seriously before choosing any trading platform. You must get a reliable platform with minimal charges, including account opening, AMC, and brokerage charges. Besides, you will need a good reporting system for your trading platform. Last but not least, the trading platform you choose to trade on must come with reliable and fast customer support to help you whenever you run into some technical issues.
Is Zerodha Best for Trading: Zerodha Overview
Founded by Nikhil Kamath and Nithin Kamath, Zerodha started its operations in 2010. Before Zerodha, Sharekhan was the only online trading platform popular in India. However, Zerodha brought about a massive transformation and, most importantly, instilled the belief that you can trade on your own instead of call and trade through the executives of a broker.
Zerodha charges ₹200 for account opening plus an additional ₹100 for activating the Commodity segment. However, activating the Commodity segment is optional. Besides, the platform charges an AMC of ₹300. Zerodha follows a discount broking model and charges nominal brokerage fees. Here are the brokerage charges:
- Zero Brokerage for Equity Delivery
- Flat ₹ 20 or 0.03% (whichever is lower) per executed order for Equity Intraday
- Flat ₹ 20 or 0.03% (whichever is lower) per executed order for Futures and Options, Currency, and Commodity.
Is Zerodha Best for Trading: How I Started Trading on Zerodha
It took me a lot of courage to start trading since no one in my family ever had any experience in this field. The only advice I would get from my friends and relatives whenever we spoke about the share market was to stay away from it since it's a place where people go bankrupt. However, this opinion never convinced me, and I wanted to try and see.
The next hurdle was finding someone to guide me with the share market. I decided to go about it online and learn as much as possible. Initially, I figured out the difference between trading and investment. Next, I thought I should try my luck as a trader and quickly came across Intraday trading.
Besides learning things from online articles, I began to watch CNBC Awaaz. That helped me break out of my fear a little more, and eventually, I thought it was time for me to get a demat account. I got a demat account opened with HDFC Securities. However, I hesitated to operate it on my own, and my preferred way to place an order would be to call up the HDFC Securities executive and ask him to buy and sell on my behalf.
Sometimes, I took my trades based on CNBC Awaaz's recommendations, and sometimes, at the recommendation of HDFC Securities. However, things didn't work for me, and quickly, I began to feel it wasn't my cup of tea. Moreover, the charges of HDFC Securities were too high. It was back in 2014, and I eventually gave up.
But the story was not over yet. In 2021, I should try trading again, and at the same time, I wondered if there is a trading platform simpler than HDFC Securities. I watched some YouTube videos and noticed everyone was talking about Zerodha. Interestingly, I saw that Zerodha users were placing and managing orders independently.
Zerodha charges were way too low compared to HDFC Securities. I decided to open a Zerodha account and learned how to place and manage orders on Zerodha.
Is Zerodha Best for Trading: What I like about Zerodha
Ease of Use
Zerodha has a simple and intuitive user interface. Everything seems to be balanced out really well. Everything is self-explanatory, and even though I was utterly new to Zerodha, I realized I picked up things faster than ever before, from reading charts to squaring off positions.
Technical Charts and Fundamental and Technical Data
Initially, I used to trade using my PC and log into Zerodha Kite's web interface. I would analyze Zerodha's technical chart in this setup and place orders accordingly. Regarding charting, Zerodha allows you to choose between ChartIQ and Tradingview. Besides, it allows you to open multiple chart layouts for multiple timeframe analysis. Further, Zerodha offers excellent fundamental and technical data through Streak.
Fast Order Execution
Ever since I switched to Options trading, I changed my setup a little. Now, I watch the chart on Tradingview and place my orders using the Zerodha Kite app on my smartphone. I have been using Zerodha since 2021, and I have not experienced any glitches so far. Order execution is always fast.
One thing that's worth mentioning is Zerodha's reports, and Zerodha has the best reporting system in the entire industry. You can easily access your Tradebook, P&L, and Tax P&L from the Zerodha Console. Zerodha presents the P&L in an impressive graphical form, which makes it easy to determine your trading performance in just one look.
Excellent Backtesting and Options Chain analysis with Sensibull
You can access Sensibull using Zerodha for Option chain analysis and backtest your strategies with historical and real-time data. Sensibull is entirely free for Zerodha, and Zerodha users can capitalize a lot from this feature.
Zerodha, being the most popular trading platform in India, offers exceptional reliability in the first place, and besides, the platform takes good care of its security backed by features like 2FA authentication and Biometric authentication. Further, the platform has an impressive customer support team. You can contact Zerodha support through tickets and phone. Besides, the platform has good documentation for quick reference.
Is Zerodha Best for Trading: What I Dislike About Zerodha
I have this constant thought that the platform's founders have a profound understanding of the Indian retail traders and their requirements. Even when trading platforms like Dhan try to be too innovative with many advanced trading features, Zerodha continues to balance out things well for its users. It is more of a mature approach towards keeping the trading platform reliable. The only thing I feel Zerodha should consider incorporating is a live chat for faster technical assistance.
However, as a trader, you can't completely rule out the possibility of glitch in trading apps. The Zerodha glitch last year has shocked many of its users. Hence, you have to be cautious with every trading app. Whenever you feel there is something wrong with the app, don't try too hard and stop from trading on it for the day at once unless you get some clarity on it.
I have shared my experience of using Zerodha, and I am sure you have gained clarity about Zerodha after reading this article. As you have seen, Zerodha addresses most of the standard requirements of Indian retail traders. Most importantly, Zerodha puts much thought into keeping the platform exceptionally reliable. Even though Zerodha should be a good trading platform for most traders in India, you must still consider your trading requirements and choose your trading platform accordingly.
Is Zerodha Best for Trading: FAQs
What is Zerodha?
Zerodha is an online discount brokerage platform in India that allows traders and investors to buy and sell various financial instruments, including stocks, commodities, currencies, and derivatives, through its online trading platform.
Is Zerodha suitable for beginners in trading?
Yes, Zerodha is considered beginner-friendly due to its user-friendly interface and educational resources. It's a popular choice for new traders looking to start their trading journey.
What are the charges for trading on Zerodha?
Zerodha follows a discount broking model and charges minimal brokerage fees. They offer zero brokerage for equity delivery, and for other segments like equity intraday, futures, options, currency, and commodity, the brokerage is a flat ₹20 or 0.03% (whichever is lower) per executed order.
Can I trade options on Zerodha?
Yes, Zerodha provides the capability to trade options. It offers option chain data and tools for options traders to analyze and execute their strategies.
What charting tools are available on Zerodha?
Zerodha offers a choice between ChartIQ and Tradingview for charting. Traders can use these tools to perform technical analysis and make informed trading decisions.
How do I access my trading performance reports on Zerodha?
Zerodha provides a comprehensive reporting system through the Zerodha Console. You can easily access your Tradebook, Profit and Loss (P&L), and Tax P&L, which are presented in an impressive graphical format for quick assessment of your trading performance.
Is Zerodha's mobile app user-friendly?
Yes, Zerodha offers a mobile app called Zerodha Kite, which is known for its user-friendly interface. Many traders find it convenient for placing and managing orders on the go.
Are there any security features on Zerodha to protect my account?
Zerodha takes security seriously and offers features like two-factor authentication (2FA) and biometric authentication to protect your account from unauthorized access.
Does Zerodha provide customer support?
Yes, Zerodha has a customer support team that you can contact through tickets and phone. They also offer documentation for quick reference, helping users navigate the platform and resolve issues.
Can I use third-party tools with my Zerodha account?
Yes, Zerodha allows the use of third-party tools and platforms like Tradingview for charting and Sensibull for options analysis. These integrations enhance the trading experience for users.