If you plan to open a demat account with Zerodha and want useful information about the platform before that, this post will provide you with essential clarity. Zerodha is an excellent discount broker founded by Nithin Kamath in 2010. In this Zerodha review, I am going to cover various aspects of this platform, including its charges, account opening process, pros and cons, features, competitors, and support.
Zerodha Review – Verdict
Zerodha Account Opening charges
First things first, you must know the charges for opening an account with Zerodha. Account opening is not free in Zerodha, and the platform charges ₹200 for equity demat and trading accounts. If you want to activate the commodity segment as well, you will need to pay an extra charge of ₹100. These will be the account Opening charges if you open an account online.
However, the charges will be slightly higher if you open an offline account. In that case, the equity demat and trading account charges will be ₹400 and an extra ₹200 for activating commodity account.
Demat Account Annual Maintenance charges
Besides the account Opening charges, Zerodha charges a Demat Account Annual Maintenance fee. Here are the Demat Account Annual Maintenance charges for different types of accounts in Zerodha:
|Individual, HUF, and partnership firms
|₹300 + 18% GST
|₹500 + 18% GST
|Corporates, i.e. LLPs and private & public companies
|₹1,000 + 18% GST
|IL&FS demat (accounts opened before 15th Sep 2015)
|₹400 + 18% GST
Next, it's essential to know the Zerodha brokerage charges. The stock broker follows a discount broking model. However, it’s important to remember that some additional charges are added to the brokerage charges like GST, and SEBI charges. Here are the Zerodha brokerage charges:
|₹0 brokerage charges
|Direct Mutual Funds
|₹0 brokerage charges
|Equity Intraday, F&O
|₹20 or 0.03% (whichever is lower per executed order)
Zerodha Demat Account Opening
Now that you have good clarity on Zerodha charges, you must be wondering how to open an account with Zerodha. If you think the Zerodha demat account opening is complicated, you might be slightly wrong, as I am going to make it simple for you through my step-by-step guide.
First, get to the Zerodha official website and enter your Aadhar-linked mobile number
Next, you need to complete your mobile OTP verification
After that, you need to specify your Email id and name and verify your Email
Next, you will need to enter your PAN details and Date of Birth
In the next step, you will need to pay the account opening fee using UPI or Netbanking
After that, you will be directed to the DigiLocker website to verify your Aadhaar
Besides, you will have to fill in some personal details like Marital status, Income slab, etc
In the next step, you will have to link your Bank account to your Zerodha trading account
Next, you have to complete your webcam verification process
After that, you will need to upload your documents, including a copy of your PAN, your six months' bank statement as income proof (for F&O and Commodity segments), and an image of your signature
In the last step, you will need to eSign your document at the NSDL website by entering your Aadhaar card number and verifying it by entering your OTP
Zerodha Pros and Cons
Clean, fast, and secure trading platform
Equity leverage trading is available
Advanced charting tools and indicators
Margin trading available on Equity Intraday
Beautiful graphical P&L statement
KillSwitch to help traders stop overtrading
₹0 brokerages on Equity Delivery and Direct Mutual Funds
Low brokerage on Equity Intraday trading and F&O
Account opening is not free
Phone Support needs Support code
Many glitches in 2023
Zerodha Kite is Zerodha's trading application, available as web and mobile applications. Kite comes with multiple watchlists and allows you to choose between Tradingview and ChartIQ charting tools. Kite comes with different order types, including GTT, Cover Order, and Bracket Orders. Besides, Kite comes with multiple timeframes and fundamental and technical analysis data for stocks and indices. Users can also view the orders for different price levels placed for any stock.
Further, you can also view the lower and upper circuits for every stock. Another feature of Kite worth mentioning is that you can use multiple layouts for your charts. For example, you can have two charts with different time frames open side by side for the same stock or index. It can be very useful for multiple timeframe analysis. As far as Kite's security goes, it's exceptionally secure, backed by two-factor authentication. It would not be wrong to say that Kite is the best trading app in the industry.
Zerodha Coin is Zerodha dedicated application for long-term investments in Direct Mutual Funds, Government Bonds, Corporate Bonds, and Sovereign Gold Bonds. The application comes with a decent dashboard with everything categorically arranged. Besides, it gives you an excellent overview of your holdings and orders.
You can use Coin with your Zerodha credentials and can use Zerodha Coin alone if you are only into long-term investments. The best part is that no commission is involved in your investment as long as you choose Zerodha Coin.
Zerodha Console is the central dashboard for your entire Zerodha account. It provides you with details of your portfolio, funds, and reports. Besides, you can access the various account settings on the Console itself.
One important account setting that most traders on Zerodha use these days is to toggle the KillSwitch on and off, and you will find it on the Console page under the Account section. Besides, you will find your code on the Console page if you need your Support code while calling Zerodha phone support.
Zerodha Varsity is an excellent initiative by Zerodha to provide beginners with a free and open stock market and financial education. It is accessible by all, even if one is not a Zerodha user. Varsity has an extensive and in-depth collection of the stock market and financial lessons by Karthik Rangappa at Zerodha.
It wouldn't be wrong to say that Zerodha Varsity is an excellent place to start for every beginner. It includes all basics of trading and investing, including order types and placement, price-action analysis, technical analysis using indicators, and more.
One handy feature that most people need to pay attention to is Zerodha Pulse, and if you are not familiar with Zerodha Pulse, it's a market and business news aggregator. No one can rule out the importance of news in investing and trading. The news will continue to have great significance in the stock market.
Zerodha Pulse pulls local and global news from many leading stock market news websites, including Mint, Moneycontrol, Economic Times, Bloomberg, Business Standard, etc. That way, you can find all the important market-related news in one place without having to search for it and keep yourself constantly updated.
Zerodha Options Trading
Zerodha allows you to trade in Options and has the right trading interface in all aspects of Options trading irrespective of your trading strategy. The Zerodha trading platform allows you to trade in Equity Options as well as Index Options like Nifty, Bank Nifty, etc. It offers you Sensibull integration to test your Options strategies.
Zerodha comes with Option chain data, advanced charting tools, and indicators to help you take perfect trades. Order execution is fast, and Zerodha has the GTT order feature, which helps you place a target and stop loss at the same time while placing an order.
Refer and Earn
What if I say you can earn on Zerodha even without trading or investing? Don't be surprised; Zerodha allows you to share your affiliate link with friends and relatives. As anyone with whom you share a link signs ups for a Zerodha account, you will get 300 reward points.
Besides, when any such friend or relative trades on Zerodha, you will earn 10% of the brokerage they pay on their trading on Zerodha.
Streak is an innovative feature of Zerodha that allows you to take your analysis to the next level. Steak mainly helps you with three important things – backtest strategies, get technical data for your custom watchlist, and scan sectors and pre-market data.
However, Streak is not a free feature, and you will need to pay an additional cost to use this feature. However, you can try its free trial to see if the feature is helpful to you.
Zerodha Vs. Competitors
It's also essential to shed some light on Zerodha's competitors. One platform that has features close to Zerodha is Upstox. However, Zerodha's trading interface is faster than Upstox, and besides, it comes with advanced features like KillSwitch and Graphical P&L statements. Upstox beats Zerodha in terms of support as Upstox offers responsive support through phone, Email, and live chat.
If we compare Zerodha with Groww, Groww is undoubtedly lagging behind Zerodha in many places and needs to work a lot. Angel One also has features close to Zerodha. However, it misses Zerodha's advanced features like Graphical P&L and KillSwitch. Most importantly, customers had many issues with Angel One over the years, while Zerodha is exceptionally reliable.
Dhan is another trading platform that deserves mention in this post since it has been trying to be at par with Zerodha regarding features and functionalities. Dhan doesn't charge any account Opening charges and AMC, unlike Zerodha. Besides, the platform offers a decent trading interface and supports external Tradingview integration. Again, Dhan comes with a feature called Trader's Diary, which is somewhat of an advanced version of Zerodha's P&L report.
Dhan also offers APIs for free while they aren't free in Zerodha. Furthermore, Dhan has better support than Zerodha. However, Dhan is still a new platform and seems to have exaggerated features, while Zerodha has proved its reliability over the past many years. Hence, Zerodha is still the first choice for most beginners.
Zerodha Customer Support
Zerodha offers decent support through tickets and phone. Besides, Zerodha has a good knowledge base and an active community for quick reference. One thing that you need to bear in mind while using the Zerodha phone support is that you need to have with you your account support code, which you can get from your Zerodha console since you will be asked to provide them with the support code in order to connect to an executive over the phone.
Can Zerodha be trusted?
You can trust Zerodha since the platform has proved its reliability over the years. Besides, Zerodha has a vast user base. Furthermore, the platform is highly secure and offers a great trading experience. Zerodha can be trusted for both trading and investments.
Is Zerodha suitable for beginners?
Zerodha is undoubtedly an ideal platform for beginners since it is super clean with no exaggerated features, and one can quickly get the hang of it in just a few minutes. Most importantly, Zerodha has designed its application in such a way that beginners will learn the most important things first and gradually be able to explore the advanced features.
What is the monthly fee of Zerodha?
Zerodha doesn't charge you any monthly fee. You can fund your trading account with any amount you want. The Zerodha platform will only charge brokerage when you place an order, and your order gets executed. Besides, the platform charges a demat annual maintenance charge of ₹300 + 18% GST.
What are the disadvantages of Zerodha?
Zerodha has more pros than cons, and the only con I found about Zerodha is that contacting its phone support requires a support code every time. Many users aren't aware of it and will not get an executive over the phone without the support code. You can get the support code from the Console page.
Which broker is better than Zerodha?
Dhan is a broker founded in 2021, and the platform has features close to Zerodha. Dhan has a leading edge over Zerodha in some places like:
Zero account Opening charges and AMC
External Tradingview integration
Better support through chat, tickets, and phone
Can we do Forex trading in Zerodha?
You can do Currency trading in Zerodha. The National Stock Exchange has allowed cross-currency F&O trading in the following pairs
- EUR USD
- GBP USD
- USD JPY
It isn't wrong to say that trading in India has got its wings ever since Zerodha entered the online trading industry. Zerodha is a highly reliable platform with a vast user base. I like this platform's clean interface and intuitive trading application. However, 2023 has been a shocking and disappoint year for Zerodha users considering the glitches the trading platform has had in 2023. However, Zerodha has the best interface among all trading platforms.
I have walked you through the various aspects of Zerodha in this post. After reading this post, I am sure you have gained good clarity about the platform. Now, you should be able to open an account with Zerodha confidently.