If there’s one thing we Indian’s love more than cricket, it’s a discount. No wonder Zerodha today is India’s largest stockbroker in India with more than 4 million active users.
It is one of the first online free discount brokerages offering services for Equity, Commodity, Mutual Funds and IPO investments in India. It doesn’t charge anything for equity delivery trades or mutual fund (direct) investments.
Without a doubt, it offers one of the best Demat services in India, for beginners as well as pros. I switched to Zerodha in 2018 and never thought of going back to the old ways, since.
If you are just starting with equity investing in India, you should go for Zerodha, without thinking. Don’t just take my word for it. In this blog, I will give you ample reasons to choose Zerodha Demat account over others.
Zerodha = Zero + Rodha (Barrier)
- Founders: Nithin Kamath & Nikhil Kamath
- Founded In: 2010
- Services: Trading Services for Equity, Derivative, Currency, Commodity, Mutual Fund and Bond Segment
What does it cost you to open and run a Zerodha Demat Account?
Zerodha offers one of the most transparent and economical Demat accounts in India. Zerodha charges INR 200/- for opening a Demat account. Further, INR 300/- is charged annually as general AMC charges for operating a Demat account.
Brokerage Charged on Zerodha Demat Account
Zerodha operates on a fixed brokerage model that charges INR 20/- or 0.03% (whichever is lower) on each executed order.
The company doesn’t charge anything (zero brokerage) on equity delivery and the max brokerage chargeable on each order is capped at INR 20/-. This makes Zerodha one of the most cost-effective brokerage companies in India.
|Equity Delivery||INR 0 (Free)|
|Equity Intraday/Futures||Flat INR 20 or 0.03% (whichever is lower) per executed order|
|Equity Options||Flat INR 20 per executed order (on Turnover)|
|Currency Futures/Options||Flat INR 20 or 0.03% (whichever is lower) per executed order|
|Commodity||Flat INR 20 or 0.03% (whichever is lower) per executed order|
|Mutual Fund||INR 0 (Free)|
Additional Charges on Zerodha Demat Account
- Call & Trade Feature (Optional): INR 50/Call or Trade
- Non-squared off MIS/BO/CO Positions: INR 50 per Executed Orders
- Physical Contract Notes Copy Delivery: INR 20/contract + Courier Charges
- Trade SMS Alerts (Optional): INR 1/Alert (Equity, F&O & Currency), INR 0.5/Alert (Commodity)
- Payment Gateway Charges: INR 9/- per fund transfer
- DP Charges (Delivery Based Selling in Equity): INR 13.5+ GST/ Transaction
Pros of Opening a Demat Account with Zerodha
- Popular, Transparent & Trustworthy: Zerodha is trusted by more than 40 lakh users and is the largest stockbroker in India.
- Tech-oriented stockbroker: Zerodha offers one of the most secure and powerful trading platforms and tools in the industry including Kite, Console, Coin, apart from Varsity (to learn trading for beginners)
- Zero Brokerage on Equity Trades: Zerodha doesn’t charge any brokerage on equity delivery. (CNC trades)
- Self-clearing broker: You don’t have to pay clearing charges as Zerodha is a self-clearing broker
- IPO Applications & Mutual Fund Investments: You can apply for IPOs with a Zerodha account and also can invest in direct mutual funds without the need for an additional account.
- Referral Program: Refer your friends and earn a part of the brokerage.
Cons of Having an Account with Zerodha
- No stock tips, recommendations or research reports
- Non-availability of lifetime-free AMC accounts
- Non-integration of Back Office (Console) with the trading platform. Console data takes time to get updated
- Paid call & trade option
- Non-availability of three-in-one trading account (banking services not available)
Platforms & Tools Available with a Zerodha Demat Account
|Kite (Web-based Trading Platform)||Used for everyday trading, Kite can be used from any web browser on mobile, tablet or laptop.||Market Watch|
Charting with 6+ Chart Types
Advanced Order Support
|Kite App||Available for iOS and Android, Kite mobile app allows users to execute routine trading orders, monitor stocks and more.||– Same as Kite Web platform-|
|Console||Back-office platform for viewing and monitoring all reports, statements, funds withdrawal, downloading contract notes, etc.||Place Fund Withdrawal Requests|
Download Account Statements
View/Monitor All Investments
Analytics and Reporting Tools
|Sentinel||A price alerting tool running on the cloud, Sentinel allows setting price alerts on stocks, futures and options. It doesn’t need the system to be on for sending alerts.||Cloud-based real-time alerting system |
Sends notifications to email and kite mobile app
Supports 80,000+ stocks, derivatives, bonds, etc. across multiple exchanges.
|Zerodha Coin||The platform is dedicated to direct mutual fund investments for Zerodha users.||Allows investing in Direct Mutual Funds without any additional charges |
Links all investments to Zerodha Trading Account
Commission-free Investments saves upto 1.5%
Is Zerodha Demat Account Really Free?
Zerodha is a discount brokerage that offers you the facility to trade in equity and direct mutual funds without paying brokerage. For Intraday and F&O orders in different categories it charges INR 20/- or 0.03% (whichever is lower). For more info on charges, check out the charges section above in this blog.
Also, you’d have to pay other charges like Government Taxes (STT, GST, Stamp Duty, SEBI Charges, Exchange Turnover Tax), Demat Transaction Charges and AMC charges, even if you are not paying brokerage on equity trades.
How to Open a Demat Account with Zerodha?
Opening a demat account with Zerodha is really simple. All you need to do is to visit the website, www.zerodha.com , click on sign up, input your mobile number and proceed with the account opening process.
I have heard Zerodha charges money for fund transfer. Why is it so?
Zerodha processes fund transfers through third-party payment gateways for which it has to pay a fee to the service providers, which is INR 9/- per transaction. This is a standard fee which you will have to pay for using the online payment gateway.
However, if you use IMPS, NEFT/RTGS or Cheques for fund transfer, you are not charged anything, though you’d have to wait for funds to credit.
Wrapping Up: Should You Open a Zerodha Account?
Well, if you don’t have a Demat account yet, I don’t know what are you waiting for? Zerodha offers the best deal for a beginner to start trading/investing in the stock market. And if you are a pro already, I’d say only one thing: Who doesn’t like to save money on commissions?
If you are serious about investing and love seamless service and powerful digital platforms to manage your trading journey, then Zerodha is definitely for you.
Let me tell you something: I’ve been a happy Zerodha user for three years now and haven’t ever had to get on a call or talk to their customer care to sort things out. I guess that will answer your apprehensions about opening a Zerodha Demat Account.