Zerodha Review 2024: Fees, Pros & Cons, and More

Zerodha, a major participant in India’s share trading industry, has built a formidable position since its launch in 2010.

With its strategy of affordable fees, user-friendly interfaces, and an array of financial products and services, the brokerage firm has effectively disturbed the established brokerage industry.

In this Zerodha review, we will give you detailed overview of its brokerage and other charges, trading platform, competitors analysis and other details.

About Zerodha – Company Information

Started by Mr. Nithin Kamath who was a trader himself, identified the problems faced by traders that time. Zerodha stands for “Zero” + “Rodha” and Rodha in Sanskrit means barrier.

Before 2010, all the brokers used to charge the fees in terms of percentage of total traded/invested value.

For example, if you invested Rs one lakh, normal rate was around 0.5% which resulted in brokerage of Rs500. And if you invest Rs10 lakh, it would be Rs5000.

Zerodha identified this pain point of traders where lot of profit was used to go in the form of brokerage charges.

Zerodha made the brokerage plan as Rs20/trade for a single order. That means irrespective of invested value, their brokerage would be fixed at Rs20.

This was huge hit among the Indian traders and because of this Zerodha became No.1 stock broker in India in 2018, within 8 years of its establishment.

Many other brokers tried to use the same brokerage model as that of Zerodha, but Zerodha stood out of all the competition because of its superior and stable trading platform and outstanding customer care.

Even without doing any advertisement and promotion, they could achieve this because of word of mouth from the satisfied customers.

Today they have more than crore customers and more than 15% of total trading of India happens through Zerodha.

Zerodha Brokerage Charges – 2024

The main aspect that truly distinguishes Zerodha from its competitors is its incredibly low fees.

The company’s flat rate structure of ₹20 per transaction is certainly worth appreciating, as it remains fixed, irrespective of the transaction size.

As a consequence of its competitively-priced trading facilities, Zerodha’s demat account has emerged as a best option among retail investors, who aim to curtail their trading expenses.

By providing such a cost-effective trading platform, Zerodha has enabled opportunities for people from all financial backgrounds, thereby democratizing the trading industry like never before.

Below is the deatiled segmentwise brokerage charges of Zerodha:

Let us understand what is is the meaning of Rs20/trade or 0.03% whichever is lower.

Case 1: Total Traded value Rs 30,000.

Brokerage is Rs20 or 0.03% of Rs30,000 which ever is lower = Rs 9.

In this case. Rs9 is levied as brokerage charge.

Case 2: Total Traded value Rs 1,00,000.

Brokerage is Rs20 or 0.03% of Rs1,00,000 which ever is lower = Rs 20.

In this case. Rs20 is levied as brokerage charge even though 0.03% of traded value is Rs30.

Hence we can understand that , the maximum comission one will pay in case of Zerodha is capped at Rs20.

Zerodha Account Opening and AMC Charges

• Online through Aadhaar : Rs 200
• Offline by submitting forms : Rs 400
• AMC Charges : Rs300/year

Zerodha Trading Platforms

Apart from low brokerage charges, the other factor that made Zerodha the favourite broker is their suprior trading platforms.

While every other broker was providing the third party trading platform such as NEST, Zerodha invested in building their own inhouse trading platform KITE.

Because it is a inhouse product, they were able to add new features, fix bugs quickly and offer support which was not possible with third party tools. Every broker had dependency on third party vendors while Zerodha was ahead with inhouse product.

Zerodha Kite:

Zerodha kite light weight, user friendly and clutter free web based platform which can be used on any device such as desktop,mobile and tablet using any web browser.

Zerodha Kite is considered as one of the best trading platform in India available as on date.

Some of the noteworth feature of Kite web are listed below:

• User-friendly interface: Zerodha Kite web offers a modern and intuitive interface that is easy to navigate, making it suitable for both novice and experienced traders.
• Advanced charting tools: The platform provides a range of advanced charting tools that allow users to perform technical analysis, including various types of charts, indicators, and drawing tools.
• Real-time streaming quotes: Zerodha Kite web provides real-time streaming quotes from multiple exchanges in India, enabling users to stay up-to-date on market movements.
• Market depth: The platform offers market depth information, which displays the bids and offers at different price levels for a particular instrument.
• Order types: Zerodha Kite web offers various types of orders, including market orders, limit orders, stop-loss orders, and bracket orders, providing users with greater flexibility in their trading strategies.
• Multiple market watches: The platform allows users to create multiple market watch lists, enabling them to monitor different stocks or instruments simultaneously.
• Shortcut keys: Zerodha Kite web provides shortcut keys for various functions, such as placing orders, switching between different tabs, and navigating through the platform quickly.
• Customizable workspace: The platform allows users to customize their workspace by adding or removing different widgets and tools, making it easy to create a personalized trading environment.
• Reports and analytics: Zerodha Kite web provides various reports and analytics, such as profit and loss statements, trade history, and portfolio analysis, helping users to track their performance and make informed trading decisions.

Zerodha Kite Mobile:

The Zerodha Kite mobile app is available for both Android and iOS devices and offers a user-friendly interface that is designed to provide a seamless trading experience. It provides real-time streaming quotes, advanced charting tools, market depth, and many more features that are available on the web-based platform.

One of the key advantages of Zerodha Kite mobile is that it enables users to trade on-the-go, giving them the flexibility to monitor their investments and make trades from anywhere at any time. The app also provides features such as customizable watchlists, price alerts, and notifications, helping users to stay informed and up-to-date on market movements.

The app provides a secure and reliable trading platform, with various security features such as two-factor authentication, fingerprint login, and encryption.

Zerodha Coin:

Coin allows you to invest directly in mutual funds. Normally, when you invest through a mutual fund agent, his/her commission is charged from your account and in long run your total portfolio gets affected because these comission is charged every year.

With Coin, one can invest directly into the mutual funds and hence save lot of commission that would have charged otherwise.

Margin/Leverage/Exposure Provided by Zerodha

Zerodha provides margin shown in the below table.

Is Zerodha Safe?

Zerodha, the brokerage company that functions in the Indian securities market, operates under the scrutiny of the Securities and Exchange Board of India (SEBI), which functions as the primary overseer for securities transactions in the country.

SEBI’s strict regulations for the market mandate Zerodha to comply with the strict protocols of transparency and ethical conduct, ensuring the protection of investors and the market’s integrity.

SEBI aims to provide investors with a fair playing field and secure their interests. To achieve this, brokerage firms are required to maintain high levels of transparency and integrity in their business practices.

This includes establishing a secure system that provides investors with complete and accurate information to facilitate informed decisions, especially in a volatile and fluctuating market.

Zerodha’s commitment to transparency and ethical conduct is evident in the company’s positive reviews and reputation as a reliable partner for investors in the stock market.

Additionally, Zerodha’s customer support services have received recognition for their effectiveness, further cementing the company’s reputation as a reputable and trustworthy brokerage firm in India.

Zerodha User Reviews and Customer Ratings

Zerodha’s clients have given the company overwhelmingly positive feedback, with impressive ratings on popular platforms such as Google Play Store and App Store.

The firm’s mobile app has garnered an impressive average rating of 4.3 and 4.6 stars on these platforms respectively.

Users have praised the app’s user-friendly interface, quick execution, and reliability. On Trustpilot, a well-known review platform, Zerodha has received an impressive rating of 4.6 out of 5 stars, based on more than 15,000 reviews.

Customers have commended the company’s reasonable fees, easy-to-use platforms, and exceptional customer support services. However, some dissenting views have criticized Zerodha for technical issues and slow response times for customer support.

Zerodha Competitor Comparison

Zerodha has become a favorite among retail investors in India, thanks to its user-friendly platforms and low fees.

However, investors should always consider alternatives before making a decision. Let’s examine some of Zerodha’s competitors:

1. Upstox, a growing brokerage firm, offers a flat fee structure of ₹20 per trade, making it an attractive alternative to Zerodha. It offers a range of financial products and services, including stocks, derivatives, and mutual funds, and has a trading platform that’s easy to use. However, unlike Zerodha, delivery brokerage is not FREE. They charge Rs20/trade even for investment. Also for other segment it is 0.05% or Rs20/trade against Zerodha’s 0.03% or Rs20/trade.
2. Angel One is a conventional brokerage firm that provides a diverse range of financial products and services, such as stocks, derivatives, mutual funds, and currencies.
3. HDFC Securities is another conventional brokerage firm that offers a wide range of financial products and services, similar to Zerodha and Angel Broking. It charges a percentage-based fee, which can be higher than Zerodha’s flat fee. HDFC Securities provides a trading platform similar to Zerodha’s Kite platform, but it’s worth noting that it doesn’t offer zero commission on mutual funds.

Overall, Zerodha remains a strong competitor in India’s stock trading industry, largely due to its low fees and user-friendly platforms.

While it may not offer the same range of financial products and services as some of its competitors, its emphasis on low fees and optimal user experience has made it a popular choice among retail investors looking to invest in the Indian stock market.

Zerodha Review – Final Thoughts

Zerodha started like a start up in a small building has now grown as mature company with more than crore customer.

It is not easy to compete with alredy established brokerage firms such as ICICI Direct which has the backing of biggest bank ICICI Bank. Within 8 years they replaced ICICI Direct to become No.1 Stock Broker In India.

There should be something which made this possible without company spenind single paisa on promotions. We think it is state of the art trading platforms and outstanding customer care.

Even though many established and new entrants tried to copy them, they are not able to come near to Zerodha.

So without doubt you can consider opening account with Zerodha. If you already have account with them, provide your review and ratings.

Zerodha FAQs

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