Posted on Thursday, August 23, 2012
Modified on Thursday, July 9, 2015
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Zerodha is among the fastest growing stock broker in India. Zerodha started its operations as discount broker on 15th Aug 2010.
As of July 2012, company has approximate 15,000 active customers and growing at around 10% every month. This is a significant growth for a new broker in highly competitive brokerage market. For a company which doesn't have any branch, except its Bangalore office, this kind of growth is phenomenon.
The growth of the company was contributed by the easy referral model it offers to the customers. Satisfied customers; who saved good amount of money in brokerage fees, referred their friends and family members and played a key role in the growth of Zerodha.
Zerodha is a discount broker offering fixed price brokerage of Rs 20 per trade. Zerodha is first discount broker in India who launched the cheapest flat rate brokerage in Aug 2010.
Zerodha is as credible and safe as any other broker in India. They are registered with SEBI, BSE, NSE, MCX etc and regularly audited by them.Zerodha's Membership Information:
Zerodha is a reliable and genuine broker. They are game changer in India stock broker industry.
Also note that Zerodha provides demat account though IL&FS DP Services. ILFS Securities Services Ltd is a well known and respected financial firm in India.
Yes, Zerodha is authorized by SEBI. Zerodha is a registered broker with BSE, NSE and MCX and governed by SEBI like any other broker in India i.e. ICICI Securities, Reliance Securities etc.
You can find this information on SEBI website at http://www.sebi.gov.in/pmd_mb.jsp?PmdIndxName=Z&listCode=E
Zerodha is a discount broker providing Fixed Price brokerage services without any monthly fees or additional charges like software uses charge.
There are other discount brokers who work on different model including fixes monthly rent for trading with them. For example R K Global has a plan with Monthly Membership Fees Rs 999 (+ 100 software uses charge) and provides unlimited trading in NSE Capital Market Segment. The problem with this model is; you have to pay the rent irrespective to you use it or not. Also for each segment you have to buy separate plan.
Ventura, R K Global and Unicon provide retail plans for a fixed price monthly rental.
Zerodha is fastest growing discount broker in India. It has grown from 0 to 10,000 accounts in less than a year without any advertisements. There growth is all because of word-of-mouth publicity by their satisfied customers. This clearly shows how popular they are.
Zerodha has got approval from BSE as a trading member on May 17, 2012. Zerodha is planning to start allowing its investors trading on BSE in September 2012.
While the exact numbers are not available, as of Aug 2012, Zerodha is making an average daily turnover of Rs 2000 Crore at NSE.
Zerodha doesn't provide the demat account services. It has a partnership with IL&FS DP to provide demat services to its customers.
The transactions between Zerodha and IL&FS demat account are seamless and taken care by Zerodha.
But you are free to use any other demat account including your existing demat account. The only challenge is; when you buy shares, the shares get transferred in to your account by Zerodha but when you sell them, the shares have to be transferred to Zerodha manually by you. This could be a cumbersome process. That's why it is recommended to open a demat account also with Zerodha along with the broker trading account.
If you already have a demat account with Indiabulls or any other DP, this account can be linked to Zerodha trading account. When opening the trading account, please explain the situation and the representative will help you with this.
Please note that there are few challenges in using DP accounts other then IL&FS DP, which is opened though Zerodha. On sell transactions, you will have to transfer the shares manually from your demat account to Zerodha, as Zerodha doesn't not have access to your demat account with Indiabulls or any other DP.
Contact Zerodha to get more information or account related enquiry.Category: Zerodha Charges related questions
Stamp duty is charged under schedule 1 to the Indian stamp act for contracts shared with customer in any format including paper or electronic. The amount charged various by state from where the broker operates.
Zerodha charges .01% or Rs. 50 per contract note whichever is lower in all states except for clients whose permanent address is in Gujarat, Andhra Pradesh, Kerala, Tamil Nadu and Maharashtra.
Separate contract notes are sent for different truncation type i.e. one contract note for Equity (delivery+intraday), another contract note for Futures & Options and another for Commodities. Thus separate stamp duty is payable for each segment.
Please contact Zerodha for latest updated on stampduty charges.
Securities Transaction Tax (STT) is the tax paid when buying or selling of securities in India. The STT is various by the transaction type i.e. for delivery based trading its charged at 0.1% on both Buy & Sell and for Intraday equity trading its charged at 0.025% only on the Sell Side.
Zerodha charges maximum Rs 20 per executed order in all segments (i.e. Capital Market, Derivatives Market and Currency Derivatives segments). It means it doesn't matter how many lots you trade in an order, the brokerage still remains at maximum Rs 20 per trade.
Point of breakeven (breakeven point or BEP) in share trading is the price at which the net gains or net losses are almost 0 (after paying the brokerage and taxes for both the buy and sell transactions and adding other expenses). Or in other way, when the Net Profit or Net Losses reaches close to zero, the price difference is the breakeven point for the transaction.
While doing Intraday Trading with Zerodha if you:
If you sell the share at any price above Rs 100.26, you will make profit from this deal.
As Zerodha brokerage charges are cheapest in industry, the breakeven point with Zerodha is lowest too.
BEP for NIFTY Future:
|Number of Lots||Points to Breakeven|
|Above 15 lot||1.70|
Note: Breakeven calculation generally doesn't include stamp duty charges by the broker.
Zerodha provides DP services though ILFS Securities Services Ltd. The charges of their services are provided in the table below:
Zero. There is no minimum amount needed for opening or maintaining a trading account with Zerodha.
The brokerages charges are also payable as you trade. There are also no yearly maintenance fees for brokerage account with Zerodha.
Note that you have to pay Rs 400 per years for Demat account which you open with Zeordha along with your trading account.
Zerodha doesn't charge anything for software users. Both website based trading and terminal based trading platforms are available for free to all the customers.
Zerodha also doesn't charge any account maintenance fees. Even if you do not trader from few months, your account is still active.
|Margin Benefit||4 - 10 times *||40% of Exchange prescribed margin **||None for buying. For Sell same as Futures ****||100% of Exchange prescribed||50% of Exchange prescribed margin|
|Margin Time||9:15 to 3:10||9:15 to 3:00||9:15 to 3:00||9:15 to 4:45||25 minutes before Close|
|If Shortage (square off)||Positions will be squared off automatically||Positions will be squared off by RMS Admin ***||Positions will be squared off automatically||Positions will be squared off automatically||Positions will be squared off automatically|
|Margins against Stock||4 - 10 times based on Zerodha's valuation of customer portfolio||Margin provided if MTM losses can be brought in on the same day||Margin provided if MTM losses can be brought in on the same day||Margin provided if MTM losses can be brought in on the same day|
* Intraday margins for Cash are pre-determined, so you will get 4 - 10 times exposure on your cash. We have an Excel sheet on our website which gives you the list of all stocks for which margins are provided.
** Intraday margins for Futures and writing options are 40% of the SPAN + Exposure margin prescribed by the exchange. You can view the SPAN margin report in your back office personal ledger. It's updated every day. Example: if the margin requirement for Nifty is Rs. 25000, at Zerodha you can trade this at only Rs. 10000
*** All Futures positions will be squared off by our RMS Admin desk starting at 3:00 PM. If you have sufficient funds, your positions won't be squared off. Admin square off entails a Call & Trade charge of Rs. 20,so please square off on your own to avoid these charges.
Any open position which has a loss of over 80% of the capital will be squared off automatically without margin call. For example, if the exchange prescribed margin for Nifty is Rs. 25000, you should have those funds in your account, failing which your position will be squared off. There will be no margin call from Zerodha.
Intraday margins are provided (on request) on the holdings in your account if you have sufficient cash for MTM difference.
**** For buying Options, you have to pay full cash, no margin benefit is provided.
For selling options, the margin requirement is similar to Futures margins. The margin requirement varies depending on the strike price and expiry date.
|Strike Price of Option||Margin Required|
|At the Money||Same as Futures|
|In the Money||30% more than Futures Margin|
|Deep in the Money||60% more than Futures Margin|
|Out of the Money||20% less than Futures Margin|
|Deep out of the Money||30% less than Futures Margin|
The writing/sell price of Options increases based on the expiry date of the option. The near month option will use 20% more margin than the present month option. And similarly, the far month option will use 30% more margin than the present month option.
Zerodha gives 4 to 10 times leverage for stocks on which F&O trading is allowed. For most other stocks of NSE Zerodha gives 5 times leverage. All margins are given only for trading Intraday. No margin is given for delivery trades. The client needs to have enough money in his trading account to take delivery of shares failing which Zerodha cuts the positions.
Zerodha lets traders take positions for Intraday with 40% of the SPAN + Exposure Margins. On days when Zerodha feels the volatility is on the higher side the margins will be raised to 75% of SPAN + Exposure Margins. The sum of SPAN and Exposure margins is required to hold positions overnight.
Zerodha doesn't offer any margins for options.
While doing intraday trading you can keep the position open until 3:20 PM. If you are failed to square off your position, the auto square off begin by the system automatically and to settle the transition. An additional charge of Rs 20 is applied on all 'Auto Squared' trades executed by the system after 3:20 PM.
Zerodha doesn't offer sub brokership.
Yes, you can trade with as many brokers as you want. You can also have multiple demat and trading accounts with different or same broker.
Yes, Zerodha does provide an option to place after market orders. Orders can be placed after 6:30 PM to 9:15 AM. Below are few key facts about after-market orders with Zerodha:
Zerodha provides Mobile Trading facility on almost all smart phones. If you have Android Device, BlackBerry or Nokia phones, you can download the applications from following links and start trading right from your mobile phone.
If you trade only in F&O segment, you don't have to open a demat account with Zerodha. Note that the Annual Maintenance Charges (AMC) of Zerodha Brokerage Account is Zero. If you don't have a demat account with Zerodha, you have no AMC.
No there is no limitation or monthly target.
No there is no minimum balance required.
Demat account is not required if you are trading only in Commodity segment.
There are separate funds for Equity and Commodity segments.
Zerodha Trader is the platform Zerodha offers to its client. This is built on 'Omnesys NEST Trader' trading platform.
Yes. Zerodha Trader is the common platform for trading Equity, Currency and Commodity at MCX, NSE and BSE.
As of 2nd June 2014; Trailing Stop-Loss is available for nifty futures and Bank Nifty. Zerodha is planning to release Trailing SL for all future contracts which will be available to its customers soon.
Contact Zerodha team to discuss the services offered and how you can get benefited from this.
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