Zerodha Reviews - Options Trading, Brokerage & Platform

Published on Wednesday, April 4, 2018 by Chittorgarh.com Team | Modified on Monday, October 19, 2020

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Zerodha Reviews - Options Trading, Brokerage & Platform

Bengaluru based Zerodha started its operations in 2010. It is India's first flat fee discount broker (also called discount broker/budget broker/pay per order broker).

With an average daily turnover of more than ₹15,000 crores, the company is one of the top volume contributors on NSE, BSE, MCX-SX, and MCX. Zerodha has branches in 20 cities of India in addition to its main office in Bengaluru.

Like other online options trading companies, Zerodha offers services to trade in equity options, currency options, and commodity options. The company has built its trading application 'Kite' and back-office tool 'Console'. It also has other platform and applications like 'Kite Connect API' and 'Open Trade' etc. Zerodha customers also get access to many partnered products like 'small case', 'Balance' and 'Streak'.

Zerodha also has good platforms for customer education in Varsity, Trading Q&A, and Open trade. These platforms are useful for investors to learn and improve their trading skills, interact with other investors and connect with the Zerodha team.

Zerodha Pros and Cons

Pros Cons
Low brokerage fee - Flat ₹20 (or 0.03% whichever is lower) Call and trade facility at additional cost
Robust trading platform and investor friendly online tools No monthly plans
Good resources for customer education like Zerodha Varsity, Trading Q&A and OpenTrade Customer service can be improved
Paperless Aadhar based account opening
Discount broker for NRI services
Tech savvy brokerage firm

Zerodha Trading Platform / Applications

Zerodha is a technology savvy company that endeavours to provide innovative and advanced options trading tools to its customers like:

1. Zerodha Kite web

Zerodha 'Kite Web', currently in its 3.0 version, is a web-based HTML 5 trading application launched in November 2015. The platform allows investors to trade options on the desktop, mobile, and Tablets. According to Zerodha, 'Kite Web' is used by over 70,000 clients and serves over 5 million requests a day without any hiccups. Some of the key features of the platform are a full MarketWatch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover and millisecond order placements etc.

Kite Web also has the distinction of being India's first multilingual trading platform. The platform is available in over 10 regional languages including Hindi, Gujarati, Punjabi, Kannada, Bengali, Malayalam, Marathi, Tamil, Telugu and Odia.

2. Kite Mobile Trading App - Android & iOS

Kite mobile trading application is currently available for Android and iOS. The Kite mobile app, available for free, allows Zerodha customers to trade from their mobile devices. You can use the app for trading & monitoring options in India. The app gives you access to most of the features available in Kite web like the market watch, portfolio, orders, funds and charting etc.

3. Kite Connect APIs

Kite Connect API is one of the pioneering initiatives of Zerodha that gives programmatic access to retail investors. It is a set of simple HTTP APIs built on top of Zerodha's trading platform. Kite Connect enables customers of Zerodha to get programmatic access to important data like profile, funds, order history, positions, live quotes etc., in addition to placing orders and managing portfolios as per their trading needs and comfort.

Investors can use any programming language (from excel VBAs to Python, Java, C# or even your command line console) of their choice to place and manage orders, build multi-asset risk modelling systems, stock screeners, quant-based strategies, option greeks calculators, machine learning, backtesting, and more.

Kite Connect gives investors ownership and control over their data to help them do their trading analysis at ease.

4. Zerodha Console

Positioned by Zerodha as a 'trading journal and financial assistant', Console is a back-office reporting tool that gives traders a complete view of their investments and positions. Console uses charts to give you a summary of your account, funds page to monitor your funds, portfolio page to provide information on your holdings and open positions. Here traders can also check their historical open positions and download reports to an excel.

Console also gives you access to tax-ready P&L Statements and download it for taxation. As per Zerodha, Console is the only reporting tool in India to provide both Absolute & Indicative P&l reports.

You can also refer friends and family to Zerodha for opening their accounts with the company.


Zerodha Options Brokerage Charges

Zerodha's brokerage structure is extremely simple and very easy to understand. Customers who have switched to Zerodha have reported 80% to 90% savings in comparison to other full-service brokers.

Equity Options Currency Options Commodity Options
Brokerage Flat ₹20 executed order Flat ₹20 (or 0.03% whichever is lower) Flat ₹20 (or 0.03% whichever is lower)
Securities Transaction Tax (STT) 0.05% on premium (sell side) No STT 0.05% on premium (sell side)
Transaction Charges NSE: 0.05%
BSE: ₹1.50 for each buy trade & sell trade
NSE: 0.035%
BSE: 0.001%
0
GST 18% on (brokerage + transaction charges)
SEBI Turnover Charges ₹5 per Crore (0.0005%)
Stamp Duty 0.003% (₹300 per crore) on buy-side 0.0001% (₹10 per crore) on buy-side 0.003% (₹300 per crore) on buy-side

Other Charges

  • Call & trade: Additional charges of ₹50 per executed order
  • Squared off by the broker: Additional charges of ₹50 per executed order

Read more about Zerodha



Frequently Asked Questions

  1. 1. Is Zerodha a genuine/reliable/trustworthy options broker?

    Yes, Zerodha ticks all the boxes as a reliable broker. It is a member of NSE and BSE and has been in the business since 2010. The daily turnover of the company is more than ₹15,000 crores, and it is one of the top volume contributors to NSE, BSE and MCX. It is headquartered in Bengaluru and has 20 offices across India. Here are Zerodha's Membership details with various exchanges-

    Zerodha NSE Member ID:

    • NSE Registration Date - Jun 30, 2010
    • Capital Market (CM) - INB231390627
    • Future & Options (F&O) - INF231390627
    • Currency Derivatives (CDS) - INE231390627

    Zerodha BSE Member ID:

    • BSE Registration Date - May 17, 2012
    • Capital Market (CM) - INB011390623
    • Future & Options (F&O) - INF011390623
    • CDSL - IN-DP-CDSL-00278209
    • NSDL - IN-DP-NSDL-11496000

     

  2. 2. What are the advantages of trading options with Zerodha?

    Trading with Zerodha offers many benefits like:

    • Quick online account opening (using Aadhar number)
    • Brokerage free equity delivery and mutual fund investment
    • Low brokerage fee Intraday and F&O Trading (Max flat ₹20 per executed order)
    • No hidden charges.
    • Simple and advanced trading platforms.
    • Access to customer education platforms like Zerodha Varsity and Trading Q&A.
    • Direct Mutual Funds offer 1% to 1.5% additional earnings every year. 

     

  3. 3. What are the limitations of trading options with Zerodha?

    Zerodha Options trading features are at par with any other stockbroker in India. Zerodha has the largest share of trades done at BSE and NSE in the options segment.

    The biggest advantages of trading in options with Zerodha include best trading software, ultra-low prices, add-on tools for options strategies, and alog trading.

    Few disadvantages of trading in options with Zerodha include ₹50 per order Call & Trade charges, ₹20 auto squared-off charges, and ₹300 per year demat AMC charge. Note that a demat account is mandatory even if you are training only in options.

     

  4. 4. How to open an account with Zerodha for options trading?

    Zerodha has a Aadhar based paperless and instant account opening process. You just need to fill-in a few details and submit your eKYC using Aadhar.

     

  5. 5. How to trade in options with Zerodha?

    You can trade in options with Zerodha on your desktop and laptop. Here's how to do it-

    1. Visit https://kite.zerodha.com/ and login using your credentials.
    2. Search for the Options in the search bar, Use 'Opt' with the index or equity name. So for Reliance Options, you need to enter 'Reliance Opt' in the bar.
    3. Hover on the name of stock and Buy/ Sell buttons will appear.
    4. Clicking on [B] for Buy will open a window below
    5. Enter quantity, price and other details and click on the 'PLACE' button.

     

  6. 6. Is Zerodha good for beginners in options trading?

    Zerodha is excellent for beginners in options. It has good platforms like Varsity, Trading Q&A and Opentrade to acquire skills on options trading. These platforms also help you interact with other traders and benefit from their knowledge and experience.

     

  7. 7. What is MIS margin for options in Zerodha?

    When you place a trade using Zerodha's Kite or Pi trading platform, you are required to enter a product code from the available three choices- MIS, CNC, and NRML. MIS stands for Margin Intraday Square Off and is useful for traders who are doing intraday trading in Options. Intraday trading means to buy and sell of the order on the same day. The trade is completed on that day. Nothing is carried off to the next day.

    Zerodha offers margin leverage for intraday traders. There is no margin provided for traders buying options as there is no margin requirement for such a trade. However, the seller of options is required to maintain a margin. When you use an MIS code, you only need to maintain 50% of the margin. So, entering this code gives 50% margin leverage to Option sellers and allows them to do more trade with the same amount of money.

    Zerodha MIS Margin

    Example: Say, you want to sell Reliance Call Option for expiry date 27-Sep-18 for strike price 1300. Under the normal order, you need to maintain a margin of ₹1,69,810. However, if you are doing intraday trading and use 'MIS" code while placing the order, you need to maintain 50% of the ₹1,69,810 i.e. ₹84,905.

     

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1 Comments

david
1. david  Jun 22, 2020 17:55 I Like It. | Report Abuse Reply
after you open a account then you come to know that you cannot trade in OTM options... they only allow trading in high risk ATM ITM options








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