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Published on Thursday, August 23, 2012 by Chittorgarh.com Team | Modified on Thursday, April 8, 2021
Zerodha Account Opening
Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account online with Zerodha and start trading today.
Zerodha is India's largest stockbroker. Incorporated in 2010, Zerodha offers low-cost Equity, Currency and Commodity trading at BSE, NSE, and MCX. Zerodha is a discount stock broker. Zerodha also offers Mutual Funds (direct) to its customers. Read frequently asked questions about Zerodha.
Read more about Zerodha
Zerodha Streak Review - Algo Trading for Retail Investors NFO (Nifty Futures & Options) in Zerodha GTT in Zerodha Kite (Zerodha GTT guide) Direct Mutual Funds Explained (Meaning, Charges & Taxation)This is a limited-time offer. Open Instant Zerodha Account online and start trading today.
Zerodha has over 25 lakh, active customers, and a total of 60+ lakh customers, as of Oct 2020. The company is adding over 2 lakh new customers every month.
Zerodha is the largest and fastest-growing stock broker in India.
Zerodha started its operations as an online discount broker on 15th Aug 2010. It has grown at a significant pace since then.
Zerodha's grew at an exceptionally faster pace since March 2020 when the Covid pandemic hit and traditional brokers were unable to serve customers due to lockdown.
Zerodha's growth is contributed by a powerful online trading platform, low-cost brokerage, an extensive partner network, and an easy referral model. Satisfied customers; who saved a 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.
Read Zerodha - Safe, Reliable & Trustworthy Broker for more detail.
Zerodha's Membership Information:Zerodha is a reliable and genuine broker. They are game changer in India stock broker industry.
Yes, Zerodha is a SEBI registered stockbroker authorized to offer trading services in stock, commodity, and currency at BSE, NSE, and MCX exchanges.
Zerodha's SEBI registration is similar to another stockbroker in India including Sharekhan and ICICI Securities.
In addition, Zerodha is also a registered member of BSE, NSE, MCX, and NCDEX exchanges.
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 the most popular stockbroker in India. It is the largest stockbroker in terms of the number of active customers and trade volumes at stock exchanges.
Zerodha has over 25 lakh, active customers, as of Oct 2020. It is adding 2+ lakh, new customers, every month.
Zerodha has grown from 0 to 25 lakh active accounts in less than a decade without any advertisements or paid promotion of its services. This exceptional growth is all because of word-of-mouth publicity by their satisfied customers. This clearly shows how popular they are.
Yes, Zerodha is a registered member of BSE since 17th May 2012 and thus Zerodha allows to trade on BSE as well.
Zerodha BSE Member ID
While the exact numbers are not available, as of Aug 2012, Zerodha is making an average daily turnover of Rs 2000 Crore at NSE.
Yes, you can transfer your existing shares in another broker's demat to your Zerodha demat account. There are two types of transfer of holdings between demat accounts- intra-depository transfer and inter-depository transfer. The type of transfer depending on your current central depository of the demat account, NSDL and CDSL. If the central depository of both the demat accounts is the same then it will be an intra-depository transfer. For example, if both the demat accounts you're transferring shares are held with NSDL then its intra-depository transfer. Transfer of holding between a NSDL demat account and a CDSL demat account and vice versa is called inter-depository transfer.
To transfer shares from one demat to another, you need to use the Debit Instruction Slip (DIS) booklet provided by your Stock Broker. Here, you have to enter the names of shares along with their unique ISIN numbers. Then you have to provide the Target Client id (a 16-character code consisting of the DP id and the client id). Next, you need to select the transfer mode selection- intra-depository or inter-depository.
Transferring of shares takes time. Also, every time you want to sell shares held in your non-zerodha demat account using zerodha trading platforms, you have to first transfer the shares to zerodha demat account. That's why it is recommended to open a demat account along with a trading account with Zerodha.
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 through 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.
Zerodha offers online as well as offline account opening. The online account opening takes one working day after you submit the online account opening application form. The offline account opening may take up to 2 working days once Zerodha receives the account opening paper forms at its Bangalore office.
Note:
Zerodha charges Rs 200 for online account opening and Rs 300 for offline account opening. It is a one-time fee paid by the customer before they start filling the online application form.
This fee is not refundable. Even if you drop the plan to continue with the account opening after paying the fees, you don't get the money back.
Unlike many other brokers in India, Zerodha doesn't offer free account opening.
Zerodha charge stamp duty on all buy transactions. In the case of Options trading, the stamp duty paid on the premium.
Zerodha Stamp Duty Charges
| Segment | Stamp Duty |
|---|---|
| Equity Delivery | 0.015% |
| Equity Intraday | 0.003% |
| Equity futures | 0.002% |
| Equity options | 0.003% |
| Currency futures | 0.0001% |
| Currency options | 0.0001% |
| Commodity futures | 0.002% |
| Commodity options | 0.003% |
Stamp Duty is charged under schedule 1 to the Indian stamp act for contracts shared with the customer in any format like paper or electronic.
Note:
Zerodha charges STT of 0.1% of trade value on buy & sell trades for Equity delivery trades.
The Securities Transaction Tax (STT) is charged based on the trading segment and the transaction type. STT is the tax paid to the Government of India when you buy or sell securities.
| Segment | STT | Transaction |
|---|---|---|
| Equity Delivery | 0.1% | Both Buy and Sell |
| Equity Intraday | 0.025% | Sell Side |
| Equity futures | 0.01% | Sell Side |
| Equity options | 0.05% | Sell Side (on Premium) |
| Currency futures | No STT | |
| Currency options | No STT | |
| Commodity futures | 0.01% | on Sell Side (Non-Agri) |
| Commodity options | 0.05% | on 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.
For example:
Points to 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. Alternatively, you can say, when the Net Profit or Net Losses reaches close to zero, the price difference is the breakeven point for the transaction.
The points to breakeven get calculated post considering brokerage and various other charges like Stamp Duty, STT, Exchange transaction charges, GST, and SEBI charges. Thus, the breakeven point would differ for each transaction type and segment.
Scenario 1 - While doing Equity Intraday Trading with Zerodha, you can reach the points to break even when you:
Scenario 2 - While doing Equity Delivery Trading with Zerodha, you can reach the points to break even when you:
The calculation of points to breakeven is a little tricky as you need to consider all the taxes and charges applicable on a transaction. The BEP does not consider DP charges, payment gateway charges that are not part of a contract note. Zerodha provides a brokerage calculator that reflects the points to breakeven for your easy and quick reference.
As Zerodha brokerage charges are the cheapest in the industry, the breakeven point with Zerodha is also the lowest.
Zerodha charges Rs 200 for demat account opening. Zerodha charges Rs 13.50 for every debit transaction in a demat account (except mutual funds). It also charges Rs 300 annual maintenance charges which customer has to pay every quarter in advance.
Check Zerodha Demat Account Charges in detail.
Zerodha does not require any minimum amount in a trading account. The brokerage charges are also payable only when you trade.
Note:
Zerodha doesn't charge anything for online trading software Kite. Both the Kite website and mobile trading app are available for free to all the customers.
Note:
| Item | Equity/Cash | Futures | Options | Currency | Commodity |
|---|---|---|---|---|---|
| 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.
While trading in an intra-day segment of equity, you can keep the position open until 3:20 PM. If you failed to square off your positions by 3:20 PM, the trading platform automatically square-off your open positions. This process square-off your open intra-day positions at market price to settle the transition.
Zerodha charges an additional Rs 50 fees for all 'Auto Squared' trades. This fee is to encourage customers to square-off their open positions by themselves on time so that it doesn't put the load on the system in the last few minutes.
Zerodha offers a business partner program that allows people to become sub-broker of Zerodha.
To become a Zerodha sub-broker you are required to fill up an online form, post which a representative from Zerodha will call you to discuss the details of the partner program.
Read more about Zerodha Partner Program Review (Refer and Earn)
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 (AMO). Orders can be placed anytime after 3:45 PM for all segments (i.e. Equity, Currency, F&O) except for Commodity. For Commodity, AMO can be placed anytime during the day.
| Segment | Order Time |
|---|---|
| Equity | NSE: 3:45 PM to 8:57 AM BSE: 3:45 PM to 8:59 AM |
| Equity F&O | 3:45 PM to 9:10 AM |
| Currency | 3:45 PM to 8:59 AM |
| Commodity | Anytime during the day* |
* If MCX AMO order is placed during the market hours the order will go through the next day at 9 AM.
Zerodha AMO Order Facts
Zerodha provides a free mobile trading app 'Zerodha Kite' for smartphones. You can download the Zerodha Kite app from Google Playstore or Apple App Store.
Steps to download Zerodha Mobile Trading App
Yes, with the introduction of physical settlement in F&O, a Demat Account is now required for trading in F&O with Zerodha.
Thus, though if you intend to trade only in F&O, Demat is required to be opened to allow the physical settlement of stocks in F&O on expiry in case of any such open positions.
Demat account is not required if you are trading only in Commodity segment.
Zerodha Kite is the platform Zerodha offers to its client. The Zerodha Kite 3.0 is built using HTML 5 technology and provides a range of features to traders.
Yes. Zerodha Kite is the common platform for trading Equity, Currency and Commodity at MCX, NSE and BSE.
Yes. Trailing Stop-loss (SL) is available with Zerodha for all stocks and contracts. The trailing SL facility is available when you choose Bracket Order (BO) for intraday trading.
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