Zerodha FAQs (Frequently Asked Questions)


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Zerodha is a Bangalore, India based Flat Fee Share Broker (Also known as Budget Broker / Discount Broker / Pay Per Order Brokerage Company) for trading in Stock, Commodity and Currency Derivative. It charges a brokerage of 0.01% or ₹20 per executed order, whichever is lower, irrespective of the number of shares or their prices (Except equity delive... Know more about Zerodha

Do you have questions about Zerodha share trading account or Zerodha demat account?

Get all your share trading doubts and questions answered by reading the Zerodha demat, trading account information FAQ. All Zerodha questions, Zerodha q&a, Zerodha faq and Zerodha questions and answers.

Zerodha Special Offer

Free Equity Delivery Trading

Get free equity delivery trading (truly no brokerage) and pay flat ₹20 brokerage for Intraday and F&O trades. To open an account with Zerodha, simply leave your contact information with us and Zerodha representatives will call you.

Frequently Asked Questions

  1. 1. What are Zerodha trading and demat account?

    To trade or invest in India Stock Market, you need 3 accounts; trading, demat and bank account. Zerodha offers trading and demat accounts. The Zerodha trading account is required to place buy & sell orders. The Zerodha demat account is required to hold bought securities in electronic form. Both trading and demat accounts are linked to the bank account (with any bank).

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  2. 2. What is Zerodha discount broker?

    Zerodha is an online discount broker. Discount brokers are those brokers who offer only online broking services at a very low-cost. They use the latest computer technology to offer online trading services to millions of customers. They usually do not offer many add-on services like research, advisory, portfolio management, neighborhood branches, personal relationship managers, etc. The brokerage charge for discount brokers is significantly less than traditional full-service brokers.

    Find more detail at:

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  3. 3. Zerodha is trading or demat account?

    Zerodha is an online discount broker that offers both trading and demat accounts. These accounts are for trading in stocks, derivatives and bonds, etc. The demat account also holds Mutual Funds. Zerodha offers a 2-in-1 account which is a combination of trading and demat accounts linked together for seamless online transactions.

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  4. 4. Does Zerodha have Forex trading?

    Yes, Zerodha offers trading in forex (currency). You can trade in currency derivatives at BSE and NSE exchanges using the Zerodha trading account. The customer has to enable the Currency trading segment before start trading in the currency.

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  5. 5. Is Zerodha free?

    Yes, Zerodha offers brokerage free equity delivery trading and Mutual Fund investments. Brokerage for Intra-day and F&O trading is charged at ₹20 per executed order. Government taxes and demat charges are applicable on all trades including delivery which is commission-free.

    Check Zerodha Brokerage Charges for more detail.

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  6. 6. Is Zerodha listed company?

    Zerodha is a privately held company. It is not listed in any stock exchange. However, it is a registered member of SEBI, NSE, BSE, MCX and CDSL. Zerodha Commodities Pvt. Ltd. is a subsidiary of the company.

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  7. 7. How does Zerodha work?

    Zerodha works on an online discount brokerage model wherein only online trading services are offered to customers. It heavily uses technology to serve its customers and has very few branches & offices. Technology helps them to scale and reduce the operational cost which in-tern helps them to maintain huge profits despite offering low-cost trading.

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  8. 8. How does Zerodha earn money?

    Zerodha is a profitable company from the 1st years of its services.

    Zerodha offers low-cost trading services. The low brokerage brings down the break-even point for trades. This increases the frequency of trading and overall revenue.

    Zerodha offers all its services online, with nearly no physical presence. This reduces the operational cost and helps them scale-up the business easily.

    Zerodha also doesn't offer many add-on services like research, tips, relationship managers, etc. Zerodha doesn't spend any money on advertisement.

    Zerodha is simply an online trading company leveraging technology to offer trading services to a huge number of customers.

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  9. 9. Is Zerodha best?

    Zerodha is India's No 1 stock broker in terms of the number of active customers. It has a share of over 10% daily market turnovers at BSE and NSE. It is undoubtedly the best broker for retail customers in India at this time.

    Zerodha is best in offering advanced trading platforms and trading with ultra-low brokerage charges. Zerodha is also the best broker offering brokerage free delivery trades and commission-free investment in direct mutual funds.

    The management of Zerodha has a clear vision; they are transparent and the customers can reach them easily.

    Note: Zerodha doesn't offer services like research and recommendations, trading tips and personalized services i.e. relationship manager.

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  10. 10. What does word Zerodha mean?

    Zerodha means No-barriers.

    Zerodha is made of two words; Zero and Rodha. Rodha is a Sanskrit word. It means barrier (blockade, obstacle, hurdle or difficulty).

    The word Zerodha shows the company's commitment to offering the cheapest brokerage to Indian investors.

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  11. 11. How long Zerodha is in broker business?

    Zerodha started its brokerage business on 15th August 2010.

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  12. 12. What are Zerodha brokerage charges?

    Zerodha charges a flat brokerage on every executed order. The brokerage on equity delivery is free. The brokerage fee across various trading segments is as follows:

    Zerodha Brokerage Charges

    Trading Segment

    Brokerage Fee

    Equity Delivery

    Zero Brokerage

    Equity Intraday

    0.01% or ₹20/executed order whichever is lower

    Futures (Equity/Currency/Commodity)

    0.01% or ₹20/executed order whichever is lower

    Options (Currency/Commodity)

    0.01% or ₹20/executed order whichever is lower

    Equity Options

    ₹20

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  13. 13. Is Zerodha good for intraday trading?

    Yes, Zerodha is good for intraday trading on 2 counts. First, the brokerage rates are low which allows you to reach break-even fast. Second, the trading software is advanced which makes for fast trading.

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  14. 14. Does a discount broker like Zerodha can really make a profitable business by offering trades at ₹20?

    Hard to believe but YES they are making excellent profits by keeping the cost very low and by the increased volume of trade by customers. Here is how the discount brokerage is a profitable business in short as well as in long-term:

    A discount broker like Zerodha focuses on core brokerage business.

    • They keep their operation cost really low by not offering services like research, margin funding, local branches etc.
    • They invest in technology and encourage online trading through mobile, web or installable trading terminal. Zerodha focuses on online traders and does so by being mostly online and with centralized operations in Bangalore.
    • Reduced brokerage allows traders to trade frequent which intern to increase the volume. Stock exchanges offer incentives to the brokers for high volumes as it increases liquidity in the markets.
    • Almost zero spending in advertising saves big amount for Zerodha. In initial 6 years, their customer referral model worked really well for them. The customer referral program did enable its customers to refer friends and earn 10% of brokerage paid by their referred friend. Note the customer referral program was discontinued in mid 2018.
    • Zerodha has other source of earnings including:
      • Interest earned on the money customers keep with them. This contributes to over 25% of its revenue.
      • Demat account charges
      • Call & trade charges
      • Part of exchange transaction fee
      • Monthly fees changed for add-on trading tools offered.
      • Commission when customer applies for corporate FDs, NCD and bonds.

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  15. 15. How to open an account with Zerodha?

    Simply leave your contact information and Zerodha representative will call you in a few hours.

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  16. 16. Is Zerodha good for beginners?

    Zerodha is an online stock broker designed for people who can trade by themselves with no help from the broker. This makes it difficult for beginners who require hand-holding in initial days. Reaching out to Zerodha customer services could be a challenging task.

    Zerodha also doesn't offer relationship managers, research & advisory services. Beginners need assistance in picking stocks as well as for placing buy/sell orders where an RM can be valuable.

    Zerodha has online education apps, discussion forums and support portal. This helps beginners in learning the stock market as well as the trading tools.

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  17. 17. Is Zerodha good for long term investors?

    Yes, Zerodha is good for long term investors. It offers Equity delivery brokerage at free that brings down the trading costs thereby helping a lot of money in the long term. Zerodha also offers commission-free direct mutual funds which result in additional earning of 1% yearly.

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  18. 18. Can Zerodha arrange someone to visit me to pick up the forms?

    Zerodha doesn't offer home pickup of account opening forms. You will have to courier the forms to Zerodha Bangalore office. The forms can be filled online.

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  19. 19. How long does it take to open an account with Zerodha?

    Once Zerodha receives the form; the equity trading and commodity trading accounts are opened within 48 hours.

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  20. 20. Does Zerodha give interest?

    No, Zerodha doesn't give interest on the money held in the trading account. Zerodha also doesn't accept personal FDs as margin for trading.

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  21. 21. Does Zerodha work on Saturday?

    The Zerodha customer support is open till 2:00 PM on Saturdays. The sales and customer service don't work on Sundays and Market Holidays.

    Zerodha is an online broker. Almost all its services are offered online.

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  22. 22. Zerodha Brokerage of ₹20 or 0.01% whichever is lower, what does this mean?

    • Intraday Trading - you actually pay 0.01% and on top of it; the maximum brokerage you pay is just ₹20 per executed order.
      Example:
      • If you buy 100 shares of ₹10 each share; you brokerage is 0.01% of ₹1000; which is ₹1.
      • If you sell 100 shares of ₹3000 each share; your brokerage is ₹20.
    • Delivery Trading - you pay ₹0 brokerage. Yes, it's totally free with absolutely no hidden fee.
      Example:
      • Buy 100 shares of ₹10 per share for delivery; the brokerage you pay is ₹0.
      • Sell 100 shares of ₹3000 per share for delivery; the brokerage you are charged is ₹0.

    When you are trading stocks and if you are trading volumes are lower you get the benefit of ₹20 or 0.01% for intraday, whichever is lower.

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  23. 23. What is Zerodha 4 digit telephone code (Z Pin)?

    The Zerodha 4 digit telephone code (Z Pin) is a customer personal identification for placing orders through the Call & Trade desk and for raising support requests.

    Every time you call Zerodha customer support or Call & Trade desk, you need to authenticate yourself using the Z pin code.

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  24. 24. What is an executed order with Zerodha?

    When you place an order with Zerodha which gets traded, it is called an executed order. You don't pay for placing, cancelling or modifying an order; you pay only per executed order.

    Zerodha doesn't charge per trade, Zerodha charge only for an executed order. So even if an order is executed in 5 different trades it is considered only 1 executed order and you pay only ₹20.

    Example of an order is:

    Buy 1000 shares of ONGC

    You place a 'buy' order for 1000 shares of ONGC. This order may get executed in different trades (chunk) until the whole 1000 share is bought. However, Zerodha charges you only ₹20 for the order that is placed, irrespective of how many trades it takes to complete the order. The same charge is applied for trading Equity Intraday, Delivery, F&O, Currency Derivatives, and Commodity.

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  25. 25. What is F&O trading Zerodha?

    F&O trading in Zerodha is trading in derivatives (Futures & Options) contracts. In F&O trading, the contracts for the underlying asset like stocks are bought and sold. You can trade in the equity, currency and commodity derivatives with Zerodha.

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  26. 26. I place an order to buy 10 lots with Zerodha; what if it gets traded 5 times 2 lots per trade?

    Zerodha doesn't charge per trade, they charge only for an executed order. So even if an order is executed in 5 different trades it is considered only 1 executed order and you pay only ₹20.

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  27. 27. What are call & trade charges with Zerodha?

    When a customer places an order over the phone, Zerodha charges an additional charge of ₹20 as Call & Trade Fee.

    Zerodha is an online broker. Zerodha prefers that the customer uses its online trading platform to execute orders. Zerodha offers free installable trading terminal, website, and mobile application.

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  28. 28. How to change Zerodha bank account?

    To change the bank account linked with your Zerodha account, you need to submit the 'Account Modification Form' along with a bank proof document. Here are the steps to change Zerodha bank account-

    1. Visit Zerodha's website
    2. Go to the 'Download & Resources' section.
    3. Download 'Account Modification Form'
    4. Print, fill and sign the form
    5. Attach bank proof documents like bank statements, cancelled cheque etc., and send it to the company's Bengaluru office.

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  29. 29. How much Zerodha charge?

    Zerodha charges fixed brokerage on trading. It charges zero brokerage on equity delivery trades. Mutual Fund investments are also free. Brokerage for trading in various instruments is as follows:

    Zerodha Charges

    Trading Segment

    Brokerage Fee

    Equity Delivery

    Zero Brokerage

    Equity Intraday

    0.01% or ₹20/executed order whichever is lower

    Futures (Equity/Currency/Commodity)

    0.01% or ₹20/executed order whichever is lower

    Options (Currency/Commodity)

    0.01% or ₹20/executed order whichever is lower

    Equity Options

    ₹20

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  30. 30. What are the various platforms Zerodha provide?

    Following is the list of trading platforms Zerodha provides to the trader:

    • Zerodha Kite Trading Website
    • Zerodha Kite Mobile Trading App
    • Zerodha Trader (Installable Trading Terminal for Windows)

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  31. 31. Does Zerodha provide technical charting?

    Yes, Zerodha provides advance technical charts on its free Kite trading platform. The advanced charts are also available on its Zerodha Pi and Zerodha Trader applications.

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  32. 32. What is UCC in Zerodha?

    UCC in Zerodha stands for Unique Client Code. Every Zerodha customer gets a UCC which helps the system and exchanges identify the customer. Recently, SEBI has asked brokers to map UCC with the demat accounts.

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  33. 33. Does customer get leverage for intraday trading with Zerodha?

    If you use the product type as MIS, you get leverage for intraday trading.

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  34. 34. How much leverage does Zerodha provide for Intraday Equity Trading?

    • Zerodha doesn't offer any margin for Equity Delivery.
    • In Intraday Trading, Zerodha offers 5 to 20 times exposure for stocks on which F&O trading is allowed.
    • Zerodha doesn't offer any margin for buying Options.
    • In Futures Intraday Trading in Equity, Commodity and Currency, Zerodha lets clients take MIS (Margin Intraday Squareoff) positions with 40% to 50% margin

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  35. 35. How to transfer fund in Zerodha trading account?

    Zerodha offers 3 fund transfer options. Before you transfer the funds please note:

    • Transfer through UPI is free.
    • Adding funds through net banking cost ₹9 per transaction.
    • Withdrawal is free of charge.
    • Withdrawals requests placed before 8:30 PM (for equity) and 8:00 AM (for commodity) on working days are processed on the same day.
    • Funds received from the sale of shares can be withdrawn only after T+2 days.
    • Funds received from exiting F&O positions can be withdrawn only on the next working day.
    • Pay-ins made during the day can only be withdrawn on the next day.

    1. Zerodha Kite

    Kite is Zerodha's flagship trading platform. To transfer funds (Pay-in or pay-out) using kite follow below steps:

    1. Login to Kite Web or Kite Mobile App
    2. Click on link 'Funds' in top right
    3. Click 'Add Funds' or 'Withdraw' button
    4. Follow the instructions on the screen.

    2. Console

    Zerodha back-office 'Console' provides a facility to check statements and withdraw funds from the Zerodha trading account. Follow the below steps to manage your funds through the console:

    • Login to Console using Kite IDs.
    • Click on link 'Funds' in top right
    • Click 'Overview'
    • Enter the amount you would like to withdraw.

    3. NEFT/RTGS from Bank Account

    You can transfer funds to your trading account from any linked bank account [Only Zerodha Linked Bank Account] using NEFT/RTGS fund transfer facility from your banks net banking facility.

    To transfer funds from your linked bank, you have to add Zerodha as a payee and then transfer funds. Once Zerodha is confirmed as a Payee, you need to make an online fund transfer and send them an email [to fundtransfer@zerodha.com] giving Zerodha the details of the transaction reference number. Zerodha will update your trading limits as soon as the funds are available in its account and send you an SMS confirming the same.

    Zerodha Bank Account for NSE/BSE (Equity, F&O, Currency)

    • Bank Name: HDFC Bank
    • Account Name: Zerodha Broking Ltd
    • Account Number: ZERNSE
    • Account Type: Current Account
    • Bank/Branch: Sandoz Branch, Mumbai
    • IFSC Code: HDFC0000240

    Zerodha Bank Account for MCX (Commodities)

    • Bank Name: HDFC Bank
    • Account Name: Zerodha Commodities Pvt Ltd
    • Account Number: ZERMCX
    • Account Type: Current Account
    • Bank/Branch: Sandoz Branch, Mumbai
    • IFSC Code: HDFC0000240

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  36. 36. Can I open a trading account on my minor son/daughter's name with Zerodha?

    No, Zerodha doesn't offer a trading account on minor's name.

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  37. 37. Are there any charges if online fund transfer fails due to reason like internet disconnect?

    No, Zerodha doesn't charge any fee if the instant fund transfer fails in-between for any reason.

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  38. 38. If I purchase 50 shares of Glenmark @ 800 other 50 shares @ 790 then brokerage will be charged at (20+20) or only 20 rupees, a single script is traded but different orders are placed?

    Note that Equity delivery brokerage is ₹0 with Zerodha. So you don't pay anything.

    For intraday, the brokerage is changed for every 'successfully executed order'.

    In the example you gave above, if both the transactions are part of 1 order then you pay only ₹20. It doesn't matter how many transactions order is completed in exchange.

    If they are part of different orders placed, then separate brokerage of ₹20 for each order is charged.

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  39. 39. SMS charges for daily transactions will be Re 1 per message or Re 1 per day for messages sent?

    SMS facility is optional and charged at ₹1 per SMS sent.

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  40. 40. I don't have much income, can I choose to trade in Nifty Options. I have IT Return, bank statements etc.?

    It doesn't matter as long as you have enough 'margin money' to trade.

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  41. 41. I already have a demat account with Sharekhan. How do I link it to my Zerodha trading account?

    For F&O trading you do not need a demat account. But if you are planning to buy shares and hold them in your demat account, it's mandatory to open a new Demat account with Zerodha. It makes the transactions between your trading account and the demat account seamless. Note that Zerodha offers cheapest demat account too.

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  42. 42. Do I need to maintain any minimum balance in Zerodha Trading Account?

    No. you don't have to keep any minimum balance in Zerodha Trading Account.

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  43. 43. Is IPO Investment can be possible with Zerodha?

    No. Zerodha doesn't offer to Investment in IPO's. But one can do the IPO Investment indirectly using his/her own demat account in any bank like ICICI, HDFC or Axis.

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  44. 44. Is BTST available in Zerodha?

    Yes. BTST (buy today - sell tomorrow) facility is available with Upstox. Note that this facility is available with most of the broker in India.

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  45. 45. Is STBT available in Zerodha?

    No. STBT (sell today - buy tomorrow) is not available with Zerodha. The shorting is only for intraday.

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  46. 46. Does Zerodha offer CDSL Easiest facility?

    No. None of the online stock brokers offers CDSL Easiest facility to its customer. The reason is, when you register for CDSL Easiest, the broker loses the POA (Power of Attorney) over your Demat Account. This means that you cannot sell shares from your holdings using your trading platform because the broker will no longer be able to debit your shares from Demat.

    They recommend using DIS (delivery instruction slips) for share transfers to another Demat account.

    Note that CDSL Easiest is to submit off-market, on-market, inter-depository and early pay-in debit instructions from their DEMAT account using CDSL online portal.

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  47. 47. How do I online transfer shares to another demat account?

    Zerodha doesn't offer an online transfer of shares from its demat account for off-market transactions. The only way available is by using singed DIS (delivery instruction slips).

    Zerodha customer can request for DIS slips by sending a signed form available in the download section of their website.

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  48. What is AMC for Zerodha?

    Zerodha charges ₹0 (Free) Annual Maintenance Charge (AMC) for a trading account and ₹300 for a demat account. AMC is charged to maintain the accounts.

  49. How much Zerodha charge for delivery?

    Zerodha charge ₹0 (Free) for equity delivery trade. These trades are also known as cash & carry trades or CNC.

  50. How much Zerodha charge for intraday?

    Zerodha charge ₹20 per executed order or .01% whichever is lower for intra-day trades. These orders are also known as Margin Intraday Square-up or MIS orders. All open intraday orders are auto squared-off at the end of the day. Extra leverage is offered for these trades.

  51. How much Zerodha charge for futures?

    Zerodha charge ₹20 per executed order or .01% whichever is lower for equity futures trading.

  52. How much Zerodha charge for options?

    Zerodha charge ₹20 per executed order or .01% whichever is lower for equity options trading. Options are highly leveraged derivative products. Options trading is used in many ways including hedging or to reduce the risk exposure of the portfolio.

  53. How much Zerodha charge for commodity?

    Zerodha brokerage charges for commodity futures is ₹20 per executed order or .01% whichever is lower and commodity options is ₹20 per executed order or .01% whichever is lower. Commodities futures are agreements to buy or sell raw material (food, energy or metal) at a specific date in the future at a particular price. Commodity options contracts are the right to buy (call option) or sell (put option) underlying commodity futures at predetermined prices on the date of contract expiry.

  54. How much Zerodha charge for currency trading?

    Zerodha charge ₹20 per executed order or .01% whichever is lower for currency futures trading and ₹20 per executed order or .01% whichever is lower for currency options trading.

  55. What are transaction charges in Zerodha?

    Transaction Charges (or Exchange Turnover Charges) is a fee charged by the stock exchanges for trades done through them. Most brokers include clearing changes to it. These changes can be seen in the contract note.

    Zerodha Transaction Charges 2020
    SegmentTransaction Fee
    Equity DeliveryNSE ₹325 per Cr (0.00325%) | BSE ₹300 per Cr (0.003%) (each side)
    Equity IntradayNSE ₹325 per Cr (0.00325%) | BSE ₹300 per Cr (0.003%) (each side)
    Equity FuturesNSE ₹190 per Cr (0.0019%)
    Equity OptionsNSE ₹5000 per Cr (0.05%)
    Currency FuturesNSE ₹90 per Cr (0.0009%) | BSE ₹22 per Cr (0.00022%)
    Currency OptionsNSE ₹70 per Cr (0.0007%) | BSE ₹100 per Cr (0.001%) (on premium)
    CommodityGroup A - ₹260 per Cr (0.0026%)

  56. Does Zerodha offer IPO?

    Yes. Zerodha offers online IPO applications to its customers. Initial Public Offer (IPO) offers an early opportunity to buy shares of companies that are not previously traded publicly.

  57. Does Zerodha offer Mutual Funds?

    Yes. You can buy/sell Mutual Funds if you have an account with Zerodha. In a Mutual Fund, asset management companies (AMC) collect money from several investors and invest them into certain stocks, bonds, debt funds, etc.

  58. Does Zerodha offer margin funding for share/commodity trading?

    No. Zerodha doesn't provide margin funding.

  59. What is Zerodha intraday auto square-off time?

    Zerodha auto square-off all open intraday positions at 3:10 PM.

  60. Does Zerodha provide trading tips or investment strategies?

    No. Zerodha doesn't provide trading tips for stock and commodity trading to its customers.

Contact Zerodha / Request Call Back

Brokerage free equity delivery trading (no commission) + Flat ₹20 Intra-day and F&O trades. Get the offer

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Information on this page was last updated on Tuesday, March 31, 2020


3 Comments

N Sridhar
3. N Sridhar  May 8, 2019 02:14 I Like It. | I Don't Like It. | Report Abuse Reply
Can NRI, open account in Zerodha? If. "Yes" what is the procedure?
Sudarson Dey
2. Sudarson Dey  Apr 7, 2018 10:02 I Like It. | I Don't Like It. | Report Abuse Reply
Can I sell 1st of any stock at CNC and would buy later date? If so what is the rule of Zerodha?

p c mohapatra
1. p c mohapatra  Sep 10, 2016 15:44 I Like It. | I Don't Like It. | Report Abuse Reply
Can i open trading account with Zerodha with demat account at Religare ?







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