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Zerodha FAQ (Zerodha Frequently Asked Questions)


Zerodha is a Bangalore, India based Flat Fee Share Broker (Also known as Budget Broker / Discount Broker / Pay Per Order Brokerage) for trading in Stock, Commodity and Currency Derivative. It charges brokerage of 0.01% or Rs 20 per executed order, wh... 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.

Special Offer: Free equity delivery trading (truly no brokerage) and Flat ₹20 intranet and F&O trade brokerage. Get the offer

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 offer the cheapest brokerage to Indian investors.


How long Zerodha is in broker business?

Zerodha started its brokerage business on 15th August 2010.


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.

How to open an account with Zerodha?

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


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.


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.


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.


What is an executed order?

When you place an order which gets traded, it is called an executed order. You don't pay for placing, canceling 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.


I place an order to buy 10 lots; 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.


What are call & trade charges?

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 customer uses its online trading platform to execute orders. Zerodha offers free installable trading terminal, website, and mobile application.


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)

Does Zerodha provide technical charting?

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


Does customer get leverage for intraday trading?

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


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

How to transfer fund in Zerodha trading account?

Zerodha offers 3 easy money transfer options to suit customer requirement. You can use the appropriate channel depending on your bank account. Click here to know more about Zerodha Fund Transfer.


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

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


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.


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 in 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.


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.


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.


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.


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.


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.


Is BTST available in Upstox?

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


Is STBT available in Zerodha?

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


Does Zerodha offer CDSL Easiest facility?

No. None of the online stock brokers offer 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.


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 download section of their website.


Which type of stockbroker Zerodha is?

Zerodha is a Discount Broker.


In which stock or commodity exchanges in India I can trade through Zerodha?

Zerodha offers to trade at NSE, BSE, MCX and NCDEX.


How much does Zerodha charges for account opening?

Zerodha charges ₹300 to open a trading account.


What are Zerodha annual maintenance charges (AMC)? How much is the Zerodha AMC for the trading account?

₹0 (Free)


How much does Zerodha charges for Demat Account opening?

₹100


How much is Zerodha Demat Account Maintenance Charges (AMC)?

₹300


Is Demat account mandatory with a trading account at Zerodha?

No, Demat Account is not mandatory when opening a trading account with Zerodha.


What are the Zerodha brokerage charges for equity delivery trading?

₹0 (Free)


How much does Zerodha charge for equity intraday trading (day trading of shares)?

₹20 per executed order or .01% whichever is lower


What are the Zerodha equity futures brokerage charges?

₹20 per executed order or .01% whichever is lower


How much does Zerodha charges for equity options trading?

₹20 per executed order or .01% whichever is lower


What are Zerodha commodity future brokerage charges?

₹20 per executed order or .01% whichever is lower


What are Zerodha currency derivatives (future) brokerage charges?

₹20 per executed order or .01% whichever is lower


Zerodha currency derivatives (options) brokerage charges?

₹20 per executed order or .01% whichever is lower


How much is the minimum brokerage charged by Zerodha?

₹0

Contact Zerodha / Request Call Back

NamePhone
EmailCity
State
Are you a day trader?

What are Zerodha transaction charges for equity delivery trading?

NSE ₹325 per crore | BSE ₹1 per trade (each side)


What are transaction charges for equity intraday trading (stock day trading)?

NSE ₹325 per crore | BSE ₹1 per trade (each side)


What are the equity futures exchange transaction charges at Zerodha?

NSE ₹210 per crore | BSE ₹1 per trade (each side)


Zerodha transaction charges for equity options trading?

NSE ₹5300 per crore | BSE ₹1 per trade (each side)


Zerodha transaction charges for futures (currency derivatives trading)?

NSE ₹135 per crore (0.00135%)


Zerodha transaction charges for options (currency derivatives trading)?

NSE ₹4400 (on premium) per crore (0.044%)


How much is the transaction charge for commodity trading at Zerodha?

Non-Agri ₹360 (0.0036%) | Agri ₹275 per Crore


Does Zerodha offer equity (share) trading?

Yes. You can trade in equity segment with Zerodha.


Can I apply for an IPO through Zerodha?

No. You can't apply in IPO if you have a trading account with Zerodha.


Does Zerodha offer to invest in Mutual Funds?

Yes. You can buy/sell Mutual Fund if you have a trading account with Zerodha.


Can I buy or trade Bonds and NCD with Zerodha?

No. You cannot trade in bonds and NCD with Zerodha.


Does Zerodha offer commodity trading?

Yes. You can trade in commodity segment with Zerodha.


Does Zerodha offer currency derivative trading?

Yes. You can trade in currency derivative segment with Zerodha.


Does Zerodha offer margin funding for share / commodity trading?

No. Margin funding is not available when trading with Zerodha.


Zerodha uses which trading platform or trading software?

Kite Web, Kite Android/iOS, Pi, Coin


What is Zerodha intraday square-off time?

Zerodha square-off intraday trades at 3:10 PM.


Does Zerodha offer 24x7 customer service?

No. Zerodha doesn't provide 24x7 customer service.


Does Zerodha provide customer support through online Chat?

No. Zerodha doesn't provide customer service through Chat service online.


Does Zerodha offer customer service through local branch offices?

No. Zerodha doesn't offer customer service through local branch offices, local partners or franchises.


Does Zerodha publish daily market research reports?

No


Does Zerodha provide trading tips or investment strategies?

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

Zerodha Special Offer

Truly free equity delivery trading

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


User Comments

avatar
2. Sudarson Dey  Apr 7, 2018 10:02 Reply
Can I sell 1st of any stock at CNC and would buy later date? If so what is the rule of Zerodha?

avatar
1. p c mohapatra  Sep 10, 2016 15:44 Reply
Can i open trading account with Zerodha with demat account at Religare ?

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