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Hello Folks! I welcome you here. Hope you all are well. In this blog post, I will shed some light on the Fintech Company Zerodha. I believe you must have heard about it if you are well aware of the Indian stock exchange. If you do not then Let me introduce you to it. It is an online trading Firm, It has the largest number of active clients, over 4 million as of December 2020.
In this article, I will take you through a comprehensive review of this Stock Broking Firm.
Let’s dive in,
An Introduction to Zerodha
Zerodha is recognized as the biggest and Fastest growing Discount Stock broker in India. (Please Read.: Discount Stock broker is a brokerage firm that offers discount trading to investors.)
It has grown tremendously in just a decade. Nithin Kamath (CEO of the Company) founded the firm in 2010, officially kick-started on 15 August 2010. The headquarter of the company is in Bengaluru, Karnataka (India). Nithin’s purpose was to reduce hurdles that investors as well as he faced during his decade as a trader in India.
You know, Why its name is Zerodha? The name is a fusion of Two words ‘Zero’ and a Sanskrit word ‘Rodha’ (it means barriers in English). So Zerodha means Zero barriers or obstacles in Investing to the investors.
The founders Nithin Kamath and Nikhil Kamath Introduced a discount pricing trading model to India’s Stockbroking Industry. Also, it has offices to buy and sell stocks offline too.
Zerodha is a registered member of NSE(National Stock Exchange), BSE(Bombay Stock Exchange), MCX(Multi Commodity Exchange). It is also regulated by SEBI(Securities and Exchange Board of India).
The most staggering fact that attracts investors, it is a debt-free company because debt-free or extremely low debt companies are the first choices of investors. Also, It has Low brokerage fee with highly advanced tools.
Isn’t it sounding advantageous? Yes, it is profitable for investors, especially for retail investors. It is one of the best platforms for Investors who have understood the mathematics of the stock market.
Zerodha – Account opening and charges
Zerodha offers investing in Equity and commodity trading, currency trading, Mutual Funds, Bonds, and Government Securities.
Procedure to Open an account
If you want to open a Demat account for online trading with it, you have to fill its contact form. You need to fill up Pan card details, bank details, and personal details, also you can open an instant account with your mobile number and AADHAAR. It will charge INR 200 online and INR 400 offline. The charges are only INR 300 as an annual management charge(AMC) for the Demat account. So while opening an account you will have to pay an account opening charge and AMC charges for your Demat account.
You would know that if you buy and sell shares through a broker you have to pay brokerage as commission, the commission of Zerodha is very nominal. The Company provides the lowest brokerage charges to its users. Zerodha charges zero brokerage on all equity delivery investments and direct mutual fund investments.
It charges fixed brokerage flat Rs 20 or 0.03%(whichever is minimal) per order on intraday trade across all trading segments whether it is equity, commodity, and currency trade irrespective of size and amount of order.
There are some other very nominal charges like Securities/Commodities transaction tax, transaction charges, Goods and services tax(GST), SEBI charges, and stamp duty. Trading.
Software/Platforms Zerodha has easy-to-use trading software or tools to trade online with. It also has partnership products.
- Kite (Web-based and Mobile both platforms)
- Coin (Mutual Fund Investments)
- Console (Back Office)
- Sentinel (Live market alerts)
- Varsity Mobile
- Small case (Portfolio Building tool)
- Streak (Algo and Strategy Platform)
- Sensibull (Options Trading Platform)
- GoldenPI (Online Platform for Bonds and Debentures)
Advantages And Disadvantages
You should have a look at the advantages and disadvantages before opening an account in Zerodha. If disadvantages don’t bother you much then you can definitely go for it.
- The firm has over 4 million active client base, which is the largest in India.
- Offers Zero Commission/Brokerage for equity delivery and direct mutual funds.
- The low brokerage of Rs 20 per trade across all segments.
- Advanced trading platforms in the Industry like Kite, Coin, and Console.
- Safe and Trustworthy because It doesn’t use Client Funds. Also debt-free and profitable.
- The ratio of the complaint and an active client base is minimal. Also, It Provides training and education to its clients with its online platform Zerodha Varsity Which is really good and innovative.
The Company doesn’t provide stock tips and recommendations. It also provides Research reports. So it is not so good for newbies investor in the stock market. The call and trade service on Zerodha costs an additional fee of Rs. 50. Sometimes It has technical issues like glitches and server problems. They don’t have a customer support team. So it takes time to solve the issues.
Last Few Words
Zerodha is the best platform for Active traders, Brokerage Free Investments, and direct mutual funds investment. Don’t You Think It is the best broker if you’re looking for a discount stock broker? It is continuously improving its services and trading technology. Only 2% of people in India invest in the stock market. Whereas 50% population of America invests in the stock market. The Majority of Indians have hyped that the Stock market is very risky and unpredictable, It is. But if you invest Prudentially and wisely, you can grow your wealth faster.
So when you are planning to invest in stocks? If you do then share your experience with us.