Many companies in India offer brokerage services and online trading. Amongst many brokers, Zerodha is an Indian No. 1 trading platform that you should now consider as an investment option. In this review, we shall find more about Zerodha, how safe this firm is, its tools for stock trading, and how to invest in other assets of the share market.
What is Zerodha?
The history of the Zerodha agency dates back to 2010 when Nithin Kamath could not wait for any longer after observing many Indians struggling with huge fees as they tried to find their way into the stock market. Today the Zerodha logo can be seen everywhere in India, from PNG on the web to a street banner.
Some traders think that Zerodha was formed from the words “Zero” and “Virodha”, which means “No opposition”, thus showing the significance and success of the platform. But it’s not.
Zerodha is formed from two words: “Zero” and “Rodha”. Rodha is a Sanskrit word meaning barrier or obstacle. Bringing them together means “No barrier”, which is precisely what this stockbroker does. It offers its customers the cheapest online brokerage plans and the lowest fees in India.
The company has invested heavily in technology, which helps reduce operating costs. That’s why it offers the best platform for online share trading in India, suitable for people with low investment amounts, and still, its business remains profitable.
Note! Zerodha is three companies registered in SEBI: Zerodha Broking Limited, Zerodha Commodities Private Limited and Zerodha Securities Private Limited.
Ease of use and analysis tools
The web and mobile trading platforms Zerodha are designed to be easy to use, even for beginners. Besides, the platform has technical analysis tools that help traders know the market status and when to enter or exit the tradee.
On Zerodha, different charts are used chiefly for intraday trading, including the line and bar charts. OHLC chart gives a clear view of the Open, High, Low, and Close prices of stocks in the live market. The line chart only shows the stock’s closing price; hence not very reliable. The bar chart includes all the four points just like the candlesticks; thus, you can use it for better realistic analysis.
The platform also contains most currently existing technical indicators that can be combined depending on your chosen strategy.
As you advance in online trading, you will learn more tools and how to use them. You can also learn more using the best trading tutorials through Zerodha Varsity, like one of the Pedias.
Pros and cons
Now you can trade on Zerodha even from the most remote corners of India, like Saroda, Gujarat. Zerodha has several advantages as well as a few shortcomings.
Zerodha is one of the best brokers for online equity trading in India. Let’s look (or as they say in Hindi – देखना or dekhna) on its features
- Fast account opening
Users wishing to invest and trade online in the Zerodha platform can open a Demat and Trading account digitally or offline, depending on what is convenient for them. It takes at least two working days for the account to be ready for transactions.
It may seem like a long time, but once you sign power of attorney, you won’t have to do anything else to keep your account running smoothly. Registration is possible without signing a POA, but transferring shares online to and from your Demat account is essential.
There are low fees at Zerodha. If we compare the online portalsTradeSmart and Zerodha, they both have the exact charges of ₹200 to open a Demat and Trading account online. Astha Trade charges ₹650 for account opening, which is expensive, vs Zerodha with its ₹200.
Zerodha is also one of the brokers with zero brokerage trading on equity delivery and at most 20 rupees per order on online futures and options trading and intraday trades across currency, commodity, and equity. The Zerodha platform does not charge withdrawal fees and inactivity fees.
- Margin funding
The company provides margins on mutual funds, stox, and ETFs. It can be used for intraday trading equities, options, and long and short futures.
- Free education
The platform offers research materials you can find in the learning platform Zerodha Varsity and a support portal (FAQ section) from which you will learn all about how to trade different assets. For example, if you are wondering, “How do I activate commodity trading in MCX via Console?”. In that case, the section will provide details on how to enable the commodity trading section and trade in commodities such as gold.
Detailed reports to analyze your trades are available in the Console, the central dashboard for your Zerodha account.
Note! Trading commodities is not like shopping for products in a store but a high-risk activity where learning and practice are essential.
- Customer care
Zerodha has a very supportive customer care team that is always available to answer customers’ queries via email or phone as fast as possible. Also, if you have any grievances concerning the platform work, you can create a ticket by entering your email ID, and Zerodha will address your complaint within a short time.
Note! Don’t fall for scammers, including don’t reply to emails unless you’re sure it’s from Zerodha. A list of official email addresses, such as intranet.zerodha.net, can be found here.
In more than ten years of operation, the company has grown from one center in Bangalore throughout the country; now, it has more than 120 offices. Zerodha is safe and trusted by over 9 million users. You can find many positive reviews on Kite and other terminals that show how much users trust the platform.
Apart from being the biggest financial company offering trading services in India, it is licensed by SEBI. The security of the platform is also confirmed by the fact that it allows trading on the leading exchanges of the country: Multi Commodity Exchange (MCX), Bombay Stock Exchange (BSE), and National Stock Exchange (NSE).
- Referral program
The broker allows affiliate marketing whereby you refer friends by sending them a personalized link to join the online platform. After recruitment of referrals, you will receive to your bank account 10% of the brokerage they pay to Zerodhа. To amplify the results, use the coupons or promo codes that the company offers from time to time.
- Wealth management software
Apart from the trading platform, Kite is free. Zerodha also has a wealth management platform known as Actlogica. It offers investors, advisors, and fund managers financial planning and wealth management software.
The company boasts highly advanced trading platforms for desktop/PC and mobile devices. ZerodhaKite not only has a user-friendly web version but was also the first app in India to offer clients level 3 data while others settled on level 2 data. Coin by Zerodha has become the largest and most convenient platform for online investing in mutual funds.
Note! Be careful when choosing a platform. The company has dropped support for the Zerodha Pi in favour of the Kite and Coin. The Zerodha Trader or NEST is also no longer available for download.
The platform has several minor drawbacks compared to other platforms/websites for online trading stocks:
- One currency
Unlike many trading portals like AMP Futures, which allow users the opportunity to deposit different currencies, Zerodha only offers one currency base.
- Access only to the Indian market
It is impossible to buy stocks listed on foreign stock exchanges through Zerodha. But you can invest in non-Indian companies through international mutual funds.
- No live chat
The online playform TradeSmart has a live chat so that traders can get quick answers to their concerns vs Zerodha, which doesn’t have one. However, you can still create a ticket or call the hotline numbers.
- Availability of AMC
Zerodha takes ₹300 as a yearly account maintenance charge vs Groww, which does not have this fee. Online broker TradePlus has set the AMC at just ₹500 (for five years), but you must pay this amount in advance and cannot return it if you change your mind about trading on Zerodha.
How to buy shares online on Zerodha?
Before using any of the terminals offered by Zerodha, it is vital to learn the basics of how to trade shares in the Indian stock market. When you are sure about your skills and your Demat and Trading account is opened, here is what to do:
- Visit the official website www.zerodha.com and log in with your client ID.
- Add the shares you wish to trade on the Watchlist.
- Select the share you want to buy by clicking on it.
- Enter the following:
- Products type (CNC, MIS, or NRML).
- Order type, which can be Market, Limit, Stop-Loss-Market (SLM), or Stop Loss (SL).
- Trigger price, that is, the one on which your order to buy or sell a share becomes active for execution on the exchange.
- Stop loss and target in %, If the order is CNC (optional).
- Applicable order variety: Regular, cover order (CO), or After Market order (AMO).
- Order validity, which can be Day or IOC.
- Disclosed quantity (optional, available in the “More options” section).
- Click either “Buy”, and you will be through placing the order.
Note! Opening an online account with Zerodha will cost you ₹200. However, you can use the trade package with zero brokerage (all Equity delivery and Direct mutual fund investments are free).
How to invest in mutual funds on Zerodha?
You can start investing with Coin, which is Zerodha’s Mutual Fund platform.
Invest in Direct mutual funds
Online investing in Direct mutual funds will require you to login into your account via the Coin app. Use the search bar on the homepage or the dashboard to enter the fund’s name. Next, you can compare the fund’s performance with the others with the help of graphs. Also, the direct savings calculator helps you calculate the amount you will save once you purchase this direct fund instead of the regular fund.
If you want to buy the fund, click on the “Buy direct” option.
Note! You can also invest in Government Securities, NFO/FFO via Coin; get more details here.
Invest in SIP
If you want to invest in mutual funds systematically, use a Systematic Investment Plan or SIP. It allows you to invest a specific predetermined at regular intervals, either weekly, monthly, or quarterly.
So, once you have searched for the mutual funds you wish to invest in, click on the link “Direct SIP”, and the order window will pop up. Enter the initial investment you wish to make, then choose the SIP frequency followed by the regular payment amount. Click the “Start SIP” link followed by “Сonfirm and invest”.
Note! Be careful when choosing as each fund has a different initial investment.
How to invest in IPO online?
Zerodha customer ratings are based on different aspects, the most important of which are reviews.
Item and Client Rating are as follows:
- Brokerage fees – 9.8
- The online trading platforms – 9.9
- Experience – 8.9
- Offered products and services – 9.5
- Overall ratings – 9.75
Note! Despite the reliability of Zerodha, it is also essential to consider the reputation of the companies you want to invest in. For example, Affle India Ltd has a history of not paying dividends, and investing in Pan India Corp shares is not liquid but carries a high risk.
The Zerodha platform knows how to get clients like other online stock brokers. Many advantages, from transparent pricing, including investment options with zero brokerage to superior technology, have allowed it to enter the top sites for online trading in Indian share markets. Kite and Coin apps have also found millions of fans among those who prefer trading from home.
Even if you are sure that Zerodha is one of the best online platforms for trading you can find today in India, this activity is not risk-free. You should not unconditionally expect that it will become the engine of your financial situation. Get training on the Zerodha Varsity because only education can reduce the risk of losing your capital. Trade with caution and do not trust other people’s recommendations, whether a YouTube video or a review on a forum. Don’t believe the old myth that trading is profitable enough for all traders in the universe to quit their jobs.