From last two years a ago I reviewed zerodha on my another blog & from that time there is lot things got changed for zerodha. Actually a whole brokerage industry got changed because of high competition. If you go few years back brokers are in power & by taking advantage of this they charging you high brokerage rate. Because on that time there is no competition & pretty much all brokers have same pricing model. There is only 20-30% pricing difference between there brokerage. On that time internet is also not revolutionized by the reliance Jio. Yes, Jio makes internet more affordable & accessible for each & every person. Which is good for those companies who operate online & Zerodha is one of them. So let’s first start this review by knowing who is zerodha & then I cover each & every aspect of zerodha in this review. Which helps you makes your decision is zerodha good for you needs or not.
Who is Zerodha: Zerodha is the first this kind of broker who introduced the discount Brooking model in India. Zerodha is founded by the Nithin Kamath in back 2010. So today this reviewing date zerodha is more than 7 years older.
Zerodha took their first step in broking market by introducing 0.01% or RS.20 brokerage (Whichever is lower) for intraday & 0.1% or RS.20 brokerage (Whichever is lower) for delivery based trade.
But from 1-Dec-2015 they makes all delivery based equity investment free. That means you don’t have to pay any brokerage on delivery based trades. Because zerodha’s most of earnings comes through equity intraday & f&o trading. Click here to learn more about Zerodha Pricing
Tools & Trading Platforms provided by Zerodha:
The only lower brokerage rates doesn’t makes any broker a good choice for account opening. They also have to offer great trading tools & trading platforms that helps you in your trading & investment needs. So now I’m going to cover all trading tool’s & trading platforms provided by the zerodha.
Trading Platforms: When it’s comes to trading platforms zerodha basically provides you two different trading platforms for your trading needs.
- Zerodha Pi: Zerodha pi is the desktop trading platform that in house made by the zerodha. This trading platform works with all latest & previous windows operating system. This Trading Platform comes with free charting system. That means you don’t have to pay additional fees that you paying in nest platform for charting functionality. This platform have all the basic & some advance trading tools like Bracket order, Cover order, Trailing Stop-loss order different charting options like bar chart, line chart, Candle sticks charts etc. Zerodha pi also comes with pre loaded different types of drawing & indicators that helps you in your trading.
- Zerodha Kite: This is the also another in house web based trading platform made by the zerodha. If you don’t want to install zerodha pi in your operating system or you are using other operating system like Mac OS or Linux that didn’t support zerodha pi then you have option to trade thought kite in your web browser.
Zerodha kite is also very good Platform for placing normal buying & selling, SL, SL-M, Bracket order, Cover order, Trailing stop-loss order & After market order. So basically kite cover all the order types that you need in your trading.
Like zerodha pi kite is also comes with free charting & drawing tools. You can also change the theme of charting for different flavor.
For on the go or mobile trading zerodha kite application is also available for Android & Apple ios. You can download kite mobile application on Android Play store & Apple app store. So Yes, when its comes to trading platforms you have lot’s of options available with zerodha.
Trading Tools that Available on Zerodha:
So as I above said only lower brokerage doesn’t makes any broker a good choice for trading. You also have to offer good trading platforms & tools that helps traders & investors for their trading needs. So now I’m going to cover different trading tools that zerodha provides to their clients.
- Zerodha Coin: When you comes in stock market than you don’t only want to invest in stocks. You also want to invest in different financial products. Like Mutual Funds, IPO etc. Zerodha coin is the direct mutual fund service that provided by the zerodha. There is two types of mutual fund services available to invest. The first one is called Direct Mutual fund. Basically in direct mutual fund you don’t have to pay any commission to any agent. Because in direct mutual fund you will directly invest with mutual fund company there is no intermediate between you & mutual fund company. So then you don’t have to pay any commission to any agent & broker.
The second type of mutual fund is regular mutual fund. In this type of mutual fund their is hidden charges that you are paying to mutual fund agent or broker & this thing is effect your profitability. Because some part of your profit also goes to that agent. with direct mutual fund you have option to save that commission that you are indirectly paying to that agent. Now the thing is that zerodha is the only from very few of them that provides you option to invest in direct mutual fund. Because of direct mutual fund zerodha is not earning any commission that’s why they charge you flat 50 rupees per month no matter how much you invest.
If you want to invest less that or equal to 25000 rupees than you don’t have to pay any 50 rupees to zerodha. If your portfolio goes above 25000 than they will start charge you 50 rupees per month. You only have to pay 50 rupees per month till you invested in mutual funds. In any point lets say after 6 months you want to exit form that mutual fund. After your exiting they will stop charge you 50 rupees per month.
Till 25000 rupees you will not have to pay any 50 rupees to zerodha. If you don’t want to invest in direct mutual fund than regular mutual fund option is always available with zerodha. So in the end you have both options to invest in mutual fund. In my next article I will explain direct & regular mutual fund in detail.
- Zerodha Varsity: This is best & my personally favorite thing that zerodha provides to their clients. Zerodha varsity is the education platform that provided by the zerodha to everyone. If you want to learn how stock market works. This this the one of the best educational website available on internet. In zerodha varsity you will learn from basics to advance concept of stock market. All the articles in zerodha varsity is well written in easy to understand language. There is also other language options available on varsity.
- Trading q&a: Trading q&a is the traders community & discussion forum provided by the zerodha. In this discussion forum you can ask any questions that in your mind regarding trading. You will got reply by zerodha staff members, other community member like me and you & from nithin himself. In this forum members are quiet active & you will got reply within few hours. which is great if you have lots of question regarding trading & investing.
- Opentrade: Opentrade is also the another trading tool provided by the zerodha. In opentrade zerodha selecting a profitable traders according to their trading history & give them any unique name. In opentrade you can follow their order history & portfolio in real time and makes your trade. You can also learn from these professional & regular profitable traders by watching & observing their trades.
In order to follow that stars you have to buy a credit. With each credit you can follow one star for one month. The cost of one credit is 500 rupees. you can also be the star of the opentrade if you are making a consistent profits.
- Smallcase: Smallcase is the product by the startup company & powered by the zerodha. Smallcase is the basket of stocks which based on different category & collection of stocks. You can invest in different types of smallcases which based on different sector and model. When it comes to fees they will charge you 100 rupees + GST, for select smallcase they will charge you 200 + GST. If you are investing less than 4000 rupess then they will charge you 2.5% of invested amount. frankly I don’t think this is the good way of investing because there fees are very high. Otherwise it is a good idea.
- Zerodha Q: Zerodha Q is the backoffice platform. In which you can see your order history, Add or withdraw funds from your account, watch your ledger summary, Download their trading platform (Zerodha pi) etc. Zerodha q is the in house made backoffice platform.
This is the most important and my favorite part of my any review. Zerodha launched himself in 2010 & frankly zerodha changed the whole brokerage industry with their highly competitive pricing & service. If I think as a any beginner & advanced trader’s or investor’s point of view than I will got everything that I need for trading & investing. They have great trading platforms to trade & they have some unique trading tools that definitely helps you in your trading & other investment needs. For me I have a trading account with zerodha from last two years & I’m pretty much satisfied from them. Zerodha is good option for any beginner and advance trader. So Yes! I highly recommend zerodha to anyone.
Things that I Like on Zerodha:
- Great In house made trading Platforms.
- Low brokerage & Zero brokerage on delivery of stocks.
- Option to invest in Direct mutual funds.
- Great education platform for both beginner & advance traders.
- Discussion forum for traders.
Things that I Don’t Like on Zerodha:
- Average Customer care service. Sometime they will took 24-48 hours in order to reply your emails.
- Not have an option to invest in IPO’s.
So as a disclosure I’m also a authorized partner with zerodha. But the opinion is completely from my prospective. This blog is all about writing the truth & giving you true & transparent information. So if you want to open a account with them. Then click on this banner down below & put your email i’d, name, phone number & than they will contact you within 24 hours.