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Zerodha is a SEBI registered Indian discount stock broking company that offers low brokerage trading and investing in the stock market. This stock broking company was founded in 2010 in Bangalore and by now the company has a presence in multiple Indian cities through its form-collection centres.
These are not sub-broker or franchise offices but just offline centres where users can open an account with the discount broker. The discount broker is a member of National Stock Exchange of India, Bombay Stock Exchange, Multi Commodity Exchange and MCX-SX.
They have a total client base of more than 3 lakhs and claims to handle daily turnover of ₹10k – 12k crores in equities and ₹1k crores in commodities. The discount broker offers Varsity, a free online portal on basic and advanced education on trading.
Such initiatives easily create brand trust among the current and potential client base. At the same time this discount stock broker, as an employer, has more than 650 employees throughout the country.
This discount stock broker reported a Profit After Tax (PAT) of ₹60 crore for the Financial year 2016-17 at SEBI. This clearly implies, it is already in decent profit and certainly is one of the safest stockbrokers in the country.
It is known for its regular innovations and disruptions in the financial investment industry. With its products and collaborations such as Coin and Smallcase, it is trying well to keep the overall investment and trading process simple and uncomplicated for clients.
Zerodha has a total registered active client base of 3,73,382 as per December 2017.
With this discount stock broker, you are allowed to trade and invest in the following segments:
- Mutual Funds
Zerodha now provides its own Demat account, unlike the early times when it had a partnership with IL&FS that provided the demat services to the clients of Zeordha.
Zerodha Trading Platforms
In the early days when Zerodha was established, what it offered to its client base was a bunch of outsourced trading applications that were developed and maintained outside the control of the discount stock broker. But, by time, the broker as one of the very few lone runners, has been able to produce high-quality trading applications across devices for its clients.
Major aspects of trading platforms such as the design, user experience, usability, performance, integrations and more have been taken care of while developing these applications.
In this detailed review, we will be talking about its different trading platforms across devices. Here are the details:
Kite is a very light, responsive but at the same time very powerful web and mobile trading application. It comes with the following features:
- Works at a bandwidth consumption of fewer than 0.5 Kbps for a full market watch
- Provides extensive charting with over 100 indicators and 6 chart types,
- Advanced order types like Brackets and cover,
- Millisecond order placements
As per the discount stock broker, this platform is used by over 70,000 clients and serves over 5 million requests a day.
Kite Mobile is a mobile app version of Kite Web and pretty much carries all the functionalities present in it. The tool was launched in November 2015 and can be used in all kinds of devices including Desktop, laptop, mobile & tablet.
Here are some of the top features of the app:
- One-tap universal instrument search for all contracts across all exchanges -- NSE, BSE, MCX
- Live streaming data
- Multiple market watch and live market depths
- Advanced chart with 100+ indicators
- Years worth of free historical chart data
- Trade Equities, F&O, Commodities, Currency
- Various order types: Regular, AMO, BO (Bracket orders), CO (Cover orders)
Zerodha Kite Connect API
Kite Connect is marketed as a 'Platform As a Service'. This tool is basically a set of simple APIs which is built on top of Zerodha’s web-based trading platform, Kite. This platform allows the clients to get programmatic access to valuable data points such as profile and funds information, order history, positions, live quotes and so on. At the same time, it enables users to manage the portfolio as well as place orders at their convenience.
With Kite Connect API, users can build their own trading experience.
This is a unique proposition by the discount stock broker where a user can get real-time updates on trade from profitable traders so that they can learn and improve their trading skills and thus, take better decisions. New users can follow traders and thus, improve their trading skills over time. This platform is exclusively open to the clients of this discount stock broker. Here is a glimpse of the look and feel of the tool:
Pi is a desktop trading application that comes with features such as Trading, charting, scripting, and analysis. Users are required to download the software on their desktop or computer. This is known to be one of the high-performance trading applications with:
- High-speed order execution
- Varied features around fundamental and technical analysis including charting with 70+ technical indicators
- Market watch provision
- Personalized notifications and alerts
Coin is a recent initiative by Zerodha that allows clients to invest in mutual funds directly without any distributor or fund house. This is a first of its kind initiative where clients can place orders to buy mutual funds by clicking a couple of buttons after choosing the mutual fund.
It's highly attractive for people who want to place less risk through their investments and want a reasonable return.
Zerodha smallcase is basically a partnership between Zerodha and Smallcase (a small start-up) that works together to provide themantic investment options for their clients. Users need to open a demat account with the discount stock broker and they can access themantic investment options through their portal.
Its an investment option for people who find it hard to perform fundamental analysis and are looking for accurate investment advisory.
Zerodha allows its users to add extra protection to their positions by adding a bracket and trailing stop loss order features to its platforms.
Zerodha Customer Service
The discount stock broker offers multiple communication channels to its clients for using the customer services:
- Social Media
As it can be seen there are very limited communication channels offered by the broker for its clients to reach out to them. Furthermore, customer service lags a lot in terms of quickness and actual resolution quality. Further, the communication skills of the support executives can also be improved so that the brand Zerodha has become, gets reflected through these touch points as well.
Although, as seen in a lot of forums, Nitin Kamath, CEO of Zerodha himself tries to resolve some of the queries raised by the users that attitude certainly needs to be sprinkled across the customer relations team.
"Zerodha runs a 60-day challenge where users trade for 60 days and can claim to win back all the brokerage generated for that period."
As a discount broker, it does not have an in-house research team for its clients but it has come up with solutions such as Open Trade where users can connect with heavy traders and learn from their experiences at the real-time basis.
Other than that, clients need to perform their own analysis and research for trading or investing in the stock market. To know more about OpenTrade, click here.
Similarly, for themantic investing, you are open to using Smallcase.
Next, let's talk about money.
In this Review, we will be talking about different facets of its pricing structure. Here we go:
As a prominent discount broker, it offers equity delivery investments at ₹0 brokerage, that is free. Intra-day equity trading, as well as future & options trade, are at ₹20 or 0.01%, whichever is lower of the two, per executed order. Here is the detailed layout of the pricing structure:
Zerodha Account Opening Charges:
"There is no minimum balance requirement by Zerodha that its clients need to fulfil. It's up to their preference and accordingly the trading account balance can be used for trading."
Zerodha Brokerage Charges
Depending on which particular segment you are looking to trade or invest in, corresponding brokerage charges will be levied against your account.