There are hundreds of broking companies in the country offering variety of services at different prices. If you are not a regular trader then any broker with affordable charges is good for you. But if you are a regular or full-time trader who prefers to place order himself and takes trading decision on his own, then you need the broker which gives you all sorts of facilities like multiple trading platforms, quality software for technical analysis and good support at a discount price.
One of my friend suggested to check Zerodha which is an online discount broker offering all kind of facilities at very affordable price. This was an odd sounding name for me until I came to know what actually zerodha means. “Zerodha is Zero + Rodha (rodha means barriers in Sanskrit).
How much brokerage does Zerodha charge ?
Zerodha charges your 0.1% or 20 per order whichever is lower for delivery and 0.01% or 20 Rs per order whichever is lower per order for intraday. Pay attention to the phrase whichever is lower, that’s what makes zerodha different from others. There are other broker who charges flat 9 or 15 Rs its cheap when you place order in bulk quantity but it actually becomes expensive when you place small small orders many times. With zerodha you will pay the minimum no matters whether you buy 1000 stocks in single trade or in 10 trades (10×100). This brokerage structure is for all segments be it equities , currencies , FnO or commodities. When your brokerage is less , the service tax and education tax which is charged over brokerage also becomes less making your overall trade charges less. There is also 400 Rs annual maintenance charge.
Zerodha Trading Platforms
Zerodha offers desktop , mobile and web based trading platforms free of any extra cost. The web based platform is based on html 5 and it works equally good on mobile and tablets as well. There is also mobile trading app for android and iOS platform. What attracted me the most is their latest desktop based trading platform PI, which is the most advanced trading platform of the country. It gives all the features of advance technical analysis software like amibroker. You get charts of 50,000 past candles for any time frame. This is a great feature for any technical analysts and this feature is a great money-saving feature, you don’t to pay extra for data feeds for software like amibroker , MT4 etc. You can check its feature in the below video. Another trading software ZT also provides 22 days of intraday chart.
How much margin does Zerodha offers ?
You get 3- 20 times leverage for intraday trading in equities. The margin depends on the type of stocks you are trading. For top 150 liquid stocks you get the maximum leverage and for z category stocks you get the minimum leverage. For equity and commodity future you need to have 40% of normal margin amount in your account. For example the normal margin amount for nifty future is 14000, that means to trade one lot of nifty you need to have minimum 40% of 14,000 that is 5600. So with 5600 Rs in your account you can trade in nifty futures. For currency future you need to have 50% of normal margin amount.
Why Zerodha offers cheap services?
Zerodha gives all the best facilities that any broker can give in the country. Now the question comes how can they offer things at so cheap price, after all they also have to spend a lot on these services. The reason for this is that zerodha focus on online business. They don’t work like other broking companies who have thousands of offices and employees across the whole country. They save a lot of money by avoiding office and employee expenses, by focusing on online business. They money saved by avoiding these expenses is passed to clients and they gives the clients the cheapest and best services. Now everything is available at the click of button. You can transfer funds online, apply for IPO, FPO, NCDs online and an internet friendly person don’t need to visit office for these works. So it doesn’t actually matters whether your broker has office at your place or not.
Any hidden charge ?
They charge 20 Rs for call and trade feature. If you place order yourself you never have to pay this.
What I like the most about zerodha ?
Zerodha software comes with brokerage calculator which you can use to calculate all the charges in advance before actually doing the trade. It also tells you the breakeven point, the price at which your trade becomes profitable including all charges. I like doing intra day currency trading with zerodha. I have to pay only 20 Rs for any number of lots I trade and just by getting 5 ticks in my favour I make good profit. For 10 lots buy and sell in dollar I pay 40 Rs as brokerage and by getting 5 paisa dollar move in my favour I get 500 Rs of profit. Getting 5 paisa move in favour is not a big deal.
If you are interested in having account with Zerodha leave your details. Zerodha representatives will call you.