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Why Zerodha is the best broker for Retail Investors?

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Why Zerodha is the best broker for Retail Investors?

Stock Trading has grasped a new pace in India, and retail investors are always confused about selecting the best stockbroker. There are multiple stock brokers in India, but looking down at the services and client base, Zerodha is one of the best stockbrokers in India. Zerodha broker is at the topmost position in India offering online flat fee discount brokerage services to invest in equity, currency, commodity, IPO, and direct mutual funds.

If you open an account with Zerodha, you will enjoy free equity delivery trading (Rs 0 brokerage or flat-fee brokerage) and direct mutual funds investment. However, it charges Rs. 20 or 0.03% whichever is lower on intraday and F&O trading. Thus, Zerodha charges a maximum brokerage of Rs 20 per executed order. Check out more on this page to know that Why Zerodha is the best broker for retail investors?.

About Zerodha

There is no doubt that Zerodha has acclaimed the spot of the best stock broker in India at this time. The company was founded in 2010 by Nithin Kamath with a vision to establish a high-tech trading platform with affordable pricing to Indian customers and now, it topped the brokers' list. The reason behind its growing popularity is its excellent online trading platform, low brokerage fee, and the most transparent stockbroker.

Zerodha Strengths

The strengths of Zerodha are as follows:

  1. Zerodha has a robust client base with above 30 Lac+ customers.
  2. The company is registered with SEBI, so it is the most reliable and trustworthy stockbroker.
  3. It invests heavily in its platforms (Coin, Kite, and Console) to offer the most advanced trading tools and offer a smooth experience to its customers.
  4. The customers do not pay anything (zero brokerage fee) for Equity Delivery and Mutual Funds investment.
  5. While trading with Zerodha, the maximum brokerage that will be charged is Rs 20 per trade.
  6. Good for intraday traders as it offers up to 20x leverage on intraday trading.
  7. Zerodha offers direct mutual funds and allows zero-commission investment in direct mutual funds on Coin.

Zerodha Account Opening Charges

If we talk about the Zerodha account opening charges, then they are quite better as compared to other stockbrokers.

  1. Zerodha offers online and offline account opening. It charges Rs 200 for online account opening and Rs 400 for offline account opening.
  2. Demat AMC charges: Rs 300 Per Year

Zerodha Flat Brokerage Plan

Segment Brokerage
Equity Delivery Free
Equity Intraday (MIS) Flat Rs. 20 per order or 0.03% whichever is lower
Equity Futures Flat Rs. 20 per order or 0.03% whichever is lower
Equity Options Flat Rs. 20 per order
Commodity futures Flat Rs. 20 per order or 0.03% whichever is lower
Commodity Options Flat Rs. 20 per order or 0.03% whichever is lower
Currency futures Flat Rs. 20 per order or 0.03% whichever is lower
Currency options Flat Rs. 20 per order or 0.03% whichever is lower
IPO Free
Direct Mutual Funds Free, Zero Brokerage

Zerodha offers a free Demat account and charges a trading account opening fee of Rs 200. However, it charges Rs 300 per year for Demat account AMC, which is payable upfront every quarter. Zerodha Demat debit transaction charge is Rs 13.50 per debit transaction.

Zerodha Margin/Leverage

Segment Margin
Equity Delivery 1x or no margin on CNC
Equity Intraday (MIS) Up to 20x (depends upon the stock)
Equity Future Intraday - 40%(2.5x), CNC - 1x of Total margin (Span+ Exposure)
Equity Options Intraday - 40%(2.5x), CNC - 1x of Total margin (Span+ Exposure)
Currency Future Intraday - 40%(2.5x), CNC - 1x of Total margin (Span+ Exposure)
Currency Options Intraday - 40%(2.5x), CNC - 1x of Total margin (Span+ Exposure)
Commodity Future Intraday - 40%(2.5x), CNC - 1x of Span

Is Zerodha Safe for retail investors?

Zerodha platform s the safest for investment for retail investors because of several reasons:

  1. Registered member of SEBI, BSE, NSE, MCX, and CDSL hence, safe for retail investors.
  2. Less customer complaints: Zerodha has encountered fewer complaints on the exchange than other stockbrokers; hence, it has a low ratio of complaints to active clients.
  3. Zero debt company: Zerodha does not have any significant debts reflecting on its financial sheets. Hence, it becomes a wonderful point for the investors.
  4. No Margin Funding: Unlike other stockbrokers, Zerodha does not offer margin funding to its clients.
  5. No proprietary trading: Zerodha refrains from performing any proprietary trading with its client money.

Zerodha Trading Platforms and Tools

Zerodha has acquaintance with technology. The company offers high-end products to its clients, which makes the execution of trading easy.

    Zerodha Kite: It is an investment and trading platform built for investing in the stock markets. It is a fast app with an intuitive UI for all your investment and trading needs. The features of Zerodha Kite are as follows:

    • It has a universal instrument search that comprises 90,000+ stocks and F&O contracts across multiple exchanges.
    • You can efficiently perform buying, selling, analyzing, and managing the portfolio.
    • You have access to level 3 data or 20 market depth. Level 3 data gives you deeper insights into market liquidity and allows you to develop sophisticated intraday trading strategies.
    • It has hundreds of indicators, studies, and tools on a robust and customizable charting interface.
    • You can place single-leg triggers to enter or exit stock holdings until your price condition is met, along with simultaneously placing target and stop-loss (OCO or One Cancels Other) for your stock holdings.
    • You can easily create, manage, and execute multi-stock baskets using real-time margins to build F&O strategies and spread orders.

    You can download the Zerodha app on your mobile phones to initiate the trading.

    Zerodha Console: It is the central dashboard for your Zerodha account with in-depth reporting and analytics on your trades and investments. The features of Zerodha Console are as follows:

    • It has multi-dimensional insights on your trades and portfolio presented as easy-to-understand visualizations.
    • You can witness complete reports of your stocks by the trade from the day of acquisition.

    Zerodha Coin: It is a direct mutual fund platform that allows clients to buy direct mutual funds online with zero commission, directly from asset management companies.

    Zerodha Varsity: Zerodha Varsity lets investors easily grasp the stock market lessons with in-depth coverage and illustrations. The platform is available on the web as well as mobile app versions on the Play store and the App Store.

    Zerodha Sentinel: It creates powerful market alerts on the cloud for stocks, futures & options. Zerodha users can access Sentinel for free and set multiple price alerts, whenever the alert triggers, Sentinel will notify you.

Conclusion

There is a large proportion of retail investors and new trading investors (beginners) in India looking for the best trading platform. It would be great if they get connected with the Zerodha broker and open their trading account. Free Demat Account, Zero brokerage delivery trading, and mutual funds investment, Flat Rs. 20 brokerages, Best trading platforms made Zerodha the best brokers in India for retail investors. Moreover, beginners can also learn about the stock market on the Varsity platform to take wise trading and investment decisions.

Zerodha Trade@20

Want to start your investment journey, join India’s Pioneer Discount Broker – ZERODHA – Free Delivery Trade, Maximum Rs 20 for F&O and Intraday, Free Direct Mutual Fund investment.Open Zerodha Account

Last updated on 7th Jul 2023

FAQs

Zerodha is a popular online brokerage platform in India that offers a variety of benefits to retail investors. Some of the benefits include:

  • Mobile App: Zerodha offers a seamless trading experience through its mobile app as well.
  • Low brokerage fees: Zerodha charges very low brokerage fees, which can save retail investors a significant amount of money over time.
  • Wide range of investment options: Zerodha offers a wide range of investment options, including stocks, derivatives, currencies, and commodities.
  • User-friendly platform: Zerodha's trading platform is easy to use and navigate, making it accessible to investors of all experience levels.
  • Strong customer support: Zerodha has a dedicated customer service team to assist its users with any issues or questions they may have.
  • Research and educational resources: Zerodha provides its users with a variety of research and educational resources, such as market news and analysis, stock recommendations, and educational videos.
  • Advanced Charting Tools: Zerodha offers advanced charting tools for technical analysis that can be very helpful for investors.
  • Instant order execution: Zerodha uses advanced algorithm-based order routing that ensures faster and more accurate order execution.

 

 


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