Zerodha NRI Account Review

NRIs looking to invest in the Indian equity market, Zerodha NRI account offers a simple and cost-effective solution. This guide breaks down how to open an NRI demat account in Zerodha step by step, along with the breakdown of NRI charges. Also learn about Zerodha NRE PIS and NRO non-PIS trading and demat account, documents required, segments available, and trading rules for NRIs.

Important Update: Zerodha NRI brokerage charges on non-PIS account to Rs 50 or 0.5% whichever is lower.

Key Features of Zerodha NRI Account

Zerodha’s NRI trading account comes with various features to make NRI investment in India simple and effective.

• Investment Options: Invest in stocks (NSE and BSE), mutual funds, and trade in equity futures and options.
• Competitive NRI brokerage: Zerodha charges flat pricing on NRI trading, check below.
• User-friendly platforms: Zerodha offers best platforms – Kite mobile app and Kite for web, offering advanced charting tools and real-time data.
• Non-PIS Route available: Open NRI NRO no-PIS trading account with Zerodha, which does not require getting a PIS letter and simplifies the investment process.
• Integrated account management: Smooth fund transfer by linking your NRE or NRO bank account to your Zerodha trading account
• Transparency: A clear breakdown of all the NRI charges with no hidden charges
• Dedicated support for NRIs for setting up your NRI accounts, trading on Kite, and ongoing support.
• NRI can also open minor account in Zerodha.

Charges and Fees associated with Zerodha NRI Account

1. Zerodha NRI Account Opening Charges

Zerodha charges Rs 500 as NRI demat and trading account opening fee. It is a one-time fee charged, when you open an NRI trading account in Zerodha.

• Online NRI form filing: Pay Rs 500 account opening fee online.
• Offline NRI form filling: Send the duly filled NRI account opening form along with Rs 500 cheque and other documents to Zerodha’s office

2. Zerodha NRI Annual Maintenance charges

Zerodha account maintenance charge (AMC) is Rs 500 on NRI demat account.

• NRI Annual AMC: Rs 500
• GST: 18%
• Total NRI Demat AMC: Rs 500 + 18% GST = Rs 590 (Annually)
• Quarterly AMC for NRI: Rs 125 + 18% GST
• How Zerodha charge AMC? The demat account maintenance fee is deducted from the NRI trading account

3. Zerodha NRI Trading costs and Brokerage charges

When you trade in any segment – equity (delivery) and equity F&O, Zerodha charges a brokerage fee. The NRI brokerage charges in Zerodha are:

*Clearing charge is a fee charged to clear and settle F&O trades. Orbis Financial is Zerodha’s custodian partner to allow NRI to get a custodial code to trade in equity derivatives segment.

Zerodha NRI Account Opening – Eligibility, Types and Process

1. Are You Eligible to Open Zerodha NRI Account?

Zerodha’s NRI account is designed for non-resident Indians to allow them invest in Indian equities and derivatives. But who qualifies as an NRI? Let’s check it out:

NRI Status: You must hold legal NRI status, as per Indian Income Tax Act, any person who stays outside India for a minimum of 182 days in a fiscal year is considered as an NRI.

Prerequisites for opening Zerodha NRI account:

• Bank account: NRIs can open two types of bank accounts – NRE (Non-Resident External) or NRO (Non-Resident Ordinary). Opening an NRI account requires you to have either of these accounts in India.

A full Guide to NRE Vs NRO account (Link)

• PIS letter for NRE Account: If you have an NRE savings account, obtaining a PIS permission letter from your bank is mandatory.

2. Zerodha NRE PIS or NRO-Non-PIS Trading and Demat account

Zerodha offers NRI account opening via NRE or NRO non-PIS route. What’s the difference?

If you want to open NRI Account by linking your NRE savings bank account, you will have following accounts in Zerodha:

1. Zerodha NRE PIS Trading Account

NRE account is like a normal savings account for NRI, where they can deposit their foreign income, convert into Indian rupees, and use to invest in Indian market.

PIS (Portfolio Investment Scheme) letter is mandatory for NRE accounts. But what is PIS - It is a RBI scheme to allow NRIs to buy and sell shares of listed Indian companies.

For NRE PIS account opening, you must open bank account with Zerodha’s partner banks:

• HDFC Bank
• Axis Bank
• IndusInd Bank
• IDFC First Bank
• Yes Bank

2. Zerodha NRI Repatriable Demat account

NRI Demat account, mapped with NRE bank account are called repatriable demat account. NRIs can withdraw/ repatriate full money from NRE account overseas.

Zerodha also offers NRI account opening via NRO non-PIS Route. And the account opened are:

1. Zerodha NRO Non-PIS Trading Account

PIS letter is not required for NRI NRO bank account. Yes, NRI can open NRO bank account with any Indian bank (not only the partner banks), and link it to their Zerodha trading account without PIS.

NRIs can trade in equity F&O segment only with NRO trading account along with custodial account with a CP code, know more. (Link)

2. Zerodha Non-Repatriable Demat account

Zerodha NRI demat accounts linked with NRO accounts are called non-repatriable demat account. Money lying in the NRO savings account cannot be repatriated to a foreign country.

How to open NRI Demat account in Zerodha (Step-by-step Guide):

Can I open Zerodha NRI account online? No. But you can fill out the NRI account opening form online and once validated and approved, send it via courier to Zerodha. The online NRI application form filling process is only available to open individual NRI accounts.

Follow these steps to open Zerodha NRI Demat and trading account

1. Visit Zerodha NRI Account opening page.
2. Sign up: verify your email ID and password
3. Select the country of residence and relevant category i.e., NRI PIO, OCI, etc.
4. Enter your name, mobile number, PAN card number, and tap on Next.
5. Pay Rs 500 NRI account opening fee.
6. Upload photograph, PAN card, and provide basic KYC details i.e., DOB, mother’s name, father’s name, gender, annual income, occupation, etc.
7. Select NRI account type – NRO non-PIS account and NRE PIS account.
8. As per the account type selected, link the NRI NRE or NRO bank account details. For NRE PIS account, upload a PIS letter also.
9. FATCA declaration: Enter nationality, city of birth, country of birth, tax identification number, and upload income proof.
10. Webcam IPV: Write the 4-digit code displayed on a paper and hold it in front of web cam.
11. Nominee details: Add nominee to your NRI trading account.
12. Upload documents: Upload other documents, passport, copy of VISA/Resident permit, and signature.
13. Click on submit form for review.
14. Zerodha team will review it within 48 working hours.
15. Once verified, you can print the application form.
16. Enclose your signature, attach documents, and courier it to Zerodha’s head office.

Note: If Zerodha team cancels or rejects the NRI application form, you have to redo the online process with required corrections.

Zerodha NRI Account Opening Documents

To open NRI account in Zerodha, you need to provide several essential documents for KYC and regulatory compliance. List of documents required are:

• PAN Card: A valid PAN card is required.
• Passport: A valid copy of Indian and Foreign passport i.e., Visa, resident card, etc.
• Bank account proof: Bank statement or canceled cheque leaf from the NRE or NRO bank account
• Photograph: A passport-sized photograph of individual.
• Income Proof: Latest salary slip, Form-16 or ITR acknowledgement, or net worth certificate
• Indian and Overseas Address proof: A copy of Indian and overseas address proof i.e., License, utility bills, bank statement, etc.
• NRI Application Form: Duly filled and signed NRI account opening form
• NRI client details form
• FATCA and FEMA declaration Form
• O. Box declaration

Additional document for Opening NRE PIS Trading Account

• PIS Permission letter: A copy of PIS letter from any of Zerodha’s partner banks.

Important Points:

• All of the above NRI documents must be self-attested and notarized.
• The documents can be notarized by the Indian embassy, authorised officials of overseas branches of scheduled commercial banks registered in India, court magistrates, judges, public notaries, or the Indian embassy or any other competent authority to do so.

Zerodha NRI IPO Apply

Can NRI apply for IPOs online? Yes!

• UPI: NRI can purchase IPOs online on Zerodha Kite via UPI. If your bank account (NRE or NRO) supports UPI, you can apply for IPOs online at just a few clicks. The IPO apply process is same for both residents and NRIs.
• ASBA process: If your bank does not support UPI, apply IPOs through ASBA net banking process. NRIs can subscribe IPOs via net banking portal by providing Zerodha Demat account details.

Zerodha IPO Apply Process: A step-by-step Guide

Zerodha NRI Mutual Funds

Can NRI invest in mutual funds? Yes, NRIs can buy and sell mutual funds online on the Coin platform using NRE or NRO bank account.

Zerodha NRI demat account is mandatory for NRI investment in mutual funds.

Key features:

• Start a SIP or invest lumpsum money
• Access to Zerodha Coin - direct mutual fund platform
• Use NRE/NRO Account for MF investment
• Equity, debt, and hybrid category of mutual funds
• Buy direct MFs of 40+ fund houses

USA and Canada-based NRI investors cannot invest in mutual funds on the coin platform.

Zerodha NRI Trading Platforms

Zerodha offers a range of online trading platforms and tools to NRIs:

• Zerodha Kite – Web Trading Platform and Mobile App
• Zerodha Coin - Direct MF investment platform - Web and App
• Zerodha Console Reporting Backoffice

NRIs can also access Zerodha’s partner platforms:

• Smallcase – Thematic investment platform
• Streak – Algo trading platform
• Sensibull – Options trading platform

Zerodha NRI Trading Account Cons

• Zerodha does not offer NRI 3-in-1 account opening.
• Higher brokerage charges than Fyers NRI charges.
• Zerodha currently supports only 5 banks (HDFC, Axis, InusInd, IDFC First, and Yes Bank) for PIS trading account.
• Does not offer intraday trading tips, research and stock investment recommendations.
• Restricted trading segment: NRIs cannot trade in intraday, commodities, and currencies segment.
• BTST trading not available to NRIs.

Final Verdict

Zerodha NRI account is the best for NRIs looking for cost-effective trading services. Its NRI account provides access to stocks and mutual funds and makes investing hassle-free. With competitive NRI trading brokerage, user-friendly Kite platform, and seamless integration, Zerodha makes it easier for NRIs to build and manage their portfolio at ease.