I am a casual trader and investor. Zerodha is the my primary broker. So, I thought of writing a small review comparing Zerodha to my old Broker, Axis Direct, and standard brokers out there.
These are the reasons why I love Zerodha and recommend.
1) Stock Investment is brokerage free
Industry standard brokerage is 0.5% of the amount invested but Zerodha went free last year.
You just pay government and exchange a small fee. The Zero Brokerage might save few hundreds each year for a beginner.
However they don’t offer mutual funds investment right now but it’s under pipeline.
2) Trading brokerage is flat priced.
Zerodha charges 20 rupees per trade (buy or sell) for options or equity/future intraday.
Industry standard is 0.05% of the transaction amount (Equity/Futures) and 100 rupees per lot (Options).
This alone made me switch to Zerodha. I traded a lot at start of my trading journey and ended up paying thousands in brokerage to Axis Direct.
3) Higher Intraday Margin
Zerodha offers higher margin than most of the competitors for intraday trades. Margin is very important for small traders to take higher positions.
Axis Direct was offering 5 times of my trading amount for blue chip stocks while Zerodha offers 10 times.
4) Kite- A beautiful browser-based trading app
Kite is very simple and intuitive browser-based trading platform. A good match for my non-window Mac and BlackBerry. It’s so promising that Zerodha is pushing it to make a platform itself.
Axis Direct had a horrible browser-based platform and other brokerages firms are not different.
5) Pi– Fast and Most powerful desktop software
There is no trading software like Pi in India. Pi is very fast and packed with Advanced charting, alerts, Analysis, Back-testing and you-name-it feature. Once you are on Pi, you can never go back.
Most brokerage firms are still in 2000s. Their desktop softwares are complicated, less powerful and badly interfaced.
Zerodha Quant analyzes your historical trades and provides insights to make you more data-driven trader. You can see your current profitable streak (A challenge), Best day to Trade, Optimal position size etc via Quant.
7) Always with New Features
One of the things I love about Zerodha is their constant addition of new features and services.
They recently went free for equity investing, started offering collateral margin against your holding, turned Kite into a platform etc. They also have a very active trading forum called tradingqna.
Tell me, who doesn’t love new things?
8) Excellent Support
The customer on-boarding experience was wonderful. Zerodha Support was very helpful in the migration period from my old broker.
Your queries are resolved via Phone or email quickly and you can also call-to-trade.
Without any doubts, Zerodha is the one of the best discount brokerage firm. If you are looking to trade with ease, save money on your brokerages and need support once in a while, Zerodha deserves a trial. The closes competitor is RKSV but I haven’t tried it yet.