Is it Safe to Invest in Zerodha for Long Term?
This is one of the most often asked questions by first-time investors. Obviously, large names in the broking industry like HDFC Securities, ICICI Direct, SBI cap, Kotak securities, and others have been around for decades. As a result, they enjoy a higher level of trust than Zerodha, especially among those who have never heard of it.
In any case, Zerodha, the cheap broker, was founded in 2010. As a result, if you haven’t been involved in stock market investing or trading in the recent decade, it’s safe to assume you haven’t heard of this broker. However, in a relatively short period of time, this broker has been able to outperform all of the major traditional brokers.
Based on the number of clients (over 15 lakh), Zerodha is the largest stockbroker in India, followed by ICICI Direct and HDFC Securities in second and third place, respectively.
If you’re interested to open your DEMAT Account with Zerodha, here is the Direct Account opening link
How is Zerodha Safe?
To address the question, Zerodha is both safe and dependable. In reality, Zerodha has never had a major violation from SEBI or any of the other exchanges since its inception. It’s a cash-flowing private business with no debts or liabilities. Here are a few reasons why investors and traders should trust Zerodha:
- Zerodha is a financial services company with no debt. There isn’t any form of borrowing going on.
- There is no credit risk because Zerodha lends less than 5% of its own money to consumers in any form.
- Zerodha’s own money in the firm accounts for more than a quarter of all customer funds combined.
- Their complaint-to-active-client ratio is one of the lowest on the exchange.
- Zerodha is a lucrative corporation with sufficient reserves to survive even if the economy suffers a prolonged slump.
Zerodha is also affiliated with Central Depository Services Limited. CDSL’s principal duty is to retain securities, either certificated or uncertificated, in order to facilitate book-entry securities transfers. As a result, you don’t have to be concerned about the security of the shares in your Zerodha Demat account. Stockbrokers are nothing more than depositories’ agents.
The central depositories, not the depository participants, hold your securities (brokers). As a result, even if something goes wrong with Zerodha, the equities in your Demat account are protected with CDSL. To summarise, Zerodha is a perfectly legitimate and trustworthy platform for trading and long-term investments in the stock market.
Let’s See How to Open a Demat and Trading Account in Zerodha
Opening a Demat and trading account is a simple and quick process. In fact, if you have all of the necessary documentation, you may open an account and begin trading in less than an hour.
The following documents are required to set up a Demat and trading account in Zerodha:
- PAN CARD
- Aadhar Card
- 2 passport-size photographs
- Canceled check/passbook from a savings bank account.
Before the users apply for the accounts, it is recommended to make photocopies of all of these documents.
2020 Zerodha Review
At this time, Zerodha is the greatest stock broker. They have the best online trading platform, the lowest brokerage fees, and the most transparent stock broker. They are India’s fastest-growing fintech company because of continuous improvement and innovation. The following are Zerodha’s main advantages:
- By active clients, market volume, and new customer acquisition, it is the largest brokerage.
- One of the most secure, dependable, and trustworthy brokers.
- Provides the most sophisticated internet trading tools.
- For Equity Delivery and Mutual Funds, there are no brokerage costs.
- The maximum brokerage fee per trade is Rs 20. When compared to traditional brokers, you can save 60% to 90% on brokerage fees.
- On intraday trading, it offers up to 20x leverage.
- Zero-commission direct mutual funds are available.
- Suitable for active and passive investors, beginners, active traders, and algorithmic traders.
