Kotak Securities Trade FREE Plan Review- Is FREE Intraday Trading Legit

Kotak Securities Trade FREE Plan Review: Zero Brokerage Day Trading?

Kotak Securities Trade FREE Plan Review 2021: While looking for the best demat and trading account to trade in Indian stocks, two of the key criteria that you should check are the brokerage charges and broker’s reputation.

Kotak Securities, being a part of the Kotak group is one such broker. Traditionally a full-service broker, Kotak Securities entered the discount brokerage model in November 2020 with its Trade FREE Plan. Here, they announced zero brokerage for intraday training across segments, a first of its kind plan in India. It is also known as Free Intraday Trading (FIT) plan.

In this post, we’ll look into the Kotak Securities Trade FREE Plan Review and discuss whether FREE Intraday trading plan is actually legit for the traders and investors. Further, we’ll also look into some of the pros and cons of Kotak Securities Trade FREE Plan. Let’s get started.

Quick Link to Open FREE Demat Account With Kotak Securities Trade FREE Plan.

Quick Kotak Securities Trade FREE Plan Review

Before we start the detailed review, let us give you a quick review of the Kotak Securities Trade FREE Plan highlighting the Key Features for the reader.

Kotak Securities Limited (KSL) is a part of Kotak Mahindra Bank Ltd. In its TRADE FREE PLAN, KSL is offering zero brokerage on intraday trades and Rs. 20 per order for all other future & options (F&O) trades including equity, commodity, and currency. Here are a few of the key points on Kotak Securities Trade FREE Plan to note:

—  Zero Brokerage on Intraday Trades
— All other F&O Trades at Rs 20 per order
—  FREE Demat Account (Rs 499 Opening Charges Waived Currently)
— Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.

About Kotak Securities Limited

Kotak securities logo

Kotak Securities Limited (KSL) is a part of Kotak Group with a legacy of over +20 Million Customers. Looking into the parent Kotak Group, they offer a wide range of financial services in the fields of  commercial banking, stockbroking, mutual funds, life & general insurance, and investment banking. Kotak Group caters to the diverse financial needs of individuals and the corporate sector.

While discussing its Kotak Securities segment, it is one of the largest broking houses in India with a wide offline and online presence. Currently, it is the Seventh largest stockbroker in India in terms of total clients on NSE.

Kotak Securities operate in five main areas of business: Stock Broking (retail and institutional), Depository Services, Portfolio Management Services, Distribution of Mutual Funds, Distribution of Kotak Mahindra Old Mutual Life Insurance Ltd products. Being a full-service broker, they also provide in-depth market research reports to their clients.

Kotak Securities Trade FREE Plan Review

After the entrance of the discount brokers in the stockbroking industry, the traditional full-service brokers started getting a lot of competition from the new disruptors like Zerodha and Upstox. They started offering cheaper brokerage charges with technically advanced technology platforms which attracted a lot of customers.

To fight back with the disrupting discount brokerage, Kotak securities launched its TRADE FREE PLAN in November 2020. Here are key facts about Kotak Securities Trade FREE Plan:

  1. The plan is also known as FIT (Free Intraday Trading).
  2. It offers ZERO Brokerage on Intraday Trades
  3. For all other F&O trades, the brokerage is charged at Rs.20 per order
  4. MIS & Super Multiple (Cover Order) at also charged at just Rs.20 per order
  5. Trade FREE Plan offers Margin Trading Facility
  6. Investors can also use Stocks as Margin (Instead of Cash Margin) in this plan
  7. Finally, Customer Satisfaction Guarantee is offered by Kotak Securities Trade FREE Plan

Quick Note: Under the Customer Satisfaction Guarantee,  if the customer is not satisfied with the services, they can ask for refund of fees and brokerage within one month of account opening.

Another exclusive feature of this new Kotak Securities TRADE FREE Plan is that here customers can open their broking account in just 60 minutes and start trading the same day.

Overall, through the newly offered TRADE FREE Plan, Kotak securities is migrating from the trading broker model to the discount brokerage model.

Quick Link to Open FREE Demat Account With Kotak Securities Trade FREE Plan.

 

Brokerage and Other Charges of Kotak Securities Trade FREE Plan:

Brokerage Charges of Kotak Securities Trade FREE Plan

SegmentBrokerage
Intraday (All Segments)FREE
Delivery (Equity, Commodity)0.25% of Transaction
Margin Intraday Square off (MIS) & Super MultipleRs 20 per executed order
  • FREE :  Intraday Trades — All Segments:  Zero brokerage for intraday trades across Cash, Futures & Options, Currency & Commodity
  • Rs 20 Per Order : All other F&O, MIS & Super Multiple (Cover Order) — Flat fee of Rs 20 per executed order
  • 0.25% of Transaction: Equity & Commodity Delivery — Equity & Commodity Delivery at just 0.25% of transaction value. This brokerage is subject to a minimum brokerage of  Rs 20 per executed order.

Account Opening Charges and AMC

  • Account Opening Charges: NIL (Rs 499 Waived Off)
  • Annual Maintenence Charges: Rs 50 per month

Quick Link to Open FREE Demat Account With Kotak Securities Trade FREE Plan.

Is Intraday Trading actually FREE under the Trade FREE Plan?

In the Trade FREE Plan, No brokerage is charged for intraday trades for which you provide at least the exchange-prescribed margins. However, in order to adhere to statutory requirements, a nominal brokerage of only 1 paisa per scrip/underlying is charged. Further, the catch is that higher exposure intraday trades using Super Multiple will incur a flat brokerage of Rs 20 per executed order.

Trading Platforms by Kotak Securities

Kotal Securities limited offers multiple trading platforms so that the customers can choose the one that suits their requirements the best. Here are the trading platforms offered by Kotak Securities:

  •  Kotak Stock Trader: It is a is a widely used mobile trading app for trading in the Indian stock market. The app allows you to trade Equities, Futures & Options (F&O), Currency F&O, and Commodity, track your portfolio, get live streaming market updates and stock quotes, keep a watch on our research calls, and much more. Here’s a link to Kotak Stock Trader App on Google playstore.
  • TradeSmart Terminal: This terminal comes loaded with advanced trading features like Powerful watchlists, Integrated market depth in order form, Comprehensive fundamental and technical market data, Advanced charting (integrated with Chart IQ), 15-minute built-up screen (for derivatives), Sentiment and price heatmap, Option chain, Future rollover data and more.
  • Keat Pro X: This is Kotak’s high-speed online stock trading software to make the trading experience vivid and alive. A few of the key features of Keat Pro X are Live-streaming of stock market data, High-speed stock market trading, Up-to-date account information, Well-researched stock recommendations and more.
  • .com: This new trading website by Kotak securities is designed for simplicity, high-speed and performance. It comes with an intuitive interface and is loaded with new features to enhance the client’s trading experience.

PROS and CONS Of Kotak Securities Trade FREE Plan

Pros of Kotak Securities Trade FREE Plan

Here are a few of the top advantages of Kotak Securities Trade FREE Plan:

  • Zero Brokerage on Intraday Trading
  • Flat brokerage of Rs 20/per order of F&O Trades
  • Use of Stocks as Margin (Instead of Cash Margin)
  • Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.
  • Multiple trading platforms to fulfill almost all customer requirements.
  • In-depth market Market Research Reports

Cons of Kotak Securities Trade FREE Plan

Here are a few of the top disadvantages of Kotak Securities Trade FREE Plan:

  • Higher Brokerage Charge on Delivery trades compared to discount brokers
  • Higher AMC compared to other leading brokers

Closing Thoughts

Kotak Securities is a brand of the leading private bank in India “Kotak Mahindra Bank”. The Trade FREE Plan is an added benefit for the traders and investors who want to open their demat account with a reputed bank along with enjoying lower brokerage charges.

Moreover, Kotak Securities stockbroking, being a full-service broker also offers add-ons like Research Reports, Advisory, multiple investment options, etc which can be beneficial for the investors. Overall, if you want to enjoy full-service broker services along with lower brokerage charges, then you should definitely go with Kotak Securities Trade FREE Plan.

That’s all for this post on Kotak Securities Trade FREE Plan Review. Do let me know what you think about this brokerage plan by commenting below. Have a great day. Happy Investing.

How to Choose a Stockbroker? 10 Ultimate Tips For beginners!

Tips for Beginners on How to Ch0ose a Stockbroker: Selecting your online stockbroker is one of the biggest steps that you will take while entering the world of investing. You cannot start investing or trading in stocks in India until you have a stockbroker (unless you are using someone else’s account :D). These stockbrokers offer demat and trading accounts that are essential for the investors to buy/sell stocks.

When I first opened my brokerage account, I had no one to guide me. I belong to a family where no one invests in stocks. My father has few holdings in mutual funds (paper certificates) and LICs. However, he never had an online stock broking account and never invested directly in the stock market. Therefore, I had to go through a number of websites to educate myself about where to start and how to choose a stockbroker in India.

That’s why I am writing this post for beginners so that they don’t have to go through all those troubles and also can save a lot of time. In addition, I’ll also recommend the three best stockbrokers in India for beginners for the ease of the readers. Let’s get started.

Word of Advice: Picking your first Stockbroker

First of all, I would like to mention that your first broker doesn’t necessarily is required to be your stock broker for life. You can definitely switch to another broker anytime you like. Moreover, you can even transfer your existing shares from one brokerage account to another. Personally, I have also switched brokers from ICICI Direct to Zerodha.

However, it is not recommended to switch brokers as it involves some hassles and wastes time unnecessarily. Why not go with the best stockbroker itself so that you don’t have to switch accounts later.  Moreover, it is good to start with a suitable broker, and choosing a bad stockbroker may ruin your first experience in investing/trading. In addition, it may also cost you some bucks as switching costs if you moved to another broker.

Next, you’ll need to open Demat and Trading Accounts (2-in-1 account) with your stockbroker. Most brokers offer these two accounts altogether. These accounts are necessary to invest or trade in stocks in India.

Before we dive into the topic, let me give you the smallest explanation of what’s the difference between demat and trading accounts so that we are all on the same page.

Just as money is kept in your savings account, similarly your bought stocks are kept in your demat account. When you buy a stock, it gets credited to your demat account. And when you sell it, it gets debited from the same. At any time, your demat account reflects all your holding stocks. By the way, a demat account is a short form for a ‘Dematerialised account’.

On the other hand, a trading account is a medium to buy and sell shares in a stock market. It is used to place purchase or selling orders for a stock in the market. Here’s a guide to learn more about demat and trading accounts in India.

How to Choose a Stockbroker? – Factors to Consider

How-to-choose-a-stockbroker-in-india

In order to Choose a Stockbroker in India, it is required that you spend some time researching about the stockbrokers. Conduct your own independent research. Listen to the advice of the experienced investors on which stockbroker they use, but do not follow them blindly. Their requirements might be different from yours. You can carry out your own research. Get a general idea about the stockbroker, their account opening charges, facilities offered, trading apps/websites etc.

Next, there are a number of factors that you need to check before choosing your stockbroker. Here are a few of the must-check factors while choosing a stockbroker in India:

– Background & Reputation of the broker

The first step is to check the background of the stockbroker and their reputations. How old are the brokers and what their customers say about their platforms? You can read the reviews, complaints and have a survey of the personal experience of the existing users. If you are going to use the mobile app to make investments, check the mobile app ratings on the google or app store.

Another way of checking the reputation of brokers is by looking into how big they are based on their total number of active clients. The bigger the stockbroker, the more stable will be its trading platform. Here’s a list of 15 of the biggest stockbrokers in India based on the number of clients as of 28 Feb 2021:

S.NoName of Stockbroker# of Active ClientsMarket Share (%)
1ZERODHA BROKING LIMITED339105918.85%
2RKSV SECURITIES INDIA PRIVATE LIMITED (Upstox)196086110.90%
3ANGEL BROKING LIMITED14541678.08%
4ICICI SECURITIES LIMITED14353567.98%
5HDFC SECURITIES LTD.9440915.25%
65PAISA CAPITAL LIMITED8458794.70%
7KOTAK SECURITIES LTD.7176583.99%
8SHAREKHAN LTD.6766313.76%
9NEXTBILLION TECHNOLOGY PRIVATE LIMITED (Groww)6565193.65%
10MOTILAL OSWAL FINANCIAL SERVICES LIMITED5433113.02%
11AXIS SECURITIES LIMITED4392732.44%
12SBICAP SECURITIES LIMITED3223531.79%
13IIFL SECURITIES LIMITED2875031.60%
14GEOJIT FINANCIAL SERVICES LIMITED1970011.10%
15EDELWEISS BROKING LIMITED1571980.87%

– Brokerage and Other Key Charges

Stockbrokers are the registered members of the stock exchange and they facilitate buy & sell orders in the share market for their clients. They charge some commission for offering this facility known as brokerage charge.

Now, there are two types of stockbrokers in India: A) Full-service broker & B) Discount broker.

A full-service broker provides advisory service and other premium facilities along with the trading platform. These brokers charge high commissions on every trade their clients execute as a percentage of each trade executed. On the other hand, discount brokers only provide the trading facility. They offer low brokerage and charges a flat fee per transaction.

Read more here: Full service brokers vs discount brokers: Which one to choose?

Choose a suitable broker according to your preference. If you want stock research advisory, research reports, and other personalized facilities, go with a full-service broker. If you are planning to invest or trade on your own and want to may the least brokerage, go with a discount broker.

Brokerage Charges for different brokers:

  • Full-service brokers: 0.3-0.5% of Turnover of Delivery | 0.1-0.275% of Turnover on Intraday
  • Discount brokers: FREE for Delivery trades | Flat Rs 10 or 20 for All other trades

These days, most investors and traders are preferring discount brokers (like Zerodha, Upstox, Angel Broking, etc) as it helps them to save thousands of rupees which is deducted as brokerage. Moreover, many discount brokerage firms have started offering premium features to their clients at no additional cost.

Quick Note: You can use this brokerage calculator to get an idea of how much brokerage and other charges you’ll pay while trading or investing in stocks.

— Customer Services

If you are new to investing/trading, you will require some customer service, unless you already have a mentor or advisor. Check the customer service provided by the stockbroker.

Investing using online platforms is easy to use and has a number of resources available on the internet. However, there may be a few times when you will require technical support. It’s good to have someone to look for in such cases. Do not avoid customer services. Look for the reviews before opting for any stockbroker and if the customer service is poor, then search another broker.

An easy way is to try calling their customer care helpline number. If it takes years for the customer executive to pick up the phone, then avoid that stockbroker. Further, if you want one-to-one customer service, then check the website of the stockbroker if they provide personal services. In addition, you can also look into if Investors Education initiatives or archives of issues are available that you can navigate through in case you’ve stuck anywhere.

— Trading Platforms Offered

This is one of the most important factors to examine. Inspect whether the trading platform offered is friendly, its user interface, latency, and easy to use. Check the demo videos of the trading platform on youtube. Moreover, also read the reviews of the mobile app on Google and iOS platform.

Checking the trading platform is the key factor while choosing a stockbroker and all other factors are secondary. This is because you’ll spend a lot of time on the trading platform only to make your buy/sell orders. If you’re not comfortable with the platform, it will be a lot of trouble for you.

zerodha kite app

— Advisory & Research Facilities

If you are ‘not’ planning to invest on your own and need an advisory/ research report, then check for the facility offered.

The reliability of the advisory is also a must to check. The stockbroker should have a good reputation in advisory and research works. Many leading stockbrokers in India offer Research reports and advisory facilities like Angel Broking, ICICI Direct, Motilal Oswal, Sharekhan, etc.

– Range of Facilities Offered

If you are looking for diversified investing and trading options, look for the one stockbroker which offers all. For example, if you’re planning to trade in Stocks, Derivatives (futures & options), currencies, commodities etc, then look for a broker that offers the facility to trade in all, not in just one.

Similarly, if you’re planning to also invest in other options like mutual funds, bonds, etc, then check if this range of facilities is available with that broker or not. These days, most leading brokers offer services in multiple investments and trading instruments.

— Hidden Charges

There should be ‘no’ or minimal hidden charges while investing and trading. All the charges incurred while transactions should be specifically mentioned. Aske for any hidden charges with your customer care executive before selecting the stockbroker. Besides, you can also check the pricing and charges section of the stockbroker to know about all the charges that must be paid by clients.

Most stockbrokers offer brokerage calculators on their websites now. Remember, transparency is the key to any service.

— Fund Transfer

The easy linking facility of your trading account with your saving account should be available. Look for the fund transfer process in your stockbroker. Online money transfer and withdrawal should be fast and easy. Moreover, also check if there is any fund transfer fee with that stockbroker.

— Tools for Education/Learning

Many stockbrokers provide education facilities to their clients. For example, Zerodha educates its clients via ‘Varsity’ and through its blog for free. If you are in the learning phase, look if any tools of education are available with your stockbroker.

This is not a ‘must have’ factor for your stockbroker, however, it can be a worthy add-on.

Related Post: How to Open a Demat and Trading Account at Zerodha?

A few other points to know while Choosing Stockbroker

Most of the important points while picking your stockbroker are already covered above. However, there are few other points also that a beginner should know on how to choose a stockbroker. They are listed below:

– Discounts and low-commission are not always good:

If you are new to the market and you will need a lot of help in the service while getting started. Although, it’s good to pay less, however, if you are getting premium facilities at a commission, it’s better for beginners. Once you are experienced, you can carry out your investing/trading on your own.

Further, these days, there are a lot of discount brokers in India which offer the cheapest brokerages. You have multiple options even in the discount brokers. Do not always go with the cheapest one, but also look into the other factors discussed in this article.

— Offline/Local Branches Availability

There are very few offline branches of discount brokers, whereas there are tons of branches of older full-service brokers. For newbies who are not that comfortable online, offline branches can be a good alternative. If you can find a branch in your city, where you can easily go and personally meet the customer care executive to clear all your doubts, then it’s good to go.

— Look for Extras/Add-ons

Many stockbrokers provide extras like FREE Account Opening, or ‘No Annual Maintenance Charges (AMC), free additional vouchers, etc. Check the add-on and added benefits. It’s always good to have some bonuses.

Top Picks For Best Demat & Trading Account in India

ZerodhaNo 1 STOCKBROKER IN INDIA
Zerodha
Free equity investments | Flat ₹20 intraday and F&O trades
TB Rating
★★★★★
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angel brokingGET FREE DEMAT ACCOUNT
Angel Broking
0 Brokerage on Equity Delivery | Rs 20 per order for Intraday‎ and F&O trades
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KotakSecuritiesGET FREE DEMAT ACCOUNT
Kotak Securities
ZERO Brokerage on Intraday Trades | All other F&O at ₹20 per order
TB Rating
★★★★★
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That’s all for this post on how to choose a stockbroker in India. The points discussed in this article are key factors to look at before selecting stockbrokers. I hope this post on How to choose a stockbroker? was helpful to you. If you have any doubts, feel free to comment below. I will be happy to help you out. Have a great day and Happy investing.

15 Biggest Stockbrokers in India With Highest Active Clients

15 Biggest Stockbrokers in India With Highest Active Clients!

List of Biggest Stockbrokers in India (Updated: Mar 2021) In this article, we are going to look at the 15 Biggest Stockbrokers in India based on their total number of unique active clients.

There are over three hundred stockbrokers in India registered with SEBI and different stock exchanges. Even on National Stock Exchange (NSE), there are 299 registered stockbrokers in India (including defaulters or expelled) as of 28th Feb, 2021. When you are looking for the best stock broker to open your demat and trading account, one of the most straightforward factors to look into is its total number of active clients. Although a large client base doesn’t guarantee a better service, however, being a big firm, it reduces the possibility of the brokerage firm disappearing or running out of the service soon enough. 

These days, one and all stockbrokers will argue that they are trustworthy as they are registered with SEBI. However, just because they are registered with SEBI doesn’t make them reliable for the long term. Time and again, a lot of such small brokers are either expelled out of the exchange or simply go out of the business and files for bankruptcy. And this leads to a lot of trouble for their current clients.

Therefore, a safer option for the customers to avoid any such kind of inconvenience is by opening their trading account with the biggest stockbrokers in the Industry.

15 Biggest Stockbrokers in India with Highest Active Clients

Several websites rank stockbrokers in India based on different factors like their brand value, trading platforms, customer services, facilities offered, complaint ratio, etc. However, in this article, we are not going to look into these factors. 

Here, we are going to look at just one factor, i.e. the total number of unique active clients for that stockbroker. In this post, the stockbroker with the highest number of clients is ranked first, followed by the subsequent stockbrokers with top active clients. 

For this approach, we are going to use the data available on the NSE India website. The national stock exchange website provides the details of the monthly total number of unique clients of the different stockbrokers registered with it. Here’s a quick link to the page. You can also download the spreadsheet available on this page to analyze the stockbrokers further. 

Here are the 15 Biggest Stockbrokers in India based on the total number of unique active clients:

S.NoName of Stockbroker# of Active ClientsMarket Share (%)
1ZERODHA BROKING LIMITED339105918.85%
2RKSV SECURITIES INDIA PRIVATE LIMITED (Upstox)196086110.90%
3ANGEL BROKING LIMITED14541678.08%
4ICICI SECURITIES LIMITED14353567.98%
5HDFC SECURITIES LTD.9440915.25%
65PAISA CAPITAL LIMITED8458794.70%
7KOTAK SECURITIES LTD.7176583.99%
8SHAREKHAN LTD.6766313.76%
9NEXTBILLION TECHNOLOGY PRIVATE LIMITED (Groww)6565193.65%
10MOTILAL OSWAL FINANCIAL SERVICES LIMITED5433113.02%
11AXIS SECURITIES LIMITED4392732.44%
12SBICAP SECURITIES LIMITED3223531.79%
13IIFL SECURITIES LIMITED2875031.60%
14GEOJIT FINANCIAL SERVICES LIMITED1970011.10%
15EDELWEISS BROKING LIMITED1571980.87%

Please note that the total number of active clients of all stockbrokers is 1,79,87,749 (1.79 Cr) as of Feb 2021, mentioned on the NSE India website.

From the above table, you can quickly notice that Zerodha is the biggest stockbroker with the highest numbers of unique clients registered on the National stock exchange in India. 

As of 28th Feb 2021, Zerodha constitutes around 18.85% of the total market share of the active clients registered on the National Stock Exchange. It has over 33.9 lakh active customers compared to a total of over 1.79 Crore active clients of all stockbrokers on the NSE.

What makes this list even more interesting is that Zerodha was just founded in 2010 and still has been able to outrank all the old and well-matured traditional brokers. Anyways, other discount brokers like RKSV Securities (Upstox), Angel Broking, 5Paisa, and Groww (NextBillion Technologies) have also made into the top ten stockbrokers in India as per the number of active clients.  

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

According to the above table, Zerodha is followed by Upstox, which ranks second and has over 19.6 lakhs unique clients. 

The other most prominent stockbrokers in this list are Angel Broking (14.5 lakh clients), ICICI Securities (14.35 lakh clients) HDFC Securities (9.44 Lakh clients), 5Paisa (8.45 lakh clients), Kotak Securities (7.17 lakh clients), Sharekhan (6.76 lakh clients), Groww (6.56 lakh clients) and Motilal Oswal Group (5.43 lakh clients). Together these 15 biggest stockbrokers constitute over 70.19% of the total share of the unique clients registered on NSE.

Also read: Compare Online broker in India – Stockbrokers list

Bonus: Additional Top Stockbrokers

Here is a list of the ‘Next’ 15 biggest stockbrokers in India with the highest active clients registered on the National stock exchange as of 28th Feb, 2021.

S.NoName of Stockbroker# of Active ClientsMarket Share (%)
16SMC GLOBAL SECURITIES LTD.1357150.75%
17RELIGARE BROKING LIMITED1298550.72%
18NIRMAL BANG SECURITIES PVT. LTD.1237680.69%
19ALICE BLUE FIN SVCS P LTD1191060.66%
20RELIANCE SECURITIES LIMITED1177990.65%
21MARWADI SHARES AND FINANCE LIMITED1090490.61%
22VENTURA SECURITIES LTD.950700.53%
23ANAND RATHI SHARE AND STOCK BROKERS LIMITED847950.47%
24SAMCO SECURITIES LIMITED764360.42%
25JAINAM SHARE CONSULTANTS PRIVATE LIMITED743480.41%
26ASTHA CREDIT & SECURITIES (P) LTD699930.39%
27PAYTM MONEY LTD.698790.39%
28TRADEBULLS SECURITIES (P) LTD.668660.37%
29CHOICE EQUITY BROKING PRIVATE LIMITED606710.34%
30ADITYA BIRLA MONEY LIMITED550420.31%

That’s all for this article. I hope this list of 15 Biggest Stockbrokers in India with highest Active Clients was helpful to you. Further, please comment below which brokerage firm you’re using for trading in the Indian stock market and your review for the same. Happy investing!

Paytm Money Stockbroking Review - Demat & Trading Account Charges Cover

Paytm Money Stockbroking Review – Demat & Trading Account Charges

Paytm Money Review and it’s Demat & Trading Account Services: In 2019, Paytm announced its entry into stockbroking through the launch of Paytm Money. The discount broking segment which Paytm enters involves only executing orders on behalf of the clients has become synonymous with online broking.

Despite its widespread acceptance in the brokerage community it still can be debated if entering this segment was wise. This is because less than 3% of the population of the country is currently involved in the stock market. In addition, the segment already includes players like Zerodha, Upstox, ET Money, Groww, Angel Broking, Sharekhan, etc. Today we discuss this move and the features brought to the table by the new product.

Paytm Money Review demat and trading account

Why has Paytm entered stockbroking?

Paytm received approval from the SEBI in 2019 in order to enter the stockbroking segment. Paytm over the years has tried to establish itself as the one-stop platform for anything money-related in the recent past. After gaining traction post demonetization the online payments platform offered banking services, mutual fund, SIP, pension products. They also have acquired Raheja QBE in its plans to enter the insurance segment before expanding into the discount broking. 

Paytm’s plans to enter stock broking couldn’t have come to fruition at a better time. In the months of April and May, NDSL and CDSL saw an addition of 2 lac and 12 lac new Demat accounts respectively. The lockdown imposed due to the COVID-19 pandemic has forced the work from home model to be adopted. This has led to an increase in the first time investors flocking to the stock markets with the added disposable income, as they as they are forced to spend less on leisure due to the pandemic.

The markets too favored the entry of first-time traders as after the steady fall from Feb-March the markets rebounded gaining over 45%. This allowed new entrants to gain profits making trading all the more attractive. In addition, the added information availability in the new environment has made it easier for new entrants to learn the trade. 

Paytm Money, however, has not set the existing trading community as the only probable consumer base. India is expected to have 44 crore smartphone users whereas there currently exist only 1.2 crore active traders in the market. Paytm predominantly functioning on smartphones will have multi-folds of unexplored markets available for them. Paytm Money which has investors from over 98% of the pin codes in India will have the added advantage due to this existing under penetration in the country.

— Zerodha on Paytm

Zerodha which currently dominates the market with 4 million customers and an 18% share last year made a profit of over Rs.1000 crores. Nithin Kamath, CEO of Zerodha, commented on its new competitor saying,

“The big problem in India to solve is to grow the capital market ecosystem. While it has increased over the last six months, there are 90 lakh Indians who invest in the stock market. There is another one crore more who can enter the market. For that one crore to come, you need platforms with great distribution capability Paytm is one of those who can. If anyone in the country can expand fast, I think Paytm can do that.”

Paytm Money Review – Delivery, Intraday and F&O Charges

Here are the brokerage charges offered by Paytm Money:

  • Delivery: ₹0.01 per executed order
  • Intraday: Minimum of 0.05% of turnover or ₹10
  • Futures: 0.02% of turnover or Rs. 10/- per Executed Order, whichever is lower
  • Options: Rs. 10/- per Executed Order

Paytm Money Charges:

  • Demat & Trading Account Opening Charges (One Time): Rs 200
  • Annual Maintenance Charges (Yearly): Rs 0

— Paytm Money Delivery Charges

ChargeDelivery Rates
BrokerageRs. 0.01/- per executed order
Exchange Turnover Charges0.00325% of turnover for NSE and 0.003% of turnover for BSE
GST18% on Brokerage and Exchange Turnover Charges
Security Transaction Charges (STT)0.1% of turnover on buy and sell orders
SEBI Turnover Fees0.0005% of turnover
Stamp Duty0.015% of turnover on buy orders

— Paytm Money Intraday Charges

ChargeIntraday Rates
Brokerage0.05% of turnover or Rs. 10/-, whichever is lower
Exchange Turnover Charges0.00325% of turnover for NSE and 0.003% of turnover for BSE
GST18% on Brokerage and Exchange Turnover Charges
Security Transaction Charges (STT)0.025% of turnover on sell orders
SEBI Turnover Fees0.0005% of turnover
Stamp Duty0.003% of turnover on buy orders

(Source: Paytm Money Trading Charges)

Paytm Money Review – Attractive features offered by Paytm Money

paytm money features

  1. One of the most attractive features comes with the attractive prices offered by Paytm which even trump many market leaders. They offer the lowest charges on intraday trade which is at Rs. 10 per trade.
  2. The app also provides in-depth financial and historical price data for every listed company which enables investors to research the stock market on their own.
  3. Using the Smart Search and notification option the users can discover and set alerts for as many as 50 stocks and get notified when the price is reached.
  4. The app also has the added advantage of offering not only stock and derivative trading options but also offers other mutual funds and National Pension Scheme products.
  5. The app also includes a built-in calculator that enables users to find out the transaction charges and know the precise breakeven price to sell the stocks on profit.
  6. Users can automate stock investing by setting buy orders on a weekly or monthly basis.
  7. Advanced charts and other options like cover order and bracket order have been offered in order to make the experience more rewarding
  8. The brokerage fees for the segment futures are the same as those for intraday. The options brokerage offers flat Rs 20 per trade regardless of the number of lots.
  9. Delivery segments allow the transactions you are brokering shares today on another day. No additional charges are made for these, where no purchases and sale is made on the same day.
  10. Another advantage that Paytm offers will be with respect to data security. Paytm being in the digital walled industry comes with absolute data privacy to keep investor data safe with bank-level security.

Opening a Demat Account with Paytm Money?

Opening a Demat or Trading Account using Paytm Money can be done within 24 hrs by the following steps:

  1. Download the Paytm Money App
  2. Click on complete your KYC by filling in the required information.
  3. Upload the documents i.e. PAN, Aadhaar and bank details (Cancelled cheque/Account statement)
  4. Submit and You can start trading/investing once your account is active

Pricing comparison between Paytm and Zerodha

ActivityPaytm Zerodha
Account Opening Rs. 200 - One time Digital KYC + Rs 300 Account Opening ChargesRs. 300 ( Equity and Commodity)
Delivery ChargesRs. 0.01/- per executed orderFREE
Intraday ChargesRs. 10 or 0.05% of turnoverRs. 20 or 0.03% per trade
Futures Charges0.02% of turnover or Rs. 10/- per Executed Order, whichever is lower0.03% or Rs. 20/executed order whichever is lower
Options ChargesRs. 10/- per Executed OrderRs. 20/- per Executed Order
AMC (Account Maintenance Charges)Rs. 0 *Rs. 300/ year + GST
Pledging ChargesRs. 32 (including the depository transaction charges)Rs. 60 + GST
DP (Depository participant) chargesRs. 10/- per scrip per day₹13.5 + GST per scrip
Payment Gateway ( Net Banking)Rs. 10Rs. 9
Payment Gateway (UPI)Rs. 0 Rs. 0

*Paytm Charges Platform Fee of Rs 300 per annum

Also read: Zerodha Review 2020 – Should you trade with the biggest stockbroker in India?

Paytm Money Review – Limitations of Paytm Money

Paytm money stockbroking and its demat & trading accounts are still in the early phase and yet to be tested customer’s feedbacks and expectations. Anyways, here are a few limitations of Paytm Money that it is facing or will face in the future:

  • No Offline Branch Support
  • Paytm Money doesn’t offer Commodity and currency trading services for customers.
  • Unlike the popular trading platforms like Zerodha or Upstox, which has been in the market for years, Paytm’s trading platform is yet to test handling large volumes and market volatility.
  • Advanced order types like GTC (Good Till Cancelled) not available.

Closing Thoughts

By venturing into stockbroking Paytm has now become one of the most comprehensive wealth management platforms in the country. Their extensive existing customer base acts as their biggest leverage as they have access to the market not penetrated by other platforms. This can also be seen in the app which has a UI that is friendly and minimalistic, enhancing its approach.

Comparing Paytm to market leader Zerodha, the former makes financial inclusion a priority to suit its customer base. Zerodha on the other hand according to CEO Nitin Kamath caters to people who are more than just investors by offering a more evolved product.

Groww APP Review 2021! cover

Groww App Review 2021 – How Good is Groww Stockbroking App?

Groww App Review and Charges 2021 (Stockbroking): Online investing and intraday trading have seen a rise in the number of users in the last year giving a much-needed push to several discount brokers. Many stockbrokers have emerged in the last few years offering amazing investment and trading facilities to their clients. One such platform is GROWW. 

Here is the Groww App review – an investing platform that has had significant growth amidst the pandemic.

Groww App – About the Company

Groww App Review 2021

Groww is one of the fastest-growing investment platforms in India. Groww is the brand name for Nextbillion Technology Private Limited – a SEBI registered stockbroker and a member of NSE and BSE. Initially, Groww a Bangalore-based startup was set up in 2016 as a platform to directly invest in mutual funds.

Keeping up with the increase in demand for equity trading in the midst of the pandemic the company also offered equity trading. The vision behind the Groww App was to set up was to create a powerful yet simplest to use App for trading from anywhere. With this, the app came up with the philosophy of making “Investing should be as simple as online shopping”. Today the company offers Mutual Funds, Demat Services, Trading Services, Intraday Services, IPO Services, and Trading Exposure. 

According to the business model set up Groww is a discount broker and has no physical presence. The company operates online and consumers can contact them through these means. Groww earns revenue through a subscription revenue model, where it offers premium features to its customers. The company has a team of over 100 members. Using technology the company has grown to provide quick, easy-to-use solutions for investing and trading from the comfort of our homes. The company is known for its offers and low expenses.

Groww App Review – Key Features

1. Mutual Funds Investment

Investing in Mutual Funds online can be done through the apps released by the individual asset management companies (AMCs). But these investments will be limited to the products offered by that particular AMC. The Groww app aggregates mutual fund products offered by various fund houses. This allows investors to find the best product in one place.

Investors can find small-cap, large-cap, mid-cap, multi-cap for the long term, and higher returns. The app also includes balanced funds, gold funds, sector funds, and international funds. Groww offers investors more than 5,000 MF schemes. Investors can sort through the various options depending on returns, tax-saving, and sector bets.

The app also provides ratings for mutual funds by Value Research Online. By offering a platform for direct investment in mutual funds investors can save up to 1.5% of their returns.

2. Simple Interface

As mentioned earlier the app is made as simple to use as possible. In addition, Groww also provides investors the option to trade both via the web and through their phones. Groww features a desktop browser platform, Mobile Site Platform, Android App, and an iOS app.

The app provides live price movements,  candlestick charts, online orders, information to explore stocks, and the ability to invest in IPO’s. Investors can also create a market watch to personally monitor their favorite stocks. One can also create customized market watch lists. The Charts in the app are simple and easy to understand with complete information for investing.  

In addition, Groww also provides resources for beginners like  Ebooks, and blogs, and video courses. The platform is convenient and fast.

3. Equity Investments

Apart from mutual funds, the App provides the perfect platform for both investing and trading stocks. Although the initial focus of the company lay in Mutual Funds the company released its trading platform in June 2020.

Currently, you can do delivery (long-term) investment and intraday and intraday trades using Groww platform.

The app also provides investment in US Stocks, Digital gold, and Corporate FD.

4. Payment Options

Groww app lets users pay through various options like UPI, Net Banking, NEFT, a one-time mandate for SIP installments for Autopay using OTP’s. The app also sends timely notifications of all existing transactions like monthly SIPs and unit allotment. This makes payment and transfer of funds easy and convenient.

5. Tracking Investments

Another unique feature provided by the app is the ability to track investments across all platforms. The app does this by scanning the  Consolidated Account Statement (CAS) from CAMS or Karvy. This can be done by providing the app access to Gmail or by manually forwarding the latest statement. 

Once this is done the app also gives the investor an analysis of his investments using pie charts. This chart depicts the percentage of his investments from mutual funds in equity, debt, etc.

6. Security

Groww app contains a high-level 128-bit encryption standard. This is maintained for each and every transaction. The encryption is similar to those in banking standards. 

The app also provides a unique and convenient fingerprint scanner to log in securely. This feature is the first of its kind for similar platforms. The app also saves the time a username and password was logged in. It also ensures that if the device is misplaced or stolen, no access takes place.

7. No minimum balance

The app does not require investors to maintain a minimum balance in the Groww balance account. This balance can be maintained as per investor preference.

Groww App Review – Opening & Brokerage Charges

One of the biggest perks of using Groww is its competitive charges. The following table sheds light on the rates applicable:

ParticularsGroww Charges
Account Opening ChargesFree
AMC ChargesFree
Equity Delivery TradingRs.20 per executed order or 0.05% of order value (whichever is lower)
Equity Intraday TradingRs.20 per executed order or 0.05% of order value (whichever is lower)

— Groww Delivery Brokerage Charges 


 

— Groww Intraday Brokerage Charges


Closing Thoughts

Groww is slowly becoming one of the top investing/trading platforms. But still, there are a few concerns raised regarding the quality of the app. For example, Groww doesn’t offer to trade in Derivatives i.e. futures and options as of current.

Further, based on the feedback provided on the play store users complained over the lack of customer service provided. But despite this, the app has a stellar rating of 4.4 stars on the play store with over 10 million downloads. Let us know what you think about Groww below. Happy Investing!

How to apply for an IPO with Zerodha Account cover

How to apply for an IPO with Zerodha Account?

Steps to apply for an IPO with Zerodha Account: In this article, you’ll find out the exact process to apply for an IPO with Zerodha account. Investors can apply for IPO’s directly within the Zerodha console. And the best part is that the process is really simple.

Before you apply for an IPO

Obviously, you’ll need a Zerodha account if you want to apply to IPO’s with Zerodha. If you haven’t opened your account with Zerodha yet, here’s a detailed blog post on how to open your Zerodha Demat and trading account. Else, for shortcuts, you can use this direct link to open your account.

Next, you need is a UPI account. And this is nothing new. These days everyone uses UPI to make fast and secure payments. For example, you can use apps like Phonepe, Google pay, Bhim app, iMobile by ICICI, etc. Here is the link to the UPI apps and banks that allow IPO payment.

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

How to apply for an IPO with Zerodha Account?

Here are the exact steps to apply for an IPO with your Zerodha account:

1. Go to Zerodha IPO Page. Here’s the quick link.

zerodha ipo login

Else, directly log in to Zerodha Console. Here’s the quick link.

2. On the top menu bar, go to Portfolio → IPO.

3. On this page, you can find the list of the active IPO’s.

1 sbi cards apply for an IPO with Zerodha Account zerodha console

4. Select the IPO that you wish to apply from the list of active IPOs and click on ‘Place bid’.

5. A pop-up screen will launch with IPO information. Here you can find details like issue date, issue price, market lot, discount (if any), minimum order quantity, etc.

2 sbi cards 1 apply for an IPO with Zerodha Account zerodha console

6. Next, enter your UPI id. Make sure to select the correct bank account.

3 sbi cards apply for an IPO with Zerodha Account zerodha console

7. Place your bid by entering the ‘Quantity’ and ‘Bid price’.

For the quantity, it should be minimum order quantity or the multiple of the lot size. For the ‘bid price’ you can enter any price between the offered issue price range. Anyways, for the maximum chances to get an allotment, it is recommended to use the ‘Cut-off’ price.

4 sbi cards apply for an IPO with Zerodha Account zerodha console

8. After filling the details, click on the ‘checkbox’ stating that you’ve read the prospectus and you’re are an eligible UPI bidder as per the applicable provisions of the SEBI.

9. Finally, recheck the details and click on ‘Submit’.

10. Besides, if you want to make any changes if the bidding later, simply click on ‘Bid details’ on the IPO page and make the changes.

5 sbi cards apply for an IPO with Zerodha Account zerodha console

Once submitted, you’ll receive the request to complete the “UPI Mandate” on your UPI app.

Please note that sometimes it may take a few hours to receive the UPI mandate request. Anyways, in my case, it was instantaneous and I received the payment request on my iMobile ICICI app as soon as I submitted the application on the Zerodha Console. Accept the request once you receive it to complete the process.

ICICI Bank UPI Mandate

Note: If you use Google Pay, Phonepe, or any other similar app for UPI payment, you’ll receive a similar message and notification on your phone to complete the payment.

On accepting the payment request, your UPI app will block the IPO funds in your bank account till the date of allotment. You’ll receive an SMS from the exchange once your application is placed successfully.

If you’re allotted the IPO shares, the amount will get debited from your account and shares will be credited to your demat account. On the contrary, if shares are not allotted, then blocked funds are released on the date of the payment. You can read more about the process of IPO share allotment to retail investors here.

That’s all. This is the exact step-by-step process to apply for an IPO with Zerodha Account.

Closing Thoughts

Zerodha is continuously innovating to provide a better investing and trading facility to its customer. The procedure to apply for IPO is a lot simpler now. You should definitely check it out. Further, comment below if you face any difficulty in applying for IPO using the Zerodha account. Happy Investing!

Zerodha Product Codes Explained- CNC, MIS meaning, SL & More cover

Zerodha Product Codes Explained- CNC, MIS, SL & More!

Understanding Zerodha Product Codes- CNC, MIS, SL & More: Zerodha is one of the biggest stock brokers in India with over 30+ lakh clients. And with this huge client base, obviously Zerodha products and trading platforms are quite widely used.  One such popular product offered by Zerodha is its Kite Trading platform.

Anyways, the client is net to trading or investing, a few of the acronym used on this platform may be difficult to understand. For example, terms like CNC, MIS, SL etc might not make much sense to you if you do not know what they stand for and what’s their use. Nonetheless, the different Zerodha product codes will be simple to use once you understand it.

In this post, we’ll discuss the different Zerodha product codes and will try to simplify them. Let’s get started.

Also read: How to Open a Demat and Trading Account at Zerodha?

What are Zerodha Product Codes?

Zerodha product codes are basically short forms for different codes to perform different actions. For example CNC, MIS, QTY, PRICE, SL, etc. Here is a screenshot of the KITE app while placing a buy order by showing different codes.

Zerodha Product Codes Explained- CNC, MIS, SL meaning 2

You can note the different Zerodha product codes in the above image. Understanding what these quotes mean is really important if you want to place your buy/sell order correctly. Let’s start with the two easily understandable codes are QTY and PRICE.

Here, QTY means the number of quantities of stock that you want to buy. PRICE is the cost at which you want to buy the share.

Next, here are the abbreviations of the other codes are that we are going to discuss in this article:

  • CNC: Cash N Carry
  • MIS: Margin Intraday Square-off
  • MKT: Market Order
  • LMT: Limit Order
  • SL: Stop Loss
  • SL-M: Stop loss market
  • Trigger Point
  • Disclosed quantity

Now, before we discuss the other Zerodha product codes, here are a few frequently used terms that you need to know first.

— Market order (Market): When you want to buy/sell a share at the current market price, then you need to place a market order. For example, if the market price (current trading price) of a stock is Rs 100 and you are ready to buy the share at the same price or the price of the market, then you can place a market order. Here, the order is executed instantaneously at the market price.

However, please note that the market price keeps fluctuating second-by-second. Therefore, your purchase price might be little different than what you may have noticed before placing the order.

— Limit order (Limit): A limit order means to buy/sell a share at a limit price. If you want to buy/sell a share at a given price, then you place a limit order. For example, if the current market price of a company is Rs 200, however you want to buy it at Rs 195. Then you need to place a limit order. When the market price of ABC falls to Rs 195, then the order is executed.

— Stop-loss (SL): STOP LOSS is used to limit the losses when the price of a stock starts falling. For example, let’s say that you are entering stock at Rs 300. However, the price of that stock starts falling and you fear to book losses. In such a scenario, you can place an order to limit the loss to Rs 295. It specifies that you want to execute a trade but only if the specified price is met. Stop-loss is a very good tool to limit risks.

Quick Note: Before we move forward, here’s a quick video on Zerodha Stock Trading Tutorial which explains how exactly the Zerodha Kite Trading Platform works. A Must watch for beginners planning to trade/invest with the Zerodha platform:

Common Zerodha product codes (SL, MIS, CNC, etc)

  • LMT: This is used for placing a limit order.
  • MKT: This is used for placing a market order.
  • Trigger Price: This is used in stop loss orders. It is the price at which you want ‘stop-loss’ to be triggered.
  • Stop Loss (SL): This is used to place a stop loss at the limit price. Here you need to specify a Limit price and a trigger price. When the trigger price is reached, then the stop loss order is sent to the exchange at a limit order mentioned by you.
  • Stop loss market (SL-M): This is used to place a stop loss at market price. Here you just have to specify the trigger price. When the trigger price is reached, then the stop loss order is sent to the exchange at market price.
  • MIS in Zerodha: MIS stands for Margin Intraday square off. It is used for Intraday trading with leverage. All MIS position is auto squared off at the end of the day session.
  • CNC: It stands for Cash n carry. CNC is used in delivery based equity. There is no leverage provided in CNC. However, there is also no auto square off at the end of the session.
  • Disclosed quantity: This allows traders to disclose only a part of the actual quantity of the stocks that he bought or sold. This disclosed quantity should be more than 10% of the order quantity. For example, let’s say you bought 1000 stocks. However, you can disclose only 400 stocks (if you want). Only the discloses quantity will be shown on the market screen.

Quick Note: What is the use of disclosed quantity? The order book is open to all active people on the exchanges. Therefore, all these people can see what quantity of stocks you have ordered. However, the problem here is that once they know your quantity and price, they can change their own order (increase/decrease their order amount/quantity). This might affect your orders adversely. Disclosed quantity is beneficial for those people who trade in large quantities.

Now, these were the common terms that are shown in the marketplace section while placing buy/sell order in Zerodha.

However, there are also a few other Advanced Zerodha product codes. Although you can execute all your buy/sell orders without changing the advanced order, however, it’s better to have full knowledge of these product codes. 

Zerodha Product Codes Explained- CNC, MIS, SL meaning

Advanced Zerodha Product Codes (BO, CO, IOC, etc)

Here are the advanced Zerodha product codes:

  • REGULAR: Regular orders
  • BO: Bracket order
  • CO: Cover order
  • AMO: Aftermarket order
  • DAY: Day validity
  • IOC: Immediate or Cancel

AMO: It stands for aftermarket orders. You can use this facility to place an order when you can’t buy/sell during the trading time. You can place your order between 4:00 PM to 08:59 AM i.e. after the post-closing session and before the pre-opening session.

Bracket Order (BO): Bracket order is used for higher leverages (than that of MIS). Here, you place an Intraday buy or sell at limit order with a target price and a compulsory stop loss. All the orders are squared off before the end of the day.

Cover Order (CO): Cover order is used for placing intraday buy or sell at the market order for high leverage (that trading using MIS). Here you just have to specify the stop loss. All the orders will be squared off before the end of the day.

IOC: It stands for ‘Immediate or cancel’. Here the order is executed as soon as it is released. If the order fails to execute, then it is immediately canceled. In the case of part execution, the remaining quantity (which is not executed) will be canceled.

Summary: Zerodha Product Codes

Let’s quickly summarise a few of the most frequently used Zerodha product codes discussed in this post.

  • LMT: This is used for placing a limit order.
  • MKT: This is used for placing a market order.
  • Stop Loss (SL): This is used to place a stop loss at the limit price.
  • MIS in Zerodha: MIS stands for Margin Intraday square off.
  • CNC: It stands for Cash n carry. CNC is used in delivery based equity.

That’s all for this post. I hope the article is useful to the new traders and investors. If you have any questions regarding any Zerodha product codes, feel free to comment below. I will be glad to help. Happy Investing!!

Zerodha Review 2020 Is Free Investing Legit Pros Cons

Zerodha Review 2021 – Is Free Investing Legit? (No 1 Stockbroker?)

A complete Zerodha Review 2021– Brokerage, Trading Platform & More: Zerodha is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It offers a zero brokerage for delivery equity & direct mutual fund investments.

For all intraday, Futures & Options, currency, and commodity trades across NSE, BSE, MCX, it offers a brokerage of Flat ₹20 irrespective of the trading volume. It doesn’t matter whether you trade for Rs 1 lakh or 1 crore, you have to pay a flat low brokerage of Rs 20 per trade. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

In this Zerodha review, we will discuss the brokerage charges, account opening charges, maintenance charges, trading platforms, products, my personal experience of using Zerodha & more. By the end of this post, you’ll have a complete understanding of Zerodha trading services and whether this broker is right for you or not. Let’s get started.

Quick link to open a demat account with Zerodha.

Zerodha Review –Brokerage, Charges, Trading Platforms & More

1. Introduction

There are two types of stockbrokers in India. Full-Service brokers and Discount brokers. The full-service brokers offer a trading platform along with advisory. However, their brokerage charges are high. A few major full-service brokers in India are HDFC Securities, ICICI Direct, Motilal Oswal, etc.

On the other hand, discount brokers offer trading platforms with minimum brokerage charges. Nonetheless, they do not provide advisory services. The biggest advantage of a discount broker is that it saves a lot of brokerages for the traders/investors. On all other prospects, like performance, computerized trading systems etc- both offer similar facilities.

An important point to know here is that all the brokers- Full service or discount brokers are licensed and regulated in India by regulating bodies like SEBI.

Zerodha is a leading discount broker in India in terms of daily trading volume, growth and customer base. It is one of the most technologically advanced and cheap stockbrokers. Zerodha has over +1 million clients and contributes to over 10% of daily retail trading volumes across NSE, BSE, MCX.

Ironically, the term ‘Zerodha’ is derived from the fusion of an English and Sanskrit word. ‘Zero’+’Rodha’ where ‘Rodha’ means barrier. Overall, Zerodha means ‘Zero Barrier’.

It was started by Nitin Kamath, an Engineer by qualification, in 2010. Nithin bootstrapped and founded Zerodha in 2010 to overcome the hurdles he faced during his decade long stint as a trader. He was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:

ET Startup of the Year (2020)

— National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)

— Outlook Money “Retail broker of the year 2017”

— Ernst & Young “Entrepreneur of the year (Startup) 2017”

2. Zerodha Brokerage Charges 

Zerodha offers trading services to buy and sell stocks, futures & options in equities, commodities, and currency segment. Here are the Zerodha brokerage charges:

– Free equity delivery

All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.

– ₹20 intraday equity and F&O trades

₹20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.

TypeBrokerage Charges
Equity DeliveryRs. 0 (FREE)
Equity IntradayLower of Rs. 20 per executed order or 0.03%
Equity FuturesLower of Rs. 20 per executed order or 0.03%
Equity OptionsFlat Rs. 20 per executed order
Currency F&O Lower of Rs. 20 per executed order or 0.03%
CommodityLower of Rs. 20 per executed order or 0.03%

Quick note:

1. You can use this Zerodha Brokerage Calculator to get more ideas.

updated zerodha brokerage stocks

(Zerodha Brokerage Calculator)

2. Apart from brokerages, there are also a few other charges that you have to mandatorily pay on your transactions like Exchange transaction charge, STT, SEBI turnover charges, GST, etc.

You have to pay these charges no matter which stockbroker you prefer to trade in stocks and that too on both sides of transactions i.e. while buying and selling. However, the brokerage cost can be controlled by choosing a discount broker. For example, in the case of Zerodha, you can notice the total brokerage of Rs 40 for both sides of Intraday equity trading, even though the total turnover is Rs 8.4 Lakhs.

You can have read this blog post to understand the different charges while trading in stocks.

3. Zerodha Account Opening Charges & AMC

Here are the account opening charges for Zerodha

  1. Equity Trading Account: ₹200
  2. Commodity Account:₹100

If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 200+Rs 100 = Rs 300. Anyways, if you are just interested in trading in stocks i.e. equities, you can open demat and trading for equity account at Rs 200. The demat account annual maintenance (AMC) charge is Rs 300 per year.

 4. Zerodha Products & Features

 Zerodha has built its own trading applications for the customers. It offers different trading terminals, websites, and mobile apps (Android/iOS) which are free for the customers.

— Kite 3.0

zerodha kite dashboard

Kite 3.0 is a modern technology-based trading platform with streaming market data, advanced charts, an elegant UI, and more. It is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Kite provides Bandwidth consumption of fewer than 0.5 Kbps for a full market watch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and more.

Overall, Kite provides an excellent experience to the users through its groundbreaking innovations presented with hassle-free usability.

— Kite mobile

zerodha mobile app

This is a mobile version of KITE for a seamless experience for mobile-users and available in both Android and iOS devices.

— Coin

Zerodha Coin is a platform that lets you buy mutual funds online directly from asset management companies. This platform is absolutely free since August 24, 2018. Here, you can make your investments without any commissions.

With the help of Zerodha Coin, you can have Direct mutual funds in DEMAT form, with the convenience of one portfolio across equity, MF, currency, etc. Moreover, it also provides a Single capital gain statement, P&L visualizations, and more. This Coin by Zerodha has made investments through SIPs really simple and flexible.

Other Partner Products

Apart from the above products, Zerodha also offers a few other partner programs:

  1. Smallcase: This thematic investment platform is powered by Kite Connect APIs. Smallcase helps users to invest in different themes by intelligently providing weighted baskets of stocks in each theme.
  2. Sensibull: This is an options trading platform which offers simplified options trading for new investors by providing powerful trading tools. Sensibull aims to make options trading safe, accessible, and most importantly, profitable for all.

Besides, Zerodha has also started a few educational initiatives to improve financial literacy and increase the participation of the common people in the financial world. Here are a few other products offered by Zerodha

  1. Zerodha Varsity: An educational platform to educate people about investing and trading. Zerodha Varsity offers free modules on Technical analysis, fundamental analysis, futures, options, risk management, trading psychology & more. Recently, Zerodha Varsity also launched its Varsity mobile app.
  2. Trading Q&A: An online forum powered by Zerodha to answer people’s most troublesome investing and trading questions.

5. Pros and cons of Zerodha Discount broker

Here are a few advantages and disadvantages of using Zerodha trading platforms:

Pros of Opening Account with Zerodha

  1. Zero Brokerage Charges for Delivery
  2. Flat Charge for Intraday (Rs 20 or 0.03% whichever is lower per executed order for everything else)
  3. Same pricing for across all exchanges
  4. No upfront fee or turnover commitment
  5. Z-Connect, interactive blog, and portal for all your queries
  6. Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
  7. Minimalistic, intuitive, responsive web-based trading platform Kite
  8. No minimum balance required to open Zerodha trading account
  9. Invest in direct mutual funds with same demat account through coin

Cons of Opening Account with Zerodha

  1. No advisory services or research report.
  2. 3-in-1 account (Saving+Demat+Trading) not available.
  3. Online IPO investment not available. (Now, Zerodha customers can invest in IPO’s through UPI payment. Read more about Zerodha IPO applying process here)

Note: Zerodha has recently started offering Zerodha IDFC FIRST Bank 3-in-1 account. However, to open a 3in1 account at Zerodha, you need to have an existing account with IDFC FIRST Bank. Accounts can only be opened online. Read more here.

6. Is Zerodha a Reliable Stockbroker? And is Free investing legit?

Is Zerodha safe for long-term investments? This is one of the biggest questions that come in the mind of first-time investors. Obviously, HDFC Securities, ICICI Direct, SBI cap, Kotak securities, etc are big brands in the name of the broking industry and been in the market for decades. Hence, they have built greater trust compared to Zerodha, especially for the ones who have never heard its name before.

Anyways, Zerodha, the discount broker, originated only in 2010. Therefore, if you’re not involved in the share market investments/tradings in the last decade, it’s no surprise to say that you might have not known this broker. However, in the short span of around 10 years, this broker has been able to beat all the big traditional brokers. Currently, Zerodha is the biggest stockbroker in India, based on the number of clients (over 15 lakh users), followed by ICICI Direct and HDFC securities ranking second and third.

Now, answering your question, Yes, Zerodha is safe and reliable. In fact, since origin, Zerodha has never faced any case of major violations from SEBI or any of the other exchanges. It is a profitable private company with no debts or liabilities. Here are a few points why Zerodha is safe and reliable for investors and traders.

  1. Zerodha is a zero-debt financial services company. There is no borrowing of any kind.
  2. There is no credit risk, less than 5% of Zerodha’s own capital is lent to customers in any form.
  3. Zerodha own funds in the business are greater than 25% of all client funds put together.
  4. Their ratio of ‘complaints to active clients’ is among the least on the exchange.
  5. Zerodha is profitable as a business and has enough reserves to sustain, even if there was an extended downturn in the economy.

Moreover, Zerodha is partnered with Central Depository Services Limited. CDSL’s main function is the holding securities either in certificated or uncertificated form, to enable the book-entry transfer of securities. Therefore, when it comes to the security of the shares in your demat account with Zerodha, you do not need to worry at all. The stockbrokers are just the agents of depositories.

Your stocks are actually held by central depositories and not by the depository participants (brokers). Therefore, even if something didn’t work out well with Zerodha, your stocks in the demat account are safely intact with CDSL. In short, Zerodha is completely legit and reliable for your trading or long-term investments in the Share market.

7. My experience of using Zerodha

It’s been over three years since I’m using Zerodha and I’m satisfied with the trading services provided by Zerodha.

Initially, I started with ICICI direct as my broker, but later I switched to Zerodha when I realized that I was paying way too much brokerages for my trading transactions.

Most beginners do not consider the brokerage charges while calculating the profits. I use to make the same mistake. And that’s why many times the final profits in my bank account (after deducting the brokerage and other charges) disappointed me as it was considerably lower than what I calculated in my head. I wish I had switched to a discount broker earlier as it could have saved me a lot of ‘unnecessary’ brokerages and moreover trading experience is even better on Zerodah. Nonetheless, I use Zerodha for making all my stock investments now.

Besides, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard. But this issue is also solved by Zerodha. Investors can now apply for IPOs directly within the Zerodha console. And the best part is that the process is really simple.

Finally, a lot of people complain that Zerodha doesn’t provide advisory services or buy/sell calls. I believe that one should never invest or trade based on the broker’s recommendation. There’s a conflict of interest here as the brokers will always make money when you trade and doesn’t matter whether you win or lose. Therefore, they might always motivate investors to trade frequently. Overall, Zerodha not giving advisory services doesn’t bother me. Moreover, they make us for these cons by providing educational initiates like Varsity.

8. How to open your trading & demat account with Zerodha?

Opening a demat and trading account with Zerodha is really fast and hassle-free. In fact, if you’ve all the documents, you can open your account and start trading within an hour.

Here are the documents required to open a demat and trading account at Zerodha: PAN CARD, Aadhar Card, 2 Passport size photos, Canceled cheque/ Saving bank account passbook. I will recommend keeping photocopies of all these documents ready before you apply for opening the accounts.

To open your trading & demat account at Zerodha, go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the direct link.

open demat at trading account at 5paisa

Note: You can find the detailed explanation on how to open your demat and trading account at Zerodha here.

9. Closing Thoughts

In the last decade, Zerodha has earned trust and respect among the trading population by providing reliable and technologically advanced trading services. It is definitely the largest discount broker in India. If you are looking to open your brokerage account with a reputable brand that offers low brokerages, and have a fast trading platform, Zerodha is definitely one of the best options.

That’s all for this post. I hope this Zerodha review is useful to you. If you have any additional queries regarding Zerodha or if you want to share your review of Zerodha, you can post it in our forum. I’ll be happy to answer your questions. Have a great day!

zerodha success story discount stockbroking India

Zerodha Success Story: Journey to Biggest Stockbroking in India!

Zerodha Success Story in Stockbroking Industry in India: Trading and Investments are the two terms everyone wishes to experiment but are reluctant to step in due to many reasons like lack of knowledge, hefty commission and brokerage charges, uncertainties in the market and so on. 2008-2010 were the years when the biggest global financial crisis happened and the world was facing a trading hush. In India, the stockbroking companies that existed also experienced a downfall and were using old technologies to provide stockbroking services. Many young generation people were not educated enough to even think of trading at a very young age.

While all of these were encountered by almost every broker in India, Bangalore based discount broking firm, Zerodha was founded in 2010 by Mr. Nithin Kamath that provides trading services at discounted brokerage fees and user-friendly interface with reliability. This firm enjoys a massive client base of over 2.5 million users. Let us deep dive into the journey of how Zerodha success story and discuss how it became the biggest discount broker in India in this article.

Quick Note: As of October 2020, Nithin Kamath and Nikhil Kamath, the founders of Zerodha, India’s biggest stock brokerage company in terms of volume of trade, are the newcomers in the Forbes’ list of India’s 100 richest 2020. Their net worth is estimated at $1.55 billion. Read more here.

The founding of Zerodha: How did it start?

The Co-founder of Zerodha “Nithin Kamath”, before establishing Zerodha, was working in the call center in the night and he used to trade during the morning hours. At the age of 17, he got introduced to the stock markets by his friend and since then he started trading.

Although he made a good chunk of money by trading in stocks, he lost all the money during 2001 and 2002 when the markets crashed. Over a period of time, he was landed a cheque from a foreign HNI to manage his money. Eventually, he joined Reliance Money as a sub-broker and made a lot of money by adding big clients to Reliance money. Nevertheless, again lost a significant amount of money in the second market crash in the middle of the global financial crisis in 2008-09.

After trading for full time for over 10 years, this Maverick decided to become a broker when he thought that the time has come to provide a different kind of stockbroking services that he never came across during the 10 years span of his trading. He felt digitization and online user-friendly platform are the need of an hour when he first thought of starting Zerodha. Nitin Kamath also observed that the reason why the young generation is not willing to start trading is that there are high brokerage charges implemented on the transactions. His aim was to become an online broker using the latest technologies that is more people-first than profit-first.

zerodha office nithin kamath

Zerodha is derived from the Sanskrit word Rodha which means Obstructions. The name Zerodha means ‘No Obstructions’. Hence, the founder aimed at providing a hassle-free, low brokerage trading platform. He targeted clients who are young and more tech-savvy to contribute to the capital market ecosystem. According to him, he wanted more of a Google-like platform with a simplicity to use rather than a Yahoo-like platform. When he felt the need to change the system, he along with his younger brother, Nikhil, started Zerodha and the rest is the history or rather a case study for everyone.

The Secret Formula of Zerodha’s Success

It is indeed a fact that there is no short cut to success. However, Nithin Kamath, when founded this discount broking firm, decided to provide technology-efficient and cost-efficient services to its customers. He observed that there is a huge lag between the commissions charged by the other brokerage firms and the amount of money actually received by the customers.

In addition to that, the technology that was used was too old and Nithin felt the need to introduce a smart platform that enables users to trade online comfortably. He thought of providing services at a low cost where the idea of charging low commission clicked into his mind. He also wanted to attract more young customers who often do not enter into trading due to high commission charges. With this aim, he started his firm and today it has become the biggest discount broking firm. He believes if we do not depend too much on foreign capital and invest for our own companies, the day is not far when India will become an economically strong country.

Surprisingly, the firm hardly spent any money on advertising or marketing for its own firm. They do not run any advertisements. The founder believes in ‘the word of mouth is your true marketing’. Thus, with a very low operating cost Zerodha was able to capture a large number of customers. Interestingly, trading is provided free of cost at his stockbroking firm if the period of holding for shares is longer than a day.

They make money by charging a flat fee of Rs. 20 for futures, options, and intraday trading. While other competitors charge much more than this which is based on the percentage of a transaction traded. Its business model on which it works is ‘low margin – high volume’.

Innovation and New Additions

Zerodha brokerage calculator cover

In order to stay competitive, the firm launched many products to expand its reach and to overcome some challenges they were facing. Below is a brief on what each product provides:

— Console: It is a central dashboard of a customer’s account with Zerodha that will provide in-depth reports and visualizations to get more insightful idea.

— Kite: It is a sleek trading and investment platform using the latest technologies. It eases the customer’s experience to trade and transact in the stock market.

— Kite Connect API: This is mainly focused on independent traders and startups to enable them to build an innovative trading and investment platform. Using algorithms, retail traders can automate their trades.

— Sentinel: A platform that enables you to create market alerts. The alerts can be customized based on price, trade quantity, and open interest. The interesting aspect of this product is that you do not need to be a Zerodha customer in order to use Sentinel.

— Z Connect: This is a blog facility regarding stocks, trading, and investment with Zerodha. They publish articles and information on this blog and any user is allowed to ask questions and post comments.

— Varsity: One of the challenges faced by this firm was that it lacked in providing research services to its customers who are sometimes clueless about what and when to buy or sell. To overcome this, they come up with Varsity that gives a vast collection of stock market lessons on the go.

— Coin: It provides a commission-free purchase of mutual funds directly delivered into the customer’s Demat account.

— Rainmatter: It is an incubator that provides funding as well as mentorship to startup companies in capital markets and gives minority stake in exchange.

Source: Product information from Zerodha.com

In addition, Zerodha has also partnered with a lot of leading stock market platforms and portals like Streak, Sensibull, etc to create more value for their clients.

zerodha partners senseibull smallcase etc

Let us Talk about Challenges

Despite the tremendous success and huge customer base, Zerodha also had to confront a few challenges as described below:

  1. First of all, Zerodha does not provide stock advisory or any market-related calls that would enable its customers to decide on what to buy and sell.
  2. They also suffered from a lack of delivery of valuable advisory reports and analysis of one’s investments and trading activities be it either weekly or quarterly. Most of the big full-service brokers provide research reports.
  3. As Zerodha is mostly online and no offline support branches, inefficient customer support, and lack of quick customer service are the biggest challenges that this firm faces.
  4. Technical errors like app down for a few minutes or charting errors were reported previously which was basically because of the high market traffic situations.

Also read: 8 Best Discount Brokers in India – Stockbrokers List 2020

Closing Thoughts

To sum up, competing with big players like HDFC and ICICI is indeed a daunting task that the genius was able to cope up. However, there are other competitors too such as Upstox, Groww, SAS Online, Angle Broking, TradingBells, etc. However, the founder wishes to continue with his low margin strategy. This firm also developed a strategy to start selling Treasury bills, Government Securities, and Sovereign Gold Bonds which is everyone’s preference while the markets are facing a downfall.

Nithin strongly believes in not running after the money but to do the right things for a long period of time. This is what is the reason his firm has become one of the top-most broking firms in the country over the eight to nine years of time. To add to that, after facing so many challenges, the firm has made its way to persistently increase its customer base year by year. To get more insights you can read Zerodha review 2021.

That’s all for this post. I hope this Zerodha success story is inspiring for all the budding entrepreneurs and business enthusiasts who are planning to make something big in the stock market industry. Stay safe and happy investing.

Different Charges on Share Trading Explained- Brokerage, STT & More cover

Different Charges on Share Trading Explained- Brokerage, STT & More!

Different Charges on Share Trading Explained. Brokerage, STT, DP & More (Updated): There are a number of charges and taxes involved while trading in India i.e. buying or selling of shares. Some of them are quite popular like Brokerage Charge & GST, while there are many others that the traders and investors are not aware of. In this post, I am going to explain all types of different charges on share trading. Some common ones are brokerage charges, Security transaction charges (STT), stamp duty, etc.

Anyways, before we start discussing them, let us spend a few minutes to learn a few basics things that you need to know first. So, be with me for the next 10-12 minutes to understand the explanation of all the different charges on share trading. Let’s get started.

1. Intraday Trading and Delivery

A lot many beginners trades in stocks and confuse it by investing or delivery. However, both of them are really different:

  1. Intraday Trading: When you buy & sell a share on the same day, then it’s called Intraday trading. For example, you bought a share in the morning and sold it before the market closes on the same day, then it will be considered as an intraday
  2. Delivery Trading: On contrary to Intraday, when you buy a share and hold it for at least one day, then it’s called a delivery. For example, you bought a share today and sold it after three days (or any day but today) then it will be considered as a delivery. Here you can sell the stock tomorrow, or the day after that, or a week later, a year later or 20 years later.

 2. Full-Service Brokers and Discount Brokers:

  1. Full-Service brokers: These are the traditional brokers who offer full-service trading services in stocks, commodities, currencies, mutual funds, etc along with research and advisory, portfolio and asset management, banking all in one account. For example, ICICI Direct, Kotak Securities. HDFC securities, etc.
  2. Discount brokers: These are those budget brokers who offer high speed and the state-of-the-art execution platform for trading in stocks, commodities and currency derivatives. They charge a reduced commission (flat price) and do not provide trading advice. For example, Zerodha, 5Paisa, Angel Broking, Trade Smart Online, etc.

Also read: 8 Best Discount Brokers in India – Stockbrokers List 2020

In general, a full-service broker charges a brokerage between 0.03% – 0.60% of the transaction volume while trading in stocks. On the other hand, the discount brokers charge a flat fee (fixed rate of Rs 10 or Rs 20 per trade) on intraday. The majority of discount brokers also do not charge any fee on delivery trading.

It is important to note that you have to pay a brokerage charge on both sides of trading i.e. while buying a share and selling a share.  Let’s take an example to understand the brokerage charge better.

Suppose there is a brokerage firm called – ABC. Now, this broker charges a brokerage fee of 0.275% on intraday trading and 0.55% on delivery trading. The total charges on both tradings can be given as-

 Intraday TradingDelivery Trading
Brokerage0.275% of total turnover0.55% of total turnover
TurnoverIf you buy 100 stocks at Rs 120 and sell at Rs 125, total turnover is (120*100+ 125*100=) Rs 24,500If you buy 100 stocks at Rs 120 and sell at Rs 125, total turnover is (120*100+ 125*100=) Rs 24,500
Total Brokerage CostTotal brokerage charge on Intraday trading (for both buying and selling) = 24,500 * 0.00275 = Rs 67.38Total brokerage charge on Delivery (for both buying and selling) = 24,500 * 0.0055 = Rs 134.75

As the competition among the brokers is continuously increasing, these brokerage charges offered by the different brokers are also decreasing. For example, the discount brokers like Zerodha offers a flat fee of Rs 20 or 0.03% on Intraday trading (whichever is lower) and Delivery investments are FREE. Here are the Brokerage charges for different segments offered by Zerodha.

— Delivery Trading: FREE (Rs 0)
— Intraday Trading: Rs 20 per trade or 0.03% (whichever is minimum)
— Equity Futures: Rs 20 per trade
— Equity Options: Rs 20 per trade

Therefore, for the above table, assuming the same scenario, the person would be paying only Rs 7.35 in Intraday Trading and Zero Brokerage on Delivery, if he prefers Zerodha as its broker. Other discount brokers like 5Paisa, Upstox, Angel Broking, etc, also offer similar lower brokerage charges.

Now, apart from brokerage charges, there are also an additional couple of charges and taxes to be paid while share trading. As already mentioned earlier, some of them are Security transaction tax, service tax, stamps duty, transaction charges, SEBI turnover charges, depository participant (DP) charges, and also capital gain tax (which you’ve to pay at the end of the financial year but not while transacting).

Let’s understand these other different charges on share trading and taxes involved first. Further, we will also discuss an example at the end of this post to understand the charges and taxes involved better.

Different Charges on Share Trading

– Security Transaction Tax (STT)

  1. Apart from brokerage, this is the second biggest charge involved while trading in stocks.
  2. For delivery trading, STT is charged on both sides (buy & sell) of transactions and is equal to 0.1% of the total transaction price (on each side of trading).
  3. For intraday and derivate trading (futures and options), STT is charged only when you sell the stock. For intraday, the STT charge is 0.025% of the total transaction price while selling.
  4. For equity Futures, the STT is equal to 0.01% on the sell-side. On the other hand, for equity options trading, STT is equal to 0.05% on sell-side (on premium).

– Stamp Duty

Stamp duty is charged uniformly irrespective of the state of residence effective from July 1st, 2020. These new rates are only on the buy-side (and not on both buy and sell-side). Here are the new rates on stamp duty on different types of trades:

Type of tradeNew stamp duty rate
Delivery equity trades0.015% or Rs 1500 per crore on buy-side
Intraday equity trades0.003% or Rs 300 per crore on buy-side
Futures (equity and commodity)0.002% or Rs 200 per crore on buy-side
Options (equity and commodity)0.003% or Rs 300 per crore on buy-side
Currency0.0001% or Rs 10 per crore on buy-side
Mutual funds0.005% or Rs 500 per crore on buy-side
Bonds0.0001% or Rs 10 per crore on buy-side

Quick Note: Previously, the stamp duty was charged by the state government and hence not similar across all the states in India. A few states charged higher stamp duty, whereas a few of them charges lower duty taxes. Different states charge different stamp duty. Moreover, Stamp duty used to be charged on both sides of transactions while trading ( i.e. buying & selling) and hence are charged on the total turnover. **This rule changed after 1st July, 2020.

– Transaction Charges

  1. The transaction charges is charged by the stock exchanges and that too on both sides of the trading.  This charge is the same for intraday & delivery trading.
  2. National stock exchange (NSE) charges a fee of 0.00325% of the total turnover as Transaction charges on Equity and Delivery Trading. On the other hand, Bombay stock exchange (BSE) charges a fee of 0.003% of total turnover as Transaction charges on Equity and Delivery Trading.
  3. For Derivatives trading, BSE doesn’t cost any transaction charges. However, on NSE, the Exchange transaction charge is 0.0019% for futures trading and 0.05% of total turnover for Options Trading.

– SEBI Turnover Charges

  1. SEBI stands for the Securities exchange board of India and it is the security market regulator. SEBI makes the rules and regulations on the exchanges for its proper functioning.
  2. SEBI Turnover fee is charged on both sides of the transaction i.e. while buying and selling and is the same for all equity intraday, delivery, futures, and options trading.
  3. The SEBI turnover charge is equal to Rs 10 per crore of the total turnover.

– Depository Participant (DP) Charges

  1. There are two stock depositories in India- NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). Whenever you buy a share, it is kept in an electronic form in a depository. For this service, the depositories charge some fixed amount.
  2. The depositories don’t charge the traders or investors directory but charge the depository participant. Here, the brokerage firm or your demat account company is the depository participant (DP).
  3. DP acts as a linkage between the depository and the investor as the investors cannot directly approach the depository. In short, the depository charges the DP and then the depository participant (DP) charges the investors.
  4. For example, while trading with Zerodha, DP charge is equal to ₹13.5 + GST per scrip (irrespective of quantity), on the day, is debited from the trading account, i.e. when stocks are sold. This is charged by the depository and depository participant.

– Goods & Service Taxes (GST)

GST is the mandatory tax levied by the government on the services rendered and is equal to 18% of total brokerage and transaction charges.

– Capital Gain Taxes

Lastly, Capital gain taxes is the most important tax to understand in this article for the traders and investors. We are not going to cover all the details regarding capital gain taxes in this article, but just a short over. If you want to read the complete details, you can refer to this article.

  1. There are two types of Capital gain taxes in India – Short-term capital gain tax and Long-term capital gain tax.
  2. When you sell a stock before one year of buying, then it is considered as a Short-term. Here a flat 15% of the profit is charged as short-term capital gain tax.
  3. When you sell a stock after one year of holding, then it is called the long-term. For the long term capital gain, you have to pay a tax equal to 10% of the gains, if it exceeds Rs 1 lakh.
  4. For Intraday Traders, they need to pay taxes on their capital gains which depends on their tax slab. For example, if you’re in the highest tax slab and made some profits while intraday trading, you’ve to pay taxes of 30% on those gains.

Quick Note: You can also download our FREE android app of ‘Brokerage Calculator’ to find the total brokerage and actual profits/loss while trading in stocks ‘on your phone’. Here is the quick link!

Example of Different Charges on Share Trading

Now, let us see an example to understand these different charges on share trading and taxes involved better. Suppose there are two traders- Rajat and Prasad. Here, Rajat is a delivery trader who invests in the long-term i.e. for 2-3 years. On the other hand, Prasad is an intraday trader.

They both have their accounts in the same discount brokerage company named ABC. The brokerage charge for ABC is Rs 20 Per trade on intraday trading and FREE for delivery trading.

Also, let us suppose that both Rajat and Prasad have traded a total turnover of Rs 98,000 in a share (i.e. total cost involved while buying and selling). In addition, they both live in Maharastra.

Now the different charges and taxes paid by them for complete trading i.e. from buying to selling the shares can be given as-

 Prasad (Intraday Trader)Rajat (Delivery Trader)
Buy Price120120
Sell Price125125
Quantity400400
Total TurnoverRs 98000Rs 98000
ExchangeNSENSE
StateMaharashtraMaharashtra
Brokerage ChargeRs 40 (Flat Rs 20 Per trade i.e. Buying & Sellling)Rs 0 (FREE Delivery Trades)
STT0.025% of sell side = 0.025 % of Rs 50,000 = Rs 12.50.1% on buy & sell = 0.1% of 98000 = Rs 98
Stamp Duty0.003% of buy-side = 0.003% of 48,000 = Rs 1.440.015% of buy-side= 0.015% of 48,000 = Rs 7.2
Transaction Charges0.00325% of total turnover = 0.00325% of Rs 10,000= Rs 3.180.00325% of total turnover = 0.00325% of Rs 10,000= Rs 3.18
SEBI Turnover ChargesRs 10 / Crore of Total Turnover= Rs 0.10Rs 10 / Crore of Total Turnover= Rs 0.10
GST18% on (brokerage + transaction charges) = 0.18 * (40+ 3.18)= Rs 7.7718% on (brokerage + transaction charges) = 0.18 * (0+ 3.18) = 0.57
Total Brokerage And Taxes64.99109.05
Total Profit or Loss1935.011890.95
Capital Gain TaxDepends on the tax SlabDepends on Short/long term holding period

At first glance, it looks cheap to invest in intraday as the total charges are comparatively less here. But you should note that the frequency of trading for intraday traders is quite high. Many intraday traders easily make 2-3 high volume trades every day. So, they have to pay these brokerage charges and taxes again and again. On the other hand, delivery traders or long-term investors do not make such frequent trades.

Overall, charges and taxes are a very important part of trading and should not be ignored. You might think that you are in profit, but the real profit is the one which is left after deducting the charges and profit. I hope the traders will keep this in mind before trading the next time.

Zerodha Brokerage Calculator

Before ending this article, here’s the brokerage calculator for equity trades using Zerodha, the discount broker.

Quick Note: If you’re interested in opening your demat account with Zerodha, the No 1 stockbroker in India, here’s a direct link to the account opening page.





That’s all for this post. If you’ve any doubts related to the different charges on share trading in India, feel free to comment below. I’ll be happy to help you out. Cheers & Happy Trading!

Zerodha vs Angel Broking - Stockbroker Comparison cover

Zerodha vs Angel Broking: Stockbroker Comparison

Zerodha vs Angel Broking Comparison: Zerodha and Angel Broking are two of the best and biggest discount brokers in India. In this article, we are going to compare Zerodha vs Angel Broking by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, pros, cons, and more.

This comparison between Zerodha vs Angel Broking will highlight the major differences between these two stockbrokers and help you choose the best between them based on your preferences.

Zerodha Introduction

zerodha demat account

Zerodha, founded in 2010 by Nitin Kamath, is the biggest stock broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It has over +2.2 million clients that contribute to over 15% of daily retail trading volumes across  BSE, NSE, and MCX.

In terms of brokerage charges, Zerodha offers a zero brokerage for delivery equity investment & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a flat brokerage of ₹20 irrespective of the trading volume. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

Also read: Zerodha Review 2020 – Is Free Investing Legit? [Pros and Cons]

Angel Broking Introduction

angel broking discount broker

Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.

In the past, Angel Broking worked as a full-service broker and offered a percentage based brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.

Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per trade. The same simple rate is applicable across all exchanges and segments.

One of the key advantages of trading with Angel Broking is that they provide investment advisory, guidance, and recommendations to their clients for investing in the stock market. Further, they also offer research reports on companies along with many other value-adding tools and services to their clients for free.

Quick link to open your FREE account with Angel Broking.

Zerodha vs Angel Broking Comparision

NameZerodhaAngel Broking
AboutZerodha is the largest stockbroker in India with +1.5 million clients and +10% of daily retail trading volumes across NSE, BSE, MCX. Located at Bangalore, Zerodha offers zerod brokerage on delivery trading and a flat rate of 0.03% or Rs 20 per executed on all other segments.Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers free delivery trades and flat charge of Rs 20 for all other trades
Founded20101987
CompanyPrivatePrivate
Main OfficeBangaloreMumbai
# of Active Clients on NSE (Nov 2019)9,09,0084,12,809
Broker ServiceDiscount BrokerFull-Service Flat rate Broker
Supported ExchangeNSE, BSE, MCX, NCDEXNSE, BSE, MCX, NCDEX
Brokerage SummaryFree for Delivery Trading and Rs 20 for all other tradesFree delivery trades and flat charge of Rs 20 for all other trades
Servies offeredEquity, Derivatives, Currency, Mutual Funds & CommoditiesEquity, Derivatives, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.
Account Opening ChargeRs 200Rs 699 (Currently Waived)
Commodity Trading Opening chargeRs 100Rs 0
Annual Maintenance ChargeRs 300Rs 450 (Second years onwards)
Trading PlatformKite 3 Web baased trading platform, Kite Mobile, Kite Connect API, Console, Pi, Sentinel, CoinAngel iTrade, Angel Broking Mobile App, Angel SpeedPro, Angel BEE
Brokerage Charges
Equity DeliveryFreeFree
Equity IntradayRs 20/ trade or 0.03% whichever is lowerRs 20 per trade
Equity Future ChargesRs 20/ trade or 0.03% whichever is lowerRs 20 per trade
Equity Options ChargesFlat Rs. 20 per executed orderRs 20 per trade
Currency future chargesRs 20/ trade or 0.03% whichever is lowerRs 20 per trade
Currency options chargesRs 20/ trade or 0.03% whichever is lowerRs 20 per trade
Commodity ChargesRs 20/ trade or 0.03% whichever is lowerRs 20 per trade
Minimum brokerage fees0.03% MinimumFlat Charges Rs 20
Call & Trade ChargesRs 20 per executed orderAdditional Rs 20 per executed order
Margin Offered
Equity Margin DeliveryNo margin for delivery - Cash and carryUpto 3x for equity cash
Equity Margin IntradayUpto 20x (Based on stock)Upto 6x
Equity margin futuresIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total marginUpto 10x (Buying/Selling)
Equity margin optionsIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total marginUpto 10x (Selling) and 3x (Buying)
Commodity MarginIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total marginUpto 5x
Currency futuresIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total marginUpto 8x
Currency OptionsIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total marginUpto 8x (Selling) and 3x (Buying)
Addons
3-in-1 AccountYes, with IDFC BankNo
Research & TipsNoYes
Brokeage CalculatorYesYes
Span Margin CalculatorYesYes
Training & EducationYesYes
Interactive ChartsYesYes
Margin Against Shares (Equity Cash)YesYes
Margin Against Shares (Equity F&O)YesYes
IPO ServicesYesYes
Robo advisoryNoYes
Other FeaturesDirect Mutual fund investments, Kite APIs, Sentinel, Streak, SensibullResearch reports, Portfolio management system (PMS), Insurances
ProsZero brokerage charges for delivery trading, Simple and flat brokerage model in all other segments, Excellent trading platforms, Easy & fast online account opening, Direct mutual fund investments, Maximum brokearge of Rs 20Free delivery trades; Full-Service Broker with Flat charges; Services offered in Equity, Mutual funds, Commodities, IPOs, PMS, Life insurances; Customised trading help; Robo Order, High Margin
ConsNo stock advisory or research reportsAngel Broking doesn't offer 3-in-1 account, Higher Maintenece charges
Promotion/OfferFree delivery equity trading and Rs 20 or 0.03% wihchever is lower brokerage charge on all other tradesRight now - FREE Account Opening (Opening Charges 100% Waived)
WebsiteQuick Link to Open AccountQuick Link to Open Account

*Disclaimer: All pricing data was obtained from the published stockbroker’s web site as of 02/04/2020 and is believed to be accurate, but is not guaranteed. Account opening charges, margins, etc can vary from time to time depending on the active campaigns by the brokers and hence recommended to refer to the broker’s website for the latest updates.

Also read:

Closing Thoughts

Both Zerodha and Angel Broking offers low (flat) brokerage and fast trading platforms for their clients.

Zerodha, being the biggest discount broker in India with over 22 lakh clients obviously adds trust and brand value. Moreover, Zerodha’s innovative initiatives like educational facility (Varsity), free direct mutual fund investments through COIN, investment in IPO’s from the same dashboard, partner portals like Streak, Sensibull, etc create more value for their clients.

zerodha partners senseibull smallcase etc

On the other hand, Angel broking has built its reputation with over +30 years of experience in the broking industry. Since Angel Broking is a full-service broker, it offers a lot more segments than Zerodha like Portfolio management Services & Life Insurance. Moreover, a few notable advantages of Angel Broking over Zerodha is that they offer Research reports and robo-advisory to their clients, which Zerodha don’t.

Overall, if you’re looking for full-service facilities like investment advisory, Research reports, Robo-advisory, PMS, etc, then Angel Broking is a good alternative.

Nonetheless, if you wish to trade/invest on your own, but looking for essential add-on products like learning platform, Sensibull, Streak, etc and a user-friendly innovative trading platform, Zerodha is the go-to broker. Zerodha offers a little more benefits compared to Angel Broking for independent traders and investors.

ANGEL BROKING VS 5PAISA broker comparison

Angel Broking vs 5Paisa – Which one is better?

Angel Broking vs 5Paisa Comparision: As of 2020, Angel Broking and 5Paisa are two of the leading discount brokers in India. Both of them have millions of clients and offer fast trading platforms & services. However, how do they differ and which one of them is better?

In this article, we are going to compare Angel Broking vs 5Paise by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, pros, cons, and more. This comparison between Angel Broking vs 5Paisa will highlight the major differences between these two discount stockbrokers and help you choose the best between them based on your preferences.

Angel Broking Introduction

Angel broking free demat account

Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.

In the past, Angel Broking worked as a full-service broker and offered a percentage based brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.

Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per trade. The same simple rate is applicable across all exchanges and segments.

One of the key advantages of trading with Angel Broking is that they provide investment advisory, guidance, and recommendations to their clients for investing in the stock market. Further, they also offer research reports on companies along with many other value-adding tools and services to their clients for free.

Quick link to open your FREE account with Angel Broking.

5 Paisa Introduction

5Paisa flat broker

5Paisa is a discount broker that provides you the platform to trade in stocks, futures, and options at the lowest cost of Rs 20 flat per trade, even if you trade for Rs 10 Crore. 5Paise is a public company, which means that its stocks are traded on Bombay stock exchange and National stock exchange.

It is headquartered in Mumbai and is a part of India Infoline (IIFL), a leading non-banking financial institution in India with experience of over two decades (initially incorporated in 1995). 5paisa was re-launched with a new brokerage model for online retail broking services in late 2016. Later, it got de-merged from IIFL so that it can be listed on the stock exchanges. 5Paisa Capital started trading on NSE/BSE in November 2017, making it the first such listed financial digital marketplace.

5 Paisa Capital provides a platform for all financial products including equities, derivatives, commodities, mutual funds, AIFs, bonds & debentures, insurance, and personal loans. 5Paisa provides the trading facility in mobile, browser, and desktop platforms. The account opening process for 5Paisa is totally paperless based on Aadhaar. 

Quick link to open your FREE Demat Account with 5Paisa

Angel Broking vs 5Paisa – Broker Comparision

NameAngel Broking5 Paisa
AboutIncorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers free delivery trades and flat charge of Rs 20 for all other trades5paisa.com, second largest discount broker in India, is part of IIFL group (India Infoline), India's leading financial services company. It offers a flat brokerage of Rs 20 per trade for its clients.
Founded19872016
CompanyPrivatePublic
Main OfficeMumbaiMumbai
# of Active Clients on NSE (Nov 2019)4,12,8091,06,280
Broker ServiceFull-Service Flat rate BrokerDiscount Broker
Supported ExchangeNSE, BSE, MCX, NCDEXNSE, BSE, MCX
Brokerage SummaryFree delivery trades and flat charge of Rs 20 for all other tradesRs 20 Per Trade (Optimum Plan)
Servies offeredEquity, Derivatives, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.Equity, Derivatives, Commodity, Currency, Mutual Funds
Account Opening ChargeRs 699 (Currently Waived)Rs 650 (Currently Waived)
Commodity Trading Opening chargeRs 0Can't trade in commodity
Annual Maintenance ChargeRs 450 (Second years onwards)Rs 45 per month (only for months when you trade)
Trading PlatformAngel iTrade, Angel Broking Mobile App, Angel SpeedPro, Angel BEEInvestor terminal, trader terminal, 5 Paisa Trade Station
Brokerage Charges
Equity DeliveryFreeRs 20 per trade
Equity IntradayRs 20 per tradeRs 20 per trade
Equity Future ChargesRs 20 per tradeRs 20 per trade
Equity Options ChargesRs 20 per tradeRs 20 per trade
Currency future chargesRs 20 per tradeRs 20 per trade
Currency options chargesRs 20 per tradeRs 20 per trade
Commodity ChargesRs 20 per tradeRs 20 per trade
Minimum brokerage feesFlat Charges Rs 20Rs 10 per trader (Higher Plans)
Call & Trade ChargesAdditional Rs 20 per executed orderRs 100/ call
Margin Offered
Equity Margin DeliveryUpto 3x for equity cashUpto 4x for equity cash
Equity Margin IntradayUpto 6xUpto 20x
Equity margin futuresUpto 10x (Buying/Selling)Intra-day: 3.5x - Carry forward: 1x (no margin)
Equity margin optionsUpto 10x (Selling) and 3x (Buying)Intra-day: 1x - Carry forward: 1x
Commodity MarginUpto 5x
Currency futuresUpto 8xIntra-day: 1 time - Carry forward: 1x
Currency OptionsUpto 8x (Selling) and 3x (Buying)Intra-day: 1 time - Carry forward: 1x
Addons
3-in-1 AccountNoNo
Research & TipsYesYes (for higher plans)
Brokeage CalculatorYesYes
Span Margin CalculatorYesYes
Training & EducationYesYes
Interactive ChartsYesYes
Margin Against Shares (Equity Cash)YesYes
Margin Against Shares (Equity F&O)YesYes
IPO ServicesYesYes
Robo advisoryYesYes
Other FeaturesResearch reports, Portfolio management system (PMS), InsurancesMutual Fund Investments, Research reports
ProsFree delivery trades; Full-Service Broker with Flat charges; Services offered in Equity, Mutual funds, Commodities, IPOs, PMS, Life insurances; Customised trading help; Robo Order, High Marginflexible brokerage plans (Optimum, Platinun, Titanium), Premium plans offer Cheapest brokerage, Research reports availalble (but at extra cost)
ConsAngel Broking doesn't offer 3-in-1 account, Higher Maintenece chargesCall and trade Rs 100 per call, Higher charges of Rs per transaction on demat
Promotion/OfferRight now - FREE Account Opening (Opening Charges 100% Waived)Right now - No Opening Charges, Annual maintence charges (AMC) waived
WebsiteQuick Link to Open AccountQuick Link to Open Account

Also read:

Closing Thoughts

From the above comparison, you can find that both Angel Broking and 5Paisa offer low brokerage, high margin, and fast trading platforms for their clients. Moreover, both of these brokers also provide additional services like investment advisory services, research reports, robo-advisory, etc. Anyways, trading platforms and customer service offered by Angel Broking is a little superior compared to the 5Paisa.

On the other hand, multiple brokerage plans offered by 5Paisa can be one of the biggest cons against Angel Broking. 5Paisa offers Optimum, Platinum, and Titanium plans for their customers. Different traders can choose the plan accordingly depending on their trading frequency, volume, and strategy. 5Paisa customers can enjoy a lot less brokerage annually if they go with Platinum or Titanium plans.

5 paisa pricing plans brokerage

 

That’s all for this post. I hope this article on Angel Broking vs 5 Paisa was useful to you. If you’ve got any queries regarding these two brokers, feel free to comment below. Happy trading & investing. Cheers!

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