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.

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.

October 1, 2020 Online Brokers 15 comments
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.

Here’s a video on how to use Stop-Loss in Zerodha efficiently.

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.

Brackte 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

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!!

September 29, 2020 Online Brokers 36 comments
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!


 September 25, 2020  Investment Basics, Online Brokers 82 comments

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: Aug 2020) 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 225 registered stockbrokers in India as of 30th August 2020. 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 Clients% Market Share






1ZERODHA BROKING LIMITED230379917.09%




2ICICI SECURITIES LIMITED11658878.65%




3RKSV SECURITIES INDIA PRIVATE LIMITED10111177.50%




4ANGEL BROKING LIMITED9331286.92%




5HDFC SECURITIES LTD.7864155.83%




6KOTAK SECURITIES LTD.6756205.01%




75PAISA CAPITAL LIMITED6315144.69%




8SHAREKHAN LTD.5871214.36%




9MOTILAL OSWAL FINANCIAL SERVICES LIMITED4385363.25%




10AXIS SECURITIES LIMITED3188492.37%




11SBICAP SECURITIES LIMITED2803202.08%




12IIFL SECURITIES LIMITED2430341.80%




13GEOJIT FINANCIAL SERVICES LIMITED1755331.30%




14NEXTBILLION TECHNOLOGY PRIVATE LIMITED1680481.25%




15KARVY STOCK BROKING LTD.1543761.15%






Please note that the total number of active clients of all stockbrokers is 1,34,78,848 (1.34 Cr) as of Aug 2020, 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 August 2020, Zerodha constitutes around 17.09% of the total market share of the active clients registered on the National Stock Exchange. It has over 23 lakh active customers compared to a total of over 1.34 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. It is the only broker with a discount brokerage business model in the top ten list. Anyways, Angel broking has also started a similar discount brokerage model recently, along with its full-service model. 


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


According to the above table, Zerodha is closely followed by ICICI securities, which ranks second and has over 11.16 lakhs unique clients. 


The other most prominent stockbrokers in this list are Upstox aka RKSV Securities (10.1 Lakh Clients), Angel Broking (9.33 lakh clients), HDFC Securities (7.86 Lakh clients), Kotak Securities (6.75 lakh clients), 5Paisa (6.31 lakh clients), Sharekhan (5.87 lakh clients), Motilal Oswal Group (4.38 lakh clients) and Axis Securities (3.18 lakh clients). Together these 15 biggest stockbrokers constitute over 73.25% 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 30th April 2020. 






S. NoName of Stockbroker# of Active Clients% Market Share






16EDELWEISS BROKING LIMITED1412581.05%




17SMC GLOBAL SECURITIES LTD.1229480.91%




18RELIANCE SECURITIES LIMITED1202610.89%




19RELIGARE BROKING LIMITED1192230.88%




20NIRMAL BANG SECURITIES PVT. LTD.1097320.81%




21MARWADI SHARES AND FINANCE LIMITED908860.67%




22VENTURA SECURITIES LTD.825550.61%




23ALICE BLUE FIN SVCS P LTD800760.59%




24ANAND RATHI SHARE AND STOCK BROKERS LIMITED762220.57%




25SAMCO SECURITIES LIMITED664190.49%




26TRADEBULLS SECURITIES (P) LTD.636780.47%




27JAINAM SHARE CONSULTANTS PRIVATE LIMITED615330.46%




28MONARCH NETWORTH CAPITAL LIMITED507870.38%




29IDBI CAPITAL MARKETS & SECURITIES LTD.506500.38%




30ADITYA BIRLA MONEY LIMITED492530.37%






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!


 September 25, 2020  Online Brokers 9 comments

Zerodha Review 2020 Is Free Investing Legit Pros Cons

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




A complete Zerodha Review 2020– 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. 

  2. Commodity Account:₹100
    3. 



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. 

  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.
    3. 



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. 

  2. Trading Q&A: An online forum powered by Zerodha to answer people’s most troublesome investing and trading questions.
    3. 



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. 

  2. Flat Charge for Intraday (Rs 20 or 0.03% whichever is lower per executed order for everything else)
    3. 

  3. Same pricing for across all exchanges
    4. 

  4. No upfront fee or turnover commitment
    5. 

  5. Z-Connect, interactive blog, and portal for all your queries
    6. 

  6. Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
    7. 

  7. Minimalistic, intuitive, responsive web-based trading platform Kite
    8. 

  8. No minimum balance required to open Zerodha trading account
    9. 

  9. Invest in direct mutual funds with same demat account through coin
    10. 



Cons of Opening Account with Zerodha


    

  1. No advisory services or research report.
    2. 

  2. 3-in-1 account (Saving+Demat+Trading) not available.
    3. 

  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)
    4. 



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. 

  2. There is no credit risk, less than 5% of Zerodha’s own capital is lent to customers in any form.
    3. 

  3. Zerodha own funds in the business are greater than 25% of all client funds put together.
    4. 

  4. Their ratio of ‘complaints to active clients’ is among the least on the exchange.
    5. 

  5. Zerodha is profitable as a business and has enough reserves to sustain, even if there was an extended downturn in the economy.
    6. 



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!


 September 7, 2020  Online Brokers 35 comments

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: Recently 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 5% of the population of the country is currently involved in the stock market. In addition, the segment already includes players like Zerodha, ET Money, Groww, Kuveram wealth, 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 the 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 3 million customers and a 15% 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 and Intraday Charges


— 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. 

  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. 

  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. 

  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. 

  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. 

  6.  Users can automate stock investing by setting buy orders on a weekly or monthly basis.
    7. 

  7.  Advanced charts and other options like cover order and bracket order have been offered in order to make the experience more rewarding
    8. 

  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. 

  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. 

  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.
    11. 



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. 

  2. Click on complete your KYC by filling in the required information.
    3. 

  3. Upload the documents i.e. PAN, Aadhaar and bank details (Cancelled cheque/Account statement)
     
    4. 

  4. Submit and You can start trading/investing once your account is active
    5. 



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




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 it’s 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:


    

  • Paytm Money doesn’t offer to trade in derivatives i.e. futures and options trading yet.
    • 

  • Unlike the trading platforms like Zerodha ‘kite’ which has been in the market for years, Paytm’s trading platform is yet to test handling large volumes and market volatility.
    • 

  • Other Services like Commodity and currency trading is not available for customers.
    • 



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.


 August 31, 2020  Online Brokers No comments yet

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.
 May 13, 2020  Online Brokers 6 comments

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!
 May 1, 2020  Online Brokers No comments yet

Zerodha vs 5Paisa Compare Brokerage, Margin, Charges & More

Zerodha vs 5Paisa: Compare Brokerage, Charges, Margin & More!




Zerodha vs 5Paisa – Stockbroker Comparision: Zerodha and 5paisa are two of the biggest discount brokers in India. In this article, we are going to compare Zerodha vs 5Paisa by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, and more.


This comparison between Zerodha and 5Paisa will highlight the major differences between these two brokers to help you find the best between 5paisa and Zerodha, based on your preferences.


Zerodha Introduction


Zerodha, founded in 2010 by Nitin Kamath, is the biggest discount 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 Flat ₹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]


5 Paisa Introduction


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.


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


Zerodha vs 5Paisa Comparision:






NameZerodha5 Paisa






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.5paisa.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.




Founded20102016




CompanyPrivatePublic




Main OfficeBangaloreMumbai




# of Active Clients on NSE (Nov 2019)9,09,0081,06,280




Broker ServiceDiscount BrokerDiscount Broker




Supported ExchangeNSE, BSE, MCX, NCDEXNSE, BSE, MCX




Brokerage SummaryFree for Delivery Trading and flat charge of Rs 20 for all other tradesRs 20 Per Trade




Servies offeredEquity, Derivatives, Currency, Mutual Funds & CommoditiesEquity, Derivatives, Commodity, Currency, Mutual Funds




Account Opening ChargeRs 200Rs 650




Commodity Trading Opening chargeRs 100Can't trade in commodity




Annual Maintenance ChargeRs 300Rs 45 per month (only for months when you trade)




Trading PlatformKite 3 Web baased trading platform, Kite Mobile, Kite Connect API, Console, Pi, Sentinel, CoinInvestor terminal, trader terminal, 5 Paisa Trade Station




Brokerage Charges




Equity DeliveryFreeRs 20 per trade




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 charge of Rs 10 per trade (for higher plans)




Call & Trade ChargesRs 20 + 18% GST OrderRs 100/ call




Margin Offered




Equity Margin DeliveryNo margin for delivery - Cash and carryUpto 4x for equity cash




Equity Margin IntradayUpto 20x (Based on stock)Upto 20x




Equity margin futuresIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin Intra-day: 3.5x - Carry forward: 1x (no margin)




Equity margin optionsIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin Intra-day: 1x - Carry forward: 1x




Commodity MarginIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin NA




Currency futuresIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin Intra-day: 1 time - Carry forward: 1x




Currency OptionsIntraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin Intra-day: 1 time - Carry forward: 1x




Addons




3-in-1 AccountYes, with IDFC BankNo




Research & TipsNoYes (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 advisoryNoYes




Other FeaturesDirect Mutual fund investments, Kite APIs Mutual Fund Investments, Research reports




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 20Cheapest broker, flexible brokerage plans, Research reports available (but at extra cost)




ConsNo stock advisory or research reportsCall and trade Rs 100 per call, Higher charges of Rs per transaction on demat




Promotion/OfferFree delivery equity trading and Rs 20 or 0.03% wihchever is lower brokerage charge on all other tradesRight now - No Opening Charges, Annual maintenance charges 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 02/01/2020 and is believed to be accurate, but is not guaranteed. It 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 5Paisa offers low 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, initiatives like educational facility (Varsity), investment in IPO’s from the same dashboard, free direct mutual fund investments, etc create more value for its clients. Moreover, Zerodha has got a bigger range of partner products to help traders and Investors like Streak, Sensibull, Learn app etc.


zerodha partners senseibull smallcase etc


On the other hand, a few notable advantages of 5Paisa over Zerodha is that they offer Research reports and robo-advisory to their clients, which Zerodha don’t. However, this facility by 5Paisa is offered only to its clients with higher plans. In addition, the multiple flexible brokerage plans offered by 5Paisa can also be a little advantageous for volume traders.


5 paisa pricing plans brokerage


In conclusion, both these brokers have some advantages and disadvantages over others.  Zerodha with its evolved trading app and partner platforms vs 5Paisa with its flexible brokerage plans and advisory services. Nonetheless, if you see from the broad perspective, Zerodha offers a little more benefits compared to 5Paisa for independent investors and traders who are not looking for advisory and are happy with a single discount brokerage plan.
 March 2, 2020  Online Brokers 3 comments

How to apply for an IPO with Zerodha Account cover

How 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. However, before we begin, let me tell you my experience of applying to an IPO’s through Zerodha Account.


I’ve been using Zerodha for over four years now and been a happy customer. This discount broker has helped me save a lot of un-necessary brokerage charges if I had used any other full-service broker instead.


Anyways, 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.


Prior to this recently launched facility, the Zerodha customers have to use ASBA (Application Supported by blocked account) on their net banking portal to apply for IPOs. However, this was not a simple one-click process unlike what most of the other traditional big brokers like ICICI direct, HDFC sec, etc offered.


Although I am not a regular investor in IPO’s and only invest if I find the new offer a lot appealing. Nonetheless, having a simple process to invest gives flexibility whenever the opportunity arrives. Nonetheless, investors can apply for IPO’s directly within 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, 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, Bhip 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


A Quick List of Upcoming IPO’s in 2020






StockDatePrice rangeMin. qty.






SBI Cards and Payment Services02 Mar 2020 - 05 Mar 2020750 - 75519




Antony Waste Handling Cell04 Mar 2020 - 06 Mar 2020295 - 30050




NSDLTo be announced--




Indian Railway Finance Corporation (IRFC)To be announced--




Barbeque NationTo be announced--




National Commodity & Derivatives Exchange (NCDEX)To be announced--




Life Insurance Corporation (LIC)To be announced--




Computer Age Management Services (CAMS)To be announced--




UTI Asset Management CompanyTo be announced--




Bajaj EnergyTo be announced--




Equitas Small Finance BankTo be announced--




Burger King IndiaTo be announced--




Chemcon Speciality ChemicalsTo be announced--






Steps to apply for an IPO with Zerodha Account


1. Login 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 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


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 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 in 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 Zerodha account. Happy Investing!


 March 2, 2020  IPO, Online Brokers 3 comments


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