What are advantages of opening Demat and Trading account with Zerodha?

  • Asked By
  • Updated On:
    29-Dec-2020
  • Replies:
    2

Short Answer

Zerodha was incorporated in the year 2010 by Nitin Kamath, an entrepreneur. The idea behind the firm was to offer high quality services to a huge chunk of population at low cost, and Zerodha is very well known as pioneer of discount model in India.

Detailed Answer

Zerodha is a member of BSE, NSE, MCX, MCX-SX which enables the firm to offer a huge spectrum of services like trading in bonds, stocks, commodity futures, options, mutual funds to name a few, and the company offers this to both individual and retail clients. It is safe to say that the company has more or less not only stayed true to its initial vision, but also has achieved its set goals. As of 2019, Zerodha was the largest retail stock broker in India, has a workforce of more than 1100 employees and a self-valuation of about $1 Billion, which makes each share of the company around Rs. 700.

So, to really sum it up, its popular, its cheap, and it still falls under the purview of India’s market regulator Securities and Transaction Board of India (SEBI) so Zerodha is pretty safe as well. Let’s get to more advantages and disadvantages of using Zerodha.

Zerodha: Advantages

One of the most obvious advantages with Zerodha is the fact that it is cheap. It doesn’t really charge any brokerage on equity delivery, and charges a mere Rs 20 (or 0.03%, whichever is less) which is kind of negligible, It also doesn’t really have a minimum balance requirement, and provides access to a huge array of investment avenues.

Over and above that, the firm offers top-notch and regularly updated trading technology, which also offer a ton of different analytical tools. These tools are designed for both investors and traders alike, offering everything from mobile application to trade stations.

Moreover, Zerodha also offers a responsive and helpful customer service, which is not something entirely new for its industry but still a notable value addition. The staff is accessible online, on call as well in person over the vast network Zerodha boasts of. It also provides a free for all education portal called Zerodha Varsity. To sum up,

  1. Low costs
  1. Free Equity Delivery
  1. Top-notch trading facilities
  1. Reliable customer service.

Zerodha: Disadvantages

Despite its obvious cost disadvantages and educational offerings, Zerodha isn’t for novice traders per se, given the fact that while it offers a very intricate platform for trading, it doesn’t really offer much research. Coming to the account opening process, the process is not completely digital and is absolutely not instant.

The firm also has a one-time account opening charge, which is optional for the types of instruments you want to trade in. To sum up,

  1. No research reports
  1. Lack of relationship managers for institutional clients.

The Bottom Line

Zerodha, despite its limited cons, is still the most favoured platform offering great services in the market right now. In terms of volume and number of clients, and the way it is growing, it is very likely to stay ahead of other discount brokers in India

Tagged With: Zerodha vs Paytm MoneyPaytm Money vs Zerodha
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (1)

The stockbroker provides a seamless trading experience, and the applications offered are easy to use. There are no limitations unless you start to nitpick on the services it has to offer. The user interface is simple while providing a bundle of features that makes your trading experience as smooth as possible.

Related FAQs
How to close my Paytm Money Demat Account online? I want to discontinue it immediately. Where can I get the Account closure form?

You can download the account closure form the given link - Demat Account Closure Form and post it to the address mentioned in the form.

Is Paytm Money better than Zerodha?

You wish to know if Paytm Money is better that Zerodha or it's the other way round. Zerodha being a leading discount broker in India has been there for overe a decade now. While Paytm Money already established in mutual fund investment arena, but a fairly new entrant in stock broking industry. So, let's compare the features and discuss few details on each of them.

Angel Broking vs. Paytm Money - Which is better?

Angel Broking and Paytm Money both these platforms are popular among traders. But if you are a beginner or if you want to switch to a new trading platform and you are considering choosing one of these two, and then you came to the right place.

How to Open a Trading & Demat Account with Paytm Money?

To open a Paytm Demat Account you do not need to make a lot of efforts. You can simply do it online which spares you from standing in a long waiting queue in the branch of the broker house. These days online and offline account opening has become all the more easy.

What is Paytm Money? Investment & Trading Platform

Paytm has added its name to the stockbroking industry all through its new platforms “Paytm Money.” The platform was rolled out to customers earlier in September 2020 and had since then exploded amongst traders/investors to see the offerings set up by the company.

Which is best 5paisa vs Zerodha stock broker?

You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.

As a beginner, Which is better platform Sensibull or Opstra for Option Traders? I want to start option trading but have no idea which is best?

If you're looking for a straightforward and comprehensive take on options trading, then Sensibull should do the job perfectly. However, if you're and expert and want more complex trading tools, then Opstra is the one to choose.

Which is a better platform Sensibull or Opstra for Options trading?

In this current day and age, options trading has become the new cool thing that everyone wants to try. There are many option trading platforms out there that provide various Option trading tools. Sensibull and Opstra Definege are 2 of the most prominent names in the industry.

Both of them provide all the necessary tools like OI (Open Interest) Charts, PCR (Put-call Ratio), IV (Implied Volatility) chart, etc. But the main question lies, which one of them is a better platform for Options trading. Let's find the answer to that question.

ICICI Direct vs. Paytm Money - Which is better?

ICICI Direct and Paytm Money are both stockbrokers with a high customer base and offer different tools and platforms for executing trades. But then ICICI Direct comes on top given its decades of experience as a full stockbroker and its reliability through its trading tools and investing tips. Paytm Money has the recognition but still has to strive harder to make a mark in the stockbrokers' world in terms of services and trading tools.

What are disadvantages of Opening Demat and Trading account with Paytm Money?

With every stock broker, including the likes of Paytm Money, some disadvantages might be a trade-off in choosing them. These include the unavailability of trading with currency and commodities, trading in futures is still not available, the trading platform isn't robust, etc.