Zerodha stands a stock brokerage firm in India that offers non-brokered equity investments, institutional brokerage, retail, currency, and commodity trading.
This stock brokerage company was established in Bangalore in the year 2010 and is currently located in 23 cities of India. This firm is currently registered with the Indian National Stock Exchange and the Commodity Exchange MCX-SX. Furthermore, Zerodha has various initiatives in which comes the name Zerodha Small Case. Through this, you can effect thematic investments. Also, you can make mutual funds investments using the Zerodha Coin.
Zerodha has a total of over 2,000,000 clients and claims to manage Rs 10 billion to Rs 12,000 in capital and Rs 1,000 in total daily sales. Zerodha currently has a free online business site called Varsity. This is entirely related to higher education. With this type of setup, Zerodha has easily left a mark of trust in its current and potential clients.
Limitations of Zerodha
Before looking at the numerous benefits of Zerodha, below is a highlight of its few limitations:
• Three-in-one business account option is not available
• There are no 24×7 facilities to support the client
• Zerodha does not provide any research reports, market suggestions, or quarterly results.
Benefits of Zerodha
Zerodha comes with several benefits. These can in no way be compared to its limitations, as they are far more significant. These include:
• Free business lessons
• NRI services are provided.
• Capital delivery is provided at no cost
• Flat rates for trading stocks, futures and operations, currencies, and raw materials.
• Trading platform for new systems
• Own dp service
• Low brokerage
• Good trading platforms
When it comes to discount brokers, Zerodha has a good reputation in the market. But depending on your needs, you can choose any trading company taking into account the reliability aspects of the trading platform, customer service, etc.
Zerodha’s Value Structure
Just as obtainable in a well-known discount broker, Zerodha’s Equity Delivery Investments entails a low rupee brokerage, Intraday stock trading, as well as futures and options trading of Rs 20 or 0.01% per executed order. This is quite favorable and profitable for all.
Furthermore, Zerodha has become the largest brokerage firm in the country. It has outperformed the big brokerage companies in terms of the number of clients. In recent years, it has also grown to become the favorite investor brokerage firm for many people.
From data released by the National Stock Exchange, Zerodha has an active subscriber base of 9.47 lakh. When compared with others, ICICI Securities had 8.45 lakh of subscribers, Sharekhan had 5.49 lakh clients. Angel Broking had 4.16 lakh clients, and Axis Securities had 4.17 lakh subscribers. Motilal Oswal Financial Services, Kotak Securities, IIFL and Karvy Stock Broking are also among the big Indian brokerage companies, and their number of clients ranges from 2.32 to 4.96 lakhs. According to a report published in the popular newspaper “Times of India,” Zerodha’s annual customer growth rate has been 200 to 300 percent in the past five years.
Brokerage firms that operate on the same model as Zerodha are also called discount brokers. And the growth of such companies working on this model has also been very rapid. These include SAS Online, SAMCO, and Upstox. The number of clients of these brokerage houses has also increased two or three times in the last two years. These brokerage firms also charge far less commission to customers than some older brokerage firms, but they only offer online trading services, unlike Zerodha. Also, they do not provide research support or financial advice to their clients as obtainable in the Zerodha Varsity.
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Before trading stocks, it is essential that you select a stockbroker. In the long run, you will run into losses if you do not choose carefully. Some other full-time brokers currently existing in India include SBI Caps, Sherkhan, ICICI Direct, and Angel Broking. These firms have been working for a long time and have a good network in every city in India, but their brokerage tends to be extremely high. They charge according to volume, and your brokerage also depends on how much you are about to trade. The more the negotiation is done, the more the brokerage is carried out.
The brokerage for delivery transactions usually ranges from 1% to 5%. That is, if you are buying 2 lakh shares, you will get a 200 rupees brokerage. This is a very high brokerage, and after giving so much brokerage, it then becomes difficult to make a profit. In contrast, Zerodha stands as an excellent Indian broker who is also popularly known as a great discount broker. They also work at a fixed brokerage. This means that if you exchange 2 lakh, it will give a brokerage of 2 crores.
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In conclusion, Zerodha is one of the major discount brokers in India, in addition to its numerous merits highlighted above. In fact, it brought up the concept of the improved discount brokerage in India and also pioneered a major change that can be seen in the overall dynamics of the brokerage space today.
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