Zerodha Demat Account Opening and Charges

Zerodha is a top Indian stockbroker offering low-cost services for investing in stocks, currencies, commodities, and more. Renowned for its exceptional trading services, it's a premier discount broker charging Rs 0 brokerage for equity delivery and direct mutual funds trades.

This article delves into Zerodha's Demat and trading account offerings, highlighting their advantages. Additionally, it provides insights into the charges and account opening process and essential details to facilitate informed decision-making when comparing different brokers online.

Features of Zerodha Demat Account

Zerodha is a leading brokerage firm in India known for its innovative and user-friendly trading platforms. A Zerodha Demat account comes with a host of features that make it a popular choice for both new and experienced investors. From seamless account opening and management to access to comprehensive market research and analysis tools, Zerodha's Demat account is designed to cater to the diverse needs of investors.

Below are some of the key features of the Zerodha Demat Account that make it a popular choice among traders and investors.:

Zero brokerage on equity delivery trades: Zerodha's flat brokerage plan eliminates brokerage fees for equity delivery trades, offering a cost-effective solution for investors. This policy benefits high-volume traders and long-term investors by allowing them to maximize returns without worrying about additional charges. Zerodha's transparent pricing structure makes it a preferred choice for minimizing trading costs.

3-in-1 account facility for seamless transactions: Zerodha, in partnership with IDFC FIRST Bank, offers a 3-in-1 account that combines trading, Demat, and bank accounts for easy money movement. Opening a Zerodha-IDFC FIRST Bank 3-in-1 account streamlines trading and banking, combining Zerodha's trading and demat services with IDFC FIRST Bank's savings account for easy transactions and fund transfers. It offers UPI and net banking for financial management, ensuring low costs and high transparency for an efficient trading and banking experience.

Largest stock broker in India: Zerodha, India's largest stockbroker, stands out with over 4 million clients and the highest daily retail trading volumes in the country. Its capability to execute over 2.5 million trades daily across India showcases its extensive reach and appeal to a diverse customer base. Renowned for its transparent and ethical practices, Zerodha has earned immense trust, solidifying its status as the most reliable and significant stock broker in the Indian market.

Unbeatable pricing: Zerodha revolutionizes the Indian brokerage market with its discount broking model and transparent pricing, offering a flat fee structure without hidden charges. This approach ensures clients understand their costs upfront, making trading affordable and predictable compared to competitors' high commissions and unexpected fees. Our commitment to transparency and low costs empowers clients to invest confidently, maximizing their financial potential.

Free and open market education: Zerodha, for its customers, offers financial literacy with its free, comprehensive market education resources. Through Varsity, it provides detailed insights into trading and investing, while TradingQ&A fosters a vibrant community for knowledge exchange. Coupled with cost-effective trading options, Zerodha empowers individuals to navigate the financial markets confidently and make informed decisions.

Charges Associated with Zerodha Demat's Account

Zerodha offers online account opening at a fee of Rs 200 for the equity trading segment and Rs 300 for both equity and commodity trading segments. For offline account opening, the charges are Rs 400 for trading in Equity, Futures & Options, and Currency.

Annual maintenance charges (AMC): Zerodha's yearly maintenance charges are Rs 300 per year for regular accounts, deducted quarterly at Rs 75 every 90 days. For NRI accounts, the AMC fee is Rs 500 annually. Additionally, all customers incur 18% GST on the Rs 75 AMC fee.

Zerodha Equity Delivery and Intraday charges:

For equity delivery, there's no brokerage fee, making it cost-effective for investors. However, for equity intraday trades, a nominal fee of 0.03% or Rs. 20 per executed order, whichever is lower, is charged. Both types of trades incur a Securities Transaction Tax (STT/CTT) of 0.1% on buy and sell transactions for delivery and 0.025% on the sell side for intraday. Transaction charges are set at 0.00325% for NSE and 0.00375% for BSE transactions, with an 18% GST applied to the sum of brokerage, SEBI charges, and transaction fees. SEBI charges are consistent at ₹10 per crore, while stamp charges vary: 0.015% or ₹1500 per crore for delivery and 0.003% or ₹300 per crore for intraday on the buy side.

Zerodha Equity F&O Charges:

For equity futures, the brokerage fee is either 0.03% or Rs. 20 per executed order, whichever is lower. Equity options, on the other hand, have a flat brokerage of Rs. 20 per completed order. The Securities Transaction Tax (STT/CTT) for futures is 0.03% on the sell side, while for options, it's 0.125% of the intrinsic value on bought and exercised options and 0.0625% on the sell side (on premium). Transaction charges for futures are 0.0019% on NSE and none on BSE, whereas options incur 0.05% (on premium) on NSE and 0.005% (on premium) on BSE. Both futures and options are subject to an 18% GST on the total of brokerage, SEBI charges, and transaction fees, with SEBI charges being ₹10 per crore for both. Stamp charges are 0.002% or ₹200 per crore for futures and 0.003% or ₹300 per crore for options, both applicable on the buy side.

Zerodha Currency Charges:

For currency futures, the brokerage fee is set at 0.03% or ₹20 per executed order, whichever is lower. In contrast, currency options carry a flat rate of ₹20 per executed order. There's no Securities Transaction Tax (STT/CTT) applied to either currency futures or options, making them more cost-effective in this regard. Transaction charges for currency futures are 0.0009% at both NSE and BSE, while currency options have a higher transaction charge of 0.035% on NSE and 0.001% on BSE. Both futures and options are subject to an 18% GST on the sum of brokerage, SEBI charges, and transaction fees. SEBI charges are consistent across both at ₹10 per crore. Stamp charges are notably low at 0.0001% or ₹10 per crore on the buy side for both currency futures and options, further enhancing their appeal for traders looking for cost-effective trading options.

Zerodha Commodity Charges:

For commodity futures, the brokerage fee is competitive at 0.03% or Rs. 20 per executed order, whichever is lower. Commodity options come with a flat brokerage rate of ₹20 per completed order. The Securities Transaction Tax (STT/CTT) is 0.01% on the sell side for non-agricultural commodities. In contrast, for commodity options, it's higher at 0.05% on the sell side. Transaction charges vary within commodity futures: Group A commodities have a charge of 0.0026%, while specific commodities like CASTORSEED, KAPAS, PEPPER, and RBDPMOLEIN have distinct rates ranging from 0.00005% to 0.0026%. Commodity options have a uniform transaction charge of 0.05%.

Both futures and options are subject to an 18% GST on the total brokerage, SEBI charges, and transaction fees. SEBI charges differ for agricultural commodity trades at ₹1 per crore and non-agricultural at ₹10 per crore for futures, with options uniformly charged at ₹10 per crore. Stamp charges are set at 0.002% or ₹200 per crore on the buy side for futures and a slightly higher 0.003% or ₹300 per crore for options, reflecting the cost structure associated with trading in these commodity segments of markets.

Opening a Demat Account with Zerodha

Zerodha, one of the largest stockbrokers in India, offers a seamless and hassle-free process for opening an account, allowing you to start trading in no time.

Zerodha facilitates account opening through its trading platforms and website, permitting both online and offline processes. However, accounts for NRIs, partnerships, limited liability partnerships, HUFs, or corporations must be opened through offline channels.

Let's know about the steps and requirements for opening a Zerodha demat account.

Zerodha Online Account Opening Steps

To instantly open an online account with Zerodha, follow these steps:

1.     Visit the Zerodha website, click Signup, enter your personal and contact details, and then verify your mobile number and email address via OTP.

2.     Prepare documents like an Aadhaar Card, PAN Card, Cancelled Cheque, and signature.

3.     Input your PAN Number and date of Birth, select trading segments, pay Rs 200, and verify your Aadhaar via OTP.

4.     Provide personal details, parents' names, and Bank account details.

5.     Complete the In-person verification via video recording.

6.     Digitally sign the application form.

After submission, Zerodha will verify your details and open your account, sending login credentials via email within 24 hours.

Documents Required for Online Account Opening:

For opening an account online, you'll need to provide scanned copies of certain documents:

• Identity Proof: Your PAN Card.
• Address Proof: You can use one of the following - Driver License, Voter ID, Passport, Aadhar Card, or a Bank statement.
• Bank Proof: A personalized cancelled cheque with your name printed, your bank statement, or a copy of your bank passbook displaying the account number, bank logo, seal, MICR, and IFSC code.
• Signature Proof: Scanned copy of your signature
• Income Proof (only required if you want to trade in the Futures & Options segment): You can provide your latest salary slip, Income Tax Return (ITR), Form 16, or a 6-month bank statement.

Zerodha 3-in-1 Account Opening

Zerodha, in partnership with IDFC FIRST Bank, offers a 3-in-1 account that combines trading, Demat, and bank accounts for easy money movement. When you trade shares, money automatically moves in or out of your bank account, so you don't need to keep money in your trading account. Plus, you earn interest on your bank balance. To get started, first open an online bank account with IDFC FIRST, then set up your trading and Demat accounts with Zerodha and connect them to your IDFC bank account.

Zerodha Offline Account Opening Steps

Suppose your Aadhaar isn't linked to your current phone number. In that case, you'll need to open a Zerodha account using the offline method by signing the paper forms, which involves a fee of Rs 400. Here's how to do it:

1.     Download the Account Opening Form for Equity and Commodity Trading from Zerodha's website.

2.     Print the form.

3.     Fill in your details.

4.     Sign the form.

5.     Attach the necessary documents.

6.     Send the forms to Zerodha's office via courier.

Once Zerodha receives your forms and verifies your documents and details, your account will be set up within two days, provided everything is in order.

Documents Required for Offline Account Opening:

For opening an account offline, you need to provide signed paper copies of the following documents:

• Photographs: One photograph, which you should paste on the KYC form and sign across.
• PAN Card: A self-attested copy.
• Address Proof: A self-attested copy of any one of these - Driving License, Voter ID, Passport, Aadhar Card, or Bank statement.
• Income Proof or bank details: A self-attested copy of any one document like your latest salary slip, ITR (Income Tax Return), Form 16, or a 6-month bank statement, if applicable.
• Cancelled Cheque: A cheque with your name printed on it. If your name isn't published, attach your latest Bank Statement instead.

Opening an NRI Demat Account with Zerodha

Opening an NRI demat account with Zerodha allows you to invest in equity, convertible preference shares, debentures, warrants, or mutual funds through a non-PIS account. Alternatively, for a PIS account, partner with one of Zerodha's partner banks to get the PIS permission letter. Here are the charges for an NRI account:

• Account Opening Charge: ₹500
• Equity Brokerage Charge:
• PIS: 0.5% or ₹200, whichever is lower, per executed order.
• Non-PIS: 0.5% or ₹100, whichever is lower, per executed order.
• F&O Brokerage Charge: ₹100 per executed order.
• Clearing Charges:
• Futures: ₹150 per crore, charged monthly.
• Options: ₹1,500 per crore, charged monthly.
• Account Maintenance Charges (AMC): ₹500 + 18% GST
• GST of 18% is applied on brokerage, SEBI charges, and transaction charges.

What is a Basic Services Demat Account (BSDA) at Zerodha?

A Basic Services Demat Account (BSDA) caters to small investors who do not or cannot regularly invest in financial securities like stocks, bonds, ETFs, and mutual funds. This type of account is automatically designated as a BSDA under two conditions:

1. The investor has only one demat account linked to their PAN across all brokers.

2. The total value of holdings in the account does not exceed ₹2,00,000.

A Basic Services Demat Account (BSDA) at Zarodha attracts an Account Maintenance Charge (AMC), billed quarterly from the opening date and visible on Zerodha's console under the funds statement. The AMC for BSDA varies: it's free for holdings up to ₹50,000, ₹25 per quarter for holdings between ₹50,001 and ₹2,00,000 and ₹75 per quarter for holdings above ₹2,00,000, excluding GST. This structure makes it a cost-effective option for investors with smaller portfolios.

Trading Tools offered by Zerodha

Zerodha offers various tools on Web based and  Mobile App which are suitable for equity, FNO, Mutual Fund, trading 

Zerodha Kite Web-based Trading Platform

Kite, developed by Zerodha, is a leading web-based trading platform known for its speed and reliability. It supports 11 regional languages, integrates with smart investment apps like Streak, and offers one-click fund management. Features include:

• Advanced charting tools with over 100 indicators.
• Real-time data widgets of the latest market trends.
• A comprehensive search function for over 90,000 stocks and contracts.
• A detailed user manual.

Zerodha Kite: A Trading Application

The Zerodha Kite mobile app, designed for users who prefer trading on their smartphones, is available for both Android and iOS devices. This app simplifies trading with features like customizable MarketWatch lists, a one-tap stock search across exchanges, real-time market updates, swift fund transfers, and access to historical trading data, enhancing the trading experience on the go.

Zerodha Coin for Mutual Funds Investment

Coin, developed by Zerodha, is a platform tailored for online mutual fund investments, allowing users to invest directly without any commission fees. Investments are seamlessly transferred to the user's Zerodha Demat account. The platform supports Systematic Investment Plans (SIPs). It enables tracking of Net Asset Value (NAV) of funds, streamlining the investment process.

Zerodha Console the Dashboard for Zerodha

The Zerodha Console serves as the central back-office platform for Zerodha users, providing them with various functionalities, including the ability to request withdrawals, conduct detailed investment analyses, view extensive portfolio details, download margin statements, and monitor account transactions, both credits and debits, for complete financial oversight.

Sentinel

Sentinel by Zerodha is a cloud-based platform that enables users to set price alerts for various financial instruments like stocks, commodities, derivatives, and bonds. It offers the flexibility to create alerts based on specific parameters, merge alerts into baskets for ETFs, stocks, bonds, etc., and even allows F&O traders to develop multi-leg derivatives strategies through these baskets, enhancing trading efficiency and strategy implementation.

Zerodha Varsity

Zerodha Varsity is a comprehensive educational platform tailored for both novice and seasoned traders and investors aiming to deepen their understanding of the stock market. It offers an extensive collection of learning materials, including articles, videos, and interactive modules covering a broad spectrum of trading and investing topics. The platform encourages active learning by allowing users to set daily learning goals, track progress, and assess their knowledge through quizzes. Designed with a user-friendly interface, Zerodha Varsity caters to various learning preferences. It is an ideal resource for anyone looking to enhance their market knowledge and trading skills, thereby supporting their financial objectives.

Conclusion

Zerodha is best for active traders, brokerage-free investments, and direct mutual fund investors due to a combination of reasons. Firstly, Zerodha offers a top-notch trading platform, Kite, which is user-friendly, fast, and customizable, catering to the needs of active traders; it provides brokerage-free equity delivery trading, saving costs for investors who frequently buy and hold stocks. Additionally, Zerodha offers direct mutual fund investments, eliminating the need for a middleman and reducing expenses for investors.

FAQs

What is the procedure to Close a Zerodha Demat Account?

To close your Zerodha account, you have both online and offline options:

Online:

1.     Log in at console.zerodha.com.

2.     Navigate to "Account"> "Segments"> "Close account."

3.     Choose a reason for closure and provide feedback.

4.     Click "Continue," agree to the terms, and select "Proceed to eSign."

5.     Click "Sign now," check the box to authorize NSDL.

6.     Enter your Aadhaar number, request OTP, verify it, and complete the process.

Offline:

1.     Download, print, and sign the account closure form (PDF).

2.     Please mail it to Zerodha at 153/154, 4th Cross, J.P Nagar 4th Phase, Opp. Clarence Public School, Bengaluru - 560078.

How can I get a Statement of my Demat Holdings in Zerodha?

To obtain your Statement of Demat Holdings from Zerodha, follow these steps:

1.     Log in to your Zerodha account and navigate to Console > Reports.

2.     Select the timeframe for which you need the Demat holding statement.

3.     Choose 'Tradebook + Holding' under the 'View' option.

4.     Click on the 'View' button to generate the statement.

5.     Once the statement is ready, click the download button to save it in PDF or Excel format.

How do I change my bank account details in Zerodha?

To update your bank account details in Zerodha, follow these steps:

1.     Log into Console, then click on 'Account'> 'Bank'> 'Modify Bank Account'.

2.     Enter your new bank account details, including the account number and IFSC code.

3.     Agree to the terms and conditions shown on the page.

4.     Click on 'Proceed to eSign'.

5.     Input your Aadhaar number and request an OTP.

6.     Enter the OTP you receive and verify it to complete the update process.

Is it possible to have two Zerodha accounts with the same name?

According to SEBI regulations, an individual is not allowed to open multiple Zerodha accounts with the same name. This is to prevent any potential misuse or fraud.

Can a Non-Resident Indian (NRI) create a Zerodha account?

Yes, a Non-Resident Indian (NRI) can create a Zerodha account.

Is it possible to open only a trading account with Zerodha?

No, it is not possible to open only a trading account with Zerodha, even if the intention is to only trade in commodities. Zerodha requires customers to open both a trading and Demat account.

What is Zerodha's depository participant ID?

Zerodha is a depository participant of CDSL depository, it has a depository participant ID of 12081600.