Zerodha Why and How questions
Posted on 28th Jan 2015
by TopShareBrokers.com team
Zerodha why and how questions
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Why to open an account with Zerodha?
There are various reason to open an account with Zerodha,Key highlights are:
- Zerodha has 60 day challenge, if you stay profitable, you get the complete brokerage refund.
- Zerodha has lower transaction charges.
- Powerful and competitive trading tool and reporting/backoffice tool. Zerodha PI is one of the best trading platforms in India.
- Zerodha has great customer support, knowledge base and online available data bank.
- Lowest trading plans of Rs 20 per trade or .01% whichever is lowest.
- They are pioneer in Discount Broking Industry.
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Read detail Zerodha Review with rating.
How to Open an account with Zerodha? What is the fastest way to open a new account with Zerodha?
Submitting your account opening request with us is one of the fastest way to open an account with Zerodha. After submitting, Zerodha representative/New Client consultant will call you. Once you fill your account opening application with copy of PAN card, Address Proof, Income Proof and initial account opening cheque,you can even begin trading in most securities the same day provided your account is funded electronically.
What is the minimum amount required to open an account with Zerodha?
There is no minimum amount requirement to open an account however, you need a cash in your account before trading.
Can NRI open a trading account with Zerodha?
Yes,NRI can open an account with Zerodha. Process for NRI’s to do trading with Zerodha starts with opening a NRE/NRO bank account who offers PIS (portfolio investment scheme). Once you have a PIS account, you can trade in Indian stock markets in delivery based equity only. All contract notes for the delivery based trade are mailed across to the bank in which the person has a PIS account.
What types of trading can I make with a Zerodha account?
You can Trade on NSE (Equities, F&O and Currency), BSE (Equities & F&O) MCX Stock Exchange (Equities, F&O and Currency Derivatives (CDS)), MCX (Commodity) and NCDEX (Commodity).
Read detail abount Zerodha Trading options
Is there any hidden fees with Zerodha?
Zerodha believes in fair, straightforward pricing and that means you pay flat-rate Rs 20 or 0.01% whichever is minimum on every equity trade, regardless of account balance or how many shares you buy. Other than brokerage charges, customer needs to pay for STT, CTT Charges, Total Transaction Charges, Service Tax, Education Cess, Higher Education Cess and SEBI Charges depend on type of trading on exchange. However, you won't be charged for using platform, inactivity or market data fees. Read complete detail about Zerodha Brokerage and Fees.
Is Zerodha a good choice for Penny-stock trading in India?
For trading in Penny-stocks, It's important to choose a firm that doesn’t have minimum balance requirements to open an account and that charges low brokerage. Zerodha is serving both the criteria for traders.
For example I want to trade in a stock XYZ with current price of Rs.02 or 2 Paisa, I wish to buy 25000 shares which is investment of Rs 500. With Zerodha low brokerage charges (Rs 20 per trade or .01% whichever is minimum) I need to pay Rs .05(5 paisa) for buying brokerage. Assume price of share increase from Rs .02 to Rs .03(3 Paisa), on sell you will get Rs 750 and brokerage for the trade will be Rs 0.075(7.5 Paisa) .
With total turnover of Rs 1250 in share market, Rs 0.13 brokerage charges, Rs 0.04 as transaction charges, Rs 0.02 as Service tax, net profit for trade is Rs 249.82, which is approx. 49.94% profit for your investment of Rs 500.
With Rs 20 per executed order or .01% (intraday equity & futures) or .1% (delivery equity), whichever is lower, Zerodha is the best choice for penny stock trading in Indian brokerage industry.
Do I earn interest on my account?
Is there restrictions on funds deposited to my account With Zerodha? What is the process to Transferring funds in and out with Zerodha? How do I transfer money to/from my bank into Zerodha account?
Transferring funds in and out is a very simple process and Depositted fund with Zerodha goes in either of these 2 accounts - one to trade in Equity, F&O and Currencies and second is for commodities. Online money can be depositted with transfer completion time between 2 to 10 hours depending on your bank. Cheques deposit service is also available but will take between 3 to 5 working days.
Fund withdrawals requests can only be placed online by logging into Zerodha back office site. Fund withdrawals are completely free and are credited only to your primary bank account.You may trade in most of the services after funds are deposited into your account.
If I am already having an account with full service broker, what I need to do to move to Zerodha? How my existing shares are going to transfer with Zerodha? Is it possible to maintain both the accounts?</p>
You can map your existing Demat account with Zerodha or you can transfer your shares to new DP service by simply submitting a DP slip at your new DP service provider.
One can maintain multiple demat account, but to do trading you can link only one DP account with your trading account, in such case you need to transfer you shares from one account to another by submitting DP slip. By transfer your share b/w different DP, you will still get your LTCG benefit.
Is there any charges when shares are credited to demat account?
Depository charges only one time, you are charged only when the shares are debited from your demat account, not when credited. Appprox. 14 Rs is charged for this transaction.
How does Zerodha provide customer support?
Zerodha has a strong customer support over phone, email and maintains a very strong feedback on all the comments posted as well has well-informed z-connect blog, which is one stop solution for all the questions.
What is Zerodha’s speed for trade execution?
Zerodha PI is one of the fastest trading platform and can work on very low internet consumption.
Does Zerodha support Intraday Margin Trading?
Yes, Zerodha support 2 different type of margin strategy for Intraday trading for selected scripts in NSE, BSE and MCX-SX.
Zerodha Margin Intraday Square(MIS) off - For selected scripts one can use 3x to 10x margin, in this you must have to exit on same day else it will be auto off at 3:20 pm.
Zerodha Cover Order (CO) - As this is covered with stop loss, one can use 6x to 10x margin for selected scripts. All open position gets squared off at 3:20 pm.
Zerodha Margin trading increases your buying power.
Can I use my shares in Demat account for margin trading?
Yes – You can avail Margin facility on your shares/holdings with Zerodha. First you need to transfer the shares from your DP to Zerodha beneficiary account at IL&FS. As soon as the shares are transferred, you’ll get margin against those shares after the exchange prescribed haircut. In such case you will not get 100% cash value of your shares values for Margin facility as well as you must have 30% value of actual cash in your account.
Please refer the example below:
For example, if you have stocks worth Rs. 50,000 in your account and if the exchange prescribed haircut is 30%, then the actual cash value of your stocks will be Rs. 35,000. However, if you want to utilize this Rs. 35,000 as cash in your trading account, you need to have at least 30% of that value as actual cash (not stocks). This means that you need to have cash of around Rs. 12,500 to utilize the entire margin benefit of Rs. 35,000 against your stocks.
What are the platforms & Tool Zerodha is providing?
Zerodha is moving to its new trading platform called Zerodha PI. Zerodha HTMS5(Z5), Zerodha Trader (ZT) ,Zerodha Quant , Zerodha Q,Zerodha Mobile, AlgoZ, Zerodha SPAN Calculator, Brokerage Calculator & Z-Connect are its popular tools for making your trading convienent and effective.
Read complete detail about Zerodha platform & Tools.
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