If you heard that Charges in Zerodha are 20 rupee, you are going to be shocked because Zerodha may cost you 40 rupee brokerage charges per executed order i.e. exactly double. Obviously these double charges are not applicable to all investors but you must be carefull and try to know about those adverse situations.
Zerodha demat account account is used for holding and trading in securities like stocks, mutual funds, and bonds. Here, we will discuss the various Zerodha charges which may be considered hidden charges but actually they are not, why so? I’ll explain below, So keep Reading. I will Also describe the charges associated with opening and maintaining a Zerodha Demat account.
Table of Contents
Account Opening Charges
Account Maintenance Charges
Delivery Charges
Option Trading Charges
Intraday Charges
Currency/Commodity Trading Charges
Pledging Charges
Fund Deposition Charges
Delivery Margin Interest Rates
Conclusion
Account Opening Charges in Zerodha
The account opening charges for a Zerodha Demat account are quite reasonable. But Now a days most of brokers provide free of cost account opening but zeodha founder nitin kamath has a different viewpoint here. he said in a interview that this account opening charge of rupee 200-300 actually works as filter and only serious traders/investors onboard to our platform.
The Zerodha demat account opening charges are as below:
- The account opening charges are 200 for Equity and Currency.
- Additional 100 rupee is charged when you open your commodity account.
- ITR/Bank statements are required when you open Futures and options account but no extra fee is charged for this.
Account Maintenance Charges in Zerodha (Zerodha AMC Charges)
Zerodha offers one of the lowest Demat account maintenance charges in the market. The annual Zerodha maintenance charges for a Zerodha Demat account are Rs. 300+ GST per year. which are being charged Rs. 75+GST per quarter, making a total of Rs. 300 + GST per year. The Zerodha annual charges are quite reasonable compared to other brokers who charge anywhere between Rs. 500 to Rs. 1,000 per year.
click here to open demat account in zerodha.
IPO/Mutual Fund Charges in zerodha
Zerodha offers IPO and mutual fund investment facilities to its clients through their “Coin” App. The charges for investing in mutual funds and IPOs are as follows:
- No charges for investing in direct mutual funds.
- No charges for applying for an IPO through UPI.
Option Trading Charges in Zerodha
Zerodha charges a flat fee of Rs. 20 per executed order for option trading in equity, currency and commodity. This means that if you buy or sell options, you will be charged Rs. 20 per executed order on both buy and sell side i.e. total 40 rupees. But this is not the case I mentioned in beginning. That Adverse Scenario is described just a few paragraphs below. Each broker charges brokerage on buy and sell side separately.
Delivery Charges in Zerodha
When you buy or sell shares in the cash market and wish to receive their delivery in your demat account, you need to pay delivery charges. Zerodha charges a flat fee of Rs. 0 for delivery trading. This means that if you buy shares and take delivery of them, zerodha does not charges any brokerage fee. but other regulatory charges may still be applicale which you can read here.
Equity Intraday Charges in Zerodha
When you buy and sell shares on the same day, it is called intraday trading. What are the intraday charges in Zerodha? Zerodha charges a flat fee of 0.03% or Rs. 20 per executed order, whichever is lower, for intraday trading. The Zerodha charges for Intraday are quite low compared to other brokers who charge anywhere between 0.05% to 0.5 % per executed order.
Currency/Commodity Trading Charges in Zerodha
Zerodha offers currency and commodity trading facilities to its clients. The Zerodha fees for currency trading are similar to equity trading, i.e., Flat Rs. 20 per executed order in currency options and Rs. 20 or 0.03%, whichever is lower, per executed order in case of currency Futures.
The Zerodha charges for commodity trading are similar to equity trading, i.e., Flat Rs. 20 per executed order in commodity options and Rs. 20 or 0.03%, whichever is lower, per executed order in case of commodity Futures.
Pledging Charges in Zerodha
When you pledge your securities for margin purposes, you need to pay a pledging charge. Zerodha charges a flat fee of Rs. 30 per pledge request along with GST per pledge request.
Fund Deposition Charges in Zerodha
When you deposit funds into your trading account, you need to pay a fund deposition charge. Zerodha charges no fee for depositing funds through UPI. But deposition through National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) or IMPS attracts a charge of Rs. 9 plus GST which goes to your bank.
Negative/Debit balance Charges in Zerodha
The interest rate charged on the negative demat account balance is 0.05% per day or 18% per annum, which is called delayed payment charges. This amount is very very small and may be in the range of 20-50 rupee if your account keep lying with negative balance for a complete year. So many of us may be able to ignore this penal charge.
Now its important to know why demat account balance goes negative? Your account balance goes negative if you are keeping account balance zero and quarterly deduction of amc happens or if you have not paid the due margin amount. So it is recommended to keep at least 100 rupee in your demat account. Zerodha does not ask to keep this 100 rupee amount but actually Zerodha charges double brokerage if your demat account has a negative/debit balance. This is kind of penalty which is applicable in addition to delayed payment charges.
These are not hidden charges because these are clearly mentioned on zerodha website. you can verify yourself here. I hope you will not let your account balance go negative in future and if it goes negative, just dont place any orders befire adding funds. If you have any questions about this please feel free to ask below.
Though zerodha is a completely transparent and fair broker. you can open demat account here.
Margin Charges in Zerodha
When you buy stocks in the cash market, you need to pay the full price of the stock at the time of purchase. However, when you trade in the derivatives market, you are required to maintain a margin with the broker. The margin is a percentage of the total value of the trade and acts as collateral against any potential losses.
Zerodha also offers a margin funding facility to its clients, which allows them to trade in the derivatives market with a lower margin. but zerodha does not offer margin for delivery.
for other charges related to zerodha you can refer to this article.
Conclusion
Overall, Zerodha is an excellent choice for investors looking to invest for long term in good quality stocks. I myself have demat account in zerodha. so you can definitely consider opening demat account here. I also have demat accounts in Angelone (free equity delivery available) and Upstox (free equity delivery no more available but other feature for traders are superb). you can consider them as well. you can watch this video to understand double brokerage penal charge of zerodha.
https://dematdive.com/what-are-the-zerodha-charges/
