Zerodha Goes Brokerage Free: The Next Big Thing In Brokerage Industry

1st-Dec-15-facebook




We are happy to announce that starting from today at Zerodha all investments will be absolutely brokerage free. No upfront fees, no minimum volume, no special terms and conditions, no clauses, no strings attached. Here is what Nithin Kamath, Founder & CEO @ Zerodha has said about it:

"As a business we have hit a point of realization of how shallow the stock market participation is in India, probably not more than a million active investors (<0.1% population). Not just for brokerage businesses like us, but economic growth in a modern economy hinges on vibrant capital markets. 65% of Indian population is below the age of 35, and something has to be done to attract them to start investing in the markets. For this to happen, I think we need to bring in coolness into the brokerage business."

"In essence, investment culture has to be nurtured, and we intend to do this not just by offering a zero brokerage investing platform, but also an extremely easy user experience. The plan is to on board the next 1 million participants who are currently not investing, show them how stock market can create wealth if invested for long term, help grow the capital markets in India, and also hope that a few of them will turn traders and add revenue to our business." he added


How Will Zerodha Make Money Then?

For intraday and F&O Zerodha will continue to charge brokerage of Flat Rs. 20 per order as before. The interesting thing being even if you buy 100 lots of a share you won't be charged more than Rs. 20 as this is maximum one can be charged per order if he traders with Zerodha. Apart from this Zerodha has launched Kite trading APIs for institutions who will in turn subsidise our retail investors. Given that over 75% of Zerodha's volume come from F&O and another major portion from intraday the potential revenue losses won't exceed 10-15% as per the calculations done by the firm. Zerodha reported a profit of Rs. 70 Crores in the year 2014-15 which was almost double the previous year. With clients cloaking near 1 lakh increasing at 5-7% every month we think Zerodha will be able to sustain this model easily while increasing pressure on traditional brokerage firms.

How it will benefit Investors?

Currently, most large firms charge 0.5-1% as brokerage for a leg of trade. This means, if a client buys shares worth Rs 1 lakh, he pays a brokerage of Rs 500-1,000. For larger clients, the fee could go as low as 0.3%. Smaller broking firms charge brokerage of as low as 0.1%. So far, discount broking firms are concerned they charge a flat fees of Rs 15-20 per trade for cash and equity derivative trades.

Brokerage free investing will be able to attract both retail investors and traders because zero brokerage will keep their break even levels lower. So, you can book gains even if your stock is up by half percent as you don't need to worry about brokerage charges of 0.5-1% then. Apart from this saving 500-1000 rupees or even more depending on your capital size every time you trade is not at all a bad deal. And imagine it happening every time you trade again and again over months and years.

Once the capital increases from 1 Lakh to 2 Lakhs,  the traditional broker's brokerage will increase too! Infact it will double and still eat your profits. The bigger the capital, more will be the brokerage with traditional broker. But with Zerodha you be able to make unlimited number of free delivery trades and intraday/f&o at a flat fee of Rs. 20 irrespective of capital size.

Moral of the story:


Being a great analyst or a great trader will go in vain if you are unable to keep the profits. Choosing the right broker is necessary for being profitable. I personally used to trade with Sharekhan which charged me a very heavy brokerage which then seemed fine. But after shifting to my current broker my brokerage has reduced drastically. Gone are the days when ICICI Direct would charge me Rs 100 per lot for options and upto 1% on delivery. I can trade multiple lots for a flat fee. Same with futures and commodities. My breakeven point has reduced to a few ticks and now moving ahead my delivery trades are absolutely brokerage free. I encourage every trader to think about this. Instead of paying out lakhs as brokerage over time, you can be smart and cut down your brokerage cost and keep that money in your pockets. Open your Zerodha account through us and get Unlimited free equity delivery trades, trading in intraday and F&O at just Rs. 20 per order & a host of freebies exclusively from The Multiplier:

  1. Free Real Time Data Feed For Ami Broker/Meta/Ninja till Feb 2016 Worth Rs. 6000 Absolutely Free
  2. Inclusion in our Exclusive Facebook Community & Premium Whats App Groups to access our upcoming members only trading/investment ideas, research reports and advanced training materials
  3. Our Exclusive Video Training Course With Over 19 lectures and 4 hours of content
  4. Inclusion in our Exclusive Facebook Community & Premium Whats App Groups to access our upcoming members only trading/investment ideas, Intraday levels, OI analysis, research reports and advanced training materials
  5. Access to e-Book learning package worth Rs. 2500 absolutely free.

The above mentioned benefits is exclusively from Multiplier and you are not required to pay anything extra in any from to avail these. While the unlimited free delivery based trades are from Zerodha. No Conditions Applied/ No Hidden Charges to avail any of these facilities

To open your account please email us your Name, Cell Number, Email ID on: mail.abhishek880@gmail.com or fill in the form below and we shall contact you soon.





i) Check out how much you can save if you trade with Zerodha: Pricing

ii) Calculate your total brokerage + taxes and your breakeven for each trade: Brokerage Calculator


TheMultiplier is an official Associate Partner with Zerodha. Our personal experience over the past with Zerodha has been outstanding. Compared to the burdening charges of traditional brokers and the cutting edge, superior technology offered, Zerodha is what every trader in the Indian market has been waiting for.




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10 comments

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Suresh Patel
AUTHOR
December 2, 2015 at 9:34 AM delete

And what will be the annual charges. Also is there any other way to speed up the account opening process other then curriering the documents.

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Anonymous
AUTHOR
December 2, 2015 at 10:16 AM delete

Can we trade life time free delivery trading ?
Is there having any annual maintenance fees ?

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Swati Pamnani
AUTHOR
December 2, 2015 at 12:37 PM delete

Hi Sir.. I have purchased some quantity of Kitex Garments at Rs. 925; Vinati Organics at Rs. 550 and Ashiana Housing at 220.. I am in loss and stuck in these investments.. do u suggest me to average out at the current levels.. or book loss?

PS: I know it is unfair to expect u to do portfolio management.. but its an earnest request as I really dont know what to do.. Do u see revival any time soon in my fortunes from technical standpoint?

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December 2, 2015 at 1:07 PM delete

AMC is Rs. 300 that is charged at the end of the year............................... u hav to courier documents manually fee n form details u can fill onlne do submit ur details on above form n v vl contact to clear ur queries further. Thanks

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December 2, 2015 at 1:07 PM delete

yess u can trade free AMC is Rs. 300 only n that is charged at the end of they year...........

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December 2, 2015 at 1:09 PM delete

fundamentally all these r good stocks only going through short term technical correction u can average these on dips and hold for 2-3 years u vl definitely get cost plus profits. thanks

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Anonymous
AUTHOR
December 2, 2015 at 4:14 PM delete

Hi Abhi...Good to hear that No brokerage will be charges for delivery based purchase...Nice move. Pls confirm brokerage also will remain zero while selling or it will be charged

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jatin
AUTHOR
December 2, 2015 at 6:36 PM delete

what should i do to open the a/c with zerodha

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December 3, 2015 at 3:37 PM delete

Just sumit your details in the link given above and we will contact you to get your account opened.................. happy investing

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December 3, 2015 at 3:38 PM delete

Yess brokerage will be free on both buy and sell side in delivery based trading........................ as the post says there are no strings attached, no hidden condtions, no terms................. thanks

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