Zerodha is India’s leading stockbroker. It is the largest and most popular broker offering online flat fee discount brokerage services to invest in the equity market, currency market, commodity market, primary market (IPO), and direct mutual funds.
Experience with other stockbrokers
Anyways, before getting into the steps in this article, let me tell you how and why I opened my Demat and trading account at Zerodha. When I first started investing, I used ICICI direct as my stockbroker for opening my Demat and trading account. Although I was happy with the facilities and platforms provided by it, I soon realized that ICICI Direct was very expensive.
Many times, profits were killed by the brokerages in ICICI direct. The worst part was paying too much of brokerage even when you were selling the stock at a loss. Then, I asked for feedback from my friends who were using SBI Smart and HDFC securities. They both were also paying high brokerages and suggested not to go with them. Finally, after researching a lot, I opened my second Demat and trading account at ZERODHA.
My Experience with Zerodha
Zerodha charges Rs. 0 brokerage for equity delivery trades and direct mutual funds. For intraday and Future and Options (F&O), it levy charges at a flat rate of Rs 20 or 0.03% (whichever is lower) per trade. Zerodha operates via its trading platform called a kite, accessible via both mobile applications or the web.
This is way cheaper compared to ICICI direct which asked a brokerage of 0.55% on each transaction in equity. If you buy stocks for Rs 50,000 in ICICI direct, then you have to pay a brokerage of Rs 275 (on the other hand, Zerodha will ask for a maximum of Rs 20 for any trade). Further, as this amount is charged on both sides of the transaction (buying & selling), hence you have to pay a total of Rs 550 for the complete transactions (which is way too expensive than Zerodha).
In short, if you are planning to enter the stock market world (or even an existing participant), I would recommend opening accounts in this discount broker “Zerodha” so that you can save lots of brokerages.
Zerodha is the biggest stockbroker in India in terms of daily trading volume, growth, and active customer base. It is one of the most technologically advanced and affordable stockbrokers. Zerodha has over +3 million clients and contributes to over 15% of daily retail trading volumes across NSE, BSE, MCX. Even in terms of Active clients trading just on NSE, it has outranked all the other new and traditional brokers.
Started by Nitin Kamath in 2010, as of Aug 2020, Zerodha has been awarded “Startup of the Year” by Economic Times (ET) Startup Awards 2020 and joined the list of distinguished winners that have displayed the potential to go on to become blue-chip corporations. You can read the complete story here. Ironically, Nithin Kamath was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:
- — ET Startup of the Year (2020)
- — National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)
- — Outlook Money “Retail broker of the year 2017”
- — Ernst & Young “Entrepreneur of the year (Startup) 2017”
Benefits of Opening your Demat account with Zerodha
If you are still confused about why you should open a Demat and trading account at Zerodha, then here are top reasons:
- Rs 0 (FREE) for equity delivery trades.
- Rs 20 or 0.03% whichever is lower per executed order intraday trading and for everything else
- Same pricing for across all exchanges
- No upfront fee or turnover commitment
- Z-Connect, interactive blog, and portal for all your queries
- Over +6 million happy customers with a reputable brand name
- 300+ dedicated support teams to ensure the fastest turnaround time for your queries via email or phone
- Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
- Minimalistic, intuitive, responsive web-based trading platform Kite
- Average exchange margin utilization of 55% vs. an industry average of 70%—lower risk.
Documents required to open a Demat and trading account at Zerodha.
Here are the documents required to open a Demat and trading account at Zerodha. I will recommend keeping soft copies of all these documents ready before you apply for opening the accounts as you’ve to upload them during the account opening process:
- PAN CARD (Card not valid without a sign, check reference below).
- Aadhar Card (with linked mobile number)
- Bank Account Proof: Bank passbook front-page photo/ Scan copy or online statement or canceled cheque. [If you are submitting canceled, Your name should be PRINTED ON IT, then only it’s accepted]
- Your Signature on a piece of paper (Photo or Scan copy).
- *Income proof(Optional): Proof of Income is required if you wish to trade in F&O or commodity. Acceptable documents are the recent salary slip or the last six months’ bank statement or ITR.
Account opening charges at Zerodha
Here are the account opening charges at Zerodha
- Demat and Trading Account: Rs 200
- Commodity Account: Rs 100
If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 200+Rs 100 = Rs 300. However, if you want to trade just in equity (stocks), then you need to pay the charge of Rs 200 only.
Step by step guide to open your Demat account with Zerodha Online?
Now that you’ve got a basic idea of how to open your account at Zerodha online and what are the docs/things required, next, let me give you a detailed step-by-step explanation of the process:
Go to the Zerodha account opening page on your browser. Here’s the direct link to start the account opening process:
Once you click on the above link, Zerodha’s account opening page will appear as shown below.
The below video gives you detailed information about account opening.
Enter your mobile number to Sign-up. You’ll receive an OTP to verify the mobile number.
The OTP will be valid to log in for the next 30 mins. Please check your SMS and use the same OTP for your mobile number verification.
Quick Note: In this step, you can sign up with any mobile number that you prefer. However, you also need to have the Aadhar linked mobile number (that will be used in a later step for Aadhar based OTP verification process). Only then you’ll be able to complete the online account opening process.
Enter Email ID.
Next, enter your PAN Card number along with date of birth (D.O.B) details in the field provided. Make sure to enter these properly. Below is the screenshot for your reference.
Now, you have to complete the account opening payment which is a one-time investment.
For equity– you’ve to pay Rs 200 and for commodity, the charge is Rs 100. (Commodity account is optional. If you wish to trade in the commodity, you can make this payment, else you can enable it later.)
You can complete the payment through UPI or Net-banking/Card payment (recommended). Below is the screenshot of this step for your reference.
After completing the payment, the next step is to connect your Aadhar details via Digilocker.
As already mentioned earlier, DigiLocker is a government initiative to share your aadhar details and is highly secured. You need to create a ‘DigiLocker: Towards Paperless Governance’ account and link your Aadhar with it.
Below is the screenshot for your reference. Click on ‘Connect to DigiLocker’ and this will open a new page to sign up to Digilocker using your phone number. If you already have an account, click on the ‘Sign in’ option at the bottom.
While connecting the Digilocker, you will be receiving the OTP to your AADHAR linked mobile number for your information. Once you get the OTP, enter it and hit continue. (Note: If you don’t have the security PIN, then click on the forgot my PIN and reset it.)
Next, click on allow so that you can share a copy of your Aadhar with Zerodha. Finally, your Aadhar details will appear on the screen. Make sure you are entering the details correctly. Note: This step will only come if you haven’t done KYC earlier.
Once your Aadhar verification is complete, next you need to enter your personal details like your father’s name, your mother’s name, your occupation, etc., Below is the Screenshot of this step for your reference. After entering the details, click ‘CONTINUE’
Next, you need to Link your Bank Account. Here, you need to fill up more details starting by filling up Bank Details i.e. your bank account number, bank name, branch’s IFSC Code & MICR code
Make sure you choose all the options (checkboxes) and after reading the information, hit on the continue button. Note: Please cross verify the bank account details with bank passbook or canceled cheque or online statement (soft or hard copies) to avoid re-processing the forms again. Here is the Screenshot of this step for your reference.
Next is IPV Verification over webcam/phone.
IPV or In-person-verification is a process where a depository participant personally verifies documents and other details as per the law by SEBI. It is compulsory for every investor to go through the in-person verification process before opening a Demat and trading account.
First, you’ve to allow the Camera on your browser/phone to start to IPV process (check the below screenshot). You should click on the Allow button. If you click on the Block button, the camera will be disabled, and you may not be able to enable it easily.
Next, they’ll display an OTP on the screen. You need to clearly write down this OTP shown on a piece of paper or your smartphone. Then, hold the piece of paper/ mobile phone with the code in front of your mobile phone/ webcam.
Make sure to take the correct photo while holding the OPT written on Paper. You can take reference to how the person takes the photo in the below screenshot. Finally, click on the capture button.
Note: While taking the photo please don’t move here and there until it gets captured and holds the paper (OTP written paper) in front of the camera.
In this step, you have to upload the relevant documents that we mentioned in the beginning. You have to upload documents like Bank Details, PAN CARD, Signature and, Proof of Income(optional).
Income Proof is optional & only required if you want to trade Futures & Options, currency, and commodities. Then click on continue. It will be redirected to the equity eSign page.
Next, it’s time to in. Click on ‘eSign Equity’ button and proceed to the next step. Once you click on the eSign button, the following screen will appear.
Once you click on the eSign equity, you’ve to verify your email. Here, two options will be available i.e. Google login or email login.
If you’re going with an email login, please enter your email address correctly as you’ll again receive an OTP to verify your email id. This is the same email where you’ll receive all your future correspondence from Zerodha.
Enter the OTP that you’ve received on your registered email and verify.
Once your email verification is complete, a new page with the “SIGN NOW” option will be opened. Here’s a screenshot for your reference. You should check the form.
Next, click on the “Sign Now” button at the bottom of the page. It will redirect you to the NSDL page.
Once, you’re on the NSDL Page, Click on the check box top left stating “I hereby….” Next, enter your AADHAR number at the bottom of the page and click on the Send OTP. Finally, enter the OTP and verify.
Once the last step is complete, and it’s verified, the entire page will become with green background and a message appearing as “You have successfully signed the document”. This is a confirmation that your esign process is complete for the equity segment.
Next, you will be able to see the tick mark on the Equity segment which means that you’ve successfully signed up for this segment. You will also be able to download the eSigned Document on this page.
This step is applicable only for those who want to enable the commodity segment on their account. Here, they have to eSign again for the commodity segment.
Click on the commodity eSign. It will redirect you to the NSDL page. Next, click on the check box on the top left corner and enter the aadhar number. You will receive an OTP to the AADHAR linked mobile number. Once you enter the OTP and it is verified, the documents will be eSigned for the commodity segment too.
Congratulations, you have completed all the steps. A final Congratulations message will appear on your screen, once you’ve completed all the previous steps. Here’s the screenshot for your reference.
Quick Note: Once you complete all the steps, then the Zerodha document verification team will verify your documents. Once it’s verified, then you will get an email from the document verification team stating your documents are successfully verified. After receiving this email, you will get the login credentials within 24 hours.