All the brokerage houses levy account opening charge while opening the demat and trading account with them. This is towards the expenses they have to spend on man power and materials. Zeodha demat account opening charges are also in line with the industry standard.
In this article I will explain about Account opening and DP charges of Zerodha.
Brief Info about Zerodha:
I’m using their services since 2012. They began their operation in year 2010 as a startup and hardly had customer base of 5000+. Within short span of time they have grown exponentially to acquire customers in excess of 20Lakh+.
I have written a detailed review about Zerodha and you can read it here.
Zerodha is now enjoys one of the top position in best share brokers of India.
How much Brokerage can be saved with Zerodha?
Before we go into details of Zerodha account opening charges and DP fees, let us see how much savings a investor and a trader can do if he opens an account with Zerodha.
Because of the huge savings and the quality of products that Zerodha offers, they are able to overtake the likes of ICICI Direct and Sharekhan to become India’s largest stock broker within 8 years.
If you plan to invest Rs 10 Lakh, with 0.55% brokerage (ICICIDirect charges this much!), you have to shell out Rs5,500 in brokerage itself where as you pay nil in case of Zerodha (Investments are free at Zerodha).
Hence there will be 100% savings in brokerage charges compared to brokers like ICICI Direct.
Now let us see for intraday and Futures traders, how much can be saved.
Let us assume you buy Rs 10lakh and sell 10lakh worth of shares daily. That means in around 20 trading days of month it will be 400 lakhs.
ICICI Direct charges 0.0275% hence the brokerage charges per month is Rs400Lakh * 0.0275% which is Rs 11,000.
So yearly it would be,
Rs11,000 * 12 months = Rs 1,32,000
Now Zerodha charges Rs 20/trade for intraday. In Zerodha, brokerage is not based on trade value. For each order they charge Rs20 irrespective of trade value.
Hence per day it would be Rs 40 (Rs20 for buy and Rs20 for sell) and for each month it would be 20* Rs40 = Rs 800
So per year it is Rs 800 * 12 months = Rs 9,600
Hence, traders can save more than 90% of brokerage and indirectly add to their profit
Here is the account opening charges of Zerodha,
|Zerodha Account opening Charges|
|Trading Account Opening Charges||Rs 200|
|Demat Account Opening Charges||Rs 100|
|Commodity Account Opening Charges||Rs 200|
|(Demat + Trading) Account Opening Charges||Rs 300|
|(Equity + Commodity) Account Opening Charges||Rs 500|
Above are one time charges and one can pay through different mode of payment.
Apart from account opening charges, one also need to pay Annual Maintenance Charges. These charges are paid once per year for maintaining the demat account with Zerodha.
Following table shows the Annual Maintenance Charges (AMC) of Zerodha:
|Zerodha Annual Maintenance Charges|
|Trading Account AMC||Rs 0|
|Demat Account AMC||Rs 300|
|Commodity Account AMC||Rs 0|
Zerodha DP Charges:
There are some other charges associated with the demat account and every stock broker providing demat account in India charges this.
DP charges is one of them. DP charges are charged at whatever point you move shares from your Demat account. It is a income source to the Depositories and its members.
Stock exchanges such as NSE, BSE etc charge transaction charges and it is their source of income. On similar line, depositories charge DP charges.
Below are the details of those charges:
|Zerodha Charges Other Than Brokerage|
|Stamp charges (POA Charges) -Payable upfront||Rs 50|
|Transaction Charges (Market trades)|
|b) Sell||On market: Rs 8 + Rs 5.5 (CDSL Charges); Off market : 0.03%or Rs 25 whichever is higher|
|Demat Charges (Converting physical certificates to electronic format)||Rs 150 per certificate|
|Remat Charges (Converting electronic to physical certificates)||Rs 150 per certificate + CDSL Charges|
|Pledge Request||Rs 20 + Rs 12 per request (CDSL Charges)|
|UnPledge Request||Rs 20 + Rs 12 per request (CDSL Charges)|
|Pledge Invocation||Rs 20|
|Periodic Statement by Email||Free|
|Periodic Statement – Physical||Rs 50 + Courier Charges at actuals|
|Adhoc/ Non-Periodic Statement Requests by Email||Rs 10 per request|
|Adhoc/ Non-Periodic Statement Requests- Physical||Rs 50 per request upto 10 pages, Every additional page at Rs5 + Courier charges at actuals|
|First Delivery Instruction (DIS) book||Free (10) pages|
|Every additional book (10 leaves)||Rs 100|
|Cheque bounce charges||Rs 350|
|Failed Transactions||Rs 50 per ISIN|
|Modification in CML||Rs 25 per request|
|KRA Upload/Download||Rs 50|
One frequently asked question is , how to avoid dep charges in Zerodha?. I would like to mention that it is not possible to not to pay DP charges if you are doing delivery based trades.
Yeah, you can avoid dp charges if you trade in following segments,
- BTST ( Buy Today and Sell Tomorrow)
- Trade in Futures segment
There is no DP charges for intraday trading.
Final Thoughts about Zerodha Account opening and DP charges:
What I find is Zerodha unlike few other stock broker never offered any free stuffs. Some of the brokers provide variety of offers such as Zero demat account opening charges or waive off first year AMC charges.
However, all these comes with hidden clauses like, they may ask you to provide upfront brokerage charges or deposit some initial amount as margin amount etc.
I think Zerodha believed in providing best service to their customers rather than attracting with different offers.
I hope you got information about the charges levied by Zerodha for account (demat and trading) opening and their DP charges. Please let me know if you need any further details.