21 April 2020
ZERODHA – Trading Startup creating its own Universe

    Zerodha, a name which has become the new buzzword in the past few years in the stock market.

    Having more than 2 million client base, contribution by the Zerodha is more than 15% of retail trade volumes. Successful in just 9 years and has been awarded as "Retail Broker of the Year" for year 2018 and 2019.

    About Zerodha?

    Zerodha became the Pioneer of discount broking in India. It's a fintech company that is a member of NSE, BSE, MCX, MCX-SX providing brokerage facilities and a trading platform for retail and institutional broking, trading in currencies and commodities, mutual funds and bonds all at low brokerage.

    As a Start-up, the bootstrapping business model of Zerodha is recommendable.

      Reaching high volumes with low margins is the mantra

    It charges, minimal amount of flat ₹ 20 as brokerage (brokerage and other charges discussed in detail later in the article). Acquiring smaller amounts from a large number, especially attracting beginners, leading to huge collection of profits.

      Negligible advertisement cost :

    Zerodha can be taken as an exception to other start-ups who require to spend on advertisement. Mouth publicity and referral marketing techniques have been used by the company.

    For example : 60 days challenge contest, where referring a friend and if he joins, rewards are given to the investor.

      Minimising the operational Cost :

    Unlike other brokers like Kotak securities and HDFC securities, Zerodha reduced its operational expenses doing business online.

    Three main initial challenges faced by Zerodha?

  •     Technical issues like system outrage and connectivity usually during the time of market volatility and future and options expiry date.

  •     Inefficient customer support and lack of communication.

  •     Lack of information due to non- issue of daily reports, infographics, quarterly reports etc.

  • Actions taken by Zerodha to counter the challenges.

  •     Launched Zerodha Kite 3.0 with significant speed optimization, seamless multi-market views.

  •     Innovation of an active forum, TradingQ&A to discuss stock ideas and trading techniques with investors and traders.

  •     Zerodha launched "Z Connect" an interactive blog and "Varsity", a learning module for anyone and everyone who wishes to learn stock market.

  • Between so many brokerage companies, what makes Zerodha unique ?

    Discount broking model i.e. reduced commission or low brokerage.

    Brokerage structure of Zerodha is :

  •     Equity delivery investments are absolutely free - ₹ 0 brokerage.

  •     Intraday and futures and options trading - Flat Rs. 20 or 0.03% (whichever is lower) per order for equity, commodity and currency trades. Most important point to be considered is "per order". Zerodha doesn't discriminate the brokerage with the volume of trading.

  •     No commission on all mutual funds investments - ₹ 0 brokerage.

  •     Clearing costs are Nil, as Zerodha is having the in-house facility for clearing services.

  •     Zerodha is the first discount broker who provides services for NRIs.

  • Creations of Zerodha

  • zerodha-apps
  •   Kite 3.0 :

    Trading platform having market analysis, Trading charts, customisable as per user's market choices and available in many languages making it user friendly.

      Zerodha Varsity :

    Collection of various notes, modules and practical case studies for anyone who wishes to study stock market. At the end of each module, examinations are conducted and certificates are given to the students. Varsity became India's most popular stock market learning application.

      Console :

    A central dashboard giving a user complete insights and in-depth reports of investments. Financial data and tax reports are all feeded in this application.

      Trading Q&A :

    Active discussion forum for any queries related to trading and stock market.

      Z-connect :

    Blog hosted by Zerodha for all its updates and announcements.

      Coin :

    A dedicated web- based platform for your mutual fund investments delivered directly to your demat account at no commission. Coin allows you to buy and sell funds and also create SIPs, change their mandates etc.

      Sentinel :

    It's an easy to use alert that keeps you updated about prices, bids and offers of commodity, currency and equity across exchanges.

      Pulse :

    Newsletter of Zerodha giving latest updates of all major events in finance and market.

    Earning money in the stock market is easier, but taking money with you home?...With Zerodha you have the edge in trading through its technology, customer support devices and research and analysis tools.

    Zerodha with its everyday innovations and unique strategies go a long way. Idea and execution of Zerodha is revolutionary.

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