Update 24 Jul 2024

Zerodha account opening is now free

When we started Zerodha, we consciously decided to charge an account opening fee for two reasons:

  • There was no Aadhaar or eSign until 2016–17. Account opening was completely offline, which meant there was a cost involved. So we had to charge an account opening fee to cover the cost.
  • We wanted to attract users who were serious because there’s an ongoing cost for every user we add.

But things have changed over the years with fully digital onboarding, etc., and we had to change our stance. A few months ago, we made account openings free for those under 25 to encourage them to start investing early. But now we are making it free for all resident Indians.

Update 23 Jul 2024

Zerodha tax reports

The tax filing deadline is just a week away. To file your taxes, you will need details of your trading or investing activities. You can easily download all the reports you need on Console.

Update 17 Jul 2024

How to trade commodities using equity account balance

Now, you can trade commodities using the same equity account balance without maintaining a separate commodity account. This was a legacy issue that took us a long time to address.

Zerodha Broking is our primary membership, and Zerodha Commodities Pvt Ltd is the commodity member. We have started allowing customers to move to Zerodha Broking even if they are trading commodities.

As part of this process, we are also surrendering the Zerodha Commodities Pvt Ltd license on exchanges where we weren’t active, i.e., the NSE. You can trade NSE commodities as well using the same equity account.

Since we are surrendering the commodity license under Zerodha Commodities Pvt Ltd, you would have seen a notice in the paper.

To learn more, check out our Support Portal here.

Markets Update 13 Jul 2024

The Daily Brief podcast – Markets by Zerodha

The Daily Brief podcast is our latest initiative, a new channel to cover all the latest developments in the markets—both public and private. Think of it as a news channel, but a little slower and better. The goal is to distil and decode the biggest developments in the markets.

We also put out a weekly wrap of the biggest stories we covered over the week for those who didn’t have time to catch up on everything happening in the business and finance world.

In this episode, we cover:

  • Madness in thematic and sectoral mutual funds.
  • RBI’s new guidelines on interest payments that could hurt banks and NBFCs.
  • Uttar Pradesh makes hybrid cars more attractive
  • China stupidly bans short-selling
  • After a decade of underperformance, real estate is booming.

You can listen to the episode on Spotify, Apple Podcast or any other podcast app. You can also watch it on YouTube here 👇

Update 29 Jun 2024

Zerodha’s official accounts on social media platforms

Thanks to the internet, it’s never been easier for scammers to target people. There are numerous types of scams, making any of us potential victims. Therefore, it is important to remain vigilant at all times.

The most common scam today involves fake accounts on X (Twitter), such as WhatsApp, Telegram, Instagram, Facebook, etc., impersonating financial brands.

With the easy availability of blue ticks, these scams have become more dangerous. Scammers create fake social media accounts, posing as brands, and interact with people to solicit fund transfers under the pretense of offering support or financial advice.

Scammers also misuse brand names to send SMS messages and provide stock recommendations, or make calls claiming to offer financial advice. They then ask people to transfer money, promising big returns to unsuspecting individuals.

We have also come across cases where people use clone apps to create fake P&L screenshots. We keep reporting such apps to the cybercrime authorities, but new ones keep popping up. If you come across any such apps in the app stores or anywhere else, please help us by reporting them.

Another common scam involves phishing emails and SMS. Scammers send messages that mimic legitimate organizations, typically asking you to:

  • Share your bank account details to receive rewards or refunds.
  • Complete KYC, claiming there are issues with your account.

While each scam is different, our best defence is to remain vigilant and follow a simple checklist:

  • Double-check any communication you receive.
  • Verify the sender’s identity through official channels before responding.
  • Avoid making decisions in a hurry; always take your time before taking any action.
  • Never share sensitive details like login credentials or OTPs with anyone.
  • Be cautious of unsolicited messages or calls requesting personal information.
  • Report any suspicious communication to the relevant authorities or the brand being impersonated.

If you receive any communication from us, you can verify our email addresses here.

And phone numbers in case you receive a call here.

At Zerodha, we don’t:

  • Provide advisory or portfolio management services.
  • Provide support over WhatsApp and Telegram.
  • Ask you to transfer funds to a bank account to provide support.
  • Call or message asking for account-specific information. We also don’t share any information with any third-party entities.

On social media, we interact through the following channels: On X (Twitter)

WhatsApp: whatsapp.com/channel/0029Va

If you come across any accounts in the name of “Zerodha” on X (Twitter), Facebook, Telegram, Instagram, WhatsApp, etc, please help us by reporting these accounts. Also, share this information with your friends to make them aware.

Update 28 Jun 2024

Rise in options trading and the regulatory risks

As I’ve said before, regulatory risk is the biggest risk for any regulated business.

We are in the middle of a period of excess in options trading. Volumes in index options have gone up from 4.6 lk cr in 2018 to 138 lk cr in 2024, and, more importantly, the share of retail has gone up from 2% to 41%.

We have been a big beneficiary of this jump in volume but have always been aware that it can be significantly reduced in size due to regulations, which can significantly hurt revenues, and that’s also why we have never made any forward projections.

But yeah, times will be tough for the broking industry going forward because almost everyone’s business model is skewed toward earning from options.

Kal Ho Na Ho is a good way to put it. 😬

Update 19 Jun 2024

Zerodha Varsity’s success stories

So I was wondering who this person was who didn’t learn from Varsity, and the answer showed up on Linkedin. 😀

Jokes apart, Karthik Rangappa has done a phenomenal job educating millions of Indians on Varsity.

All the content is free and open without sign-up, and there are no annoying popups or other expectations. We’re also trying a new format, Varsity Live teaching, so people can learn however they want to—on their own or with some handholding.

~Nithin

Just so happy looking at this, the fact that retail investors have created wealth for themselves, and the fact that
Varsity has played a small role in their investing journey 😊

~Karthik

Update 14 Jun 2024

US Markets Shift to T+1 Settlement.

Last week, the US markets finally moved to the T+1 settlement, two years after the Indian markets did (thanks to SEBI) 😀.

Now, the next thing is moving to instant settlement. The tricky bit is that ~75% of trades are intraday speculative trades. So they would neither have the cash nor the stock with them for instant settlement. If you create another segment for only delivery-based trades, the impact cost due to lower liquidity will be quite high. So yeah, only time will tell.

Crypto exchanges work differently. You must first borrow to short-sell, but the position can be kept forever once you’ve done that. In the Indian markets, you can only short-sell equities for intraday.

Update 11 Jun 2024

Zerodha’s growing AUM and investor profits

Equity investors at Zerodha have realized a profit of Rs 50,000 crores over the last 4+ years and are sitting on unrealized profits of Rs 1,00,000 crores on an AUM of Rs 4,50,000 crores.

By the way, most of the AUM was added in the last four years.

Update 10 Jun 2024

Change in tick size of NSE stocks and F&O contracts

Starting today, NSE has reduced the tick size for stocks trading below ₹250 from 0.05 to 0.01. This change will also apply to futures contracts of these stocks starting July 8, 2024.

The exchange will review the tick size each month, using the closing price on the last trading day of the month to determine the tick size that will apply for the following month.

On BSE, the tick size is 0.01 for stocks trading below ₹100. Check out this post to learn more.