How does Zerodha make money? (2024)

How does Zerodha earns money?

Currently, 70% of Zerodha's revenue comes from broking and trading fees, 15% from treasury (the company's own funds invested mostly in debt and fixed deposits), float (unused customer funds) generates 3-3.5% as they are parked as short-term FDs with clearing corporation and, and the remainder (15%) comprises account ...

How did Zerodha become so successful?

Founded in August 2010, online trading firm Zerodha became the country's largest stockbroker in 2019 with nearly 8.5 lakh active clients. On Wednesday, its founder and CEO Nithin Kamath revealed key reasons behind the success of the firm. He said the company was able to grow because of all the referrals from its users.

How much profit does Zerodha make?

Core revenue, at Rs 43 billion (net of pass-through charges), comprises brokerage/float income/other charges at 63/27/10% FY23E," the report said.

How much does Zerodha earn per day?

According to the NSE, Zerodha's daily average turnover is ₹2000 crores.

Why Zerodha is profitable?

Online brokering firm Zerodha.

Zerodha has not raised a single round of funding to date from external investors. Zerodha mainly earns revenue by collecting brokerage fees and commissions.

Why is Zerodha better than others?

Zerodha trading fees are low.

For equity delivery, it doesn't charge any commission. There is exceptionally transparent information on fees on Zerodha's website, supplemented by an easy-to-use fee calculator.

What happens if Zerodha fails?

SEBI has mandated the stock exchanges (NSE, BSE, MCX, NCDEX etc.) maintain an investor protection fund to compensate the clients of the stockbroker in the event that the unforeseen happens. It's called “Investor Protection Fund”. your demat holding is always safe as the shares are held by NSDL /CDSL.

How trustworthy is Zerodha?

Zerodha is registered with SEBI and member of BSE, NSE, MCX, and NCDEX. It also offers demat account related services through its CDSL membership. Zerodha is in the retail stock broking business for 10+ years (since 2010). They are audited by exchanges and SEBI regularly.

Is Zerodha completely bootstrapped?

Just the way, Zerodha is a bootstrapped company, they also believe in a “No-marketing” policy, which in turn saves them a ton of money. This is one of the reasons that they believe in mouth-to-mouth marketing which is possible only if their products are well-developed and provide a better customer experience.

Why is Zerodha so famous?

Zerodha charges a very minimal amount to the traders for transactions because of which the trading volume is generally high. This fee collection of smaller amounts from a larger number of clients leads to good revenue generation for Zerodha.

Who are top earners in Zerodha?

The highest-paying job at Zerodha is a Derivatives Trader with a salary of ₹34.9 Lakhs per year. The top 10% of employees earn more than ₹10 lakhs per year. The top 1% earn more than a whopping ₹72.48 lakhs per year.

Who are the competitors of Zerodha?

Zerodha (₹20/trade) ProStocks (₹899 Unlimited) Upstox (₹20/trade) Espresso (Sharekhan) (₹20) Paytm Money (₹15/trade) More Discount Brokers... Angel One (₹20/trade) ICICI Direct (₹20/trade) Nuvama (₹10/trade) Sharekhan Anand Rathi More Brokers...

How much does Zerodha charge per month?

Is Zerodha a unicorn?

Among the eminent guest speakers roped in for the bootcamp sessions was Nikhil Kamath, who is held in high regard by India's startup community for co-founding and piloting the growth of Zerodha, an online broking firm that has become one of India's most profitable unicorns since its inception in 2010.

What is the financial performance of Zerodha?

In the end, its total expenditure soared 71.7% to Rs 2,164 crore in FY22 in contrast to Rs 1,260 crore in FY21. Akin to its scale, the company's profits grew 86.6% to Rs 2,094 crore in FY22 against Rs 1,122 crore in FY21. Moreover, Zerodha's total reserves climbed to Rs 3,657 crore at the end of FY22.

Who is better than Zerodha?

Both Upstox and Zerodha are popular online discount brokers. Upstox is better than Zerodha in following ways: Upstox provides access to 3rd party trading software like Dartstock, NEST Trader and Fox Trader for advance traders. Zerodha only offers Kite as a trading platform.

Is Zerodha brokerage high?

What are the brokerage charges for resident individual accounts at Zerodha? No brokerage. 0.03% or ₹20, whichever is lower per executed order.

Who is owner of Zerodha?

Nithin Kamath

Nithin bootstrapped and founded Zerodha in 2010 to overcome the hurdles he faced during his decade long stint as a trader. Today, Zerodha has changed the landscape of the Indian broking industry.

Does Zerodha work in USA?

Yes. Non-Resident Indians can trade in futures and options provided they have mapped a CP (Custodial Participant) to their NRO account. Zerodha has a partnership with Orbis Financials for custodial services.

Can I withdraw 1 crore from Zerodha account?

There is no upper limit to the amount of money that can be withdrawn from the trading account. Withdrawal limit is subject to availability of withdrawable balance in the trading account. To learn more, see What is the withdrawable balance?

What happens to my money if Zerodha closes?

If any such unfortunate event were to occur, you need to apply to the Investor Protection Fund (IPF), set up by SEBI, to provide compensation. You need to file a claim for compensation within three years per SEBI rules to become eligible for such payment.

What is the problem in Zerodha?

Although Zerodha KITE is regarded as one of the top trading platforms of India, it has its own issues. Issues such as incorrect data feed, slow loading of the charts or no chart display at all were reported occasionally.

How much money is safe in Zerodha?

Like DICGC guarantees the safety of your bank deposits, if your bank defaults, the safety of your funds lying with your stockbroker is guaranteed by the Investor Protection Fund (up to Rs. 25 lacs). If your stockbroker defaults, you can file a claim for your compensation anytime within three years.

Is Zerodha safe from hackers?

“There has been some noise about the hacking incidents at Zerodha. Here is some data: Out of the ~65lk customers who traded with us last year, we have ~100 complaints of fraud. ~ 80 where login details were shared willingly & ~20 where email was hacked (all Rediffmail IDs),” Kamath tweeted.

Which is the best trading platform in India?

Is Zerodha a co*ckroach startup?

Another example of a successful co*ckroach startup is Zerodha, a Bangalore-based discount brokerage firm. The company was founded in 2010 and has had a topsy-turvy journey, but it always focused on creating value and trust for the user rather than rapid growth.

Has Zerodha taken any funding?

'Zerodha' is a unicorn company in India. It is a unicorn, but with a twist: the firm is entirely self-funded and highly lucrative. Kamath began trading stocks when he was 17 years old.

Which companies invested by Zerodha?

Is Nithin Kamath a billionaire?

India's Kamath Brothers Thrive On Moves To Disrupt Share Trading. Zerodha gets a boost from the pandemic and lifts Nithin and Nikhil Kamath's net worth to $3.45 billion.

What is the salary of Zerodha CEO?

Nithin Kamath's salary and earnings

According to several reports, Nithin Kamath earns a basic salary of INR 4.16 crore every month, along with an additional INR 2 crores as house rent allowance, INR 1.6 crores as other perquisites, and another INR 41 lakhs as other allowances.

How many people use Zerodha in India?

In fiscal year 2022, the Indian financial services company Zerodha, had over six million active customers. This was a significant increase compared to the previous fiscal year. Zerodha was established in 2010 and offered a host of services including currencies and commodities trading, mutual funds and bonds.

What is the salary of Zerodha trader?

₹2,71,008 - ₹2,71,008

Trader salaries at Zerodha can range from ₹2,58,994-₹2,79,198.

What percentage does Zerodha charge?

How many Zerodha account holders are there?

Market data shows that Zerodha reported a 1% month-on-month decline in its client count to 6.4 million but its market share rose 22 basis points to 19.2%. "Total active user clients at NSE rose 2.7% YoY but fell 2.1% MoM to 33.6m.

What is the rank of Zerodha in India?

Zerodha is the top most stock broker among all the brokers in India since 2019. Zerodha is followed by Upstox, Angel One, ICICIdirect and Groww. No records found. Share brokers are authorized members of the stock exchanges (i.e.

Which technology is used by Zerodha?

Kite Connect API

Build powerful trading platforms and experiences with our super simple HTTP/JSON APIs. If you are a startup, build your investment app and showcase it to our clientbase.

Which is best broker after Zerodha?

Why is Zerodha charging for AMC?

Also called account maintenance charges it is charged for maintenance and to ensure the safety and security of your holdings in the demat account. Zerodha is a discount broker and thus everyone looks for the minimum fees and payment when it comes to AMC charges. So, let's check Zerodha charges for demat AMC.

Does Zerodha deduct income tax?

A Zerodha Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. Zerodha provides a Tax P&L Report to all its traders aggregating the trading transactions done during the financial year.

Does Zerodha charge for withdrawal?

Zerodha Fund Withdrawal Charges

Zerodha does not charge any fees for fund transfers from trading to a bank account through either of its means.

How old is Nikhil Kamath?

Who is the wife of Zerodha founder?

One such difficult yet inspiring journey is of Seema Patil, wife of Zerodha co-founder Nithin Kamath, who was diagnosed with breast cancer in November last year.

Is Nikhil Kamath married?

He is the co-founder of brokerage firm and trading platform Zerodha. Kamath had married Amanda Puravankara in April 2019. The couple separated within a year and reportedly finalised their divorce in 2021.

How did Zerodha become so big?

Founded in August 2010, online trading firm Zerodha became the country's largest stockbroker in 2019 with nearly 8.5 lakh active clients. On Wednesday, its founder and CEO Nithin Kamath revealed key reasons behind the success of the firm. He said the company was able to grow because of all the referrals from its users.

Does Zerodha charge yearly?

Does Zerodha have annual charges? Yes, Zerodha charge Rs 300 per year Demat Account AMC (Annual maintenance charges) fees. This fee is charged quarterly (i.e. Rs 75 every quarter).

Is it safe to keep money in Zerodha?

While opening an account with the broker, a customer is generally concerned about the safety and security of their funds and stocks lying with the broker. However, Zerodha is safe from all the aspects in reference to the above. Zerodha is a SEBI registered stock broker and a member of NSE and BSE.

Is Zerodha self funded?

'Zerodha' is a unicorn company in India. It is a unicorn, but with a twist: the firm is entirely self-funded and highly lucrative.

What are the hidden charges in Zerodha?

There are no hidden charges while trading at Zerodha. To learn all the charges involved while trading and investing, visit zerodha.com/charges#tab-equities. To calculate the charges for a particular trade, visit zerodha.com/brokerage-calculator#tab-equities.

Is Zerodha really brokerage free?

All equity delivery investments (NSE, BSE), are absolutely free — ₹ 0 brokerage.

Who is the highest paid trader in India?

Radhakrishnan Damani

You would be shocked to know it is Mr. Damani who guided Rakesh Jhunjhunwala, the real kind of the Indian stock market. Being the wealthiest trader in India, he has a portfolio worth Rs. 202,200 crores at present.

Can I withdraw 100% from Zerodha?

There is no upper limit to the amount of money that can be withdrawn from the trading account. Withdrawal limit is subject to availability of withdrawable balance in the trading account. To learn more, see What is the withdrawable balance?

Can I withdraw all money from Zerodha?

Only the amount shown as the withdrawable balance can be withdrawn. See What is withdrawable balance on Console? Funds added during the day cannot be withdrawn on the same day. Withdrawals can get rejected or a lower amount can be transferred if the balance reduces after the trade process at the end of the day.

Why is Zerodha so popular?

Zerodha charges a very minimal amount to the traders for transactions because of which the trading volume is generally high. This fee collection of smaller amounts from a larger number of clients leads to good revenue generation for Zerodha.