Zerodha

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Zerodha
Zerodha Logo
Type of site
Private
Founded 2010
Headquarters Bangalore, Karnataka, India
Key people Nithin Kamath CEO
Industry Stock Broker
Products Kite Connect, Coin, Gold bonds
Services Equity Trading,
Derivatives Trading,
Currency Trading,
Commodity Trading
Employees 850+[1]
Subsidiaries Zerodha Commodities Pvt. Ltd.
Website zerodha.com
Users 4,00001+[2]

Zerodha is an Indian financial service company (member of NSE, BSE, MCX, MCX-SX) that offers brokerage-free equity investments,[3] retail and institutional broking, currencies and commodities trading, and mutual funds. Founded in 2010, Zerodha is known for its discount pricing model and innovative use of technology.[4] It is headquartered in Bangalore and has physical presence in all major Indian cities.[5] As of 2017, it is the largest discount broker in India[6] and contributes up to 5%[7] of retail trading volumes on Indian stock exchanges, generating daily trading turnovers crossing $2 billion.[8]

"Discount broking" model[edit]

The company claims to be "India's first discount brokerage"[9] having debuted the "discount broking" model in India that is popular in developed markets.[10] The model exempts customers from any broking charges on trades and transactions, and favours traders who take large futures and options provisions. Instead, a flat fee of a maximum of Rs: 20[11][12] is applied to a trade, irrespective of its size. In December 2015, Zerodha became the first Indian stock broker to offer brokerage and commission-free equity investments.[3]

Corporate affairs[edit]

Zerodha has a client base of 5,00,000+[2] customers, and handles average daily turnovers of ₹10000 – ₹12000 crores in equities and ₹1000 crores in commodities.[13][14] The company offers commodities trading via its wholly owned subsidiary, Zerodha Commodities Pvt. Ltd.[15]It is also an official member of NSE's consultative committee for growing business.

It has won the "Economic Times Startup Awards 2016" in the "Bootstrap Champ" category.[16] Nithin Kamath, the founder and CEO, won the 2013 Confederation of Indian Industry (CII) Emerging Entrepreneur Award for pioneering the discount broking model in India.[17] The company also won the BSE-D&B "Emerging Equity Broking House Award" in 2014 and 2015 respectively.

In early 2017, Zerodha launched "The Rupee tales", a Box set of five illustrated financial literacy books for children. Authored by Karthik Rangappa,[18] the books have received critical acclaim.[19][20]

Products[edit]

Kite web[edit]

Kite is a web based HTML5 trading platform developed by Zerodha, launched in September 2015.[21] It is described as a "minimalistic cross-platform application",[22] in addition to being India's first multilingual trading platform available in regional languages including Kannada, Hindi, Gujarati, Bengali, Malayalam, Tamil and Odia. [23] [24]

Kite Connect[edit]

Launched in December 2015, Kite Connect is Zerodha's Platform as a service API that enables companies to rapidly develop and deploy stock trading platforms[25] without the complexity of building technological, operational, and regulatory stock broking infrastructure.[26][27]

Coin[edit]

Zerodha launched "Coin", its mutual fund platform, in March 2017. It offers commission-free direct mutual funds to end users.[28]

Varsity[edit]

In 2014, Zerodha launched a free-for-all financial literacy program called Zerodha Varsity[29]. There are over 9 modules on Stock Markets ranging from basics of the markets going all the way to explain advanced trading and investing strategies, market taxation, etc.[30]

See also[edit]

References[edit]

  1. ^ "30 Under 30: Nikhil Kamath - Chess to derivatives, all in a day's work". Forbes. Retrieved 2016-09-21. 
  2. ^ a b "Zero Brokerage on Equity Investments and Tech Improvements Got Us 330K Clients in 2 Years: Zerodha". Business World. 2017-07-14. Retrieved 2017-08-12. 
  3. ^ a b "Bengaluru broking firm Zerodha scraps fee for cash trades; rivals miffed by move". The Economic Times. 2015-12-02. Retrieved 2015-12-02. 
  4. ^ Baruah, Ayushman. "Zerodha Trade Winds of Change". BW Businessworld. Retrieved 2017-01-26. 
  5. ^ "Zerodha opens its Ahmedabad support center". The Economic Times. Retrieved 2013-08-01. 
  6. ^ Thomas, Tanya (2017-01-04). "Active accounts: discount brokers gain market share". The Hindu Business Line. Retrieved 2017-08-12. 
  7. ^ "Simplifying equity investing to draw in newbies - Times of India". The Times of India. Retrieved 2017-01-26. 
  8. ^ "When we lowered prices, I got threatening calls from brokers, says Nithin Kamath, Zerodha". The Economic Times. Retrieved 2017-01-26. 
  9. ^ "MCX-SX says Zerodha offering Rs0 per trade on its own". Money Life. 2013-02-14. Retrieved 2013-08-09. 
  10. ^ "Zerodha makes stock broking pay at Rs 20". Business Line. 2013-03-23. Retrieved 2013-07-21. 
  11. ^ "Volume traders like Zerodha take fancy to online discount broking". The Economic Times. 2011-09-05. Retrieved 2013-08-01. 
  12. ^ "Zerodha Pricing". Zerodha. 
  13. ^ "Average daily turnover surges in both F&O and cash segments; HNIs also get into the mix". Economic Times. 2015-03-12. Retrieved 2015-04-09. 
  14. ^ "Broking startup Zerodha to enter non-banking finance space and expand overseas". The Economic Times. 2015-09-03. Retrieved 2015-09-28. 
  15. ^ "Zerodha commodities". 
  16. ^ "ET Startup Awards 2016: How the Bootstrap Champ Zerodha is taking investment to the masses". The Economic Times. 2016-01-12. Retrieved 2016-01-19. 
  17. ^ "Use technology to create affordable products, CII chief tells entrepreneurs". BusinessLine. 2014-03-12. Retrieved 2014-03-13. 
  18. ^ Bureau, Our (2017-03-22). "Zerodha records 166% growth in client base". The Hindu Business Line. Retrieved 2017-03-29. 
  19. ^ Chaini, Sanjitha Rao. "Rupee Tales Start Them Young". BW Businessworld. Retrieved 2017-03-29. 
  20. ^ Siva, Meera (2017-01-15). "Money tales for children". The Hindu Business Line. Retrieved 2017-03-29. 
  21. ^ "Zerodha Kite". Zerodha. 
  22. ^ "Now, dabble in the stock market in the comfort of your local language". The Times of India. 2015-12-04. 
  23. ^ "Now, online trading in Kannada, Malayalam". The Hindu. 2015-11-26. Retrieved 2015-11-30. 
  24. ^ "Click Away Thru Brokering". Indian Express. 2015-11-30. Retrieved 2015-11-30. 
  25. ^ "Smallcase, backed by Zerodha launches thematic investing for concentrated bets". The Economic Times. Retrieved 2017-01-26. 
  26. ^ "Discount broking firm Zerodha throws open its Kite Connect to financial technology startups". The Economic Times. Retrieved 2017-01-26. 
  27. ^ "Zerodha to soon launch Kite Publisher". ChannelWorld India. Retrieved 2017-01-26. 
  28. ^ "Zerodha launches direct mutual fund platform 'coin' - The Economic Times". The Economic Times. Retrieved 2017-03-29. 
  29. ^ Vignesh, J. (2016-04-29). "Zerodha launches free online initiative to skill people in stock trading". The Economic Times. Retrieved 2017-09-24. 
  30. ^ "A Platform for Taking Informed Decision in Your Mother Tongue, Thanks to Zerodha University". The New Indian Express. Retrieved 2017-09-21.