Yes, Zerodha is absolutely safe to invest and trade. Zerodha is the biggest discount broker in India with a large client base and it is SEBI Registered. Zerodha only offers brokerage service and is immune to losses. These features make Zerodha very safe for investment.
In this Blog post, we will evaluate Zerodha on 9 points to check is Zerodha Safe to Open a Demat Account with Zerodha
- 1. Zerodha has a Large Client Base
- 2. Zerodha is SEBI registered
- 3. Zerodha is the Largest Discount broker in India
- 4. Zerodha has the Least client complaints
- 5. Zerodha Depository is CDSL
- 6. Zerodha Account Opening process is Online
- 7. Zerodha Trading Platform is safe to use
- 8. Buying MFs safely using Zerodha Coin platform
- 9. Buying IPO safely using the same platform
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1. Zerodha has a Large Client Base
Before the discount broker was introduced into the Indian share market, there were only full-service stockbrokers who used to charge a lot for brokerage and service charges. But the discount brokers provide their services and charge a reasonable brokerage.
Zerodha was the first discount stock broker in India established in the year 2010. As per the financial year 2019-20, Zerodha has an active client base of 10,25,620 and is positioned at number 1 rank beating all the other stockbroking firms in India.
2. Zerodha is SEBI registered
Zerodha is registered with various regulatory organizations. Its registration details are SEBI (INZ000031633), CDSL (IN-DP-100-2015), MCX: 46025 | NCDEX: 1138.
You can even request the SEBI and other related registered numbers from the broker you are looking to Open Zerodha Demat Account and confirm those details from the respective websites.
SEBI asks exchanges to email you the details of trades you have executed, at the end of the stock market timings.
3. Zerodha is the Largest Discount broker in India
Zerodha is one of the discount brokers which is actually a profitable company. As of June 2020, Zerodha is the largest Discount Broker in India. In the financial year of 2019-20, Zerodha cloaked Profit Before Taxes in the range of ₹600 Crore.
The founder of Zerodha (Nitin Kamath) not seems to show interest in including any outside funding, as they are looking to keep control of the business to themselves.
This is a very good sign for a business where they believe in what they are doing and don’t seem to need any extra money for their business operations.
Zerodha is a profitable firm and has been in service for around 8-10 years with a huge growing client base.
As per long-term investments are concerned, your shares are always stocked in a depository that is not in the control of Zerodha or any stockbroker.
4. Zerodha has the Least client complaints
Zerodha has received only 112 complaints from its overall active client base of 10,25,620. This converts to around 0.01% of the overall client base while the industry average stands at 0.03%.
Zerodha has resolved almost every issue they have received and stands in first place with fewer complaints and faster resolutions compared to any other discount brokers.
This shows that Zerodha is one of the trustable discount brokers while compared to others.
5. Zerodha Depository is CDSL
Depositories are organizations that hold your securities like Shares, Bonds, Mutual Fund Units, etc in electronic form which is known as the dematerialization of shares or the Demat account. Depositories are responsible for keeping the securities safe and keep a record of all your trades.
The Central Depository Services Ltd (CDSL) is the second Indian central securities depository based in Mumbai. Its main purpose is the holding securities either in materialized or dematerialized form and to enable the book-entry transfer of securities.
Zerodha is a depository participant with CDSL (Central Depository Services (India) Ltd). The CDSL depository holds your Demat account with Zerodha. All the securities remain in your Demat account with CDSL. It doesn’t have access to this account until you directly provide it.
Zerodha used to ask for a POA(Power of Attorney) form while opening Zerodha Demat Account for getting an authority to withdraw the stocks present in the Demat account but now you can enter your T-pin and do it by yourself safely.
6. Zerodha Account Opening process is Online
Zerodha provides a hassle-free and easy demat account opening process with low demat account opening charges which is Rs 300 for both Equity and Commodity segments. Zerodha asks to upload documents to look deep into the client details.
While Opening a Zerodha Demat Account online, you need to upload documents, and In-person verification (IPV), and also asks you to connect with the Digi Locker account – all these steps are secured and uses advanced technology
It assures that each and every information and document provided is true. Discount broking is basically a no-frills concept where the brokers provide limited services at a low charge.
You can check the Step by step procedure on how to open a Zerodha Demat Account here.
7. Zerodha Trading Platform is safe to use
Zerodha offers some of the decent and user-friendly trading platforms. The trading platforms offered are Zerodha Kite, Zerodha Pi, Zerodha Kite Mobile App, Zerodha sensibull, Zerodha Coin, Zerodha Console, etc.
These trading platforms work just fine most of the time and sometimes they may have difficulties because of the high traffic to the application. These concerns have been raised majorly around the mobile app offered by the broker.
Using these trading platforms are safe and secure as you need to enter Client id and Password provided by Zerodha and followed by a pin to login Zerodha Trading Platform.
8. Buying MFs safely using Zerodha Coin platform
Zerodha or any stockbroker do not hold your investments, securities, or any other assets. You can just buy or sell shares, mutual funds, bonds, and other securities using the Zerodha discount broking account.
You can log in to the Zerodha Coin investment platform using your client id and password provided by Zerodha.
9. Buying IPO safely using the same platform
Zerodha provides you with the opportunity to invest in an IPO using the Zerodha Kite Trading Platform. Investing in IPO is done via UPI and your bank account.
You need to login to your Zerodha Kite.
All these features make absolutely secure to invest in IPO using Zerodha.
Zerodha is undoubtedly a safest and best discount broker compared to other. It offers best trading platforms for the lowest charge. You can also calculate the brokerage and margin charges using Zerodha Brokerage Calculator and Zerodha Margin Calculator.
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No.1 Stock Broker in India