Trade Stocks for Free

Alchemist

Administrator
Staff member
#1
Yes, it sounds "too good to be true" but zero brokerage is a reality now.

Zerodha is now offering delivery trading without any brokerage.

:party:

More details can be found here:

www.e-investing.in/zerodha.html.

Also check out Zerodha's blog:

Yes, you read it right! All investments at Zerodha will now be absolutely brokerage free starting 1st Dec 2015. No upfront fees, no minimum volume, no special terms and conditions, no clauses, no strings attached.
Zerodha going Zero brokerage | Z-Connect by Zerodha

and if you are going to sign up with Zerodha, please use my "referral id". My user id at Zerodha is RS8504. :D.
 

ramkasi

Active member
#3
Zerodha is now offering delivery trading without any brokerage.


and if you are going to sign up with Zerodha, please use my "referral id". My user id at Zerodha is RS8504. :D.
I made a rough calculation [back of envelope] , how much I paid as charges to make one lakh rupees in market.

for every 1,00,000 made, I paid 16,000 as brokerage [all charges included] :eek:

net calculation: 1.16.000 [gross]-16,000 [charges] = 1,00,000 [net profit]

for every 10,00,000 = :bawling::bawling:

ramK
 
#4
I called up Zerodha to open an account, but they told me that they don't support trading in NCDs and Tax Free bonds. They plan to start shortly.
 

ramkasi

Active member
#5
sachinjee, what it means ' per executed order '?

If I place to ' buy 100 shares of a company at 20 per share'

system may buy at different rates like 10 at 19.8, 10 at 19.9 , 80 at 20

Is this considered as 3 executed orders ?
 

Alchemist

Administrator
Staff member
#6
sachinjee, what it means ' per executed order '?

If I place to ' buy 100 shares of a company at 20 per share'

system may buy at different rates like 10 at 19.8, 10 at 19.9 , 80 at 20

Is this considered as 3 executed orders?
No. One order can result in multiple trades. A partially filled order, if modified, also does not count as a new order.
 

Atiker

Active member
#8
FYI

I have started with Zerodha.
Charges are dirt cheap compared to icici direct.
I don't get into penny and small caps, so no issues with the list of equities they support.
Also I do only cash and carry so no issues with margins.
Till now faced no issues in buying and selling shares.
 

ramkasi

Active member
#10
FYI

I have started with Zerodha.

Till now faced no issues in buying and selling shares.
Atiker jee is our capital SAFE? What if, in a rare case like company defaulting? [If there is anything like this, what will happen to our money in their trading account].

I never withdraw money from my brokers trading account unless there is a panic correction in market.Sometimes big amounts lies idle in the trading account with my broker.

I think the shares we bought are safe with any broker, I am concerned with the money in the trading account.
 

Alchemist

Administrator
Staff member
#11
Alchemistjee , how is your experience with Zerodha, have you started trading with them? Thank you.
I have done a few trades with them in last few weeks. I started with 30000 which has now been reduced to 5000. :D.

Overall, I like Zerodha, but the leverage they offer is less than that offered by other brokers and so I haven't fully shifted to Zerodha.
 
#12
I opened account in zerodha couple of months back....

It is good with nice user interface...absolutely no brokerage on delivery based..and rs 20 per lot for options...

The only drawback I found is that to withdraw money it takes 1/2 days i.e it is not as seamless as say icici direct..

I am also using it to buy equity delivery based (0 brokerage)...and then transferring it to icicidirect account.

Zerodha is good for trading. For long term and safe keeping etc icicidirect/hdfc are good.
 

Alchemist

Administrator
Staff member
#13
Zerodha is good for trading. For long term and safe keeping etc icicidirect/hdfc are good.
The promoters of Zerodha are active traders and that is a negative for me.

Even though it is rare but there have been cases in the past where actively trading brokers have misused client funds and securities.

In 2011, MF Global faced major pressures to its liquidity over several months. Some analysts and financial commentators indicate that MF Global probably experienced a number of trading days in 2011 during which the firm's bets on sovereign debt would have required the use of customer funds to meet capital requirements, thereby maintaining operating funds and possibly overall solvency.
MF Global experienced a meltdown of its financial condition, caused by improper transfers of over $891 million from customer accounts to a MF broker-dealer account to cover losses created by trading losses.
https://en.wikipedia.org/wiki/MF_Global
 

Atiker

Active member
#14
Atiker jee is our capital SAFE? What if, in a rare case like company defaulting? [If there is anything like this, what will happen to our money in their trading account].

I never withdraw money from my brokers trading account unless there is a panic correction in market.Sometimes big amounts lies idle in the trading account with my broker.

I think the shares we bought are safe with any broker, I am concerned with the money in the trading account.
Apologies for late reply.

I don't keep more than 5k cash in Zerodha's account.

Don't trust any trader, my cash is reluctantly kept with icici bank, till I get a better option.

I don't do day trading, using Zerodha to buy shares for short duration say less than 3 months and for getting IPO shares for pump and dump strategy.

Primary reason being zero brokerage for delivery, icici direct takes up a significant percentage of the overall profit of a small uptick.
 

Atiker

Active member
#15
I am also using it to buy equity delivery based (0 brokerage)...and then transferring it to icicidirect account.

Zerodha is good for trading. For long term and safe keeping etc icicidirect/hdfc are good.
Hi, Milind,

How do you transfer shares from Zerodha to icici direct?

Is there an online transfer option?
 

Alchemist

Administrator
Staff member
#16
One advantage of having no delivery brokerage is that OFS arbitrage becomes easier.

Today NBCC's OFS is open for retail investors.

The floor price is 246.50.

After applying the 5% discount, the floor price is 234.20.

Someone bidding at 246.55 will get the shares are 234.25.

If I apply via Kotak and then sell the next day, I will have to bear brokerage of more than 1.6% (total both sides including service tax).

That means an additional expense of at least Rs 3.75 per share.

With Zerodha I can save this Rs 3.75 per share expense.

If I use Zerodha, I will make a profit even if I sell at Es 235.

Of course, I have to get an allotment to make a profit. This is not a 100% arbitrage trade but more of a BTST trade.

There is a risk that the price will fall tomorrow and go below retail allotment price.

The point is that probability of a loss decreases significantly when I have to pay no brokerage.
 
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