Zerodha: How It Disrupted India’s Brokerage Industry

Published on June 15, 2023 • Stock Broking
By startuppoint Insights Team

Zerodha Platform ScreenshotIn 2010, when Nithin Kamath founded Zerodha, the Indian brokerage industry was dominated by traditional brokers charging hefty fees. Today, Zerodha stands as India’s largest stock broker with over 10 million clients, fundamentally changing how Indians invest in markets.

The Zerodha Revolution

Zerodha’s disruptive model was simple yet revolutionary:

“Instead of charging a percentage of trade value like traditional brokers, Zerodha introduced a flat ₹20 fee per trade regardless of order size. This discount brokerage model made stock trading accessible to millions of retail investors.”

Key Innovations

1. Technology-First Approach: Zerodha built its own trading platform Kite from the ground up, focusing on speed, reliability, and user experience when most brokers were using third-party software.

2. Transparent Pricing: No hidden charges, no percentage-based fees. Just ₹20 per executed order for equity delivery trades and intraday.

3. Educational Focus: Through Varsity, Zerodha created one of India’s most comprehensive free financial education resources.

Zerodha’s Product Ecosystem

Kite

The flagship trading platform known for its clean interface, advanced charting (with TradingView integration), and reliability. Available as web and mobile apps.

Console

A powerful analytics dashboard that gives traders insights into their trading patterns, P&L analysis, and tax calculations.

Coin

India’s first free direct mutual fund platform that bypasses commissions, allowing investors to keep more of their returns.

Impact on the Industry

Zerodha’s success forced the entire industry to adapt:

  • Traditional brokers had to slash fees or launch discount arms
  • New discount brokers emerged following Zerodha’s model
  • Technology became a key differentiator rather than an afterthought
  • Transparency became expected rather than exceptional

Today, Zerodha processes over 15% of all retail trading volumes in India while maintaining profitability – proving that low-cost brokerage can be sustainable at scale.

#StockBroking
#Investing
#Zerodha
#FinTech
#Trading

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