Zerodha Account Opening Charges: Despite the significant growth in Indian markets, investment penetration remains relatively low, with only about 9 crore unique investors out of a population of 140 crore. The bull market over the past four years has brought capital markets into the mainstream, but there is a pressing need for more Indians to participate in investing.
Zerodha Account Opening Charges Update April 23, 2024
Zerodha, a leading brokerage firm, monitors the percentage of young users entering the markets. Although industry-wide data is challenging to obtain, approximately 15% of Zerodha’s customers are under the age of 25. Over its 13-year journey, Zerodha has implemented several initiatives to make investing accessible for young and new investors:
- User-Friendly Platforms and Tools: Zerodha has developed great platforms and tools tailored for those new to the markets.
- Zero-Cost Investing: As one of the few brokers allowing free investing in stocks, ETFs, mutual funds, and government bonds, Zerodha has made entry into the capital markets more affordable.
- Educational Resources: Through its Varsity platform, Zerodha provides simple and easy-to-understand educational material on various market topics.
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In a significant move to encourage young people to start investing early, Zerodha has removed the ₹200 trading account opening fee for customers under 25 years of age. This decision follows internal debates about whether the account opening fee was a barrier for young investors. Originally, the fee was necessary to cover the costs of KYC, documentation, eSign, and human verification. With Zerodha initially being bootstrapped, the fee helped recover these operational costs.
Starting early in investing is one of the greatest hacks to build wealth. The longer the investment horizon, the more time there is for compounding, leading to greater wealth accumulation. Additionally, making investment mistakes when young and with less money can provide valuable learning experiences. These lessons prepare individuals to build wealth more effectively as they grow in their careers and start earning more.
Zerodha Account Opening Charges Update July 24, 2024
Reflecting on its journey since 2010, Zerodha’s account opening process has evolved significantly. Initially, the process was entirely offline, involving substantial back-and-forth if there were any paperwork issues. This led to considerable costs, justifying the initial account opening fee. The fee also served as a filter to ensure only serious customers opened accounts.
The landscape changed with the introduction of Aadhaar-enabled KYC and e-signatures in 2016-17, allowing account opening to become fully online. Consequently, Zerodha reduced its account opening fee from ₹600 to ₹200. However, as of July 1, 2024, even the ₹200 fee no longer aligns with Zerodha’s mission to help Indians manage their money better. Therefore, Zerodha account opening is now free for all resident Indians.
This strategic move aligns with Zerodha’s commitment to making investing more accessible and encouraging more Indians, especially the youth, to start their investment journey. Spread the word to your friends opening a Zerodha account is now free.