Is Zerodha right for me and others like me?

The plan:
Long term and mid term investments mostly.
Some to be traded within a span of a month

Total investment around 50 thousand for one year or two, then one lakh for a few years.....just learning phase.


I have already decided upon Zerodha trading account because of low brokerage.

But I have doubts about their Demat account. Website does not display charges like Rematerialization and Dematerialization charges.

Should I open a Demat also with them, or get a Basic Services Demat Account (BSDA) which will save me some AMC?

Based on that, I recommend that you split your trading/investment activity between a discount broker (Zerodha, RKSV, TSO) and a full-service broker (Sharekhan).

This will give you a better comparison of both sides of the broking system and help mitigate any systemic problems. I'd also choose a regular demat account rather than a BSDA one.

Zerodha recently started its own demat service so it might take a while to know all about it. My biggest concerns are about their trading platform Pi which feels like a work-in-progress right now. It's largely a hit or miss though there are positive cues about Kite, their browser-based trading program.

Thanks natjay.

Yes, Pi is in a "sort-of" beta stage at the moment, but since I won't be spending more than a few days each month making trades, I'm not all that bothered. It's more about frugality for me...

BTW, why do you recommend a regular Demat instead of a BSDA?

Under BSDA, the total value of your investments is capped at Rs 2 lakhs. It also has limitations which you won't find with a regular demat account. So if you're sure that the sum total won't exceed this figure then BSDA is okay. Else a regular demat is more practical with mid to long term investment growth in mind.

No, my investments will not go beyond Rs. 2 lakh for three years...maybe even four.

What are the other limitations?