Definitely.
There is no such rule for keeping mandatory minimum balance for trading in Zerodha. So, you can trade with Rs 5,000/- and any amount even less than that.
There are thousands of shares in the market ranging from less than Re 1 to more than Rs 70,000/-.
Zerodha introduced Bracket Order and Cover Order (for Intraday only) with compulsory stoploss allowing high leverage for the first time in Indian Stock Market. It allows you buy shares worth more than Rs 1 lakh with mere Rs 5,000/- at your Equity trading account.
An example may help you understand better.
Suppose, you have Rs 5,000/- at your trading account. You can buy more than 1000 quantity of Ashok Leyland at Rs 116/- per share on Bracket Order with stoploss at Rs 112/-
Suppose, this order is executed.
Now, if the price goes down and you fail to squareoff before it hits the stoploss, you will suffer loss of Rs 4/-per share and you will lose a total amount of Rs 4068.55 including brokerage.
Now, if the price goes up and you want to sell with profit at Rs 2/- per share you will earn net profit of an amount of Rs 1928.39
In Bracket Order, there is a unique facility of Trailing stoploss where if you set Re 1 as trailing stoploss, when the price goes up by Re 1 your stoploss amount will also be automatically increased by Re 1 and this will continue till the price of the share continues to go up. This reduces the possibility of loss.
So, Rs 5,000/- is not a very small amount to invest as a beginner. One can go for Delivery (investment) also because they charge no brokerage for the segment. Actually Zerodha has set remarkably low brokerage for providing various services:
Here, one thing is very important : Selection of proper stock to bank on.
For this you have to go through materials available at Varsity provided by Zerodha, materials on other sources like various websites, journals, news channels and some seasoned traders and investors around you. One should keep in mind that nobody knows all in this world.
So, you may get prepared and open your account with Zerodha and start trading and investing with the largest discount broker in India.
Open an online trading and demat account with Zerodha and enjoy the lowest brokerage
Open an online trading and demat account with Zerodha and enjoy the lowest brokerage