Zerodha has an excellent infrastructure to support your trading activity but you still have to pay fees to use it. The company charges a brokerage of Rs 20 per order. Some brokers have introduced “0” brokerage web/mobile applications. You may have discovered one such platform of late and would like to part ways with the company. Or, you’ve been losing money on a consistent basis and would like to close Zerodha account temporarily or permanently to make sure you don’t lose your entire savings. I’ve discussed the steps you have to follow to close your trading account with the broker in the following paragraphs.
Should you close your trading account permanently or temporarily? Kill Switch is one of the best and most useful features of Zerodha Kite web application. It is nothing but a toggle option that prohibits users from trading in a certain segment.
The riskiest form of trading according to many sources on the internet is derivatives. If you have profited from the position you’ve taken, you should activate the kill switch toggle for derivates.
If you don’t do so, you may find a fake breakout/trading opportunity and place an order which may wipe out the profit you’ve made. Although this feature is good, the segment lock will be removed on the next working day. If you didn’t learn from your past mistakes and commit the same mistake, nothing will stop you from losing your capital.
If you have suffered huge losses in the stock market while using Zerodha, you should stay away from the market for some time or permanently. People often make a mistake called “revenge trading” i.e. initiating new position after suffering a loss to cover the previous loss. Some people lose their entire savings or capital trading derivates.
Once such users lose all their cash, they will borrow cash from someone else and will invest/trade with the borrowed money. If the users haven’t learned anything from the earlier loss-making trade, they may lose the entire sum they’ve borrowed. The best thing you can do to prevent yourself from trading in the stock market is to close your trading account.
Closing Zerodha account is an online procedure that takes hardly 5 minutes. The Console subdomain of the website/app has the menu with the label “segment”. If you click this menu, the application will open a page with these menu items – Personal, Nominee, Bank, Demat, Segments, Documents, Commodity declaration, Family, and Verified P &L.
Click on “segments”, scroll down the complete page until you find the button with the label “Close account”. Simply click this button and carefully follow every instruction that the website displays. In the last step of closing Zerodha account, you will be prompted to e-sign the document the Kite application has generated. This document is based on your input. When you e-sign the document, wait for an official email from the company stating that your trading account has been closed.
