Zerodha Vs Groww – Which Broker is Best For You?

Here is the detailed post comparing various features of Zerodha and Groww. It will help you to gain a clear picture of Zerodha Vs Groww to choose one of them as your stockbroker. 

Zerodha Vs Groww

Zerodha Vs Groww Introduction

Zerodha

  • Zerodha is an Indian financial services company established in Bangalore in 2010. It claims that the innovator of the discount broking model brought the concept of discount broking in India that led to a huge transformation in the trading system. 
  • By 2015 it had become the first company offering brokerage-free and commission-free equity investments without any annual maintenance charges. 
  • Zerodha is a member of NSE, BSE, MCX, MCX-SX. 
  • It is an official member of “NSE’s consultative committee for growing business.” 
  • Zerodha charges a flat fee irrespective of volume volumes, preferred by traders involved in large trades. 
Zerodha

Groww 

  • Groww was incorporated in 2016 as a platform to invest in direct mutual funds. Later in 2020, it entered the equity market to serve its clients. It has a clientele base of 6 million traders. 
  • Groww is popular for brokerage-free direct mutual funds without paperwork. 
  • Groww is a member of NSE and BSE.
  • Groww has started several groups and channels on its app inspired by a community-based approach. It helps their clients to consult their peer groups for making investments. 
Groww

Zerodha Vs Groww Charges 

  1. Demat and Trading Account Charges 
  • Demat Account Opening Charges  

As per the SEBI guidelines, demat account opening charges are nil with most stockbrokers. You can open a demat account for no cost with both brokers. 

  • Trading Account Opening Charges 

It is Rs.200 with Groww and Rs.300 with Zerodha.

  • Demat Account Maintenance charges (AMC) 

Account Maintenance Charge (AMC) is a small amount charged by stockbrokers annually to provide the demat and trading services to their clients. Many brokers have waived off AMC for the first year of opening a demat account to stay ahead in the competition. 

Both brokers, Zerodha and Groww, charge Rs.300 annually for AMC. However with Zerodha Referral code, you can get 300 reward points. If you refer few more people and get a total of 1000 reward points, then you can claim a free demat account for another year.

  • Transaction Charges

Whenever investors buy/sell securities, brokers credit/debits them to their demat account. Thus, brokers make the transaction process seamless and charge a nominal transaction fee each time you buy/sell financial securities using your Demat account. 

CompareZerodhaGroww
Equity Delivery And Equity Intraday (applicable for both sides)– NSE Rs 345 per Cr (0.00345%) 
– BSE Rs 300 per Cr (0.003%) 
– NSE Rs 325 per Cr (0.00325%) 
– BSE Rs 300 per Cr (0.003%) 
Currency Futures– NSE Rs 90 per Cr (0.0009%) – BSE Rs 22 per Cr (0.00022%) NA
Equity FuturesNSE Rs 200 per Cr (0.002%)NA
Currency Options– NSE Rs 3500 per Cr (0.035%) (on premium)
– BSE Rs 100 per Cr (0.001%) (on premium)
NA
Equity OptionsNSE Rs 5300 per Cr (0.053%) (on premium)NA

Research Reports 

An investor looking for fully customized support for research and advice to make investments and trades prefers full-service brokers over discount brokers. Groww provides free market reports to its users daily. These are the reports prepared by industry experts to help their clients to make trades in the stock market. As of now, Zerodha does not provide such reports. 

Trading Platform 

A trading platform is a software that enables traders to manage and execute market positions on stock exchanges through stockbrokers. For smooth online trading, an easy-to-understand trading platform is necessary. Zerodha users can access a fantastic trading platform on desktop/web/mobile app. Zerodha has the industry’s best trading app in India for 2021. Fundamental and technical analysis is quite easy and much better at Zerodha than the Groww trading platform.

Segments to trade 

Market segments are: 

  • Securities representing ownership right (equities, certificates, Exchange Traded Funds, investment fund shares)
  • Debt securities (treasury bills, government bonds, corporate bonds, and mortgage bonds)
  • Futures and options based on stocks, equity indexes, foreign exchange futures, and interest rate
  • Commodities mainly with grain products and derivative commodity instruments

Zerodha allows you to trade in all segments like stocks, futures and options, commodities, currencies. In contrast, groww is restricted to the stocks (equity) segment only.   

Brokerages 

Brokerage ChargesZerodha Groww
Equity DeliveryFree Free
Equity Intraday0.03% or Rs.20, whichever is lower0.05% or Rs 20, whichever is lower
Equity/Currency Futures0.03% or Rs.20, whichever is lowerNot Available
Equity/Currency OptionsFlat Fee Rs.20Not Available
Commodity TradingFlat Fee Rs.20Not Available
Call & Trade Charges Per OrderRs 50 Rs 50 Per

Account Type 

For stock trading, you require a demat account, trading, and a bank savings account. The demat account is required to hold your securities, a trading account to execute trade orders, and the savings account to fund trades and get credits of profit and other benefits in the stock market. The Zerodha partners with IDFC FIRST Bank and provides a 3-in-1 account inclusive of a trading, demat, and bank account to provide a seamless investing experience to its clients. Whereas with Groww, you can open a 2-in-1 account, i.e., trading account and demat account.

Algo Trading 

With the high-end technology, algorithmic trading is the automated pre-programmed instructions based on time, price, and trade volume to make error-free and speedy trades compared to human traders. Traders can execute market positions with precision without human interventions. Zerodha trading services include Algo Trading, whereas Groww doesn’t offer Algo Trading. However, most retail investors do not consider Algo trading.

Equity Intraday Margin 

Margin trading allows you to take positions on more security quantities than you can afford with your available funds. You can pay a certain percentage of the total trade value, and for the remaining percentage, your broker would lend the money. 

As per RBI reforms, from 1st September 2021, the margin percentage provided by any of the best stock broker in India will be decided by the stock exchange. All brokers will be instructed for the same margin exposure. Brokers will not be allowed to offer ‘additional margin’ in any segment.

As of now, Zerodha and Groww both facilitate up to 6x margin for equity intraday leverage, and there is no margin for Equity Delivery with any of them.  

Customer Support Services 

Zerodha: 

  • For direct customer assistance, the firm has a staff taking care of millions of its customers through email and phone.
  • Zerodha provides customer support through its interactive portal ‘Z-Connect.’ Its clients can send their queries in the form of blogs, illustrations, and even articles. 
  • At its education portal, “Zerodha 1Varsity”, you can get information on trading and investing options, fundamental and technical analysis, etc. 

Groww:

  • You can call at Groww Customer Care number. However, it may be an exhausting task due to the huge clientele base with them. 
  • You can log in to your profile and access the help and support section.

Documents Required 

Zerodha: 

With Zerodha, you can open a demat account online or offline. 

  • Your PAN card 
  • Your Aadhaar to open a demat account through the online route. No need for aadhar if you are going to take the offline route.
  • Canceled cheque to link your bank savings account. If no checkbook is available, submit bank account statements, IFSC, and MICR code printed on it. 
  • Scanned copies of your signature and photo.
  • Income proof – you can submit any one of these documents:
  • Form-16
  • OR Income Tax Return Acknowledgment
  • OR Latest salary slip 
  • OR 6-month Bank statement
  • OR Networth certificate from a CA.

Groww: 

  • PAN card – No investment is allowed with a valid Permanent Account Number (PAN).
  • Address Proof – Driving License, Aadhaar Card, Voter’s ID Card 
  • Bank Details to transact through online banking and credit the number of profits. 
  • Your passport size scanned picture and signature to be used for the account opening process and make transactions through BSE. 

Groww Advantages and Disadvantages 

AdvantagesDisadvantages 
Free research servicesLimited investment products; No Future & Options and Commodity trading.
No DP charges are applicable on a buy trade.Provide a 2-in-1 account facility instead of 3-in-1.
Zero Clearing ChargesIt does not facilitate Automated Trading.
Commission Free mutual fund investment 
Instant paperless demat account opening and no AMC for demat account. 
Invest online in digital gold 

Zerodha Advantages and Disadvantages  

Advantages Disadvantages
An education portal is available for its all active clients for free. No research reports or recommendation support.
It provides various products, including Stock, ETF, Forex, Fund, Bond, Options, Futures.Deals in the Indian markets only.
There is no brokerage on equity delivery trades. Comparatively, the time-taking account opening process. It can take more than three days to complete the process.
There is a flat discounted brokerage for all segments.You can deposit with a bank card but yes, with an electronic wallet.
No demat account maintenance charges for the first year. 
Advanced trading platform – Console, Coin, Kite.  
Better Customer Services.  

Conclusion 

The discount brokerage model was introduced a few years back to meet the increasing number of investors in the stock market. It is making securities accessible easily at a flat fee. 

Amongst the top-rated discount brokers in India are Zerodha and Groww. Both are pioneers in the stockbroking market. Within a few years, they have a massive growing clientele base. 

For a seamless trading experience, users have reviewed Zerodha better than Groww, as Zerodha provides trading facilities for almost all segments at a lower brokerage and high-tech trading platforms. Traders can choose one of these platforms as per their budget and trading requirements.

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