Zerodha Vs Upstox 2021: Which Stock Broker is Best?

This article Zerodha Vs Upstox will draw a comparison between two popular discount brokers in India, Zerodha and Upstox. Check out our detailed comparison here.

Zerodha Vs Upstox – Overview

Zerodha

Zerodha was launched by brothers Nikhil and Nithin Kamath on August 15, 2010. Headquartered in Bangalore, Karnataka, Zerodha was conceived to remove all barriers faced by stock traders concerning transaction charges, support services, and technology. The name “Zerodha” is an amalgamation of the words “Zero” and “Rodha” – the Sanskrit word for obstacles. In other words, “Zerodha” implies “no trading barriers.”

Zerodha

Zerodha’s disruptive pricing structure, in-house innovations & technologies, and wide range of services have made it the top discount broker of India, especially in the retail trading realm. As of date, Zerodha boasts 5+ million traders on its platform, with daily trading volumes running into millions. Overall, Zerodha contributes to approximately 15% of the total retail trading volumes in India.

In addition, Zerodha provides many educational materials and online initiatives to empower both novice and professional traders. Its “pulse news” feature keeps investors abreast of the latest events or policy changes impacting stock markets. The blogs, newsfeeds, and bulletins on its website give regular updates on various Indian stocks.

Moreover, Zerodha has its own venture capital funding arm – Rainmatter. In the past few years, Rainmatter has funded various fintech startups to develop Indian stock markets.

Currently, you can invest in stocks, direct mutual funds, futures, options, IPOs, government securities, gold bonds, and ETFs on the Zerodha platform.

Upstox

Upstox is the second-largest discount broker in India after Zerodha. Founded in 2011 by Raghu Kumar, Kavitha Subramanian, and Srinivas Vishwanath, Upstox became a pioneer in introducing unlimited trades at fixed charges in the retail broking space. In September 2014, the company achieved its first major milestone when trading turnover on its platform crossed 4000 crores – approximately 1% of the trading turnover at NSE.

Upstox
Upstox

Upstox is backed by major venture capitalists like Ratan Tata (1.33% stake), GVK Davis (2.54% stake), Kalaari Capital (15.21% stake), and Tiger Global (31.1% stake). The founders hold the remaining 50% stake in the company. These stakeholding percentages are as of January 2020. Its prime focus is to create, innovate, and upgrade mobile and online trading platforms with state-of-the-art features that provide a high-quality trading experience.

Currently, you can invest in stocks, IPOs, mutual funds, futures, options, and digital gold on the Upstox platform.

Zerodha Vs Upstox – Products

Zerodha

Zerodha offers a robust, sleek, and advanced trading platform compatible with desktops and portable devices. Kite is its high-speed flagship trading platform that provides real-time market data and interactive charts. Built using path breaking technologies, Kite is easy to use with an elegant user interface.

Zerodha Largest Stock Broker

The next offering from Zerodha is Console – a central dashboard that summarizes your current holdings. It also provides detailed research reports, analytics, and investment insights along with excellent visualizations. The third offering is Coin that enables commission-less trading in unlimited direct mutual funds. Commission charges on regular mutual funds are compounded up to 1% each year.

Besides the above, Zerodha’s Kite Connect API platform allows startups to build investment apps or customized trading platforms using HTTP/JSON APIs. Trading platforms built using this API can execute live trade orders in large numbers, stream real-time stock market data, provide access to 4+ million Zerodha customers, and manage user investment portfolios. To date, 9 million trades have been executed on these custom-built trading platforms, and 200+ million HTTP requests are received every day. 

The Varsity mobile is one of the standout offerings of Zerodha. Stock market data and learning content is condensed into bite-sized data pockets to help you learn and trade ‘on the go.’ These educational materials cover each topic in detail with attractive illustrations to make the learning experience fun and effective.

Another unique offering worth a mention is Sentinel. You can set up cloud alerts for stocks, mutual funds, derivatives, etc., for any future date or duration. Thus, you can receive market alerts on your smartphone, e-mail, and Kite web even while traveling. You can also set up advance triggers on the cloud for various stock market instruments.

Last but not least, the Zerodha universe encompasses partner trading platforms like Streak, Sensibull, GoldenPi, and Small case. These platforms support algo, options, bonds, and thematic trading/investing, respectively.

Upstox

The prime offering of Upstox is Pro Web. It is an HTML-based online trading platform for seasoned investors. It provides you with advanced charting tools to study price trends and patterns. Besides, it has 100+ built-in technical indicators to assist you in stock selection and market analysis. You can customize price charts as per your needs. Moreover, cover and bracket orders can be easily placed on this platform. Personalized alerts, a high-quality user experience, and a structured workspace are other valuable characteristics of this platform.

Upstox Dashboard
My Dashboard

The next offering from Upstox is the Pro Mobile trading interface. It allows you to trade ‘on the move’ and completes your transactions even if the internet speed is low which makes it India’s Best Trading App for 2021. You also receive instant notifications or price alerts on your smartphones or tablets for various stock market instruments. Moreover, the Upstox iOS app has both light and dark themes.

In a nutshell, between Zerodha Vs Upstox, Zerodha has a wider product range. Moreover, Upstox is more suitable for professional traders than Zerodha that caters to both amateur and experienced traders.

Zerodha Vs Upstox – Pricing

Zerodha

Zerodha facilitates equity delivery trades and direct mutual fund investments for free. It charges a flat fee of Rs 20 or 0.03% – the lower of the two per intraday trade order across all asset classes, be it equities, currencies, derivatives (F & O), or commodities. 

The STT/CTT charges on equity delivery, intraday, futures, and options are 0.1% (buy & sell-side), 0.025% (sell-side), 0.01% (sell-side), and 0.05% (sell-side) respectively. No STT charges are levied on currency futures and options transactions. The STT charges for commodities futures and options is 0.01% and 0.05% respectively on the sell side.

For equity delivery and intraday trades, transaction charges remain fixed at 0.000345% at both NSE and BSE. For equity futures and options, transaction charges at NSE are 0.002% and 0.053%, respectively. For currency futures and options, the NSE transaction charges are 0.0009% and 0.035%, respectively, whereas, on BSE, the transaction charges are 0.00022% and 0.001% respectively. Transaction charges on commodity futures vary as per the commodity group, while that on commodity options is zero.

The GST remains fixed at 18% on transaction charges plus brokerage across all asset classes. SEBI charges remain constant at Rs 10 / crore across all asset classes except agri-commodity futures, which is Re 1 / crore. 

The Annual Maintenance Charges (AMC) for the Demat account is Rs 300 plus GST per annum. Depository Participant (DP) charges are Rs 13.5 plus GST per scrip. However, if you sign up with our Zerodha Referral Code, then the company will deposit 300 reward points to your account. Further, if you refer 2-3 more people and once you attain 1000 points, you can use it to renew your demat account free for one year.

Upstox

Equity delivery, digital gold, and mutual fund investments are brokerage-free. Brokerage charges for equity intraday trades and equity, currency, and commodity futures transactions remain fixed at Rs 20 or 0.05% – whichever is lesser. For all options transactions, brokerage remains fixed at Rs 20 per completed order.

The STT/CTT and NSE equity & currency futures transaction charges levied by Upstox are the same as Zerodha. However, the BSE transaction charges differ as per the scrip category. The NSE transaction charge for currency options is 0.04%. No transaction charges are levied on commodity options. The transaction charges for commodity futures are 0.0026%. SEBI charges remain constant at Rs 5/ crore across equities, currencies, and commodities trades.

Upstox also levies Rs 300 plus GST as Demat account AMC per annum. Apart from the above, Upstox also levies clearing charges for all derivative transactions. With our Upstox Referral Code for 2021, the company deposits brokerage credits into your account which you can use for trading.

There are other costs too that have to be incurred while trading on any of these platforms. You may refer to their respective websites for more details. However, an overall analysis of the costs indicates that between Zerodha Vs Upstox, Zerodha is cost-effective.

Zerodha Vs Upstox – Summary Table

Sr.No.Evaluation ParameterZerodhaUpstox
1HeadquartersBangaloreMumbai
2ProductsKite, Console, Coin, Kite Connect API, Varsity Mobile, SentinelPro Web, Pro Mobile
3Utilities and toolsBrokerage calculator, margin calculator, holiday calendarBrokerage calculator, span calculator, options strategy builder
4Investment optionsStocks, direct mutual funds, futures, options, IPOs, government securities, gold bonds, and ETFs.Stocks, IPOs, mutual funds, futures, options, and digital gold
5Target audienceBoth novice and experienced tradersProfessional traders
6Customer supportYou can connect with a customer service representative over the phone or raise a ticket for resolving your queries. The service timings for various activities are listed below.New account application: 10 am – 7 pm ISTSupport: 8.30 am – 4.30 pm ISTCall, trade: 9 am – 11.30 pm ISTYou can get live support by raising a ticket or chatting with the backend support team online to resolve your queries. You can connect with the support portal between 9 am – 4 pm iST, Monday – Friday.
7Brokerage chargesThe lower of Rs 20 or 0.03% per executed order. Equity delivery and direct mutual fund investments are brokerage-free.The lower of Rs 20 or 0.05% per executed order for equity intraday and futures. For option transactions, it is fixed at Rs 20. Equity delivery, mutual funds, and digital gold investments are brokerage-free.
8BSE transaction charges for equity delivery and intraday0.000345%Differs as per scrip category
NSE transaction charges for currency options0.0035%0.04%
10Transaction charges for commodity futuresVaries as per commodity group0.0026%
11SEBI chargesRs 10 / croreAgri commodity futures Re 1/croreRs 5 / crore
12Clearing charges for F & O transactionsNot applicableVaries as per asset group – equities, currencies, commodities.
13Ranking in IndiaRank 1Rank 2
14Active Clients Count 3,796,6282,369,796

Which Zerodha or Upstox is Best For You?

Stock markets have been attractive investment avenues since time immemorial due to their high wealth generation potential. You can buy and hold stocks for a long duration or adopt short-term trading strategies like intraday, swing, or margin trading. The former is a passive trading practice, while the latter is active trading practice. Thus, they are riskier than the typical “buy-and-hold” strategy. However, irrespective of the risks involved, millions of traders across the globe flock to the stock markets daily to maximize their gains.

As per SEBI guidelines, it is mandatory to open Demat account and trading accounts to invest in stock markets in India. You can open the requisite accounts online with any broker of your choice. A discount broker may suffice if you have good knowledge of stock market trading practices, fundamental and technical analysis. Else, you may choose a full-suite broker who will provide you research and advisory services in addition to Demat & trading account services.

Both Zerodha and Upstox our advanced online trading platforms with pre-built charting tools and technical indicators that help you gauge price trends and market momentum. Both also offer backend support teams to solve your queries on call or through a ticket. 

However, Zerodha has more robust features and products as compared to Upstox. Moreover, the Zerodha trading platform is conducive for beginner and experienced traders instead of Upstox, which is more suitable for professional traders. Hence, if you are a newbie, you may opt for Zerodha. When it comes to trading costs, Zerodha is a clear winner again. Thus, between Zerodha Vs Upstox – Zerodha is better.

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