We have traditionally invested in mutual funds through banks, consultants, and brokers, and we will continue to do so since it is more convenient.
These old methods’ ease, direction, and safety have now been copied and relocated online via trading platforms like Groww, Paytm Money, Zerodha, and others.
In this article, we’ll compare Groww and Zerodha, two of the most well-known options on the market.
Zerodha is a financial services firm based in Bangalore, India. It was founded in 2010.
It asserts that the pioneer of the discount broking model introduced the notion of discount broking to India, resulting in a significant change in the trading sector.
By 2015, it has established itself as the first company to offer commission-free and brokerage-free equity investing with no yearly maintenance fees.
NSE, BSE, MCX, and MCX-SX are all members of Zerodha. It is a member of the “NSE’s consulting council for business growth.”
Traders that engage in huge trades choose Zerodha because it charges a single price regardless of volume.
Groww was founded in 2016 as a platform for direct mutual fund investing. It will enter the equities market to service its clients later in 2020.
It boasts a 6 million-strong customer base. It is a member of the NSE and BSE and is known for its brokerage-free direct mutual funds with little paperwork.
Groww has launched several groups and channels on its app, all of which are built on a community-based approach. It facilitates their clients’ investing decisions by allowing them to contact their peer groups.
Groww vs Zerodha Features
|Trading Platform||Groww Web, Groww Mobile||Pi, Kite, NEST|
|Placing orders through charts||No||Yes|
|Research and Advice||No||No|
|Detailed Education Initiatives||No||Yes|
|Unique features & offers||Single platform for stocks, MFs, Gold, IPOs, ETFs,||Direct MFs, APIs|
|Margin Against Shares (Equity Cash)||No||Yes|
|Margin Against Shares (Equity F&O)||No||Yes|
Zerodha vs Groww Account Opening Charges
|Demat Account Opening Charges||₹0 (Free)||₹0|
|Trading Acc Opening Charges||₹200 (Equity) + Rs.100 (Commodity)||₹200|
|Trading Account AMC||₹0 (Free)||₹0|
|Demat Account AMC||₹300 per year||₹300 p.a. (wherein ₹25 charged quarterly)|
Zerodha Vs Groww Brokerage Charges and Plans
|Account Type||Flat Brokerage Plan||Standard Plan|
|Equity Delivery||Rs 0 (Free)||0.05 percent or Rs 20 per executed order, whichever is lower|
|Equity Intraday||.03 percent per executed order, whichever is lower||0.05 percent per executed order, whichever is lower|
|Equity Futures||.03 percent per executed order, whichever is lower||No|
|Equity Options||Rs. 20 for each completed order||No|
|Currency Futures||.03 percent or Rs 20 executed order, whichever is lower||No|
|Currency Options||.03 percent or Rs 20 executed order, whichever is lower||No|
|Commodity Futures||.03 percent or Rs 20 per executed order, whichever is lower||No|
|Commodity Options||.03 % or Rs 20 per executed order, whichever is lower||No|
Read our 10 Best Free Demat Account
Groww vs Zerodha Other Charges
|Minimum Brokerage||₹20 or 0.05 percents per executed order||0.03 percent in Intraday and F&O|
|Call & Trade||NA||₹50 per executed order|
|Stamp Duty||Delivery: 0.015 percent, Intraday: 0.03 percent, F&O: 0.002 percent||Delivery: 0.015 percent, Intraday: 0.03 percent F&O: 0.002 percent|
|DP Charges (on sell side)||₹8 + ₹5.50 (CDSL Charges)||₹13.5 per scrip|
|Other Miscellaneous Charges||Physical Contract Notes: ₹20||Physical contact notes: ₹20, Trade SMS Alerts: ₹1|
Groww vs Zerodha Trading Platform
|Android Mobile App||Yes||Yes|
|iPhone Mobile App||Yes||Yes|
Groww vs Zerodha Pros & Cons
Zerodha Pros and Cons
- We get free equity delivery deals from them. For Cash-N-Carry orders, there are no brokerage fees.
- At the BSE, NSE, and MCX, there are over 10 lakh active consumers, and 10% of the daily volume.
- They offer a free trading platform (Kite) that works on both desktop and mobile devices.
- They charge a fixed cost for brokerage services across all segments and exchanges (BSE, NSE, MCX).
- Good Till Triggered (GTT) orders are available, which is a unique feature.
- These are comparable to GTC orders in many ways.
- For Intraday, F&O, and Currency Derivatives, their brokerage is 0.03 percent or Rs 20 per completed order, whichever is lesser.
- Unlike other brokers, there are no hidden fees.
- If you prefer to invest directly in mutual funds, that option is also available.
- When you introduce any clients to Zerodha’s Referral Program, you will receive a 10% brokerage share.
- Unlike full-service brokers, Zerodha does not offer stock tips, research reports, or recommendations.
- If you don’t cancel your intraday trade, you’ll be charged an extra Rs 50 order via auto Square off.
- You will be charged an additional Rs 50 order if you want to use the Call & Trade feature.
- A three-in-one account will not be given to you.
- They don’t have any limitless trading plans.
- You will be charged for the AMC Demat account.
Groww Pros and Cons
- Groww provides a straightforward price structure that includes low-cost trading fees.
- You can invest in a mutual fund for free with no hidden fees.
- There are no account opening fees with them.
- Groww has no ongoing maintenance fees.
- If you use a direct MF platform, you can get an additional 1.5 percent return.
- Groww offers E-books, Resources, and Blogs that provide stock market essentials and updates to assist investors to make informed decisions.
- You can open a paperless account right away.
- You can also apply for an IPO online if you’re interested in the primary market.
- They have a Brokerage Calculator built into the program.
- They don’t provide many investing possibilities, and there’s no way to trade derivatives (futures and options), commodities, or currencies right now.
- They don’t offer stock suggestions, research reports, or recommendations as Zerodha does.
- Because there are no branches in India, branch support is not provided.
- They cannot trade on margin.
- You are unable to pledge your stock. They don’t offer any margin on shares.
- Orders of advanced types such as BO, CO, AMO, and GTT are not accessible.
- In the Groww app, trailing stop-loss orders are not available.
For stocks, which is better: Zerodha or Groww?
In the Discount Broking area, Zerodha and Groww are both strong contenders, but they have some key differences.
Groww is one of the fastest-growing discount brokers, while Zerodha has the greatest client base and is India’s most trusted broker.
Clients can choose from a variety of features offered by both companies.
For mutual funds, which is better: Zerodha or Groww?
Investors can invest in mutual funds through both Zerodha and Groww.
Groww does not charge an account opening cost or an annual maintenance fee, but Zerodha charges Rs 200 for an account opening and Rs 300 for an annual maintenance fee.
As a result, when it comes to mutual fund investing, Groww is a more affordable and superior solution.
Is Zerodha good for beginners?
With a large client base built over many years, Zerodha is one of India’s top and most popular stock brokers.
Zerodha also offers online education tools, a support portal, and discussion forums, all of which are beneficial to new investors.
However, as a discount broker, Zerodha does not provide research, consulting, or recommendations.
This is a problem for inexperienced investors, who often struggle to make these selections.
Amit Gupta is the creator of FreeDematAccount.in, a website that specializes in Demat accounts and provides assistance to all its users in navigating through complicated decisions. After completing his high school certification, Amit spent half a decade learning about Demat accounts from brokerages. Before forming FreeDematAccount.in, Amit worked for a Demat account brokerage.