Account Opening and AMC (Annual Maintenance Charges):
- Zerodha: Generally charges ₹200 for online account opening and ₹400 for offline accounts. The AMC for the Demat account is ₹300 per year, collected quarterly.
- Groww: Opening a Demat account on Groww is free, and they do not charge any AMC. This is an advantage for those who want to reduce costs.
Brokerage Charges:
Brokerage charges depend on the type of trade you are executing:
Equity Delivery:
- Zerodha: There is no brokerage charge for Equity Delivery, meaning it is free.
- Groww: There is also no brokerage charge for Equity Delivery, meaning it is free.
Equity Intraday:
- Zerodha: ₹20 per executed order or 0.03% of the trade value, whichever is lower.
- Groww: ₹20 per executed order or 0.1% of the trade value, whichever is lower. However, a minimum charge of ₹2 per trade is applicable.
Futures & Options (F&O):
- Zerodha: Flat ₹20 per executed order.
- Groww: Flat ₹20 per executed order.
Other Charges:
Besides brokerage, there are some government and exchange-mandated charges that apply to both brokers, such as:
- STT (Securities Transaction Tax): This tax is applied on buying and selling shares. STT is different for Delivery and Intraday trades.
- Exchange Transaction Charges: These charges are levied for trading on the stock exchange. Charges may vary for NSE and BSE.
- GST (Goods and Services Tax): 18% GST is applied on brokerage, exchange transaction charges, and SEBI charges.
- SEBI Charges: Fees determined by SEBI (Securities and Exchange Board of India).
- Stamp Duty: Stamp duty is levied at the time of buying shares, which can vary depending on the state.
- DP Charges (Depository Participant Charges): These charges are applied when selling shares from a Demat account. Zerodha charges ₹13.50 per sell, and Groww charges ₹15 (+ Depository charges ₹3.5*) per sell.
Summary:
- Groww is slightly ahead in terms of account opening and AMC as they are free.
- There are no brokerage charges for Equity Delivery on both brokers.
- Brokerage charges for Intraday and F&O trading are almost the same (₹20 per order). However, Groww has a minimum charge of ₹2 for Intraday.
- Other charges like STT, Exchange Charges, GST, SEBI Charges, and Stamp Duty are largely similar for both brokers as they are determined by the government and exchanges. There is a slight difference in DP charges.
- Which broker is more beneficial for you depends on your trading volume and type. You can use the brokerage calculators available on both brokers’ websites to find out the total charges for a specific trade.
Zerodha vs Groww: Which is better?
Whether Zerodha or Groww is better for you depends on your needs and preferences. Both are popular discount brokers in India and have their own advantages and disadvantages. Below is a comparative discussion that can help you decide:
Charges: (Already discussed in detail above, so summarizing the key points)
- Groww is better for free account opening and zero AMC.
- Brokerage for delivery is free on both.
- Intraday and F&O brokerage is quite similar, with minor differences in minimum charges for intraday.
- Other statutory charges are mostly the same, with minor differences in DP charges.
Trading Platform:
- Zerodha: Their platform ‘Kite’ is very well-known and feature-rich. It offers advanced charting tools, various order types (like GTT – Good Till Triggered), and API access for algo trading. Kite is a powerful platform for those who trade regularly and want to use various tools. They have a separate platform called Zerodha Coin for mutual funds.
- Groww: Groww’s platform is simple and user-friendly, especially for beginners. It is an integrated platform for investing in stocks and mutual funds. However, it might not have as many advanced trading tools or algo trading facilities as Zerodha.
Products and Services:
- Zerodha: Offers opportunities to trade and invest in various asset classes like Stocks, F&O, Currency, Commodity, Mutual Funds, IPOs, and more. They also have facilities for opening NRI trading accounts.
- Groww: Offers facilities to invest in Stocks, Mutual Funds, IPOs, Digital Gold, Fixed Deposits, and US Stocks. However, Currency and Commodity trading might not be available on Groww.
Customer Service:
- Both brokers provide online support. The quality of customer service can vary from person to person. Some users praise Zerodha’s support, while others find Groww’s support to be good as well.
Who is better for whom?
- Zerodha: Those who actively trade, want to invest in various asset classes, are interested in using advanced trading platforms and tools, and are considering algo trading, Zerodha might be better for them. Various order types and services for NRIs are additional advantages.
- Groww: Those who are new investors, prefer an easy-to-use platform, invest heavily in mutual funds, and want free account opening and AMC, Groww can be a good option for them. Groww is particularly suitable for those who want a simple platform and want to start investing at a low cost.
Conclusion:
Which broker is “better” depends on your specific needs, trading style, and what you expect from the platform. Before choosing the most suitable broker for you, you should visit both platforms’ websites and carefully compare their features and charges. If you wish, you can try using both platforms by investing a small amount and then make a final decision based on your experience.
