Zerodha-Vs-Groww

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 Introduction

Zerodha Vs Groww

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 to India, which lead 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 

When it comes to charges, both Zerodha and Groww have different fee structures for their trading app services. Zerodha charges a flat fee per trade, while Groww offers commission-free investing with additional fees for certain services.

  • Demat and Trading Account Opening Charges  

It is Rs.0 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 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.  

Zerodha charges Rs.300 annually for AMC. Groww doesn't charge any AMC charges.

However, with the Zerodha Referral code, you can get 300 reward points. If you prefer a few more people and get a total of 1000 reward points, you can claim a free demat account for another year.

  • Transaction Charges

Whenever investors buy/sell securities, brokers credit/debit 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 vs groww

Zerodha users can access a fantastic trading platform on desktop/web/mobile apps. Zerodha has the industry's best trading app in India for 2021. Technical analysis is equally good on Zerodha and Groww trading platforms. However, Zerodha takes it to the next level by offering advanced analysis tools like Steak and Sensibull for free.

zerodha vs groww

Segments to trade 

Market segments are: 

  • Securities representing ownership rights (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, and 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 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., a trading account and a demat account.

Algo Trading 

With 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 intervention. 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 brokers 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 them. 
  • 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 are 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 direct 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 all active clients for free. No research reports or recommendation support.
It provides various products, including Stock, ETF, Forex, Funds, Bonds, Options, and 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 Vs Groww. Zerodha is 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. Both Zerodha and Groww come with a simple interface. However, while Zerodha had several glitches in 2023, Groww hasn't had any major issues yet.

FAQs

What is Zerodha vs Groww comparison based on mutual funds?

Zerodha and Groww both offer mutual fund investment platforms. Groww provides a direct mutual fund option, while Zerodha offers features like Zerodha Coin for investing in mutual funds. Consider your investment preferences when choosing between them.

Do Zerodha and Groww have account opening charges?

Zerodha and Groww have different policies regarding account opening charges. While Groww doesn't typically charge account opening fees, Zerodha might have an opening charge. Be sure to check their current policies before opening an account.

How do Zerodha Coin and Groww's direct mutual fund feature differ?

Zerodha Coin allows you to invest in direct mutual funds, potentially reducing costs due to no distributor commissions. Groww's direct mutual fund feature also offers a similar benefit. Compare the user experience, fund selection, and associated costs to make an informed decision.

Are Zerodha and Groww considered discount brokers?

Yes, Zerodha is known as a discount broker, offering competitive brokerage charges. Groww also provides services with low costs, making it a preferred option for cost-conscious traders and investors.

How do Zerodha and Groww ensure customer service quality?

Both Zerodha and Groww emphasize customer service. They provide various channels for customer support, including online chat, email, and phone. Assess their response times and user feedback to determine which suits your needs better.

Which platform has a higher market share, Zerodha or Groww?

Zerodha has established a significant market share in the brokerage industry due to its innovative offerings and competitive pricing. While Groww has gained popularity in the mutual fund sector, Zerodha's market share in trading remains notable.

What are the transaction charges associated with Zerodha and Groww?

Both Zerodha and Groww may have transaction charges that apply to trades and investments. It's important to review their fee structures to understand the costs associated with various activities on each platform.

How does HDFC Bank's involvement affect Zerodha and Groww?

HDFC Bank is a prominent banking institution. It's worth noting that HDFC Securities, a subsidiary of HDFC Bank, might offer trading and investment services that are distinct from both Zerodha and Groww. Compare the features and benefits to make an informed choice.

Can I engage in intraday trading using Zerodha and Groww?

Yes, both Zerodha and Groww offer the capability for intraday trading. However, it's important to understand their respective trading platforms, features, and brokerage charges to make the right decision for your intraday trading needs.

Which platform provides better options for currency trading, Zerodha or Groww?

Zerodha and Groww offer currency trading options. You should compare factors such as currency pairs available, trading tools, and exchange connectivity to determine which platform aligns better with your currency trading goals.



One Comment

  1. There is no AMC and account opening charge for groww.

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