When selecting a stockbroker in India, comparing charges is essential as they directly impact your investment returns. Zerodha and Groww are two popular platforms offering competitive fees and modern trading tools. Both appeal to retail investors with low-cost trading, but they differ in specific fee structures.
This article explores a detailed comparison between Zerodha and Groww charges, breaking down their account opening fees, brokerage charges, transaction charges, and more, so you can make an informed choice.
Zerodha and Groww
- Zerodha: India’s first discount broker and a pioneer in the industry, Zerodha was established in 2010. It has transformed the landscape of retail investing by offering low brokerage fees, powerful trading tools like Kite, and resources such as Varsity for educational purposes. Zerodha is particularly popular for intraday trading, options trading, and offering zero brokerage on equity delivery trades.
- Groww: Groww started as a platform for mutual fund investments and later expanded to stockbroking. Groww targets new and young investors, providing a user-friendly app and website interface. It focuses on simplicity and accessibility, with minimal fees and an easy setup process. Its charges are competitive, though there are differences when compared to Zerodha.
Comparison of Account Opening and Maintenance Charges
The initial costs of opening and maintaining a Demat account can vary between Zerodha and Groww.
Category | Zerodha | Groww |
|---|---|---|
Account Opening Charges | ₹200 (trading), ₹100 (Demat) | ₹0 (for trading and Demat) |
Annual Maintenance (AMC) | ₹300 per year | ₹0 (first year); ₹25/month after |
Analysis: Groww has an edge for investors looking for zero account opening fees, while Zerodha charges a nominal fee for opening a trading and Demat account. However, Zerodha’s annual maintenance charges are fixed annually, which may benefit frequent traders, whereas Groww’s monthly AMC applies after the first year.
Brokerage Charges Comparison
Brokerage charges play a significant role in determining overall trading costs, especially for frequent traders. Here’s how Zerodha and Groww’s brokerage charges compare across different types of transactions.
Category | Zerodha | Groww |
|---|---|---|
Equity Delivery | ₹0 | ₹0 |
Equity Intraday | 0.03% or ₹20 per executed order (whichever is lower) | 0.05% or ₹20 per executed order (whichever is lower) |
Equity Futures | 0.03% or ₹20 per executed order | 0.05% or ₹20 per executed order |
Equity Options | ₹20 per executed order | ₹20 per executed order |
Currency Futures | 0.03% or ₹20 per executed order | 0.05% or ₹20 per executed order |
Currency Options | ₹20 per executed order | ₹20 per executed order |
Commodity | 0.03% or ₹20 per executed order | Not available |
Analysis: Both Zerodha and Groww offer zero brokerage for equity delivery trades, which is ideal for long-term investors. For intraday and F&O trading, Zerodha’s rate of 0.03% per order or a flat ₹20 per executed order (whichever is lower) tends to be cheaper than Groww’s 0.05% for large transactions, though both platforms have the same cap for most trades.
Comparison of Transaction Charges
Transaction charges are levied by exchanges and passed on by brokers. Here’s how Zerodha and Groww compare:
Transaction Type | Zerodha | Groww |
|---|---|---|
Equity Delivery | 0.00325% of turnover | 0.00325% of turnover |
Equity Intraday | 0.00325% of turnover | 0.00325% of turnover |
Equity Futures | 0.002% of turnover | 0.002% of turnover |
Equity Options | 0.05% on premium (on sell side) | 0.05% on premium (on sell side) |
Currency Futures | 0.0013% of turnover | 0.0013% of turnover |
Currency Options | 0.05% on premium (on sell side) | 0.05% on premium (on sell side) |
Commodity Futures | 0.0026% of turnover | Not available |
Commodity Options | 0.0026% of turnover | Not available |
Analysis: Transaction charges are largely similar across both platforms, as they depend on exchange rates. Zerodha offers more versatility by supporting commodity trading, which Groww does not.
Comparison of SEBI Charges
SEBI (Securities and Exchange Board of India) imposes regulatory fees, which brokers pass on to clients.
Charge | Zerodha | Groww |
|---|---|---|
SEBI Turnover Fees | ₹10 per crore | ₹10 per crore |
Analysis: SEBI charges are standard across brokers, so there is no difference between Zerodha and Groww for this fee.
Stamp Duty Comparison
Stamp duty is charged as per state regulations but is collected by brokers.
Type of Trade | Zerodha (all states) | Groww (all states) |
|---|---|---|
Equity Delivery | 0.015% of turnover | 0.015% of turnover |
Equity Intraday | 0.003% of turnover | 0.003% of turnover |
Futures | 0.002% of turnover | 0.002% of turnover |
Options | 0.003% on premium | 0.003% on premium |
Analysis: Stamp duty fees are also consistent across both Zerodha and Groww, as they follow state-regulated rates.
Comparison of Additional Charges
There are some additional charges that you may incur while trading, such as call and trade charges, delayed payment charges, and DP (Depository Participant) charges.
Type of Charge | Zerodha | Groww |
|---|---|---|
Call & Trade | ₹50 per order | ₹25 per order |
DP Charges | ₹13.5 per scrip on equity sell | ₹13.5 per scrip on equity sell |
Delayed Payment | 0.05% per day | 0.05% per day |
Analysis: Groww charges a lower fee for call and trade orders compared to Zerodha. However, for DP and delayed payment charges, both platforms have the same rate, meaning these costs are comparable.
Comparing Total Charges for Equity Intraday
To illustrate the total charges for an intraday trade, let’s assume a transaction value of ₹1,00,000 for both Zerodha and Groww.
Charge Component | Zerodha | Groww |
|---|---|---|
Brokerage | 0.03% of ₹1,00,000 = ₹30 | 0.05% of ₹1,00,000 = ₹50 |
Transaction Charge | 0.00325% of ₹1,00,000 = ₹3.25 | 0.00325% of ₹1,00,000 = ₹3.25 |
SEBI Charges | ₹0.10 | ₹0.10 |
Stamp Duty | 0.003% of ₹1,00,000 = ₹3 | 0.003% of ₹1,00,000 = ₹3 |
Total Cost | ₹36.35 | ₹56.35 |
In this example, Zerodha has a lower total cost compared to Groww due to its lower brokerage percentage, making it potentially more cost-effective for frequent intraday traders.
Which Broker Is Best for Different Types of Investors?
- Long-term Investors: Both Zerodha and Groww offer zero brokerage on delivery trades, making them equally beneficial for long-term investors.
- Frequent Traders: Zerodha’s lower intraday brokerage and wider support for commodities may make it preferable for active traders who focus on day trading or derivatives.
- New Investors: Groww’s simpler interface and zero account opening fee may appeal more to beginners. Zerodha, however, offers more comprehensive tools and educational resources.
Pros and Cons
Category | Zerodha | Groww |
|---|---|---|
Pros | Low brokerage, extensive trading tools, support for commodities | Free account opening, simple interface |
Cons | Annual AMC, slightly higher call & trade charges | Limited to equities and F&O; no commodities |
Our Recommendation
Both Zerodha and Groww offer competitive, investor-friendly fee structures. Zerodha’s slightly lower brokerage for intraday trades, support for commodities, and extensive tools make it a good choice for active and seasoned traders. On the other hand, Groww’s zero account opening fee and user-friendly interface make it an attractive option for new investors or those looking to keep things simple.
Ultimately, the best platform will depend on your trading style, investment frequency, and need for additional trading tools. Considering the detailed breakdown above, you can now make a more informed choice based on your personal investment goals.
Ranjan is a dedicated finance writer for smartfinclub.com, where he specializes in comparing top financial products in India, including loans, credit cards, savings accounts & more. With a focus on providing clear insights into features, rates, and benefits, Ranjan aims to empower readers to make informed financial decisions customized to their needs.