As a beginner in the stock market, it is challenging to choose the stockbroker that not only offers unbeatable services but also is reliable. To help you with this here is the comparative study of Groww Vs Zerodha. 

Although both are discount brokers but still when it comes to choosing the one, there are other parameters one must consider. 

In this article, we have covered all the important aspects mentioned below that one should look to choose the broker and to give a smooth start to your trading journey. 

• Company Background
• Demat Account Opening Charges
• Brokerage
• Trading Platforms
• Margin 
• Account Features
• Customer Support. 

Let’s get started 

Difference Between Groww Vs Zerodha

Both Zerodha and Groww are discount brokers offering the stockbroking service at a minimum price. But still, when choosing the broker it becomes important to look for some other parameters, especially the company’s background. 

Zerodha is the first stockbroker with the discount brokerage plan established in the year 2010. On the other hand, Groww came into existence in the year 2016. 

Also, initially, Groww offers services for mutual fund investment only and got registered with the NSE and BSE in the year 2020. 

Thus, when it comes to reliability and sustainability, one can consider Zerodha for starting their trading journey. 

To make the statement more obvious let’s discuss some other parameters to analyze both the company’s better. 

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As we can analyze that Zerodha is the sole decision-maker with respect to any changes required, unlike Groww that entirely depends on funding. 

Groww has recently been tagged with the unicorn title after it raised funds of $83 million with the participation of its existing investors in fundraising which was led by Tiger Global Management. 

On the other hand, comparing the P/L of both the companies for the financial year 2020-21, Zerodha showed a profit of ₹1000 Crores, while Groww recorded a loss of ₹7.92 Crores. 

Similar data could be seen in the revenue generation of the company. Zerodha’s revenue for the year was ₹1096.64 Crores while Groww’s revenue was around ₹0.76 Crores. 

The numbers say a lot about the company and hence when planning to invest in the stock market, it is good to go with the one with the good records both in terms of numbers and performance. 

Let’s dive into some more differences between the brokers.

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Understanding from the membership, Groww lets you trade in equity, currency, MF, and IPO, whereas Zerodha registered with NSE, BSE and MCX thus allowing you to trade in equity, currency, commodity, derivatives, IPO, bonds as well as in MF.

Thus, you have better and vast trading options with Zerodha in comparison to Groww.  

Apart from the client base here is the detail of the number of complaints raised against a broker. 

The number of complaints against Zerodha is 868 i.e. 0.02% against the number of active clients. However, 757 complaints had been resolved. 

This clearly depicts that the broker does care for its clients and tries to fix the issues in time. 

The number of complaints recorded against Groww was 32, out of which 28 have been marked as resolved. 

Thus, on the basis of this data, one can say that Groww is able to offer satisfactory services to its customers. 

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Groww Vs Zerodha Charges

Well, when discussing Zerodha vs Groww, comparing charges for different services and trading becomes an important aspect.  

Here starting with the account opening charges, Groww does not charge any fees for opening a demat account. Other than this the Groww AMC charges is Nil thus you can reap the benefit of free account opening with the broker. 

On the other hand, Zerodha imposes fees of ₹200 for opening demat account and ₹300 for commodity trading accounts. Also, the broker charges AMC of ₹300 from the first year. 

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Zerodha Vs Groww Stocks Charges

After the account opening charges, come the brokerage fees.

Now since both the brokers are discount brokers and hence you can reap the benefit of trading at the minimum cost. 

But when comparing the fees in each segment, Zerodha does not charge any fees to trade in the equity delivery while Groww imposes the charge of ₹20 or 0.03% per trade. 

Although the maximum fees charged by Zerodha and Groww are the same, what beginners generally skip considering is the minimum fees charged by the two. 

The minimum Zerodha brokerage charges are 0.03% of trade transactions in intraday and other segments while minimum fees or  Groww charges 0.05% of the total turnover. 

Let’s understand this with an example:

Suppose you execute an intraday trade of ₹50,000. Now as per the brokerage plan of both the brokers, here is the difference in the minimum brokerage you end up paying:

Zerodha intraday charges= 0.03% of 25,000

=₹7.5

Groww intraday charges= 0.05% of 25,000

=₹12.5

So, along with the flat brokerage, it becomes important to consider the minimum brokerage charges imposed by them to pick the right one. 

You can use the Zerodha brokerage calculator or Groww brokerage calculator to grab a better idea of the fees charged by the brokers. 

Groww Vs Zerodha DP charges

Coming to the Depository Participant Charges (DP charges), which are made on all sell transactions of your Demat account.

Here DP charges in Groww and Zerodha is equal to ₹13.5+GST. 

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Groww Vs Zerodha Margin Trading Facility

After brokerage, the major concern of the traders, specifically, the intraday traders, is the margin facility.

As per the new norms of SEBI, brokers have updated the margin but still, when comparing Zerodha vs Groww, Zerodha pays the margin up to 6.25X in the intraday trading segment while in Groww the margin is limited only to up to 5X. 

Thus, if you are willing to trade more by availing of the margin facility then again, choosing Zerodha over Groww proves to be a better option. 

To differentiate both the broker in terms of margin let’s take an example.

Suppose you want to do intraday trade in the stock of XYZ company the CMP of which is ₹100 per share. You have ₹10,000 in your trading account.

Now let’s see what is the difference in the profit that you can earn by availing the margin from both the brokers. 

If you have a Zerodha Demat account you would be able to get up to 7X margin. So assuming that you can get the 7 times margin for the stock you pick, let’s do a simple calculation. 

Zerodha Margin=7X

Total trade amount= ₹70,000

If the stock price rises to ₹115 per share, then you would be able to sell off of your share at ₹80,500 thus earning a profit of ₹10,500.

Considering a similar situation, the profit that you can earn on your trade with Groww would be:

Groww Margin= 5X

Total trade amount= ₹50,000

Here the profit would be:

(115*500)-(100*500)=₹57,500-₹50,000

=₹7500. 

Here we can see that with more margin you can generate more profit from a similar trade. 

Groww Vs Zerodha Trading Platforms 

So far we have gone through the charges and margin model of both the brokers. 

Well! On the basis of the comparison done, there is no second thought that choosing Zerodha for opening a Demat account proves to be profitable. 

But wait, what about trading. After all, the best broker is the one offering seamless trading opportunities to traders. 

These days to offer a better experience, the brokers offer trading platforms. 

So, for Zerodha users, the broker offers the reliable, advanced, and user-friendly app Zerodha Kite. The app is useful to trade across different segments in just a few taps. 

Apart from this, it has many advanced features that make it easy for you to trade by doing proper analysis. 

Zerodha Kite is operational on both android and iOS platforms. Also, you can use the web app to get a better view of the widescreen. 

In terms of the trading platform, when considering Groww, it offers a mobile app with the minimum features and trading segments. Even the app does not provide information on the market depth. 

Zerodha wins the race by offering a separate app, Zerodha Coin, to invest in mutual funds. 

Apart from all the trading apps, Zerodha offers an outstanding educational platform, a mobile app called Zerodha Varsity for absolute beginners and even professionals for Free*.

Not just that, Zerodha also offers an insight dashboard called Zerodha Console, which helps you in keeping a track of your stocks and gives you an overall report of your trade.

Groww offers none of such educational or back-office applications to its users. 

Groww Vs Zerodha Algo Trading Platforms 

With the growing time, the trading app is not limited to few basic features but has moved towards the advanced and AI-driven technology that further helps traders to execute multiple trades in one click thus offering them the opportunity to earn more profit. 

Zerodha being the one with a good service provider offers better trading services to its customers by offering an integrated Algo-trading platform, Streak, Zerodha Kite Connect, Zerodha Pi and AlgoZ. 

On the other hand, Groww does not offer any of such benefits or algo trading platforms to its customers. 

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Groww Vs Zerodha Research and Advisory

As a beginner trader, it is often difficult to pick the right stock to invest in.

Stock selection depends upon the technical and fundamental analysis of stocks and as a beginner, it is not only difficult but most of the time challenging to understand all the aspects. 

Traders do not have that much patience and that’s why they end up making losses and the failure in the initial face leads to their loss of interest and eventually they exit the stock market before the actual beginning. 

But opening a Demat account with the broker offering tips and stock recommendations can help you in giving a smooth start and hence the chance to earn a good profit right from the beginning. 

Since we are comparing discount brokers, in general, no discount broker provides any tips or suggestions to buy or sell stocks, but Zerodha comes up with a feature called StockReports+. Zerodha reports are generated on the basis of Thomson Reuters for around 3000+ stocks.

Thus, you can pick and add the stocks in the watchlist that are comparatively performing well in the market and can give you a good return or profit in trade. 

However, to reap the benefit of the product you have to pay additional charges, that is mentioned below:

Zerodha StockReports+

• Monthly: ₹150
• Bi-Annually: ₹810
• Annually: ₹1440

Groww on the other hand again does not provide any kind of report to offer tips to the traders. 

Thus, this helps you in making a clear decision, especially when you are not good at doing your own analysis. 

Groww Vs Zerodha Account Features

Now Zerodha and Groww both offer the account opening facility online. But what other features are provided by the broker to its customers. 

Groww offers a Guest demo of the mobile app. Thus, you can visit the app even without opening a trading account with the broker. 

Zerodha, on the other hand, does not give such benefits and thus you can experience using the mobile app, Zerodha Kite only when you open the account with the broker. 

Groww Vs Zerodha Customer Support

Opening an account, no doubt is simple these days, but what about resolving queries after the account is being opened. 

Well! For that it becomes important to look for the customer support services of both the brokers. 

Analyzing the different options, Groww offers a chatbox, toll-free number, email option to its customers to raise queries or to grab a support service. 

Zerodha customer care, although does not offer email support but has an offline presence in around 75+ different locations across the nation. 

Thus, you can directly reach the nearest branch in case you face any difficulty in operating an account and in opening a Demat account. 

The offline presence even after a discount broker, actually makes Zerodha more reliable than Groww. 

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Which is better, Zerodha or Groww?

Clearly, Zerodha is much older and advanced when compared to Groww. The broker has come up with the features and services that help the mature traders in the market and thus have a better reach in terms of customers.

On the other hand, Groww generally fascinates the millennials who have the least experienced in the stock market. 

Here the newbies get attracted to the zero account opening fees but do not think about the other costs like the brokerage that trails behind as long as you are an active trader. 

Other than this, the trading app of Groww, which seems to be simpler and attractive, generally newbies avoid considering important features of the app that can help you in doing proper analysis eventually in picking the right stock. 

Zerodha offers smooth trading for all age groups and almost all geographies. Also offers offline services as mentioned above. 

To make it a bit simpler for you, A Digital Blogger gives the rating to the broker as per the services, trading app, brokerage, research, and other features. 

Choose wisely and grab a great experience of trading right away. 

To start your journey, fill in the basic details in the form below and we will help you in opening a Demat account online: