When it comes to beginning the share market investment journey, the major challenge that every trader or investor comes across is the choosing right stock broker. Looking at the current number, there are two renowned stock brokers, Zerodha and Motilal Oswal but which one is better for a beginner? For this, here is a detailed review of Motilal Oswal vs Zerodha. 

The comparison is done on the basis of the following parameters:

• Company background
• Demat Account
• Brokerage plans
• Trading platforms
• Algo trading
• Account features, and
• Customer support

Difference Between Motilal Oswal and Zerodha

Motilal Oswal is the oldest brokerage firm and has built a strong position in the market over the years. Because of the old background, in current times the company has now become a common name and is used as a synonym for Investment.

Due to popularity and reliability, the broker has a current client base of around 7.5 lakhs. 

A few of the services offered by the company are  Currency, Derivatives, Equity, commodities, IPOs, US Stocks,  Mutual Funds, and readymade portfolios.

Motilal Oswal’s USP lies in their years of experience and research department. They have researched around 80,000 reports on 100 stocks belonging to 45 different areas. They also give regular content to their clients based on their research.

Zerodha, on the other hand, is the No. 1 stockbroker in India with more than 60 lakh client base. The company provides services like investing in Currency  IPO, Futures & Options, Bonds, Direct Mutual Funds, Equity, and commodities at the discount brokerage.

The company is well-sung in the market because of its impeccable cost reduction when it comes to the brokerage fee and they also maintain transparency as a stock broker. Over the years, Zerodha has upgraded itself at a fast pace when it comes to advanced technology which is why it is one of the top fintech companies today.

For a person looking forward to investing, Zerodha is a win-win because it has the least complaints against it and has zero debt. The company doesn’t offer margin funds and doesn’t do proprietary trading with client funds.

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Motilal Oswal Vs Zerodha Charges

The broker imposed different charges to offer different products and services, but which broker charges a minimum fee?

To know this, let’s compare the following charges of these two brokers:

• Demat Account Charges
• AMC Charges
• Brokerage Charges
• DP Charges

Motilal Oswal Vs Zerodha Demat Account Charges

If you want to trade, the first mandatory step to be taken here is to create your demat account. A Demat account keeps all of your holdings in a digital form.

The shares and the securities reach your demat account through Central Depository Services Limited (CDSL) or National Securities Depository Limited (NSDL) but the account opening fees are charged by the broker. 

Along with this, there are AMC charges, charged to keep your account active. Here looking at the data, Zerodha charges an account opening fee ₹200 for equity accounts and ₹100 for commodity accounts. 

However, no such charges are charged by the full-service broker, Motilal Oswal.

Apart from this Zerodha charges ₹300 AMC charges, charged quarterly from the first year onwards. Motilal Oswal waives off this fee for the first year and charges AMC equal to ₹400 from the second year onwards. 

The detail of these charges is given in the table below: 

 

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Motilal Oswal vs Zerodha Brokerage Charges

Since Zerodha is a discount broker and Motilal Oswal is a full-service broker and hence the major difference lies in the brokerage charged by them. So, before any further remarks, here are the detail of brokerage fees.

Looking at the charges, it is clear that on one hand where Zerodha provides delivery trading for FREE, Motilal Oswal does not charge any fees for intraday trading. So, depending upon your trading style you can choose the broker with the maximum benefit in brokerage.

Now when it comes to options trading, there is a vast difference in the brokerage.

Although both brokers charge ₹20 for options Zerodha charges it per trade while Motilal Oswal charges it per lot. To explain to you let’s take an example:

Trader A bought 4 lots of Nifty 19000 CE using Zerodha Kite while Trader B executed the same trade using the MO Investor app.

Zerodha Option trading charges= ₹20 per trade

Hence, the brokerage charged Trader A= ₹20. 

Motilal Oswal Option Trading charges= ₹20 per lot.

Here, the brokerage charged Trader B
=20*4
=₹80

So, if you are an active trader then it is important to consider these charges before choosing a stockbroker.

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Motilal Oswal vs Zerodha DP Charges

Not only the brokerage, but Motilal Oswal charges high DP charges from its clients in comparison to Zerodha.

The detail of these charges is given in the table below:

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Motilal Oswal vs Zerodha Trading Platform

After comparing charges, now let’s have a look at the most important product of the broker, the trading app. It is important to check the quality of the app, as any technical glitch can lead to the loss of the trader.

Firstly, here is the detail of the different trading platforms provided by respective brokers.

According to the detail of the trading app in the table above, Motilal Oswal offers more trading platform choices to its users in comparison to Zerodha.

But that does not make Motilal Oswal stands out. It is important to check for the app’s features and ratings to get an understanding of how useful and reliable the app is.

 

Motilal Oswal app has comparatively lesser downloads than Zerodha. Well, this is because of the vast difference in the client base. The rating of Zerodha is comparatively better than MOSL.

However, when looking at other features, especially the speed, MO Investor is better than Zerodha Kite and thus more reliable. Also, you can explore more order types in the Motilal Oswal trading app.

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Motilal Oswal vs Zerodha Trading Features

Now, apart from major functionality and features, there is a vast difference in the trading features of the full-service and discount brokers. For example, a full-service broker like Motilal Oswal provides research tips, recommendations, advisories, and other services that help beginner trader in placing their trade.

However, no such trading benefits are provided by a discount broker.

However, Zerodha does not provide any research reports under the brokerage fees, but you can buy a subscription of Stock reports plus to avail the research report of different companies.

The subscription price is ₹150 per month and ₹1440 per year.

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Motilal Oswal VS Zerodha Account Features

Moving ahead it is important to check for the account features, like whether the broker allows guest login. Is there a 3-in-1 account or 2-in-1 etc?

The more services, the easier for the trader to trade and explore the market. Here is the comparative analysis of the account features of both the brokers.

 

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Motilal Oswal VS Zerodha Customer Support

Irrespective of how good the broker is, traders need customer support at one time or the other. For this, it is important to choose a broker with more options. Since Motilal Oswal is a full-service broker it offers an offline presence with more than 300 offline branches.

But unlike other discount brokers, Zerodha too provides offline branches, however, the number of branches is limited and is only in a few cities. Currently, there are 120 branches in around 70 cities.

Other available customer support options of the respective stock broker is in the table below:

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Motilal Oswal vs Zerodha Which is Better

There is no doubt that both of the companies are currently leading at the topmost position and have lakhs of satisfied users. Where Zerodha is focused on providing basic services at less cost, Motilal Oswal aims at providing complete assistance but has the highest charges in the market.

Based on the above research, both of these have been proven to be beneficial and unrewarding in different aspects. Now, which one is better out of the two highly depends upon the individual’s choice and needs. The highlighted details in the article are efficiently providing the necessary information and making a decision is totally subjective.

However, on the basis of our research, here is the summary of the comparative analysis of both brokers. You can choose the one that meets your trading needs the most.

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