mStock vs Zerodha – Which Is Best Broking App For Users in 2024?

Choosing the right brokerage app can be a game-changer in your trading and investment journey. Don’t you agree with this point? Of course, you do! In today’s market, mStock vs Zerodha are two major contenders, each with its unique offerings.

So, which one is your best pick? 

In this comparison, we’ll delve into the features that matter most to you, from user-friendliness to charges, research tools, and customer support. By the end, you’ll have a clearer picture of mStock vs Zerodha and which one aligns better with your investment goals.

Let’s begin the comparative analysis!

mStock vs Zerodha: A Brief Overview

So, we’ve got two discount brokers in the spotlight: mStock vs Zerodha. These companies offer trading platforms with fixed brokerage charges. The cool part? You won’t find any tips or recommendations on these platforms, which means your trades won’t be interrupted by Relationship Managers (RMs). Here, we will provide a concise overview of both companies for comparison. 

Let’s dive in!

Charges Comparison of mStock vs Zerodha

You see when you’re comparing mStock and Zerodha, looking at their charges is a big deal. It’s all about your money, after all. The fees they charge for trading, account maintenance, and other costs can eat into your profits. So, by understanding and comparing these charges, you can make smart decisions about where to invest. It’s like making sure you’re getting the best bang for your finances. 

Whether you’re a day trader or a long-term investor, keeping an eye on these costs helps you make sure you’re not losing money unnecessarily and can maximize your returns. So, here we begin the comparison of charges-

1. Account Opening Charges

Here, you may feel that mStock is quite expensive compared to Zerodha. Go through the following table and you will know the reason-

Kindly check with the salesperson of the respective firms during opening an account. However, a commodity account is optional meaning you can open it later too!

2. Brokerage Charges

The table reveals significant differences in brokerage charges between mStock and Zerodha. Both offer zero brokerage for mutual funds and equity delivery. However, for equity intraday, mStock charges nothing, while Zerodha imposes 0.03% or a maximum of Rs.20 per executed order. 

In futures and options (F&O), mStock maintains zero brokerage, while Zerodha charges 0.03% or Rs.20 for both. In currency trading, there’s no brokerage for currency futures on both platforms, but for currency options, Zerodha charges Rs.20 per executed order. 

Notably, mStock doesn’t offer commodity trading, while Zerodha charges 0.03% or Rs.20 for commodity futures and a flat Rs.20 for commodity options. Call and trade charges vary between the two, with mStock’s variable charges (up to 9.99%) and Zerodha’s flat fee of Rs.50. Auto square-off charges for mStock stand at Rs.60 per position, while Zerodha charges Rs.50. These details are essential for assessing the cost implications and choosing the right broker for your specific trading needs.

3. Transaction Charges

You have learned the transaction charges for various types of trades on the mStock and Zerodha trading platforms. These charges vary based on the type of trading, such as equity delivery, equity intraday, F&O (Futures and Options), currency trading, and commodity trading. 

The charges also differ between the NSE and BSE exchanges. 

This information is useful for you as a trader or investor to understand the cost associated with different types of trades on these platforms. Keep in mind that these charges may change over time, so it’s important to check the latest fee structure with your respective brokerage or trading platform.

Comparison in terms of Business (mStock vs Zerodha)

The table provides a comparison between mStock and Zerodha in terms of their business particulars-

Firstly, in terms of user base, mStock has a user base of 1 lakh paid accounts, while Zerodha boasts an impressive user base of over 65 lakhs, highlighting its widespread popularity among investors and traders. 

Secondly, in terms of valuation, while mStock’s valuation remains undisclosed, Zerodha stands at a significant valuation of $2 billion, indicating its robust standing in the financial market.

Moving on to their financial performance, the table indicates that for the fiscal year 2022, mStock’s revenue earned is not specified, suggesting a lack of available data. In contrast, Zerodha’s financials show that it generated an impressive revenue of Rs. 4,964 crore in the same fiscal year, demonstrating its substantial financial success.

Furthermore, when it comes to profitability, the table reveals that mStock’s current profit or loss for FY 2022 is not provided. On the other hand, Zerodha is described as a profitable company, having achieved a net profit of Rs.2,094 crore in FY 22. This showcases Zerodha’s financial strength and its ability to operate profitably in the competitive brokerage industry.

Thus, Zerodha appears to have a significantly larger user base, a substantial valuation, and strong financial performance when compared to mStock. However, it’s important to consider that these numbers may have evolved since the data was last updated.

Note: We have thoroughly explained the business model of both stock broking firms. For more information check out the articles given below-

• mStock business model
• Zerodha business model

mStock vs Zerodha: Who is the winner?

Here comes the final judgment in the battle between mStock vs Zerodha. Well, if we see it from a business point of view then Zerodha emerges as the clear winner. Also, Zerodha’s extensive user base of over 65 lakh users is a testament to its popularity and trust among investors and traders. Additionally, Zerodha’s valuation of $2 billion signifies its strong market presence and financial stability.

But mStock isn’t that far behind either. It grabbed over 1 lakh paid users in India during its first year of operation. Zerodha has been operating in the industry for over 12 years. So comparing a 12-year-old platform with a one-year-old doesn’t seem to be a fair comparison. But still, mStock has managed to stand out in the market despite being a newcomer.

So, here the winner is Zerodha but seeing the exponential growth of mStock it seems that it can beat its competitors soon! Nevertheless, it’s important to remain updated on the latest developments in this competitive industry.