PayTM Money vs Zerodha: Which Is The Better Broker?

In today’s world, if you want to go from having very little money to being well-off, you must pick the right app for trading and investing. Brokerage apps are super helpful tools for this.

Do you agree? Right now, experts are looking for the battle of Paytm Money vs Zerodha to see which one is better. Why? Because both are good at what they do. 

Do you have a preference, or are you still deciding? 

Don’t worry! In this comparison, we’ll look at things like how easy the apps are to use, how much they cost, the tools they have for research, and how good their customer support is. By the end, you’ll know which is better for your investment plans. Stick around for all the details. 

Let’s get started!

(A) Paytm Money vs Zerodha: A Brief Overview

In the comparative analysis of Paytm Money vs Zerodha, we’ve carefully assessed over 100 attributes to make decision-making easier for you. Some of the key specifics of Paytm Money vs Zerodha, include brokerage plans, Plan types, maintenance fees, AMC, trading platforms, rating, mobile app, demat account, and investment options available to share brokers in India. 

Sounds like a saga! Isn’t it?

But before that, let’s have a look at the profiles of both the companies-

Both brokers are registered with SEBI and are discount brokers. Zerodha offers investment in commodities, which Paytm Money does not. We will look into such details in the upcoming section.

(B) Charges Comparison of Paytm Money vs Zerodha

When you’re sizing up Paytm Money vs Zerodha, the key player is their charges – and let’s be real, it’s your hard-earned money we’re talking about. Those trading fees, and account maintenance costs – they’re like silent nibblers, taking a bite out of your profits. Understanding and comparing these charges? That’s your ticket to making savvy investment moves. 

It’s all about ensuring you’re squeezing the most out of your finances. Whether you’re hustling as a day trader or playing the long game as an investor, keeping tabs on these costs is your secret weapon against unnecessary losses and a surefire way to amp up those returns. 

So, buckle up as we kick off the showdown of charges!

(B.1) Account Opening Charges

Go through the following table where we have compared the account opening charges of both brokers-

What did you observe here? The account opening & maintenance charges of Paytm Money are almost nil as compared to Zerodha! Despite being a fact, it sounds too good to be true. That’s one of the crucial factors for the exponential growth of Paytm Money’s user base.

(B.2) Brokerage Charges

Looking at the brokerage charges table, it’s evident that Paytm Money and Zerodha have distinct fee structures for various types of transactions. 

In Mutual Funds, both offer zero brokerage charges. However, for Equity Delivery, Paytm Money charges 2.5% or Rs.20, whereas Zerodha charges INR 0.00. For Equity Intraday, Paytm Money charges 0.05% or Rs.20, while Zerodha charges 0.03% or Rs.20. 

In F&O Futures, Paytm Money imposes 0.02% or Rs.20, and Zerodha applies 0.03% or Rs.20. For F&O Options, both charge a flat Rs.20. Moving to Currency trading, Zerodha applies 0.03% or Rs.20 for Currency Futures, and Rs.20 (per executed order) for Currency Options, while Paytm Money doesn’t specify charges for Currency trading. 

Commodity trading charges show a similar pattern. Notably, Call and Trade Charges and Auto Square Off Charges differ, with Paytm Money generally having higher charges compared to Zerodha. 

Keep these variations in mind while choosing the platform that aligns with your trading preferences!

(B.3) Transaction Charges

Looking at the transaction charges table, it’s clear that Paytm Money and Zerodha have different fees for various types of transactions. For Equity Delivery, both charge similar fees on NSE, but Paytm Money has a slightly lower charge on BSE. 

In Equity Intraday, the charges are again similar on both exchanges, with Paytm Money having a slightly lower charge on BSE. Moving to F&O Futures, both platforms charge the same on NSE, but Zerodha has no charges on BSE. F&O Options show a slight difference, with Paytm Money having a higher charge on both exchanges. 

Currency trading on NSE incurs charges for Zerodha, but Paytm Money doesn’t specify charges. Zerodha has charges for Currency Options on both exchanges, while Paytm Money doesn’t specify. Commodity trading charges indicate that Zerodha has charges for both Commodity Futures and Options, while Paytm Money doesn’t specify. 

These are some of the crucial factors that will help you to find out which is better in Paytm Money vs Zerodha.

Note: We have thoroughly explained the business model of Zerodha. Check out the article for detailed information.

(C) Comparison in terms of Business (Paytm Money vs Zerodha)

The following table provides a comparison between Paytm Money and Zerodha in terms of their business particulars. It’s like having a snapshot of their business landscapes to help you make sense of their positions in the market-

Analyzing the business particulars table, it’s fascinating to see the contrasting landscapes of Paytm Money and Zerodha. Zerodha boasts a significantly larger user base, with over 65 lakhs compared to Paytm Money’s 7.4 lakhs. 

The market cap or valuation reveals a substantial difference, with Paytm Money at $16 billion and Zerodha at $2 billion in valuation. 

In terms of revenue earned, Zerodha takes the lead with Rs.131.3 crore in FY23, whereas Paytm Money earned Rs.64.1 crore in the same fiscal year. The current profit/loss scenario paints an intriguing picture. 

While Paytm Money experienced a loss of Rs.10.7 crore in FY22, Zerodha turned a profit of Rs.42.8 crore in FY23. Zerodha emerges as the more financially stable platform, labeled a profitable company with a net profit of Rs.2,094 crore in FY22, underlining its robust financial standing. 

These figures provide a dynamic snapshot, showcasing the diverse trajectories these financial platforms are navigating, and offering valuable insights into their respective positions in the market.

(D) Paytm Money vs Zerodha: Who is the winner?

Determining the winner in the Paytm Money vs Zerodha competition depends on your specific priorities. How? You may wonder!

If a larger user base and a higher market valuation are crucial to you, Zerodha takes the lead with over 65 lakh users and a $2 billion valuation. Zerodha also exhibits stronger financial performance, boasting a net profit of Rs.2,094 crore in FY22, indicating financial stability. 

However, Paytm Money has its merits, with a market valuation of $16 billion and a unique position in the broader Paytm ecosystem. Consider your preferences – whether you prioritize user base, financial stability, or integration within a larger ecosystem – to determine the winner. 

Both platforms offer distinct advantages, so your choice ultimately depends on what aligns better with your specific investment goals and preferences!