As you know, ordinary folks like us can’t trade directly in the stock market. Stockbroking firms play a key role to enable you to trade in the stock market. But they don’t work free of cost! You need to pay commissions and charges to them. Although there are numerous stockbroking firms present in our country. But the brokerage charges vary from one stockbroking firm to another. Three discounting brokerage firms that are thriving in the Indian market are Zerodha, Upstox, and Groww. We have already explained Upstox’s Business Model as well as Zerodha’s Business Model. In this article, you will get a thorough comparison of Zerodha vs Upstox vs Groww.
We will go through a comparative analysis to provide you with a clear picture by comparing them side by side. We have distinguished them in terms of their overview, account opening charges, brokerage charges, and transaction charges.
Let’s begin!
A Brief Overview
All three discount brokers i.e. Zerodha, Upstox, and Groww are discount brokers that provide the trading platforms at flat brokerage charges. You won’t get any tips or recommendations in it. Therefore, your trade will be free of RM’s (Relation Manager) interruption. The first comparison parameter of this article is a brief overview of the information of the companies. Let’s have a look!
| Particulars | Zerodha | Upstox | Groww |
| Founders | Nithin Kamath & Nikhil Kamath | Ravi Kumar, Kavitha Subramanian, & Shrini Viswanath | Lalit Keshre |
| Founded in | 2010 | 2011 | 2016 |
| Head office | Bengaluru | Mumbai | Bengaluru |
| Number of branches | 120+ branches & partner offices | Clear information N/A | Zero branches |
| Exchanges supported | NSE, BSE, MCX & MCX-SX | NSE, BSE, MCX | NSE, BSE |
| Desktop and mobile trading platform | Kite | Upstox New | Groww app |
| Official Website | Zerodha.com | Upstox.com | Groww. in |
Charges Comparison
The highly sought section by the folks is the comparison of charges. So, here we have compared various charges associated with the trade in Zerodha, Upstox, and Groww.
Account Opening Charges
Here, you may feel Zerodha is a bit expensive as compared to the other two. 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!
| Account Opening Charges | Zerodha | Upstox | Groww |
| Trading Account Opening Charges (One Time) | Rs.200 | Rs.150 | Rs.00 |
| Trading Account Annual Maintenance Charges | Rs.00 | Rs.00 | Rs.00 |
| Demat Account Opening Charges (One Time) | Rs.100 | Rs.00 | Rs.00 |
| Demat Account Annual Maintenance Charges | Rs.300 | Rs.150 | Rs.00 |
| Commodity Account Opening Charges (One Time) | Rs.200 | Rs.150 | Rs.00 |
Brokerage Charges Comparison
Here, you can see that there is not much difference between the three. Because all segments have a maximum fee of Rs.20 per trade. In all three, you can trade for free in mutual funds and IPO.
| Brokerage Charges | Details (Per executed order) | Zerodha | Upstox | Groww |
| Mutual Funds | INR 0.00 | INR 0.00 | INR 0.00 | |
| Equity | Equity Delivery | INR 0.00 | 2.5% or Rs.20 | 0.05% or Rs.20 |
| Equity Intraday | 0.03% or Rs.20 | 0.05% or Rs.20 | 0.05% or Rs.20 | |
| F&O Futures | 0.03% or Rs.20 | 0.05% or Rs.20 | Rs.20 | |
| F&O Options | Rs.20 (flat) | Rs.20 (flat) | Rs.20 (flat) | |
| Currency | Currency Futures | 0.03% or Rs.20 | 0.05% or Rs.20 | Not available |
| Currency Options | Rs.20 (per executed order) | Rs.20 (flat) | ||
| Commodity | Commodity Futures | 0.03% or Rs.20 | 0.05% or Rs.20 | Not available |
| Commodity Options | Rs.20 (flat) | Rs.20 (flat) | ||
| Call and Trade Charges | Executable Order | Rs.50 | Rs.50 | Rs.50 |
| Auto Square Off Charges | Executable Order | Rs.50 | Rs.50 | Rs.50 |
| Brokerage Calculator | Zerodha | Upstox | Groww |
Transaction Charges Comparison
Every broker needs to pay the charges to stock exchanges for each successful transaction. Therefore, they pass on this charge to you (customers) but this charge may go a little extra. You may overlook the transaction charges. But that’s how they make money!
| Transaction Charges | Details (Per executed order) | Zerodha | Upstox | Groww |
| Equity | Equity Delivery | NSE: Rs.345 per croreBSE: Rs.375 per crore | NSE: Rs.345 per croreBSE: Charges vary based on the scrip group | NSE: Rs.345 per croreBSE: Rs.345 per crore |
| Equity Intraday | NSE: Rs.345 per croreBSE: Rs.375 per crore | NSE: Rs.345 per croreBSE: Charges vary based on the scrip group | NSE: Rs.345 per croreBSE: Rs.345 per crore | |
| F&O Futures | NSE: 0.002% | 0.0020% | NSE: 0.002% | |
| F&O Options | NSE: 0.053% | 0.053% | NSE: 0.053% | |
| Currency | Currency Futures | NSE: 0.0009%BSE: 0.00022% | NSE: 0.0009%BSE: 0.00022% | Not available |
| Currency Options | NSE: 0.035%BSE: 0.001% | NSE: 0.035%BSE: 0.001% | ||
| Commodity | Commodity Futures | 0.0026% | 0.05% or Rs.20 | Not available |
| Commodity Options | 0.05% | Rs.20 (flat) |
Comparison in terms of Business (Zerodha vs Upstox vs Groww)
| Business Particulars | Zerodha | Upstox | Groww |
| Userbase | Over 65 lakhs | Over 34 lakhs | Over 50 thousand |
| Valuation | $2 billion | $143.3 million | $3 billion |
| Revenue EarnedFY 2022 | Rs.4,964 crore | Rs.1,576 crore | Rs. 474.4 crore |
| Current profit/lossFY 2022 | Profitable company with net profit of Rs.2,094 crore in FY 22 | Profitable company (data unavailable) | Currently at loss of Rs.239 crore |
In terms of business, we can see that Zerodha is the clear winner with massive revenue and profits. Its enormous user base indicates that people are more inclined towards this platform. In spite of being the most expensive among the three, it won the trust of users with its exclusive services.
Which is better for mutual funds?
Mutual funds are the funds formed by the contribution of small retail individuals like us. But for this, you need to open and maintain a demat account. In terms of pricing, you may find Zerodha a bit more expensive than the other two for opening and maintaining your account. But in Groww, you can open and maintain your account for free. It seems quite beneficial, but there is some information that is not available on the official website for Groww. Like brokerage charges on currencies and commodities. At the same time, Upstox has both transparency of information as well as affordable prices for opening and maintenance of accounts. Therefore, Upstox seems better for investing in mutual funds.
So based on your priority like transparency and account opening/maintenance cost you can select any one of them.
Conclusion for Zerodha vs Upstox vs Groww
Transparent information, affordable prices, and a user-friendly interface are the most sought features of stockbroking platforms. Why? You may ask! The reason is simple. None of us want overpricing or to pay hidden charges while placing the order. Therefore, you should be well aware of all the charges and taxes of a stockbroking firm. Zerodha vs Upstox vs Groww seems to be in a cutthroat competition with each other. Because the number of users is actively increasing in all three. The differences lie in the prices and information available. Hope this article will guide you to make wise decisions for trading in the stock market!
I like the efforts you have put in this, regards for all the great content.