Almost two decades ago, trading was hectic and nearly impossible as well as time taking process, as the entire thing was done manually through the brokers and sub-brokers. More than that opening a Demat account was a hectic task, but after 2020 investing has become much easier as it can be done by mobile or desktop. The entire credit goes to the new age investing and brokerage platforms like Groww and Zerodha. As per SEBI, near about 14.2 million Demat accounts have been initiated.

In this article, we will discuss the two investing platforms Zerodha and Groww and will try to elaborate on them briefly and see what is the difference between them. Before discussing let us have a short idea about the two platforms.

About Zerodha and Groww

 So what is Zerodha? It is the first company that introduced the concept of discount brokerage in India, founded by Nirthin Kamath on Aug 15, 2010. They have gained the market so nicely with low-cost pricing, zero brokerage on equity investments, and Coin investments as well as mutual funds. It has 1.5 million active users which process approx 10-12 million retail trades.

 Now let’s see what’s Groww. It is also a basic Demat and stock trading app that allows opening free and easy Demat accounts and trading as per your interest. The company has raised a lot during the covid period and basically attracted the users between 18-20 age groups. It offers low brokerage fees and easy-selling funds. As per reports Pune, Mumbai, and New Delhi are the top cities where growth was seen consistently over the last two years.

Comparison between Zerodha and Groww

Zerodha and Groww both are platforms that offer  Demat account transactions i.e. stock trading. Now we will try to see what facilities they are providing to us and how these two platforms are better than any other platforms.

Zerodha mainly offers investments in Equity, F&O, and currencies. It has one of the highest ratings as compared to Groww. The number of active members is above 6.5 Million whereas the Groww app has only 5.1 Million members. here we have mentioned different points so that you could make up your mind before investing.

Investment

In terms of investment both the Zerodha and Groww apps have a great impact in various dimensions. They offer investments like commodity trading, Equity cash, Currency, Banking, Insurance, Online IPO Application, Mutual Fund SIP, Equity SIP, etc. In Equity and equity derivatives both the brokers offer options in Equity and Equity derivatives on the NSE exchange and BSE exchange. In the case of commodity trading, Zerodha offers options in trading but Groww doesn’t. Both brokers here give consent to investing in mutual funds. They don’t have any PMS service. The perfect selection of plans is the most important part of the investment. Let’s compare this section crucially. Both platforms don’t offer multiple plans and they don’t have any monthly plans too. These two platforms can be run through online transactions via Android, iOS, etc.

Fees and charges

Both platforms have different fees and charges. Groww allows you to open an account for free but Zerodha has an account opening charge of Rs-200 ( Eq+Curr) and Rs- 300 (Eq+Crr+Com). Again, Groww offers free AMC in the case of a Demat account whereas Zerodha takes Rs-300 per account AMC for a Demat account. Groww has a flat brokerage plan of Rs-20/- @ order of trading in a single day and has free delivery. On the other hand, Zerodha charges Rs- 20 which i.e. the max brokerage one needs to pay for order execution. The exchange charges of Groww and Zerodha are almost the same i.e.0.02% in Equity NSE and NSE premium is 0.053%.

User experience

User satisfaction is the most important aspect of every trading platform. Groww allows easy trading in Stocks and Mutual funds. It aims to trade in different phrases of testing US stocks, Digital gold, fixed deposit, etc. It’s basically a smartphone trading app that is free for all customers. On the other hand, Zerodha is also an easy platform to use, and the user experience is also very good. Additionally, now it charges no commission against online stock investments.

Customer Services

Both platforms offer great customer service. Zerodha and Groww offer Email support, and phone support. Zerodha offers in-branch service but being an online platform Groww doesn’t-helping this case. On the other hand, Groww has online support but the Zerodha doesn’t seem to have any online support. But sadly both platforms don’t offer 24/7 service. Otherwise, both app is very much responsive and customer friendly.

Pros of Groww

1. Offers free research services.
2. No clearing charges are taken.
3. Low brokerage and DP charges.
4. Zero AMC demat charges
5. Mutual fund investments are commission free.
6. Plenty of options to invest online even in gold ETFs, SGBs, and Gold funds.

Cons of Groww

1. It has no margin against shares.
2. Do not offer NRI trading
3. There is no 3-in-1 account facility.
4. No commodity training is being provided.
5. No Trade and Call services are offered.

Pros of Zerodha

• It owns the DP services.
• Has  a flat rate for stock trading
• Offers decent brokerage and Margin calculator.
• It has a superb customer service
• It offers up to 20x leverage in case of intraday trading
• Has the facility to apply for online IPO
• it has almost all the online trading options
• It also offers referral programs to all its users.
• Lastly, it takes no brokerage on Equity delivery and Mutual funds.

Cons of Zerodha

• There is no margin funding.
• It charges high charges on call and trade i.e. @₹50 per call.
• It also has been charged for SMS trade alerts. Rs- 1 for Equity, F&O, and currency alerts and 0.50 paisa for commodity.
• It doesn’t have Unlimited trading plans.
• Takes charges on Fund Transfer of Rs-9/- per fund.
• Doesn’t offers stock tips, or recommendations.

Conclusion

To conclude, we can say that overall Zerodha and Groww without any doubt are phenomenal investing platforms for almost all kinds of investments in stocks and mutual funds. However, if we analyze accessibility, technology, maintenance, performance, quality, huge user community, transparency, and risk factors, undoubtedly Zerodha is one of the most trustworthy and clear winners.

But on the other hand, Groww is also good for new users as it includes huge scopes for digital gold, ETFs, intraday trading, etc. Additionally, it comes with the best mutual fund schemes as compared to other traders in the market and helps users to invest in the right plans.