Zerodha vs Groww: Ultimate Comparison

Indian stock market has seen a massive surge in retail participation with millions of new investors joining every year. At the heart of this revolution are discount brokers who have made investing easy, affordable, and user friendly. Two names that always come up in discussions among investors are Zerodha and Groww – both pioneers in their own right but different in their approach to Indian investors.

Choosing the right broker can make a huge difference in your investing journey, whether you are a first time investor or an experienced trader. Zerodha and Groww are India’s top discount brokers, each built for different investor profiles. Here’s your ultimate guide to decide which one is for you.

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Company Background and Market Position

Zerodha: The Pioneer of Discount Broking

Established in 2010 by siblings Nithin and Nikhil Kamath, Zerodha transformed the Indian broking sector with the advent of the discount broking model. It upset conventional full service brokers by proffering ridiculously low brokerage rates with great trading platforms and customer service.

Zerodha remains India’s largest retail broker by active clients, with 6+ million users in 2024. The company’s approach is centered on strong technology, transparent pricing and investor education via efforts such as Zerodha Varsity, their extensive education platform.

What differentiates Zerodha is that they are a bootstrap company. They’ve never raised money before, so they retain full control of the business and the pricing. This independence has allowed them to remain one of the lowest brokerage rates in the industry.

Groww: The Mobile-First Challenger.

Founded in 2016 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww became one of the first mobile-first players aimed at millennial and Gen-Z investors. The platform started with mutual funds before expanding to stocks, derivatives and other products.

Groww has quickly grown to more than 5 million users, becoming a viable threat to incumbents. It has raised marquee investors such as Tiger Global, Sequoia Capital India and Ribbit Capital, valuing the company at more than $3 billion.

The platform’s philosophy focuses on simplicity and user experience, making investing less daunting for new investors. Their tidy interface and lessons have resonated wildly with younger, mobile-first-seeking users.

Detailed Comparison Breakdown of Brokers

1. Brokerage Charges

Fees impact returns, especially for frequent traders:

• Zerodha:

  • Equity Delivery: Free.

  • Intraday, F&O, Currency, Commodity: Rs 20 or 0.03% per order (whichever is lower).

  • Other Charges: Rs 300 AMC, 18% GST, 0.00325% transaction, 0.0002% SEBI fee, 0.0126% STT.

  • Example: A Rs 1 lakh intraday trade costs Rs 20 (or Rs 30 if 0.03% is lower).

• Groww:

  • Equity Delivery: Rs 20 or 0.05% per order (whichever is lower).

  • Intraday, F&O, Currency: Rs 20 or 0.05% per order (lower).

  • Other Charges: No AMC, 18% GST, 0.00325% transaction, 0.00005% SEBI fee, 0.025% STT.

  • Example: A Rs 1 lakh intraday trade costs Rs 20 (or Rs 50 if 0.05% is lower).

▶️ Verdict: Zerodha’s free delivery and lower intraday rate (0.03% vs. 0.05%) suit active traders. Groww’s zero AMC saves Rs 300 yearly, ideal for occasional investors. Users note Groww’s fees can feel higher due to delivery charges.

2. Account Opening and Maintenance

• Zerodha:

  • Opening: Free, takes 1–3 days with detailed KYC.

  • Process: Robust but slower, ensuring SEBI compliance.

• Groww:

  • Opening: Free, completed in minutes with visual KYC.

  • Process: Fast, beginner-friendly, leveraging Aadhaar e-KYC.

▶️ Verdict: Groww’s quick, cost-free onboarding is perfect for novices. Zerodha’s AMC is a minor drawback, but its thorough process builds trust for experienced traders.

3. Investment Options

Diverse offerings cater to varied goals:

• Zerodha:

  • Equity, F&O, Currency, Commodities (MCX), IPOs, Bonds, ETFs, Mutual Funds (Coin), G-Secs.

  • Advanced: Margin against shares, GTT orders, algo trading (Streak), bond trading (GoldenPi).

  • Unique: Commodity trading, NRI trading, passive index funds/ETFs.

• Groww:

  • Equity, F&O, Currency, IPOs, Mutual Funds, Digital Gold, Fixed Deposits.

  • Unique: Fixed deposits, appealing to millennials diversifying globally.

  • Limitations: No commodities or NRI trading.

▶️ Verdict: Zerodha’s broader options (commodities, NRI trading) suit diversified portfolios. Groww’s mutual funds and FDs attract beginners seeking simplicity.

4. Trading Platforms

Your platform is your trading hub, usability is key:

• Zerodha (Kite):

  • Features: 100+ indicators, customizable widgets, 11-language support, fast execution.

  • Apps: Kite for trading and investing, Coin for mutual funds, Varsity for education, Sensibull for option strategy, Streak for algo.

  • Pros: Advanced tools, API access, reliable for F&O.

  • Cons: Steep learning curve for beginners.

  • Sentiment: Praised for minimalistic UI and F&O reliability.

• Groww:

  • Features: Simple UI, basic charting, single platform for stocks/mutual funds.

  • Apps: Groww (web/mobile).

  • Pros: Jargon-free, beginner-friendly, fast onboarding.

  • Cons: Lacks advanced orders (BO, CO, AMO), occasional GTT glitches.

  • Sentiment: Loved for simplicity, criticized for execution issues.

▶️ Verdict: Zerodha’s Kite excels for active traders needing depth. Groww’s single app suits beginners prioritizing ease.

5. Customer Service

Support can save or sink your experience:

• Zerodha:

  • Channels: Email, call (Rs 50/order for Call & Trade), support portal, forums.

  • Education: Extensive via Varsity.

  • Feedback: Reliable, but users note slower peak-hour responses.

• Groww:

  • Channels: Email, chat, no call support, digital-first.

  • Education: Basic in-app guides, less comprehensive.

  • Feedback: Quick chat responses, but users report unresolved technical issues.

▶️ Verdict: Zerodha’s broader channels and Varsity edge out Groww, which shines in digital simplicity but lacks phone support.

6. Margin and Leverage

Margin trading amplifies returns but increases risk:

• Zerodha: 5x intraday leverage (20% trade value), margin against shares.

• Groww: 5x intraday leverage, no margin against shares.

▶️ Verdict: Zerodha’s margin flexibility suits traders. Groww’s basic margin fits simpler strategies.

7. User Base and Financials

• Zerodha: 12.7 million clients, FY23 revenue Rs 6,875 crore, profit Rs 2,907 crore, bootstrapped.

• Groww: 12.9 million clients, FY23 revenue Rs 1,294 crore, profit Rs 73 crore, $3 billion valuation.

▶️ Verdict: Zerodha’s financial strength signals trust. Groww’s user growth appeals to new investors.

8. Security and Compliance

• Zerodha: CDSL depository, SEBI-registered, no major breaches.

• Groww: CDSL depository, SEBI-registered, 256-bit encryption, direct BSE/AMC transactions.

▶️ Verdict: Both are secure; Groww’s encryption adds a modern edge.

9. Pros and Cons

• Zerodha:

  • Pros: Free equity delivery, advanced Kite, commodity/NRI trading, robust education, low intraday fees (0.03%).

  • Cons: Rs 300 AMC, complex UI, no US stocks.

• Groww:

  • Pros: Free AMC, simple UI, fast onboarding, single app.

  • Cons: No commodity/NRI trading, higher intraday fees (0.05%), limited advanced orders.

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Zerodha vs Groww: Comparison Table

The table below summarizes key differences to guide your decision: