Is Groww really free?

Last Updated: 15-Jan-2024

Short Answer

Groww is free to some extent as it does not charges any Account Opening charges or any AMC ( Annual maintenance Charges) like all other Discount &Full Service brokers out there. But it charges brokerage at the rate of Rs20 or 0.05%, whichever is less of the total value of one executed order. It also charges the Regulatory charges like the STT, Stamp Duty, DP charges, etc.

Detailed Answer

Grow is an online Investment platform that allows its users to invest in Mutual Funds, Stocks, etc. It is headquartered in Bangalore and was started as a Mutual Funds Investment platform but it started the Stocks Investment segment recently in 2020.

Groww is a new participant in the Stock Broking community but has already gathered a lot of attention among the Indian crowd as the main USP (Unique Selling Point) of it is Free account opening and 0 AMC (Annual Maintenance Charges).

Is Groww Free?

Technically Groww is free as it does not charge any account opening charge or any AMC (Account Maintenance Charge) that almost every broker charges. This makes it free to some extent but it charges brokerage and some other charges, they are-

  • STT (Securities Transaction Tax)
  • Stamp Duty
  • Exchange transaction Tax
  • SEBI Turnover Charge
  • DP Charges

These were some of the Regulatory and Statutory charges that are charged by all the brokers and are payable to the Exchanges and SEBI. There is a Penalty for Auto Square-off of the Intraday position which is chargeable at Rs 50 per position.

Apart from this Groww charges brokerage for all the intraday and Delivery orders at the rate of Rs20 or 0.05% of the total executed order value whichever is lower. There are no hidden charges apart from the following charges for Stocks as well as there are no Redemption charges or Account opening charges for Mutual Funds on Groww.

One should also keep in mind that a GST of 18% is levied on Brokerage, CDSL Charges, Auto Square-off Charges, and Exchange Transaction Charges that have to be paid by the client.

Although account opening and annual maintenance is free, there are some charges levied when trading, especially when selling. For example: CDSL charges are Rs.8+Rs.5.50 for every ISIN debit activity. If you need a demat certificate then also you have to pay Rs. 150 and whatever the courier charges will be applicable. Similar charges in case of Remat certificate.

For pledge creation or invocation flat Rs.20 + Rs.12 for every request you make. Even in case of a failed transaction you have to pay Rs.50 per ISIN. Likewise, there are plenty of other charges like KYC modifications, hidden fee etc.

Conclusion-

By analyzing the above charges it can be said that Groww is free to some extent as it does not charge any Account opening or AMC charges that are charged by almost every Discount & Full Service broker. On the other hand, it is not completely free as it charges brokerage at the rate of 0.05% or Rs 20 per executed order, whichever is less. The brokerage charged is slightly on the higher side when compared to some other Discount Brokers like Zerodha which charges 0.03% or Rs 20 whichever is less. This makes Groww not completely Free.

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