Zerodha and Groww are both good players in the Discount Broking space but both have some differences. Zerodha has the largest client base and is the most trusted Broker in India whereas Groww is one of the fastest-growing Discount brokers. Both offer different features to their clients which is discussed in detail below.
Zerodha is India’s first Discount broker and the largest as well. It was founded in 2010, by Nithin Kamath and is headquartered in Bangalore. Zerodha is a Financial Service providing company that offers investment opportunities in Stocks, Bonds, Gold, ETF’s, etc. to Retail and Institutional Investors.
Zerodha has the largest active client base in India and is India’s biggest Stock Broker by volume with over 1 crore active users that make up almost 18.85% of the total volume of the NSE (National Stock Exchange).
Groww is a comparatively new venture than that of Zerodha that was started in 2017 as a platform to invest in Mutual Funds but later scaled into Stocks, IPO’s & ETF sections in 2020. It has its headquarters in Bangalore and is one of the fastest-growing Stock Brokers in India.
Groww is currently being headed by Mr. Lalit Keshre who is the CEO as well as the Co-founder of Groww along with Mr. Harish Jain who is the COO and another Co-Founder of Groww.
Groww currently has over 6.5 lakh active clients which accounts for almost 3.65% of the total client base of the NSE (National Stock Exchange).
Client base & Complaint rate-
Zerodha is the largest Stock Broker in India which has an active client base of 3.39 million which is 18.85% of the total client base of the NSE.
On the other hand, Groww is fairly new in the Stockbroking community but still managed to get 3.35% of the total active clients in the NSE with 6.5 Lakh clients.
Zerodha has a total number of 768 consumer complaints in the Financial year 2020-2021 which sums up to a rate of 0.02% overall. Out of the total complaints, 94.27% of the complaints have been resolved by Zerodha.
Now when it comes to Groww, the total number of Consumer complaints turns out to be 28 which accounts for 0.08% of their client base. Out of which 96.42% of the complaints have been resolved by now.
Hence by looking at the above data it can be said that Zerodha is doing a better job at maintaining a good relationship with their clients as the customer base is way larger than that of Groww and the complaint rate is also quite low.
In terms of Pricing, Groww takes the lead as the Account Opening charge of Groww is “0” compared to Zerodha who charges Rs 200 for Equity and Rs 100 extra if one chooses to activate the Commodities segment as well.
Apart from that Groww charges Zero AMC (Annual Maintenance Charges) whereas Zerodha charges Rs 300 every year as the AMC.
This makes Groww a winner when it comes to pricing as one can open a Demat & Trading account for free with Groww whereas Zerodha charges 200 for account opening.
On the downside, Groww does not offer Investments in Bonds, Commodities, Currencies which are available in Zerodha. Groww does not offer the Derivatives Segment yet but Zerodha does give access to Futures & Option at no extra charge.
To conclude it can be said that Zerodha is more trusted and offer more and better Features to Investors as well as traders such as Derivatives, Bonds, Commodities, etc. The UI (User Interface) of Zerodha is way better than that of Grow which makes it an ideal choice for Intermediate and Advance investors & Traders, but Groww can be a better option when it comes to Beginners who are new to the Stock Markets as the Account opening and Maintenance charge in Groww is Zero. This makes it Groww a More “Value For Money” option for Stocks.
Whenever you buy shares from your Trading terminal, you need to have that much money added to your trading account. Your broker cannot deduct the money directly from your bank account for the purchase of shares. Hence you need to first add the adequate funds to your trading account and then place an order for any XYZ shares.
when we buy shares does amount automatically gets collected from my linked bank or i need to transfer fund in the related dp account. like in HDFC the fund is automatically taken care of from my linked bank and i need not worry whether their is adequate fund or not when i buy shares.