Stockbrokers are an essential part of the stock market. In India, Zerodha and Upstox are the top-ranking discount brokers. If you are looking for the best intermediary to trade on your behalf, it may be hectic to choose between the two. However, by basing your considerations on various factors, you can select the stockbroker who fits your preferences.
We will compare the two leading stockbrokers by focusing on their features, including brokerage charges, ease of use, account opening processes, profit margins, and customer reviews. Despite the two being highly competitive due to almost similar charges and facilities, a side-by-side comparison can help you identify the perfect trading platform.
What is Zerodha?
Zerodha is the largest and most preferred stockbroker in India. The company, whose headquarters are in Bangalore, has been in existence since 2010. Most customers opt for Zerodha due to its credibility, advanced technology, low charges, and reliability. The broker offers various discounted brokerage services to clients who invest in mutual funds, equity, derivatives, currencies, bonds, and IPO.
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Zerodha’s outstanding features include:
- Zerodha has its specific trading platform (Kite), a trading app, and the Zerodha coin.
- It offers the most advanced trading tools.
- It’s ideal for all types of investors, including beginners, active or passive investors, and algo traders.
- It has several safety measures for investors, such as not pooling clients’ securities or trading with their funds.
- Zerodha provides up to 20 times leverage on intraday trading.
Pros
- It offers zero brokerage charges for delivery.
- It provides a 3-in-1 Demat account for investors whose savings are in the IDFC first bank.
- Zerodha gives clients an option to invest in mutual funds with their Demat account via the Zerodha coin.
- It supports the NRI Demat account.
- Zerodha actively interacts with clients through Z-connect, blogs, and the portal.
Cons
- It provides a low margin.
- Zerodha offers no trading advisory.
- Clients may experience regular delays and service interruptions during trading.
What is Upstox?
Upstox is the second-largest brokerage firm in India. The company started in 2012, and its headquarters are in Mumbai, India. The tech-first stockbroker offers some of the best and affordable deals. For instance, opening an Upstox account is free. Upstox also provides a user-friendly trading platform. You can invest in commodities, equities, currencies, derivatives, mutual funds, and ETF on Upstox.
Here are Upstox’s unique features:
- It provides an effective online trading platform on its mobile app and website.
- Upstox has a premium (Pro) package for paid services.
- It has an easy Demat account opening process.
- Upstox gives advanced stock analysis and chart updates.
- It has technical analysis and a data-driven user interface.
- Its trading platform is Omnisys Nest OMS (Order Management System) and RMS (Risk Management System) built.
Pros
- Upstox has regular offers.
- It provides an efficient online trading platform.
- It charges no fees for Demat account opening.
- Upstox has no brokerage charges for delivery.
Cons
- Clients cannot invest directly in IPO and FPO.
- It’s not preferable for beginners.
- Upstox has relatively poor customer service.
Zerodha Vs. Upstox: Side-by-side Comparison
Now, let us compare the two stockbrokers based on their features and services:
Brokerage Charges
Both stockbrokers charge no fee for delivery trading. Hence, if you don’t sell the shares you bought in a particular ay, there won’t be any brokerage charges.
| Brokerage Charges | Zerodha | Upstox |
| Equity delivery trading | 0 | 0 |
| Equity intraday trading | Rs. 20/order | Rs. 20/trade |
| Commodity option trading | Rs. 20/order | Rs. 20 |
| Equity options and futures trading | Rs. 20/order | Rs. 20/lot |
| Currency options & futures trading | Rs. 20/order | Rs.20/lot |
| Minimum brokerage | 0 | Rs. 20 |
| Demat AMC charges | Rs. 300/year | Rs. 150/year |
| Trading AMC charges | Free | Free |
| Margin money | 0 | 0 |
Accounts Comparison and Services
Zerodha account-opening charges are relatively higher than Upstox’s. Upstox also gives regular offers to open an account. While Zerodha provides services for Bonds and NCD, Upstox does not offer any in the two segments. Zerodha also supports the NRI account.
| Demat Services | Zerodha | Upstox |
| Depository source | CDSL | CDSL |
| Account opening charges | Rs. 300 | Rs. 150 |
| Margin money | 0 | 0 |
| Offline to online | None | None |
Other Charges
| Charges | Zerodha | Upstox |
| Transaction charges | 0.00325% of Total Turnover | 0.00275% of Total Turnover |
| SEBI turnover charges | 0.0002% of Total Turnover | 0.0002% of Total Turnover |
| STT | 0.0126% of Total Turnover | 0.0126% of Total Turnover |
| GST | 18% of (brokerage + transaction charges) | 18% of (brokerage + transaction charges) |
| Stamp duty | Depends on the state (minimal) | Depends on the state (minimal) |
Margins/Exposure/Leverage
Margins allow traders to use brokers’ funds in trading for shares that exceed the amount in their accounts. Brokers also offer leverage to protect their clients. You should choose a broker who doesn’t with minimal exposure to risk. The table below shows the margin comparison for Zerodha and Upstox trading platforms.
| Segment | Zerodha | Upstox (Basic Plan) | Upstox (Priority Plan) |
| Equity delivery | None | Up to 2.5X | Up to 2.5X |
| Equity intraday | Up to 20X | Up to 25X | Up to 30X |
| Equity futures | Up to 2.5X | Up to 4X | Up to 9X |
| Equity options | Up to 3X (selling) | Up to 4X (selling) | Up to 7X (selling) |
| Currency futures | Up to 2.5X | Up to 4X | Up to 9X |
| Currency options | Up to 2.5X | Up to 4X | Up to 7X |
| Commodities | Up to 2.5X | Up to 4X | Up to 9X |
Customer Support
| Support | Zerodha | Upstox |
| Dedicated dealer | ✖ | ✖ |
| Offline trading | ✖ | ✖ |
| Online trading | ✔ | ✔ |
| 24/7 support | ✔ | ✖ |
| Email support | ✔ | ✔ |
| Chat support | ✔ | ✖ |
| Support number | 080-40402020 | 022 – 6130 9999 |
| Toll-free number | ✖ | ✖ |
Customer Complaints
| Complaints | Zerodha | Upstox |
| Lodged in BSE | 120 | 185 |
| Resolved in BSE | 117 | 126 |
| Lodged in NSE | 89 | 175 |
| Resolved in BSE | 85 | 139 |
Customer reviews
| Customer Ratings | Zerodha | Upstox |
| Experience | 5.7/10 | 5.3/10 |
| Products and services | 8.5/10 | 6.5/10 |
| Trading platforms | 9.0/10 | 6.5/10 |
| Brokerage charges& fees | 9.5/10 | 9.5/10 |
| Stock research & advisory | 4.0/10 | 3.0/10 |
| Star ratings | ★★★★★ | ★★★☆☆ |
| Total client reviews | 1865 | 598 |
Final Words
Both Zerodha and Upstox are good and reliable discount brokers in the Indian stock market. However, based on the comparisons in this article, Zerodha seems to take the top rank.
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