Zerodha vs. Groww – Which is Better?

Investing in stocks, a decade ago, meant visiting your broker’s office, making endless calls, and managing heaps of paperwork. Today, it’s as simple as a tap on your smartphone screen, thanks to platforms like Zerodha and Groww.

But which one reigns supreme in the world of online stock trading? Let’s dive into an in-depth comparison.

Zerodha and Groww, two giants in the Indian stock trading scene, have revolutionized the way Indians invest. With user-friendly platforms and a range of features, they both have their strengths.

But if you’re standing at the crossroads of picking one, we’re here to help.

1. Brief History

• Zerodha:
  Launched in 2010, Zerodha’s name is derived from the Sanskrit words ‘Zer’ and ‘Rodha’, meaning ‘Zero’ and ‘Barrier’. True to its name, the platform aimed at breaking down barriers in stock trading, making it more accessible to the masses. Today, it’s one of India’s leading stockbrokers.
• Groww:
  Founded in 2016, Groww began as a mutual funds investment platform and gradually ventured into the stock trading arena. Its core vision was to simplify investing for Indian millennials.

2. Platform Interface and User Experience

• Zerodha:
  With its Kite platform, Zerodha offers a sleek, responsive, and intuitive interface. Features such as advanced charting, quick order placements, and multi-market access make it suitable for both beginners and seasoned traders.
• Groww:
  Groww provides a simplistic and straightforward interface, especially catering to beginners. Its seamless onboarding process and clutter-free design give it an edge for those new to the stock market.

3. Brokerage Charges

• Zerodha:
  Zerodha follows a flat fee structure, charging ₹20 or 0.03% (whichever is lower) for intraday trades. For delivery-based trades, there’s no brokerage. However, other standard regulatory charges apply.
• Groww:
  Like Zerodha, Groww also doesn’t charge for delivery-based equity trades. For intraday, they charge a flat fee of ₹20 per order.

4. Investment Options

• Zerodha:
  Apart from equity, Zerodha provides a wide array of investment options such as commodities, mutual funds, IPOs, and bonds.
• Groww:
  Initially centered around mutual funds, Groww has expanded its offerings to include equity, digital gold, US stocks, and fixed deposits.

5. Educational Initiatives

• Zerodha:
  The introduction of ‘Varsity’ is a game-changer for many beginners. It’s an extensive, free educational platform covering stock market basics, trading strategies, and more.
• Groww:
  Groww leans on its blog, which encompasses a plethora of articles, videos, and tutorials for both novice and experienced investors.

6. Customer Support

• Zerodha:
  Though known for its innovations, Zerodha has faced criticisms regarding customer service delays. They’ve been working on improvements, but it remains a mixed bag.
• Groww:
  With its fewer years in the market, Groww has been fairly consistent in offering timely customer support, but it’s not without occasional hiccups.

7. Additional Features

• Zerodha:
• Coin: A direct mutual fund platform.
• Streak: An algo-trading platform.
• Sentinel: Real-time market alerts.
• Groww:
• SmartSave: A feature to earn more on idle money.
• Stock Screeners: Helps in making informed investment decisions.

Which is Better for NRIs?

The Non-Resident Indian (NRI) community represents a significant chunk of investors in the Indian stock market. Given the burgeoning interest from this group, platforms like Zerodha and Groww are tailoring their services to cater to the NRI segment.

So, which one is more attuned to the NRI investor’s needs? Let’s dissect.

• Zerodha for NRIs:
  • NRI Account Facility:
    Zerodha offers a dedicated NRI trading and demat account. Partnered with HDFC, IDFC First, and Axis bank, they provide a seamless 3-in-1 account integration, making fund transfers convenient.
  • Brokerage Charges:
    Zerodha charges ₹200 or 0.1% (whichever is lower) for equity and ₹100 per order for F&O.
  • Features:
    Zerodha’s Coin platform extends to NRIs, enabling them to invest in mutual funds directly.
  • Customer Support:
    Given the varied time zones, Zerodha has a dedicated helpline and email support for NRI queries.
  • Documentation:
    KYC process for NRIs is streamlined, although they do require a PIS (Portfolio Investment Scheme) letter from the partnered banks.

• Groww for NRIs:
  • NRI Account Facility:
    As of the last update in January 2022, Groww had just started to roll out its services for NRIs, so it might not be as comprehensive as Zerodha.
  • Brokerage Charges:
    Groww’s fee structure for NRIs is competitive, albeit similar to domestic investors, with no charges for delivery trades.
  • Features:
    Groww’s user-friendly dashboard, with its simplified analytics, can be advantageous for NRIs unfamiliar with the intricacies of the Indian stock market.
  • Customer Support:
    Groww extends its prompt customer support to its NRI clientele. However, it’s advisable to check if 24/7 support is available, considering time zone differences.
  • Documentation:
    Groww aims for a simplified documentation process. Still, NRIs might face a wait time, given the relatively recent roll-out of their NRI services.

Verdict

For NRIs, Zerodha currently stands out due to its matured and established NRI services, comprehensive features, and the added benefit of the 3-in-1 account integration.

However, Groww, with its rapid innovations, is worth keeping an eye on as they expand and refine their NRI services.

Before making a decision, NRIs should also consider factors like ease of fund transfer, the clarity of documentation, and personal comfort with the platform interface.

Remember, irrespective of the platform, NRIs need to stay updated with RBI regulations and ensure that their investments comply with the Foreign Exchange Management Act (FEMA) guidelines.

Conclusion

Choosing between Zerodha and Groww boils down to individual preferences.

If you’re a seasoned trader looking for advanced features, Zerodha might be your pick. However, if you’re a beginner seeking a simple, straightforward platform, Groww could be the way to go.

Remember, the best platform is the one that aligns with your investment goals, style, and experience. Both platforms have their merits, and it’s about finding the right fit for your financial journey.

Note: The information presented in this article is based on data available up to January 2022. For the latest updates, features, and charges, it’s advisable to visit the official websites of Zerodha and Groww.