Zerodha and Upstox are two popular discount brokers in India that offer online trading services. While both brokers offer similar services, there are some key differences that investors should be aware of when choosing between them.
Who’s the Boss? Ownership and Background of Zerodha and Upstox
Upstox was founded in 2011 by Ravi Kumar, Kavitha Subramanian, and Shrini Viswanath. It is owned by RKSV Securities Pvt. Ltd and has prominent investors like Ratan Tata and Tiger Global Management. Zerodha, on the other hand, was founded in 2010 by Nithin Kamath and Nikhil Kamath and is a bootstrapped start-up with a 100% stake in the company.
Zerodha vs Upstox Profits and Losses: A Comparative Look at the Financial Performances
Zerodha has seen significant growth since 2019, with a net profit of Rs. 442.3 cr to Rs. 1000 cr in FY2020 with a revenue of Rs. 1096.64 cr. After a profit of Rs. 13.06 cr with a revenue of Rs. 77.5 cr in FY2019, Upstox had seen a 100% increase in revenue in FY2020 with losses of Rs. 37.05 cr. This makes Zerodha the larger and more profitable company of the two. In fact, Zerodha happens to be the only profitable fintech startup in the country.
The Cost of Entry: Account Opening Charges for Zerodha and Upstox
Upstox and Zerodha offer a 3-in-1 account facility that includes a Demat account, a Trading account, and a Savings account with IDFC FIRST bank and Indusind bank, respectively. Upstox charges Rs. 249 for opening a Demat and trading account, while Zerodha charges Rs. 200 for equity, currency, and commodity trading accounts and Rs. 300 for commodity, equity, and currency trading accounts.
|Trading Account Opening Charges||Rs 200||Rs 0 (Free)|
|Trading Account AMC Charges||Rs 0 (Free)||Rs 0 (Free)|
|Demat Account Opening Charges||Rs 0||Rs 0 (Free)|
|Demat Account AMC Charges||Rs 300||Rs 150|
Zerodha vs Upstox: Account Maintenance Charges Compared
Both brokers charge account maintenance charges (AMC) to keep your Demat account active. Upstox charges Rs. 25+18% GST every month as AMC. Zerodha charges Rs. 300 + GST, which is charged quarterly. While both brokers have similar AMC charges, Upstox allows investors to pay the amount monthly, which may be more convenient for some investors.
Zerodha vs Upstox: Brokerage Charges
Brokerage charges are a crucial factor to consider when choosing a broker. Zerodha and Upstox both offer low brokerage charges compared to other brokers in the market. In equity delivery trading, both brokers offer zero brokerage charges. The maximum brokerage charge for equity intraday trading is Rs. 20 in both cases.
In equity futures trading, Upstox charges 0.05% of the traded value or a maximum of Rs. 20 per order, whichever is lower. Zerodha, on the other hand, charges 0.03% of the traded value or a maximum of Rs. 20 per order, whichever is lower. Similarly, in equity options trading, Upstox charges Rs. 20 per order or 0.05% of the traded value, whichever is lower. Zerodha charges Rs. 20 per order or 0.03% of the traded value, whichever is lower.
In commodity trading, both brokers charge a maximum of Rs. 20 per order. However, Upstox charges 0.05% of the traded value or a maximum of Rs. 20 per order, whichever is lower. Zerodha charges 0.03% of the traded value or a maximum of Rs. 20 per order, whichever is lower.
|Account Type||Zerodha Flat Brokerage Plan||Upstox Default|
|Equity Delivery||Rs 0 (Free)||Rs 20 per executed order or 2.5% whichever is low|
|Equity Intraday||Rs 20 per executed order or .03% whichever is lower||Rs 20 per executed order or 0.05% whichever is lower|
|Equity Futures||Rs 20 per executed order or .03% whichever is lower||Rs 20 per executed order or 0.05% whichever is lower|
|Equity Options||Rs 20 per executed order||Rs 20 per executed order|
|Currency Futures||Rs 20 per executed order or .03% whichever is lower||Rs 20 per executed order or 0.05% whichever is lower|
|Currency Options||Rs 20 per executed order||Rs 20 per executed order|
|Commodity Futures||Rs 20 per executed order or .03% whichever is lower||Rs 20 per executed order or 0.05% whichever is lower|
|Commodity Options||Rs 20 per executed order||Rs 20 per executed order|
Zerodha vs Upstox: Margin Trading, Which Broker Offers More Leverage?
Upstox offers a margin trading facility of up to 20 times on selected scrips, while Zerodha offers margin trading facility up to 20 times across all scrips. This makes Zerodha a better choice for investors who want to leverage their investments.
Zerodha vs Upstox: Platform Features
Both brokers have a mobile app and a trading platform. Upstox offers the Upstox Pro trading platform, which has a user-friendly interface and offers features like charting tools, customizable workspaces, and advanced order types. Zerodha offers the Kite trading platform, which is also user-friendly and offers features like real-time data, advanced charting tools, and advanced order types. Both brokers’ mobile apps offer a seamless trading experience and are easy to use.
Upstox offers technical and fundamental analysis tools like TradingView and Upstox Pro Web. Zerodha offers trading and investment research, market commentary, and trading tools on its website. While both brokers offer research and analytics, Zerodha provides more comprehensive research and market commentary, making it a better choice for investors who rely on research and analysis.
Customer Support: Who Offers Better Service, Upstox or Zerodha?
Both brokers offer customer support through phone, email, and chat support. Zerodha has a dedicated team of customer support executives that help investors with their queries. Upstox offers a similar level of customer support, but there have been some complaints about the response time of their customer support team.
The Final Verdict: Which Broker Comes Out on Top – Upstox or Zerodha?
In conclusion, while both Upstox and Zerodha are popular discount brokers in India, there are some key differences between them that investors should be aware of. Zerodha is a more profitable company, has lower account opening charges, and offers more comprehensive research and analysis tools. Upstox, on the other hand, offers more flexible monthly account maintenance charges and margin trading facilities on select scrips. Ultimately, the choice between Upstox and Zerodha comes down to the investor’s preferences and requirements. It is essential to consider all the factors discussed above before deciding.
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