Zerodha vs Upstox: Broker Comparision

7 Jan 2021  Read 396 Views

As humans of the 21st century, we live in the age of technology, which has become an integral part of almost all aspects of our lives as well as businesses. With the advancement in fintech for financial inclusion, a lot of different businesses have undergone a technological revolution.

Significant technological progress has been observed in the stock markets, which are now running virtually almost entirely. It is now easier to engage in financial market transactions through our portable devices like laptops and mobiles. 

With great ease in the functioning comes great competition to provide efficient brokerage services. The current number of brokerage firms is considerably larger than in the past, where there were a limited number of firms, and it increases every day. The new-age brokerage firms have excellent business acumen and some of the finest tech supports. 

If we have to think of such new-age brokerage firms of today, Zerodha and Upstox are usually the first names that pop up in our minds. Here, we look into these firms and make an analytical comparison between the workings of the two.

Let’s dive straight in.

Zerodha – Pioneer of Discount Broking

Currently, Zerodha is the most prominent brokerage firm in the country with the highest number of clients. Zerodha Brokerage is also the largest discount brokerage firm that provides aided benefits to its clients, which include (but are not limited to) no charges for the equity delivery segment and a fixed rate for every kind of intraday transactions. 

Zerodha provides a host of applications that cater to the different needs of a variety of its clients, free of cost. It offers a variety of tools that help in performing better trades by applying different types of strategies. The platform is very well known for its excellent customer and technical support.

Upstox – Trade Faster, Trade Smarter

Previously known as RKSV, Upstox brokerage is another one of the leading brokerage firms. It is known to provide excellent technical support along with concessional brokerage trades. Upstox offers great tools for its customers free of cost through its mobile app Upstox Pro. 

Ratan Tata supports the Upstox group because of its technical prudence and business strategy. The platform provides reasonable customer assistance to its clients.

How do they fare against each other?

Both Zerodha and Upstox are innovative, technically proficient, client-centric companies known for their excellent customer services. When investors are presented with a choice to decide which firm they would like to trade with, they surely will get confused since both the firms are similar in their business offerings. 

Therefore, we try to make it easier for you investors by comparing the two firms analytically:

Company details

Particulars

Zerodha

Upstox

Incorporation year

2010

2012

Type of broker

Discount broker

Discount broker

Supported exchanges

NSE, BSE, MCX, and NCDEX

BSE, NSE, MCX

Account type offered

Flat brokerage plan

Upstox basic.

Product offering

Equity, commodity, currency, futures, options

Equity, commodity, currency, futures, options.

Other investment options

Mutual funds, IPO platform, bonds, and debt, exchange-traded funds

Mutual funds, IPO platform, bonds and debt, exchange-traded funds and insurance.

Additional features

3 in 1 account, SMS alerts, margin against share

3 in 1 account, SMS alerts, margin funding, margin against share.

Zerodha Vs. Upstox based on their brokerage plans and charges

Particulars

Zerodha

Upstox

Charges relating to account opening & AMC

Account opening charges

Rs. 300 per annum

Free

Account maintenance charges

Rs. 300 per annum

Rs. 300 per annum

Call & trade charges

Rs. 20 per order

Rs. 20 per order

Various brokerage charges

Equity delivery

Zero

Zero

Equity intraday

0.03% on order value, up to Rs. 20

0.05% on order value, up to Rs. 20

Equity futures

0.03% on order value, up to Rs. 20

0.05% on order value, up to Rs. 20

Equity options

Rs. 20 per order

Rs. 30 per order

Currency futures

0.03% on order value, up to Rs. 20

0.05% on order value, up to Rs. 20

Currency options

0.03% on order value, up to Rs. 20

Rs. 30 per order

Commodity futures

0.03% on order value, up to Rs. 20

0.05% on order value, up to Rs. 20

Commodity options

0.03% on order value, up to Rs. 20

Rs. 30 per order

Margin requirements

Equity delivery

0x (as per exchange)

2x (as per exchange)

Equity intraday

3x (as per exchange)

7x (as per exchange)

Equity futures

2.5x (as per exchange)

4x (as per exchange)

Equity options

2.5x (as per exchange)

4x/2x

(Buy: 4x / Sell: 2x)

Currency futures

2.5x (as per exchange)

4x (as per exchange)

Currency options

2.5x (as per exchange)

0x (as per exchange)

Commodity futures

2.5x (as per exchange)

2.5x (as per exchange)

Commodity options

0x (as per exchange)

0x (as per exchange)

Transaction and other charges

Equity delivery:

Charge

 

 

Charge – Demat

 

 

Clearing charge

 

GST

 

 

STT

 

SEBI Charges

 

NSE – 0.00325%

BSE – 0.003%

 

-

 

 

-

 

18% on brokerage + transaction

 

 

Rs. 100 per lakhs

 

Rs. 5 per crore

 

NSE - 0.000325%

 

 

Sell-side, Rs. 18.5 per scrip

 

 

-

 

18% on brokerage + transaction + Demat

 

 

Rs. 100 per lakhs

 

Rs. 15 per crore

Equity intraday:

Charge

 

 

Charge – Demat

 

Clearing charge

 

GST

 

 

STT

 

SEBI Charges

 

NSE – 0.00325%

BSE – 0.003%

 

-

 

-

 

18% on brokerage + transaction

 

 

Sell-side, Rs. 25 per lakh

 

Rs. 5 per crore

 

NSE – 0.00325%

 

 

-

 

-

 

18% on brokerage + transaction

 

 

Sell-side, Rs. 25 per lakh

 

Rs. 15 per crore

Equity futures:

Charge

 

Charge – Demat

 

Clearing Charge

 

GST

 

 

STT

 

SEBI Charges

 

NSE – 0.0019%

 

-

 

-

 

18% on brokerage + transaction

 

 

Sell-side, Rs. 10 per lakh

 

Rs. 5 per crore

 

NSE – 0.0019%

 

-

 

NSE – 0.0002%

 

18% on brokerage + transaction +clearing

 

 

Sell-side, Rs. 10 per lakh

 

Rs. 15 per crore

Equity options:

Charge

 

Charge – Demat

 

Clearing charge

 

GST

 

 

STT

 

SEBI Charges

 

NSE – 0.05%

 

-

 

-

 

18% on brokerage + transaction

 

 

Sell-side, Rs. 50 per lakh

 

Rs. 5 per crore

 

NSE – 0.05%

 

-

 

NSE - 0.005%

 

18% on brokerage + transaction +clearing

 

 

Sell-side, Rs. 50 per lakh

 

Rs. 15 per crore

Currency futures:

Charge

 

 

Clearing charges

 

 

GST

 

 

STT

 

SEBI Charges

 

NSE – 0.0009%

BSE – 0.00022%

 

-

 

 

18% on brokerage + transaction

 

 

-

 

Rs. 5 per crore

 

NSE – 0.0009%

BSE – 0.00022%

 

NSE – 0.0004%

BSE – 0.0004%

 

18% on brokerage + transaction

 

 

-

 

Rs. 15 per crore

Currency options:

Charge

 

 

Clearing charges

 

 

GST

 

 

STT

 

SEBI Charges

 

NSE – 0.00325%

BSE – 0.001%

 

-

 

 

18% on brokerage + transaction

 

 

-

 

Rs. 5 per crore

 

NSE – 0.04%

BSE – 0.001%

 

NSE – 0.025%

BSE – 0.025%

 

18% on brokerage + transaction

 

 

-

 

Rs. 15 per crore

Commodity futures:

Charge

 

 

 

 

GST

 

STT

 

SEBI Charges

 

Group A – 0.0026%

Group B – 0.00005%

 

 

 

18% on brokerage + transaction

 

Sell-side, 0.01% for non-agri

 

Agri – Rs. 1 per crore

Non-Agri – Rs. 5 per crore

 

 

0.0026% for non-agri 

 

 

 

18% on brokerage + transaction

 

Sell-side, 0.01% for non-agri

 

Rs. 15 per crore

 

Commodity options:

Charge

 

GST

 

STT

 

SEBI Charges

 

-

 

18% on brokerage + transaction

 

Sell-side, 0.05%

 

Rs. 5 per crore

 

-

 

18% on brokerage + transaction

 

Sell-side, 0.05%

 

Rs. 15 per crore

So, what is the final word?

Zerodha and Upstox offer similar products and services. They have near-identical brokerage plans and provide an excellent trading platform. The above analysis shows that Zerodha does not recover clearing charges from its customers. This is because it is a self-clearing broker. Both the trading platforms are unique and give the best customer services.  

This article provides a snapshot of the features and offerings of the two platforms. For more details and analysis, visit Finology Select.

Stay Positive, Test Negative!

Happy Investing.

About the Author: Shrey Salwan | 17 Post(s)

Shrey is an MBA student at FLAME University, Pune majoring in Finance. He is also pursuing Chartered Accountancy (CA) and Company Secretaryship (CS). He is a detail oriented, analytical and self motivated individual seeking to become a financial analyst. He has a knack for telling stories and does so through his quirky way of writing.

Liked What You Just Read? Share this Post:

Finology Blog / Brokerage Review / Zerodha vs Upstox: Broker Comparision

Wanna Share your Views on this? Comment here: