There are various popular stockbrokers in India, Zerodha and m.Stock is one of them. The right stockbroker is important to earn decent profits and get a smoother trading experience. There are countless stockbrokers in India and choosing one may not be easy for everyone. So, to make your task easier, we will compare the two popular discount brokers in India named, Zerodha and m.Stock. In this article, you will find an in-depth analysis and comparison between Zerodha and m.Stock.
Introduction to Zerodha and m.Stock
Zerodha
When we talk about the best stockbrokers in India, Zerodha comes at the top list. Zerodha is the largest and most reputed stockbroker in India offering a disruptive brokerage pricing model to its customers. It started in the year 2010 by Mr Nithin Kamath, who started to change the broking industry. They offer broking services including, low brokerage charges and online trading platforms. They have the largest active client base in India with over 1 Cr+ clients.
Android App Rating: 4.0/5
iOS App Rating: 3.5/5
Active Clients: 63,57,948
m.Stock
m.Stock is a discount broker, launched by Mirae Asset. Mirae Asset started in Asia and now has a presence in over 14 countries. M.Stock launched in the year 2022 and offers lifetime zero brokerage across all products. It is trusted by millions of investors and traders for over 25 years globally. They have total client assets of 548 billion USD and 1,316 crore+ average daily turnover. They charge you a one-time fee of Rs. 999 allowing you to trade in various segments like stocks, mutual funds, currency, F&O, IPOs, etc.
Android App Rating: 4.5/5
iOS App Rating: 3.7/5
Active Clients: 1,68,442
Zerodha and m.Stock Features
| S. No. | Zerodha | m.Stock |
|---|---|---|
| 1. | Low brokerage charges with innovative trading platform. | Zero brokerage charges for a lifetime. |
| 2. | Advanced order types are available like cover orders, GTT orders, etc. | Super-fast, stable and secure technology. |
| 3. | Multilingual trading support. | Intuitive user interface and easy-to-use platform. |
| 4. | Different trading apps for different segments like Coin, Kite, and Console. | Quick order placement in just a single click. |
| 5. | Direct mutual fund available. | They provide voice assistance at every step to help you. |
| 6. | Option to trade in multiple segments like stocks, mutual funds, IPOs, F&O, etc. | Multiple investment options to invest and trade. |
| 7. | Easy online fund transfer facility. | Super-fast, stable, and secure technology. |
Zerodha Review- Advantages and Disadvantages
Every stockbroker has its pros and cons. So, now we will discuss the advantages and disadvantages of Zerodha. This will help you to decide if this stockbroker is right for your trading needs.
Advantages of Zerodha
- Zerodha contributes to over 15% of overall retail order volumes in India, which makes them the largest stockbroker.
- Zerodha is one of the trustworthy brokers who provide safety and commitment.
- They do not charge any brokerage for equity delivery and mutual funds.
- On intraday trading, you can get up to 20x leverage.
- They charge a maximum brokerage of Rs. 20 per order.
- Offers advanced trading platforms with innovative technology.
- Educational blogs and videos to increase financial literacy among their customers.
- Responsive customer service through calls, email support, and creating a ticket feature.
- Offer the most popular trading app, known as Zerodha Kite with advanced features like multiple market watchlists, streaming quotes, and much more.
- They offer a referral program, where if you refer a friend to Zerodha, you will both receive a 10% brokerage share.
Disadvantages of Zerodha
- For call & trade service, they charge you Rs. 20 per trade.
- Zerodha does not offer a 3-in-1 demat account.
- It does not provide you with any stock recommendations or investment analysis.
- They do not have any live support for their customers.
- There are a few additional charges for MIS/BO/CO positions, SMS trade alerts, DP charges, etc.
- Zerodha does not offer any banking services.
- Zerodha does not offer any banking services.
m.Stock Review- Advantages and Disadvantages
m.Stock is comparatively a new stockbroker in the industry. So, we will now review about the m.Stock stockbroker along with its pros and cons.
Advantages of m.Stock
- They do not charge any AMC charges for a demat account.
- There is a Rs. 149 plan that allows you to test out the service before subscribing to the Rs. 999 plan.
- They offer the most affordable brokerage structure among various discount brokers.
- Easy-to-use calculators for making smart investment decisions.
- You can view your entire portfolio in a single view screen.
- Access to reliable market data and financial information for fundamental study and analysis.
- You can create up to 7 watchlists with 50 stocks each.
- Onboarding new customers in less than 5 minutes.
- Trading charts are available with the buy and sell feature.
- Referral program to earn some extra commission.
- Exemption from stock transaction commissions.
Disadvantages of m.Stock
- They do not provide stock analysis or research reports.
- They do not offer commodity trading yet.
- If investors do not select the 999 Zero Brokerage plan, an AMC of Rs. 120 is levied per quarter.
- No physical branches are available because it is a discount broker.
- Minor issues in the broker’s app due to its recent market entry.
Zerodha vs. m.Stock Charges
Zerodha Account Opening and AMC Charges
| Transaction | Charges |
|---|---|
| Trading Account Opening Charges | Rs 200 |
| Trading AMC- Annual Maintenance Charges | Rs 0 (Free) |
| Demat Account Opening Charges | Rs 0 |
| Demat AMC- Annual Maintenance Charges | Rs 300 |
Zerodha Brokerage Charges
| Segment | Brokerage Charges |
|---|---|
| Equity Delivery | Rs. 0 (Free) |
| Equity Intraday | Rs. 20 per executed order or 0.03% ( whichever is lower) |
| Equity Futures | Rs. 20 per order executed or 0.03% (whichever is lower) |
| Equity Options | Rs. 20 per executed order |
| Currency Futures | Rs. 20 per executed order or 0.03% whichever is lower |
| Currency Options | Rs. 20 per executed order |
| Commodity Futures | Rs. 20 per executed order or 0.03% whichever is lower |
| Commodity Options | Rs. 20 per executed order |
There are other charges and taxes which are levied apart from brokerage, they are:
- Turnover/Transaction Charges
- Security Transaction Tax (STT)
- SEBI Fees
- Stamp Duty
- GST
m.Stock Account Opening and AMC Charges
| Transaction | Charges |
|---|---|
| Demat & Trading Account Opening Charges (One-time) | Rs. 999 |
| Demat & Trading Account Annual Maintenance Charges (AMC) | Free |
m.Stock Brokerage Charges
| Charges | Equity Delivery | Equity intraday | Futures | Options |
|---|---|---|---|---|
| Brokerage | Zero | Zero | Zero | Zero |
| Call & Trade Charges | Zero | Zero | Zero | Zero |
| STT/CTT | 0.1% on buy & sell | 0.025% on the sell side | 0.0125% on sell-side | 0.125% of the intrinsic value on options that are bought and exercised |
| Transaction charges | NSE: 0.00325% BSE: 0.00375% | NSE: 0.00325% BSE: 0.00375% | NSE: 0.0019% | NSE: 0.050% (on premium) |
| GST | 18% on (Brokerage + transaction charges + SEBI charges) | 18% on (Brokerage + transaction charges + SEBI charges) | 18% on (Brokerage + transaction charges + SEBI charges) | 18% on (Brokerage + transaction charges + SEBI charges) |
| SEBI charges | Rs. 10 / crore | Rs. 10 / crore | Rs. 10 / crore | Rs. 10 / crore |
| Stamp charges | 0.015% or Rs. 1500 / crore on the buy side | 0.003% or Rs. 300 / crore on buy-side | 0.002% or Rs. 200 / crore on buy-side | 0.003% or Rs. 300 / crore on buy-side |
Zerodha and m.Stock Margins
| Segment | Zerodha | m.Stock |
|---|---|---|
| Equity Delivery Margin | 0x | 1x |
| Equity Intraday Margin | 3x | 4x |
| Equity Futures Margin | 2.5x | 1x |
| Equity Options Margin | 2.5x | 1x |
| Currency Futures Margin | 2.5x | 1x |
| Currency Options Margin | 2.5x | 1x |
| Commodity Futures Margin | 2.5x | – |
| Commodity Options Margin | 0x | – |
Zerodha vs.m.Stock Trading Platforms
Zerodha Trading Platforms
- Zerodha Kite Website: It is a web-based trading platform for traders and investors, where you can get streaming market data, a universal search instrument, 100+ indicators, and advanced charting options.
- Zerodha Kite App: It is a mobile trading app that provides advanced features like a live market, multiple market watchlists, various advanced technical indicators, a fund transfer facility, multiple order types, and quick execution of trades.
- Zerodha Coin: It is a platform for mutual fund investments at zero commission. It is free to use, and you can invest in direct mutual funds through SIP and lumpsum. You can also invest in Government bonds, corporate bonds, and gold bonds as well.
- Other Products: Zerodha offers other products as well like Smallcase, Streak, Varsity, Sensibull, Ditto, and Golden Pi.
m.Stock Trading Platforms
- m.Stock Web Portal: It is a website-based portal with a smart user interface and advanced trading tools. It doesn’t need any software installation. It provides intuitive features like single-click order placement, different calculators, fundamental and technical data, creating up to 7 watchlist, and quick voice search.
- m.Stock Share Market App: It is designed for smartphone users and can be used on iOS and Android devices. It offers some unique features like option chain analysis, one-view portfolio, price alerts, live market data, order placement in a single click, and advanced charting options.
Zerodha vs. m. Stock- Which is better?
m.Stock launched in 2022 and Zerodha has been in the broking industry since 2010. Even though m.Stock is new in the market, they have gained huge popularity due to their USP of zero brokerage lifetime. However, most Indian traders consider Zerodha to be the most trustworthy trading platform.
Now, which broker to choose depends on your personal choice. Every individual has it’s own choices and every broker has its pros and cons. If you are looking for a broker that provides user-friendly trading platforms and outstanding services, you can go for Zerodha. However, if you are looking from a cost perspective, m.Stock can help you save huge brokerage amounts and they are performing well in just a year.
Conclusion
Both of the stockbrokers- Zerodha and m.Stock provides various advantages and caters to varying trading needs. To identify which brokerage platform is best for your financial goals, you must first assess your needs and priorities. Select the platform which suits best your needs and helps you in achieving your goals. Look for the reviews of a stockbroker and if you have any confusion, they provide you with a demo. Make sure to check the complaints against a stockbroker and how quickly they are resolving them.
FAQs about Zerodha vs. m.Stock
Que: Which broker is better among Zerodha and m.Stock?
Ans: Both of the brokers are popular in the industry and selecting the one entirely depends on you. Zerodha has more clients and better trading platforms, whereas m.Stock offers free brokerage.
Que: Is m.Stock good for trading?
Ans: m.Stock offers an intuitive user interface, which is beneficial for both new and experienced investors. It is from the brand Mirae Asset, which increases its credibility and trust.
Que: Is Zerodha good for beginners?
Ans: Zerodha is the largest stockbroker offering unique products and services with low brokerage costs. It also provides simple trading platforms, making it a good choice for investors and traders.
Que: Which stockbroker is best for mutual funds?
Ans: Zerodha Coin is one of the best apps for mutual funds which offers direct mutual funds and a simple-to-use platform.
Que: Does m.Stock offer free trading?
Ans: Yes, m.Stock offers free trading if you choose a plan of zero brokerage for a lifetime. You can trade in stocks, mutual funds, currency, and IPO with zero brokerage by paying just a one-time of Rs.999.
