Zerodha Vs Sharekhan

Category: Broker Guides | Author: Trading Brokers | Date: August 25, 2023

In the dynamic world of online trading, choosing the right brokerage platform can significantly impact your trading journey. Two prominent names that often come to the forefront are Zerodha and Sharekhan. As traders and investors seek the best options to meet their financial goals, it becomes crucial to compare the offerings and features of these leading brokers. In this article, we will conduct an in-depth analysis of Zerodha and Sharekhan, examining their strengths, weaknesses, and key differences. Whether you are a seasoned trader or just starting in the world of investments, join us on this comprehensive comparison to make an informed decision about which platform aligns with your trading needs and aspirations.

Overview of Zerodha

Zerodha Logo

Zerodha

Zerodha, one of India’s largest discount brokers, has made a significant impact in the online trading space. Geared towards the Indian market, Zerodha offers an array of products and stands out for providing free equity delivery services, making it an attractive choice for beginner investors. Its user-friendly trading platforms cater to traders of all levels, making the investment journey seamless and accessible.

As with any brokerage, Zerodha has its pros and cons. While the fees are generally low, there are charges for account opening and maintenance. Moreover, the account opening process may take time and involves paperwork. Nonetheless, Zerodha’s commitment to offering a straightforward and diverse range of products on their easy-to-use platforms has garnered significant praise within the Indian investment community.

Zerodha operates under the regulation of the top-tier Securities and Exchange Board of India (SEBI), providing a level of credibility and trust to its services. However, it’s important to note that Zerodha does not offer investor protection, which may be a consideration for some traders.

Pros of Zerodha

  • Low fees and commissions, making it cost-effective for traders.
  • Free equity delivery services, providing added value for long-term investors.
  • User-friendly and easy-to-navigate trading platforms, suitable for both beginners and experienced traders.
  • Offers a wide range of products and investment options, catering to diverse investment strategies.
  • Regulated by the top-tier SEBI, providing a level of credibility and trust.

Cons of Zerodha

  • Limited to Indian residents and focused on the Indian market only.
  • Account opening process may be time-consuming and involve paperwork.
  • Charges for account opening and maintenance, which can add to overall costs.
  • Does not offer investor protection, which may be a concern for some traders.
Zerodha Logo

Zerodha is a low-cost investment platform for traders and investors from India. They have a good variety of asset classes and supply you with a range of innovative trading tools for market analysis, signals and automated trading. You also get some educational materials and market insights but funding options are limited.

Investments in securities market are subject to market risks.

Overview of Sharekhan

Sharekhan Logo

Sharekhan

Sharekhan is a pioneer in online trading in India and operates under the regulation of SEBI, making it a trustworthy and regulated broker. With a user-friendly mobile trading platform, Sharekhan provides traders with an easy and efficient way to trade on the go. The broker offers valuable research tools to support trading decisions and boasts a responsive customer support team, which promptly addresses queries and concerns. Sharekhan’s focus on providing beginner-friendly features makes it an excellent choice for novice investors looking to enter the Indian market.

However, Sharekhan’s services are limited to the Indian markets, which may not suit traders seeking international exposure. While its stock and forex fees are not excessive, they may not be as competitive as some other brokers in the Indian market. Additionally, Sharekhan’s deposit and withdrawal options are restricted to bank transfers, which could be a drawback for traders looking for more diverse funding methods. Despite these limitations, Sharekhan remains a reputable option for investors seeking a regulated and user-friendly trading experience within India.

Pros of Sharekhan

  • Its mobile trading platform is user-friendly and well-equipped.
  • It offers some solid research to assist your trading decisions.
  • Sharekhan’s customer support team gives quick and useful answers.

Cons of Sharekhan

  • It gives you access only to Indian markets.
  • Sharekhan’s stock and forex fees are not very competitive on this market.
  • You can use only bank transfer for deposit and withdrawal
Sharekhan Logo

Sharekhan is an Indian brokerage firm that offers an excellent range of investment packages, portfolio management and trading services on its proprietary trading platforms. They also offer workshops, online education and quality market analysis.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparison Between Zerodha and Sharekhan

Are you trying to decide between Zerodha and Sharekhan? Here’s a comparison of the two brokers to help you make an informed decision.

Regulation

Zerodha and Sharekhan are both regulated by the Securities and Exchange Board of India (SEBI), which is the regulatory body for the securities market in India. SEBI is responsible for regulating the securities market in India and protecting the interests of investors. Both brokers are registered with SEBI as stockbrokers and are members of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Zerodha is a member of the NSE, BSE, MCX-SX, and MCX commodity exchanges. It is also registered with the Central Depository Services Limited (CDSL) as a depository participant. Sharekhan is a member of the NSE, BSE, MCX-SX, and NCDEX commodity exchanges. It is also registered with CDSL as a depository participant.

Trading Platforms

Zerodha is an online discount broker that offers trading at NSE, BSE, MCX-SX, and MCX commodity exchanges. It provides trading platforms such as Kite Web, Kite Mobile, and Kite Connect API. Sharekhan is a full-service broker that offers trading at BSE, NSE, MCX-SX, and NCDEX commodity exchanges. It provides trading platforms such as Sharekhan TradeTiger and Sharekhan Mobile. Both brokers offer trading platforms of the same quality. Clients have access to about the same number of markets and products with Sharekhan while Zerodha provides somewhat better research and education.

Pricing and fees

Zerodha’s equity delivery investments (NSE, BSE) are absolutely free with ₹0 brokerage. Intraday and F&O trades are charged at flat ₹20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades. Flat ₹20 on all option trades. On the other hand, Sharekhan’s fees are considered to be high. The fees for delivery of shares are 0.50%, while the fees for intraday trading are 0.10%. Fees for other segments such as commodities and currencies also vary.

Broker Type

Zerodha stands as a discount broker, contrasting with Sharekhan’s position as a full-service broker. While Sharekhan boasts a vast network of thousands of branches and franchise offices across India, providing personalized services to its clients, Zerodha operates as an online-only broker without any physical branches. This distinction in their business models allows each broker to cater to different preferences and trading styles in the Indian market.

Leverage

Sharekhan offers leverage up to 1:33 and its margin for intraday trading is up to 20% of the trade value (5x leverage) based on the stock whereas the Zerodha offers leverage up to 1:2 and its margin for intraday cash is also up to 20% of the trade value (5x leverage) based on the stock. This means that traders can potentially trade with funds five times their actual capital, amplifying their market exposure for intraday positions.

Asset Selection

Zerodha offers a diverse range of trading options, including Equity, Currency, Commodity, IPO, Futures & Options, Bonds, Govt. Securities, and Direct Mutual Funds. In comparison, Sharekhan provides trading services for Equity, Derivatives (Futures & Options), Currency Derivatives, Mutual Funds, and IPOs. Both brokers cater to various investment needs, allowing traders to access a wide array of financial instruments.

Social Trading

Zerodha provides a unique social trading experience through its platform called “Pulse,” functioning as a social network for traders. This innovative feature enables traders to share their trades and ideas with fellow traders on the platform. In contrast, Sharekhan does not offer social trading services, making Zerodha a standout option for those seeking a more interactive and collaborative trading environment.

Minimum deposit

Both Zerodha and Sharekhan have a minimum deposit requirement of $1, making them accessible options for investors looking to start with a small amount of capital. This low barrier to entry allows individuals to begin their trading journey with ease, regardless of their budget constraints.

Withdrawal and Deposit Methods

Zerodha’s deposit and withdrawal processes are user-friendly and free. However, there is only one account base currency, and you can only use bank transfers for deposits and withdrawals. Sharekhan also offers free deposit and withdrawal methods. Sharekhan allows its clients to deposit funds through various methods such as Net Banking, UPI, NEFT/RTGS/IMPS, Cheque/DD.

Which is Better For You?

Zerodha might be a better option for you if you prefer a discount broker with low-cost trading fees and an easy-to-use online platform. With Zerodha, you can enjoy commission-free equity delivery trades and competitive charges for other segments. The broker is regulated by SEBI, ensuring a safe trading environment for Indian investors. Additionally, Zerodha’s unique social trading feature “Pulse” allows you to connect with other traders and share trading ideas, enhancing your overall trading experience. If you’re looking to start trading with a small amount of capital, Zerodha’s minimum deposit requirement of $1 makes it an accessible choice for beginners.

On the other hand, Sharekhan might be a better option for you if you prefer a full-service broker with a vast network of branches and personalized services. While Sharekhan’s fees may be higher compared to Zerodha, the broker provides research and assistance to aid your trading decisions. Being regulated by SEBI, Sharekhan ensures a secure trading environment. If you value the convenience of multiple deposit methods, Sharekhan’s acceptance of Net Banking, UPI, NEFT/RTGS/IMPS, and Cheque/DD for funding your account could be beneficial. While Sharekhan may not offer social trading services like Zerodha, its customer support team is known for providing quick and useful answers to traders’ queries.

Conclusion

In conclusion, both Zerodha and Sharekhan are reputable brokers with their unique strengths and offerings. Zerodha stands out as a discount broker with low fees, user-friendly platforms, and a social trading feature. It is an excellent choice for cost-conscious traders who value online convenience and community engagement. On the other hand, Sharekhan shines as a full-service broker with an extensive branch network, personalized services, and in-depth research. It caters to investors seeking comprehensive support and a wide range of investment options. Ultimately, the choice between Zerodha and Sharekhan depends on individual preferences, trading styles, and investment goals.


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