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Zerodha or Sharekhan: Which is a Better Option for Investors in 2024?

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Table of Contents

Zerodha or Sharekhan: Ease of Opening Account

Zerodha or Sharekhan: User Experience

Zerodha or Sharekhan: Brokerage Model

Zerodha or Sharekhan: Features

Zerodha or Sharekhan: Trading Platforms

Zerodha or Sharekhan: Research Resources

Zerodha or Sharekhan: Customer Assistance

Zerodha or Sharekhan: Pros

Zerodha or Sharekhan: Cons

Conclusion

Choosing the right brokerage platform is a crucial decision for investors and traders alike. In India, Zerodha and Sharekhan are prominent names in the stockbroking industry, each with its unique set of features and services. Find out whether you should go for Zerodha or Sharekhan, based on a comprehensive comparison between the two brokers across various parameters.

Open an account with Zerodha.

Zerodha or Sharekhan: Ease of Opening Account

Zerodha has earned a reputation for its streamlined and cost-effective account opening process. Through their online platform, users can upload documents and complete a fully digital KYC process, making it quick and hassle-free.

The account opening process of Sharekhan is more traditional, involving physical documents. While it offers an online account opening option, it may be a bit more laborious when compared to Zerodha. It is better to go with Zerodha, for its faster and online-based account opening process.

Read on: Zerodha Charges – Account Opening Charges, Account Maintenance Charges etc.

Zerodha or Sharekhan: User Experience

Known for its minimalistic design and user-friendly platforms, Zerodha provides an exceptionally easy experience for beginners to navigate and start trading.

Sharekhan’s platforms are rich in bells and whistles but might overwhelm newcomers a little. Experienced traders, however, may love the in-depth features and tools here. Zerodha stands as a better option for its simplicity.

Zerodha or Sharekhan: Brokerage Model

Zerodha adopts a cost-effective brokerage model, charging Rs. 20 flat fee for each trade, irrespective of segment or size of trade. There is no cost associated with Equity delivery trades, which makes it attractive for long-term investors. Zerodha’s brokerage charges for equity delivery are Rs 0 (Free), and for intraday, it is Rs 20 per executed order or 0.03%, whichever is lower.

The Sharekhan brokerage structure is traditional, with charges varying on the basis of value and segment of trading. While it offers various brokerage plans, it basic plan may be pricier than what Zerodha offers. Sharekhan applies a 0.30% charge on the market rate or a minimum of 1 paisa per share for equity delivery, and for intraday it is 0.02% on the market rate or a minimum of 1 paisa per share. Zerodha emerges as a winner again, for its transparent and competitive pricing.

Zerodha or Sharekhan: Features

Zerodha stands out with automated trading, margin against shares in both equity cash and equity F&O, and a later intraday square-off time. The broker also allows trading in SME shares and boasts a referral program.

Sharekhan provides TradeTiger and Sharekhan Mobile, while Zerodha offers Kite Web, Kite Mobile for Android/iOS, and Coin trading software. Sharekhan supports a 3-in-1 account, charting, SMS alerts, online demo, online portfolio, and margin trading funding. Sharekhan, on the other hand, features a pattern finder and classroom training, while Zerodha provides direct mutual funds and APIs for algo trading. Both platforms cater to distinct needs, making the choice dependent on individual preferences and trading requirements.

Zerodha or Sharekhan: Trading Platforms

Zerodha has the Kite platform on offer, known for its abundant features and user-friendliness. Accessible via web, mobile, and desktop, it also provides Kite Connect and similar tools for algo trading and direct mutual fund investments.

Sharekhan provides a number of platforms, which include Sharekhan Mini and Sharekhan Trade Tiger. While Trade Tiger caters to desktop users with advanced charting tools, Sharekhan Mini is designed for mobile users. The choice is ultimately based on your preference. While Zerodha can be a good choice for simplicity, Sharekhan deserves a pick for its advanced features.

Zerodha or Sharekhan: Research Resources

Zerodha offers limited tools for analysis and research purposes. While it offers Zerodha Varsity, an informative platform, its recommendations and research reports are relatively sparse.

Sharekhan excels in research, offering stock recommendations, in-depth reports, and many market insights. This expertise is useful for traders who base their decisions on analysis by experts. For its extensive research offerings, Sharekhan emerges as a better option.

Zerodha or Sharekhan: Customer Assistance

Zerodha’s customer support is mainly offered online, using email and ticket-based support. No direct phone support is a reason for complaint despite its huge knowledge base.

Sharekhan approaches things in a more old-school way, with physical branches and phone support. It also offers online support, providing a multi-channel approach for those who choose direct communication method. Thus, for its multiple support channels, Sharekhan deserves to be preferred more.

Zerodha or Sharekhan: Pros

Zerodha stands out with its simple flat fee brokerage services across segments and exchanges, including free equity delivery trades. The brokerage charges a flat Rs 20 per trade for all other segments, making it a cost-effective choice.

Zerodha offers excellent trading platforms like Kite, available for free, and supports Direct Mutual Fund Investment. Features like Good Till Triggered (GTT) orders, similar to GTC orders, add to its appeal. Zerodha also provides NRI Trading accounts.

Sharekhan boasts a robust network with over 1950 branches across India, making it accessible to a wide audience. The platform also offers free fund transfers to and from the trading account, along with free share transfers between the DP account and Sharekhan trading account.

Further, Sharekhan’s ‘TradeTiger‘ is recognized as the most popular trading terminal in India. The brokerage provides various services such as Stock SIP, loan against shares, margin funding, IPO financing, and ESOP funding. It holds the distinction of being India’s No. 1 broker in terms of active clients and exchange volume. Sharekhan is considered safe, reliable, and technologically advanced.

Read on: Zerodha Account Opening Pros and Cons – Advantages and Disadvantages of Opening Zerodha Account.

Zerodha or Sharekhan: Cons

While Zerodha has its strengths, it does not offer a 3-in-1 account and lacks banking services. Additionally, it does not provide monthly unlimited trading plans and does not offer AMC-free demat account. Margin funding is not available through Zerodha. In the comparison between Zerodha and Sharekhan, investors must carefully consider these pros and cons based on their specific needs and preferences.

Sharekhan has its drawbacks too. It does not offer a 3-in-1 account as it lacks banking services. The brokerage charges are relatively high compared to discount brokers, and there is an additional Rs 400 AMC for the trading account on top of Rs 400 for the demat account. Sharekhan does not provide stock tips, research, or recommendations, and services like Call & Trade and Auto Square off incur extra charges. Moreover, Sharekhan does not offer a 3-in-1 account, monthly unlimited trading plans, or AMC-free demat account. Margin funding is also not available.

Open an account with Upstox.

Conclusion

Zerodha distinguishes itself with its economical and straightforward approach, appealing to novices and those with a long-term investment horizon. Conversely, Sharekhan excels in providing thorough research and a diverse set of trading tools, positioning itself as an excellent choice for seasoned traders who value in-depth analysis. Whether you prioritize low costs, user-friendly interfaces, or advanced research tools, make your decision based on what aligns best with your investment goals in 2024. Ultimately, the choice between Zerodha or Sharekhan should be based on your specific needs, preferences, and trading style.


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