Choosing the right discount broker in India can be challenging, especially when deciding between two of the most popular platforms — 5paisa and Zerodha. Both brokers offer competitive pricing, advanced trading platforms, and a range of investment options. However, each has its unique advantages and drawbacks. This detailed comparison will help you make an informed decision.
Overview of 5paisa and Zerodha
| Feature | 5paisa | Zerodha |
|---|---|---|
| Type of Broker | Discount Broker | Discount Broker |
| Exchange Membership | NSE, BSE | NSE, BSE, MCX, NCDEX |
| Year of Incorporation | 1996 | 2010 |
| Number of Branches | 1 | 22 |
Account Opening & AMC Charges Comparison
| Account Type | 5paisa | Zerodha |
|---|---|---|
| Trading Account Opening Charges | Rs 0 (Free) | Rs 0 |
| Trading Account AMC Charges | Rs 0 (Free) | Rs 0 (Free) |
| Demat Account Opening Charges | Rs 0 (Free) | Rs 0 |
| Demat Account AMC Charges | Rs 300 | Rs 300 |
Both brokers offer free account opening, making it easy for new traders to get started. However, Demat AMC charges apply to both platforms.
Brokerage Charges Comparison
| Transaction Type | 5paisa | Zerodha |
|---|---|---|
| Equity Delivery | Rs 20 per executed order | Rs 0 (Free) |
| Equity Intraday | Rs 20 per executed order | Rs 20 per executed order or 0.03%, whichever is lower |
| Equity Futures | Rs 20 per executed order | Rs 20 per executed order or 0.03%, whichever is lower |
| Equity Options | Rs 20 per executed order | Rs 20 per executed order |
| Currency Futures | Rs 20 per executed order | Rs 20 per executed order or 0.03%, whichever is lower |
| Commodity Futures | Rs 20 per executed order | Rs 20 per executed order or 0.03%, whichever is lower |
| Call & Trade Charges | Rs 100 per call (any number of trades) | Rs 50 per executed order |
| Auto Square-off Charges | Not specified | Rs 50 per order |
Zerodha stands out with zero brokerage on equity delivery trades, while 5paisa charges Rs 20 per executed order. However, both brokers offer flat Rs 20 per trade in other segments.
Leverage & Margin Comparison
| Segment | 5paisa | Zerodha |
|---|---|---|
| Equity Delivery | 100% of trade value (1x leverage) | 100% of trade value (1x leverage) |
| Equity Intraday | Up to 20% of trade value (5x leverage) | Up to 20% of trade value (5x leverage) |
| F&O (Equity, Currency & Commodity) | 100% of NRML margin (Span + Exposure) (1x leverage) | 100% of NRML margin (Span + Exposure) (1x leverage) |
Both brokers offer similar intraday leverage 5x, making them suitable for traders looking to maximize their positions.
Trading Platforms & Features Comparison
| Feature | 5paisa | Zerodha |
|---|---|---|
| Trading Platform | 5paisa Trade Station (Web, Mobile App, EXE) | Kite Web, Kite Mobile (Android/iOS), Coin |
| Automated Trading | No | Yes |
| SMS Alerts | Yes | No |
| Online Portfolio | Yes | No |
| 3-in-1 Account | No | No |
| Referral Program | Yes | Yes |
Zerodha’s Kite platform is well known for its smooth, user-friendly interface, while 5paisa’s Trade Station offers robust trading features. Zerodha supports automated trading via API, while 5paisa does not.
Investment Options Comparison
| Investment Type | 5paisa | Zerodha |
|---|---|---|
| Stocks / Equity | Yes | Yes |
| Commodity | Yes | Yes |
| Currency | Yes | Yes |
| IPO | Yes | Yes |
| Mutual Funds | Yes | Yes |
| Bond / NCD | Yes | No |
| Debt | Yes | No |
5paisa offers bonds and debt instruments, which are not available on Zerodha.
Order Types Available Comparison
| Order Type | 5paisa | Zerodha |
|---|---|---|
| Bracket Order | Yes | No |
| Cover Order | Yes | Yes |
| BTST (Buy Today Sell Tomorrow) | Yes | Yes |
| STBT (Sell Today Buy Tomorrow) | Yes | No |
| After Market Order (AMO) | Yes | Yes |
| Good Till Cancelled (GTC) | Yes | Yes |
5paisa provides additional order types like Bracket Orders and Sell Today Buy Tomorrow (STBT), while Zerodha does not.
Comparison 5paisa vs Zerodha – Pros and Cons
When choosing between 5paisa and Zerodha, understanding their pros and cons can help you make an informed decision. Here’s a quick comparison:
Pros and Cons Comparison:
| 5paisa | Zerodha | |
|---|---|---|
| Pros | ✅ Flat fee brokerage of Rs 20 per executed order, regardless of trade size. ✅ Free trading software, including the 5paisa mobile app and trading terminal. ✅ Brokerage-free direct mutual fund investments. ✅ Free account opening for individuals under 25 years old. | ✅ India’s leading broker in terms of active clients, exchange volume, and brokerage revenue. ✅ Safe, reliable, and technologically advanced. ✅ Flat-fee brokerage across all segments and exchanges (BSE, NSE, MCX). ✅ Free equity delivery trades (no brokerage for cash-n-carry orders). ✅ Flat Rs 20 per trade brokerage for all other segments. ✅ Excellent trading platform (Kite) available for free. ✅ Direct mutual fund investment available. ✅ Good Till Triggered (GTT) orders available (similar to GTC orders). ✅ NRI trading account available. |
| Cons | ❌ Margin funding applied without prior notice, leading to potential confusion and interest charges. ❌ High Call & Trade charges of Rs 100 per call (unlimited trades per call). ❌ Research and advisory services available only at extra cost. ❌ Higher exchange turnover charges compared to other discount brokers. | ❌ No NRI Trading and Demat account. ❌ No stock tips, research, or recommendations. ❌ Call & Trade charges Rs 50 per order. ❌ Auto Square-off charges Rs 50 per order. ❌ No 3-in-1 account offering. ❌ No monthly unlimited trading plans. ❌ No AMC-free Demat account. |
Final Verdict: Which Broker is Right for You?
Both 5paisa and Zerodha offer excellent services, but your choice depends on your trading style and investment needs:
- Choose 5paisa if you prefer various order types, SMS alerts, and debt investments.
- Choose Zerodha if you want zero brokerage on delivery trades, a highly reliable trading platform, and automation features.
Regardless of your choice, both brokers provide top-notch services that cater to traders and investors of all levels.
Still unsure? Open a free account with the best brokers and explore their platforms before deciding! 🚀
