Zerodha VS Sharekhan

Want to know Zerodha vs Sharekhan which is better? Well you have landed on the right article . Dear Traders, Investors, and Newcomers! If you're looking for broker comparison, you've come to the right spot.

Traders may quickly evaluate and grasp all the minute features of the Broker company, such as their Brokerage Charges, packages and prices, goods and services, types of Trading systems, Advantages and Disadvantages, and so on.

These comparisons and differences between brokers will help you choose the most suitable trading and investment broker for your needs. 

Zerodha VS Sharekhan: A Detailed Comparison (2022 Updated)

Overview of Sharekhan

Having a million clients, Sharekhan is the fifth largest retail financial brokerage business and the eighth largest stockbroker in India. Sharekhan was a forerunner in internet markets in India.

Stocks brokerage, fund manager administration, loans on stocks, ESOP financing, IPO financing, and wealth management are among the financial goods and services it provides.

Sharekhan has enjoyed tremendous expansion over the last decade or so, thanks to its highly successful e - commerce entity and a network of franchisees in practically every corner of India. Sharekhan has a foothold in the United Arab Emirates and Oman.

Sharekhan.com is the best stock investment platform in India. The well-designed website offers a large selection of investing alternatives, share market news, research papers, stock quotations, fundamental and statistical data on equities, mutual funds, and IPOs, among other things.

The new Sharekhan Application is user-friendly and this has been built with the needs of users in consideration. Including its modern design, it also has a plethora of options for both traders and investors. You may now simply start trades, keep a record of your shares, and maintain your account all in one spot.

Sharekhan's services include trading in the stock, F&O, and commodities, as well as investing in IPOs, Mutual Funds, Insurance, Bonds, and NCDs. The company also offers Sharekhan Demat Accounts and is a financial intermediary with NSD and CDS.

The distinction between a full-service brokerage and a discount brokerage is that while a full-service broker offers hand-holding (stock buy/sell suggestions, equity analysis, educational programs, and reports) and assistance (from over the phone, allotment of a Consultant), which is why they demand more for brokerage.

Zerodha and Sharekhan are compared in the table below. 

Sharekhan Charges Vs Zerodha

• Account opening charges:

To trade on Zerodha, you must first establish a trading and a Demat account. Zerodha provides its consumers with the option of creating an online or offline account. If your Aadhar Card is connected to your current phone number, you can register a Zerodha account online right away.

If not, you may be required to complete a printed form and mail it to the Zerodha office. To trade in stocks, commodities, or currencies, you must first open a trading account with Sharekhan.

If you intend to invest in equities (keep the shares you purchase for a few days or months), you must also register a Sharekhan Demat account. The process of creating an account with Sharekhan is the simplest in the business.

They have local offices (branch, sub-brokers, and franchisees) near the majority of their prospectus consumers in India.

• Brokerage Charges

A brokerage fee is charged or a commission charged by a broker for assistance in completing or providing specialized services on behalf of its customers. Brokers charge charges such as purchasing, selling, consulting, negotiating, and delivering.

Brokerage fees are often imposed in a variety of businesses, including financial products, healthcare, property investment, and delivery services, among others.

Full-service brokerage provides a wide variety of products and services throughout or over the telephone, such as wealth management, tax consulting and administration, and other banking sectors. As a result, they receive the highest brokerage commissions.

Today's usual commission for full-service brokers is from 1% to 2% of a customer's managed funds. Discount brokers offer cheaper rates than full-service brokers because they offer a smaller array of items and do not give investment advice.

Each trading operation is charged a fixed cost by discount brokers. The flat charge per trade ranges from less than Rs500 to more than Rs. 2800.  Account maintenance costs are typically around 0.5 percent per year, based on the number of assets held.

• Transaction charges

A per-transaction charge is an expenditure incurred by a company each time an online wallet for a client activity is processed. Per-transaction costs vary by the service provider but generally cost businesses between 0.5 and 5 percent of the trading volume, plus some set fees.

In addition, businesses open a merchant account with the acceptor, which acts as the trader's principal bank account for proceeds from each purchase.

A merchant who gets a high volume of electronic payments will rely largely on the merchant purchasing bank, making the conditions of the business account agreement critical.

The key components of a complete per-transaction charge are acquirer and processor fees. Additional charges for a business may also exist in specific instances.

A terminal fee, which is a per-transaction fee payable to a terminal operator for the use of a terminal in an online credit card transaction, is one additional expense retailers may face.

Due to per-transaction costs, some retailers demand a minimum amount that consumers must pay in order to pay with a credit or debit card.

• Other statutory charges

When you enter a sale (in any sector), you will be billed taxes in addition to the brokerage fee, as per government regulations.

The following are the taxes/charges:

1. Securities/commodities transaction tax (STT): A tax levied by the government on trading activities. When trading equities delivery, the following fees are charged on both the buy and sell sides. When trading hourly or on futures contracts, you will only be charged on the selling end.
   
   
2. Exchange transaction charges: A transaction charge is a fee levied by an agency (BSE, NSE, MCX) for the use of its service. This is the most expensive aspect of investing with inexpensive brokerages.
   
   The service charge is the sum of two costs. Exchange Turnover Fees + Clearing Fees = Transaction Fee
   
   
3. Goods & services tax (GST): some percent on brokerage + transaction charges
   
   
4. SEBI charges: SEBI, Securities and Exchange Board of India, the Indian securities industry's supervisor, levies a commission for all sales and purchases of instruments other than debt instruments. This is taxed at a rate of Rs 5 per crore.
   
   
5. Stamp Duty: Stamp duty on trading activities is a levy applied by state governments in India on documents. Examine the Stamp Duty Rates.

Zerodha vs Sharekhan on Service

A Demat Account or Dematerialised Account allows investors to keep shares and assets in digital form. Equities are purchased and stored in a Demat Account while online sales make it easier for customers to trade.

A Demat Account consolidates a user's interests in stocks, sovereign bonds, exchange-traded funds, bonds, and alternative investments. Demat facilitated the digitalization of the Indian stock trading industry and compelled SEBI to improve oversight.

Furthermore, by holding stocks in electronic format, the Demat account minimised the hazards of storage, theft, damage, and malpractices. NSE originally presented it in 1996.

Initially, the internet banking procedure was manual, and investors had to wait a few days for it to be authorized. In today's world, a Demat account may be opened digitally in less than 5 minutes.

The end-to-end digital method has aided in the spread of Demat, which has soared since the outbreak. A Robo adviser is a web-based platform that provides automated investment management advice or a tailored portfolio based on your investment plan and one or more asset classes at a considerably lower cost than conventional advisers.

The most basic version of this service just provides a digital portal via which investors may obtain an automated portfolio suggestion generated by automatically managed funds.

Sharekhan Vs Zerodha Leverage/Margin

Leverage is the one we all employ at some time in our lives. We don't consider it in the manner that it should be considered. We fail to see beyond the statistics and hence fail to comprehend the core of leverage.

In futures trading, leverage is quite important. We can deposit a modest supply of cash and get exposure to a single deposit by using profits. The margin levied is often a percentage of the contract sum.

The more the leverage, the greater the danger and the greater the profit potential.

Leverage is simple to calculate: Leverage = [Contract Value/Margin].

Zerodha vs Sharekhan Product Comparison

Sharekhan and Zerodha Features

Sharekhan Vs Zerodha Review

Sharekhan Vs Zerodha Investment Options

Sharekhan Vs Zerodha Research Report

Customer Service Offered

Zerodha vs Sharekhan Trading Platform Comparison

Zerodha Pros and Cons

Zerodha has cheap costs and even allows for free equity distribution trading. The internet and digital trading interfaces are simple to use and attractively designed. There are several strong research tools available.

The internet banking process is slow and not entirely digital. The product offering encompasses just the Indian market. Investor protection is not available at Zerodha.

Pros:

1. There are no fees for supply trades.

2. There is no minimum spend requirement to start or manage the account.

3. Brokerages are charged regardless of transaction volume.

Cons:

1. In comparison to other bargain brokers, the margins supplied are modest.

2. During trading sessions, there are significant disruptions and failures.

3. The margin for CO and BO trades is not disclosed upfront.

Sharekhan Pros and Cons

The mobile trading interface at Sharekhan is simple to use and well-equipped. The company provides quality information to help you make trading selections, and its customer service responds quickly and effectively.

Sharekhan, on the other hand, only provides access to Indian markets, and it's stock and FX costs, while not outrageous, are not very competitive in this market.

Among other disadvantages, you may only deposit and withdraw funds by bank transfer.

Pros:

1. Extensive choice of investing services

2. 3200 outlets are spread over India.

3. Products such as Insta MF, Investment Cart, and NEO are available.

Cons:

1. Brokerages at a high level

2. There are too many trading calls and research advisory

Advantages of sharekhan:

• Free cell phone calls and trades are available.

• A massive branch and affiliate system

• The website is user-friendly, and the trading desk is simple to use.

• Accredited with both the BSE and the NSE.

• Gives you the option to trade commodities.

• Fixed deposits can be used as security for futures and options trading.

• For DP purchases, Sharekhan doesn't really impose a fee.

• Sharekhan gives investors internet and classroom education, seminars, and workshops.

• There are no fees for digital banking transfers.

• Intermediaries are available for hire.

Disadvantages of Sharekhan:

• Only two-in-one accounts are available.

• Sharekhan levies a hefty brokerage fee.

• A minimum brokerage of 10 paise is paid per share.

• Trading is not permitted after trading sessions.

• Commodity cannot be traded by traditional account holders.

Advantages of Zerodha:

• There is no commission on equity deliveries and mutual funds.

• Stock trading is charged at a flat cost.

• Provide your own DP services.

• Excellent customer service.

• Excellent Brokerage and Margin Calculator.

• On intraday trading, it provides up to 20x leverage.

• Provides the most modern online deals specifically.

• Provides the option to apply for an IPO online.

• Customers of Zerodha can participate in a referral program.

Disadvantages of Zerodha:

• There is no buffer money.

• Call and trade expenses are quite high at $50 per call.

• Charges for Fund Transfers are $9 per transfer.

• Fees for SMS Trade notifications.

• 1Rs. for equity, foreign exchange, and currency trade notifications, and 0.50 rs. for trade exchange alerts

• For MIS/BO/CO situations that are not squared off by the client, there is an extra charge of $50 per completed order.

• It does not give stock advice, scientific papers, or stock advice.

• It does not provide Endless Trading Plans.

Which is good? 

Both brokers are SEBI-registered and provide investments in equity, foreign exchange, currency, and markets. Zerodha charges a maximum of Rs 21 per trade, whereas Sharekhan charges between 0.2 and 0.6 percent.

Sharekhan is a Full Service Broker, whereas Zerodha is a Discount Broker.

In comparison to Sharekhan, Zerodha has a better overall score. Zerodha has a rating of 4.5 out of 5, whilst Sharekhan has a rating of just 4.2 out of 5. Sharekhan has 61,25,678 active customers, whereas Zerodha has 7,75,456 active customers.

In comparison to Zerodha, Sharekhan serves a greater number of customers. I hope you liked our article on zerodha vs sharekhan.