Choosing a broker is one of the most important decisions for any investor or trader. A broker not only provides a platform to execute trades but also offers various services and features that can enhance your trading experience and performance. However, with so many brokers available in the Indian market, it can be challenging to compare and select the best one for your needs. In this article, we have compared two of the most popular discount brokers in India – Zerodha and m.Stock.
Zerodha vs. mStock Overview
Zerodha Overview
Zerodha is an Indian company that offers retail and institutional broking, distribution, and trading services. The company was founded in 2010 by Nithin Kamath, a former trader who wanted to break the barriers of cost, support, and technology in the Indian broking industry. Zerodha is known for its disruptive pricing model of zero brokerage on equity delivery trades and a flat fee of ₹20 per order for intraday and derivative trades. Zerodha is the largest stock broker in India in terms of active retail clients, with over 1 crore customers and 15% of the Indian retail trading volume.
m Stock Overview
m.Stock is a new entrant in the Indian broking space, launched by Mirae Asset in April 2022. Mirae Asset is a global financial powerhouse with over 19 years of experience in capital markets across 15 countries and managing assets worth nearly USD 700 billion. m.Stock aims to redefine the Indian broking space with its visionary proposition of zero brokerage for life across all products – delivery, intraday, F&O, currency, mutual funds, and IPOs – with a one-time fee of ₹999. m.Stock also offers an option to pay an additional one-time fee of ₹999 and waive off demat charges for life. m.Stock has a superfast, simple, stable, and intuitive trading platform that leverages the latest technology to provide a seamless and secure trading experience.
Zerodha vs. mStock Features
Features of Zerodha
Zerodha, the largest discount broker in India, has a customer base of over 12 lakh traders. It offers a range of features, including:
- Access to stocks and IPOs
- Derivatives trading in stocks, commodities, and currencies
- Direct mutual fund investments
- Bonds and government securities
- Intuitive trading apps such as Kite, Console, and Coin
Features of m Stock
- Competitive pricing structures
- Permanent exemption from commissions on stock trades
- No annual maintenance fees for demat accounts
- Multiple subscription plans, including an Rs. 149 plan for an affordable trial
- Refer-a-friend program with cash bonuses
- Diverse investment options
- Access to market data, financial statistics, and technical indicators
Zerodha vs. mStock Pros and Cons
Zerodha
Pros of Zerodha
- Largest customer base and daily trading volume in India
- High levels of safety, reliability, and trustworthiness
- Cost-effective pricing with zero brokerage for cash-and-carry stock purchases
- Pay-as-you-go brokerage plan with no clearance fees
- Long-term stop-loss and target orders with Zerodha GTT orders
- Access to upcoming initial public offerings (IPOs)
Cons of Zerodha
- Lack of investment advice and market analysis
- No unlimited monthly trading plans are available
- No option for free forever AMC demat accounts
- Additional charges for unfulfilled MIS/BO/CO orders and Call & Trade
- Absence of banking services, limiting it to a 3-in-1 trading account
- Disconnected back office (console) from the trading platform
m Stock
Pros of m Stock
- Cost-effective pricing structures
- Exemption from commissions on stock trades
- No demat account annual maintenance fees
- Affordable trial plan at Rs. 149
- Refer-a-friend program with cash bonuses
- Wide range of investment options
- Streamlined onboarding process
- Easy IPO application submission
- User-friendly platform with extensive market data and research tools
Cons of m Stock
- Lack of physical locations due to its status as a discount broker
- Limited availability for trading in food products
- AMC fees of Rs. 120 per quarter, relatively high for a discount broker
- Minor bugs in the broker’s app due to its recent entry into the market
- Limited SME initial public offerings (IPOs) on the BSE
Zerodha vs. mStock Charges
Zerodha account opening charges & AMC
Zerodha provides transparent account opening charges and an annual maintenance fee:
- Account opening: Opening an account with Zerodha requires a one-time payment of ₹200. Additionally, for access to the commodity segment, an extra ₹100 is applicable.
- AMC: Zerodha levies an annual maintenance charge (AMC) of ₹300 per year for the Demat account.
Zerodha brokerage charges
Zerodha prides itself on its minimal brokerage charges, ensuring cost-effective trading. Brokerage charges of Zerodha are as follows:
- ₹0 brokerage charges for equity delivery and direct mutual funds, making long-term investments more affordable.
- For equity intraday and F&O trading, a fee of ₹20 or 0.03% (whichever is lower per executed order) is applied, ensuring competitive pricing for traders.
Brokerage charges of Zerodha
| Zerodha charges | Equity delivery | Equity intraday | Futures options | Options |
|---|---|---|---|---|
| Brokerage | Zero Brokerage | Zero Brokerage | Zero Brokerage | Flat Rs. 20 per executed order |
| Call & Trade Charges | Zero Brokerage | Zero | Zero | Zero |
| STT/CTT | 0.1% on buy & sell | 0.025% on the sell side | 0.05% on the sell side (on premium) | 0.05% on the sell side (on premium) |
| Transaction charges | NSE: 0.00345% BSE: 0.00345% | NSE: 0.00345% BSE: 0.00345% | 0.01% on sell-side | NSE: 0.053% (on premium) |
| GST | 18% on (Brokerage + SEBI charges + transaction charges) | 18% on (Brokerage + SEBI charges + transaction charges) | 18% on (Brokerage + SEBI charges + transaction charges) | 18% on (Brokerage + SEBI charges + transaction charges) |
| SEBI charges | ₹10 / crore + GST | ₹10 / crore + GST | ₹10 / crore + GST | ₹10 / crore + GST |
| Stamp charges | 0.015% or ₹1500 / crore on buy-side | 0.003% or ₹300 / crore on buy-side | 0.002% or ₹200 / crore on buy-side | 0.003% or ₹300 / crore on buy-side |
Why should you Prefer Zerodha?
- Ideal for newcomers with low-cost entry and fixed trading fees
- Impressive margin options and affordable trading
- Extensive customer base and trustworthiness
- Efficient trading apps and a self-clearing brokerage model
- Access to upcoming IPOs
m Stock account opening charges & AMC
m.Stock offers flexibility in its account opening charges and annual maintenance Charges (AMC):
- Account opening: You can open an m.Stock account for a nominal fee of ₹149. However, for those seeking brokerage-free trading, there is an alternative option priced at ₹999.
- AMC: m.Stock charges an AMC of ₹120 per quarter, which amounts to ₹480 per year. Alternatively, users can opt for a lifetime free AMC by making a one-time payment of ₹999.
m Stock brokerage charges
m.Stock offers two distinct brokerage plans designed to cater to different trading needs:
- ₹999 Plan: Under this plan, users enjoy ₹0 brokerage charges for all segments, making it ideal for comprehensive trading.
- ₹149 Plan: With this plan, users incur ₹0 brokerage charges for delivery, mutual funds, and IPO. For intraday, futures & options (F&O), and currency trading, a minimal fee of ₹20 is applied.
Brokerage charges for M Stock
| Charges | Equity delivery | Equity intraday | Futures options | 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 | 0.05% on the sell side (on premium) | 18% on (Brokerage + transaction charges) |
| Transaction charges | NSE: 0.00345% BSE: 0.00345% | NSE: 0.00345% BSE: 0.00345% | NSE: 0.002% | NSE: 0.053% (on premium) |
| GST | 18% on (Brokerage + transaction charges) | 18% on (Brokerage + transaction charges) | 18% on (Brokerage + transaction charges) | 0.003% or ₹300 / crore on buy-side |
| SEBI charges | ₹10 / crore + GST | ₹10 / crore + GST | ₹10 / crore + GST | ₹10 / crore + GST |
| Stamp charges | 0.003% or ₹300 / crore on buy-side | 0.002% or ₹200 / crore on buy-side | 0.003% or ₹300 / crore on buy-side | 0.003% or ₹300 / crore on buy side |
Why should you choose M Stock?
- M Stock has rapidly gained recognition in a short period
- Competitive pricing, exemption from commissions, and no AMC for demat accounts
- User-friendly platform with a variety of investment options
- Cash bonuses through the refer-a-friend program
Zerodha vs. mStock Trading Platforms
Zerodha Trading Platforms
Zerodha Kite web: Accessible via a web browser, this platform is beginner-friendly and offers Tradingview and ChartIQ charting tools, over 100 indicators, multiple watchlists, and various order types, including GTT. It also integrates Sensibull for options strategy backtesting.
Zerodha Kite mobile app: This app is known for its speed and security. It provides advanced charting tools, multiple watchlists, technical indicators, and various order types. P&L reports can be accessed through external links.
Zerodha Coin: This dedicated app caters to long-term investors and allows them to invest in direct mutual funds, government bonds, corporate bonds, and sovereign gold bonds without commission charges. It offers a dashboard for tracking holdings and orders.
m Stock Trading Platforms
m.Stock web portal: This web-based platform is suitable for laptop and PC users. It offers speed, stability, and security without the need for software installation. It provides advanced tools like calculators, fundamental and technical data, and Tradingview charts.
m.Stock’s trading app: Designed for smartphone users, this app offers an easy-to-use interface with features such as 1-click order placement, option chain analysis, advanced order options, and price alerts. It also provides live market data and FII/DII updates.
Conclusion
When choosing between Zerodha and M Stock, consider your specific trading needs and preferences. Ultimately, both Zerodha and M Stock offer unique advantages and cater to different trading preferences. It’s essential to evaluate your requirements and priorities to determine which brokerage platform aligns better with your financial goals. Keep in mind that the brokerage industry is dynamic, so periodically reviewing your chosen platform’s offerings is advisable.
FAQs about Zerodha vs. MStock
1. Which is better, Zerodha or M Stock, and why?
Ans. Choosing a broker is one of the most important decisions for any trader, it can be challenging to compare and select the best one for your needs. Among Zerodha vs M Stock, Zerodha has in excess of 12 lakh clients and is the biggest rebate representative.
2. Which broker charges lower brokerage fees, m Stock or Zerodha?
Ans. m.Stock offers a brokerage-free plan for ₹999, while Zerodha charges ₹20 per executed order for intraday trading. The choice depends on your trading frequency and preferences.
3. Do both mStock and Zerodha offer mobile trading apps.
Ans. Yes, both m.Stock and Zerodha provide mobile trading apps for convenient on-the-go trading experiences.
4. Does Zerodha offer direct mutual funds?
Ans. Yes, Zerodha offers direct mutual funds through its platform and allows investors to access mutual funds without commissions.
5. Which broker provides advanced trading tools like Tradingview charts?
Ans. Both m.Stock and Zerodha offer advanced tools like Tradingview charts to assist traders in technical analysis.
6. Can I invest in government bonds and corporate bonds through Zerodha?
Ans. Yes, Zerodha allows investors to invest in government bonds and corporate bonds and provides a diversified investment portfolio.
7. Which broker is suitable for long-term investors interested in mutual funds?
Ans. Zerodha’s platform, particularly Zerodha Coin, is designed for long-term investors looking to invest in mutual funds. It provides a user-friendly experience.