If you are someone who is looking to make direct investments in mutual funds scheme as well as trading in stock market than this Groww Review will help you out in finding everything Groww as a company has to offer to it’s users.
In this Groww review you can get all information such as brokerages, charges, trading platform (App), different investment options available at Groww. Let me start this with a recent data which made me even think to write the review about Groww, According to latest NSE data ending Feb 28,2021 Groww has about 6,56,519 active client list.
Having said that, the company established just 4.5 years ago i.e. 2016. This itself shows the trust they have created for users in their products and services.
But before we know about the various services and review them step by step let us first about groww in brief.
Harsh Jain is the Co-Founder & COO of Groww, he was also the product manager earlier with flipkart. Groww is based in Bangalore, Karnataka, Here is interesting fact about groww very few people know, the company use Groww as a brand name although it is registered by name Nextbillion Technology Private Limited.
Groww operates as an online investment platform and offers mutual funds, tax planning, investment management, and financial information services.
Groww founded in 2016, and had initially started as a direct mutual fund investment platform for users. By the time they have crated immense popularity among users in the mid-2020s, Groww expanded its product offering to include Equity trading.
As of Jan 2021, Groww had partnered with 40 mutual fund houses and more than 6000+ mutual funds were available on the platform. As of Sep 2020, the company had raised $59 million in venture capital an now have more than 10 million users on its platform.
Groww is backed by some of the well know investor companies such as Ribbit Capital, SEQUOIA, Combinator etc.
Moreover, groww also offers Digital gold, US Stocks, and Fixed Deposit as other investment options apart from stock broking. Groww has partnered with CDSL to provide the depository services to clients.
Groww offers trade execution facilities for equity cash segments on BSE and NSE.
Another company which I want to relate with Groww is Fyers, both this starts ups in highly competitive broking industry started during the same tenure and I personally feel Immense pleasure seeing them successfully established in market now.
One really need to understand that it is not an easy job for any new startup to manage the competitiveness in their respective industry. For example, In broking industry there are more than 300 stock brokers listed, to be in the top 10 or 20 is not an easy job, that too in limited time period.
Enough of Gyan for now, let us come back to the main topic we are concerned as an trader or investor, i.e. Whether one should trust groww as an investment management and stock broking company. To find out that let us first review the various services offered by Groww one by one.
Types of Services Offered By Groww:
As mentioned above, groww launched investing and trading facilities last year in 2020, apart from hat there are various investment option also available let us look at them.
- Invest and Trade in Stocks
- Mutual Funds Investment (SIP, Lumpsum etc.)
- Invest in Gold
- Invest In Fixed Deposits (FD)
- Trading in Derivatives, Future and Options (Upcoming)
- Invest in US Stocks
As you can see groww as an stock broker provide intraday and delivery based trading in equities as of now. Whereas trading in FNO is not yet started but soon one will be able to do so. Moreover there is an option to make investment in US stocks such as Apple, Amazon, Google etc. online using Groww platform.
In terms of investment option, they have tied up with about 40 mutual funds companies in India as of now and offering various mutual funds schemes. Apart from that using groww platform one can also invest online in Gold and Fixed deposits without any hassle.
Just to let you know there are no option to trade in commodities or currency segments as of now with Groww. However, you may see with time launching of other segments on groww platform for users. As it’s just been less than a year they mark their debut in stock broking.
Let us review the important factors such as margin, brokerage, trading platform, account opening charges and other things in details.
Groww Review On Margin:
Margin in stock market refers to buying/selling of securities (shares) by borrowing money from your broker. This is very much similar to taking loan for short period of time. This helps traders in buying or selling more with less money in intraday trading.
If you are an active trader or a beginner who knows what exactly going on with recent changes brought by SEBI, Higher Margin won’t be a factor anymore, now the competition among the broking industry is in terms of better trading platforms and lower brokerages plans.
The upfront margin collection in cash segment has been kept at flat 20%, which means now the leverage for all stocks would be 5x also the penalty provision for short-collection/ non-collection of upfront margin in cash segment has been postponed till 1,dec, 2020.
This means regardless of any broker you won’t get more than 5X times margin in equity cash segment and in FNO you need to have the full margin span+exposure to take any position.
However, this will get implemented in a phased manner from Dec,1,2020 till Aug 2021, so no need to worry as of now. You can read more about it here.
Therefore, the margin or leverages offered will be equal irrespective of the stock brokers in India going forward.
In simple term margin will be:
Maximum of 20 times until Feb 2021
Maximum of 10x from Mar to May 2021
Maximum of 7x from Jun to Aug 2021
Maximum of 5x from Sep 2021 onwards
Above are rough estimates only, it may be more or less similar. check the complete VAR+ELM list here. With 10x leverage, if you have 10k in your account your purchasing power becomes 100k, with 5x leverage it comes down to 50k, so you will have to adjust accordingly.
Margins will increase for Option writing as well, margin requirements will be as below:
- 25%(4X) of the SPAN + Exposure margins until Feb 2021
- 50%(2X) of the SPAN + Exposure margins until from Mar to May 2021
- 75%(1.33X) of the SPAN + Exposure margins until Jun to Aug 2021
- Full SPAN + Exposure margins from Sep 2021
From 1st Dec 2020, intraday FnO positions needs a margin requirement of 25% of 1L, which is 25,000 for intraday FnO position. This requirement goes-up to 100% of FULL span + exposure margin or full 1L from Sep 2021.
Keep in mind this also applies to Currency and commodity derivatives as well.
For example: if there is a 20% margin requirement on a particular stock, then you will have to pay only Rs.20 to buy a stock of Rs.100. Another way to look at it is that if you have Rs.100, you will be able to buy five stocks instead of one.
Hence, the margin requirement will be same for all brokers including groww for intraday trading in equites. Having said that there are different types of orders that one can place to get maximum margin. One need to understand taking more margin means more risk and chances of your money getting wiped out is even more, so it is always advisable to use it in limited way.
Groww Review On Brokerages:
Brokerage is something which as a trader and investor one should always be looking at before choosing the broker, at groww the brokerage charges are Rs.20 or o.o5% (whichever is lower) on every order executed.
What they mean is, suppose you bought stock xyz priced at Rs.100, quantity 100 on intraday basis,
so the total turnover would be bought 100, sold 100(100*200)= 20,000 on this amount they will charge either whichever amount is lower as 0.05% of 20000, is Rs.10 so they will charge that instead of flat Rs.20. Below is the screenshot taken from Groww brokerage calculator for intraday trading.
Whereas brokerage charges if you do investment i.e. taking delivery of the stocks to your demat account or doing Buy today sell tomorrow (BTST) trades the brokerage charges are same as of above.
So , overall the brokerage charges are kept at quite decent priced considering the broking industry norms, however the brokerage charges for delivery trades can be kept at zero as most of the best brokers in India such as Zerodha, Upstox, ICICI Direct, 5Paisa, Fyers have done so.
Groww Review On Trading and Demat Account Charges:
To open a trading/demat account at Groww there are no charges Rs.0 if you open an account through this link, Whereas the Annual Maintenance charge (AMC) is also kept at Zero.
As a one time offer you will also get Rs.100 if you open an account using this link.
Moreover there is 0% commission charges for investing mutual funds through Groww Platform. As compare to other stock brokers, they may charge some AMC charges for maintaining the account yearly, whereas Groww is not charging anything, this makes them apart for sure.
Groww Account Opening Process:
The account opening process is quite simple once you go to groww website using this link, you will be landed to open an trading/demat account page at Groww, just click on get started or login/register, there it will ask you to either register using your email address or google account.
The google account option is quite simple, however it’s up to you to decide, afterwards you need sign up using your mobile number, you will receive an OTP to your number and you can get started with the documentation process.
You will be required to enter your PAN, bank account details and personal details to continue with the sign-up.
Once you sign up you need to upload certain documents as listed below.
Documents Required To Open An Online Account with Groww:
In order to open your demat account, you will require the following documents.
- Identity proof: PAN Card
- Address Proof: Driving license/ Voter’s ID/ Aadhaar Card/ Passport/ Rent Agreement (Registered)/ Latest utility bill (which has the name of the account holder)
- Income Proof (not required for Equity and MF): Bank Statement (last 6 months)/ Salary slip (last 3 months)/Latest ITR copy or Form 16
- Signature copy: Your signature on a blank sheet of paper
Please note: In case if the PAN isn’t KYC compliant, you will need to open your account via In Person Verification (IPV). For this, you will need to upload two videos of 10 seconds each; one with your PAN Card in hand and other with the Address Proof document in hand.
Other Charges At Groww:
Let us checkout some other charges you may incur while using different services at Groww platform.
The following types of charges are levied on your trades at Groww:
- Brokerage charges– A flat Rs. 20 or 0.05% (whichever is lower) fee charged by groww for all intraday/delivery trades.
- STT– The Securities Transaction Tax is a direct tax levied on every purchase and sale of securities.
- Transaction charges– This is a charge levied by the exchange on every transaction placed.
- Clearing charges– This is a charge levied by the exchange for clearing the trade.
- GST– A Goods & Services rate of 18% is levied on every purchase and sale transaction of securities.
- State stamp duty– This duty is levied on the value of shares transferred and varies as per the individual state.
- SEBI turnover fees– This fee is charged by SEBI on the purchase and sale of all securities.
What are Call-N-Trade Charges at Groww?
There is no facility to place trades using calls as of now groww. You need to do that using the trading platform or APP provided by groww by your own.
What are Depository Participant (DP) Charges for Sell Delivery at Groww?
DP charges for debiting stocks from your demat account is Rs.8 + Rs.5.50 (CDSL charges) per ISIN (company/ETF) per day on Groww regardless of quantity sold.
What are Depository Participant (DP) Charges for buy Delivery at Groww?
On buy order for delivery based trades there are no charges for DP at Groww.
What are Payment Gateway Charges at Groww?
There are no payment gateway charges at Groww, its free as of now. You can make payment using major online UPI provider such as google pay, phone pay etc. Apart from this you can also use net banking, NEFT/RTGS as a payment method at Groww.
What are Auto squared off charges by Groww?
Rs.50 per position open (intraday) excluding GST. will be charged as auto square-off at groww, in case you do not do it by yourself from the platform.
Different Types of Orders Available on Groww?
The following types of orders are available at Groww:
Market order : An order to buy/sell a stock immediately, but the execution price will be at or near the ask price (for buy orders) and current bid (for sell orders).
Limit order : An order to buy/sell a stock at a specific price or lower (for buy orders) and higher (for sell orders).
Let us now review the trading platforms available at groww.
Groww Review On Trading Platform:
To be honest I am little disappointed with trading platforms at groww, reason being they just offers two platform from where users can trade and invest. Moreover, the trading platform seems to provide great in-depth of financial or say good for doing fundamental analysis but lack in certain technical analysis aspects features.
- Groww Web based Trading Platform
- Groww Mobile App for Android and OS
There are no desktop or downloadable version available for trading as of now with groww. Having said that let us review both the platform separately to see more.
Groww Web Based Trading Platform:
The web based version at groww is quite clean and well designed, as the UI (user interface) looks dynamic and smooth. Talking in terms of what is unique about the platform specially in respect to trading and investing, Groww platform offers great financial analysis for every stocks including the one listed in US (Nasdaq).
Checkout the image below to know more:
As, you can see in above image on left they have given the space for seeing charts sowing current trading price of stock in market, which includes candlestick charts with volumes patterns overtime, you can see the historical data for up to 5 Years. On the right side of the screen you can easily place the intraday or delivery trades in a click.
If you go downwards you can see other great financial insights such as performance of stock, other different brands of that company, About the company and lot more.
company statistics such as, Profit & loss, balance sheet of company, cash flows, P/E ratio (price to earning), P/B ratio (price to book) Book value etc. are one click away on groww web based trading platform.
Now, I understand that Groww first being a investment platform for users have great financial information for users moreover if you are someone who loves doing intraday based trading it does requires technical indicators, tools and other resources, which at groww web based version is also available.
So, If you are someone who do trading and investing for short, medium or long term, Groww has everything in place for you. You will see more new features gets added and also the downloadable trading platform version in future.
Groww Review On Mobile App:
The Groww mobile app has also requisite features as we saw in case of web based version. The android version of the groww mobile app has around 10Million plus downloads on play store. The rating of the grow mobile app on android platform is really great 4.5 stars.
Features of the Grow Mobile App:
- Invest in Nifty 50 (NSE) & Sensex (BSE) listed stocks with live share price movements
- Intuitive and beautiful UI & charts like candlesticks for best trading experience
- Get the daily list of top gainers, top losers & top by market capitalization
- Share market peer comparison with other companies in the same industry
- Get complete stock analysis with company financials like P&L, Balance Sheet, etc.
- 128 bit SSL Encryption: A high level of encryption standard is used for all transactions which makes Groww as safe as a bank
Groww Review On US Stocks Investing Platform:
If you are someone who are interested to invest in US stock market and in companies such as Apple, Amazon, Tesla, Microsoft, Facebook, Google etc. than Groww is something which you should opt for, Using its platform you can star investing in US stock markets.
Under the RBI’s LRS (Liberalized Remittance Scheme), now any Indian resident can invest up to a limit of $250,000 in a financial year in the foreign markets. That’ almost Rs.1,82,26,162.50 (1.8 cr).
Groww has partnered with VTS (Viewtrade securities) which is registered as a securities broker dealer with the united states, Securities Exchange Commission(sec) and is a member of the Financial Industry Regulatory Authority (FINRA), Inc, and Securities Investors Protection Corporation (SIPC) and other necessary governmental agencies.
All trades are executed at NYSE and NASDAQ stock exchange, which are routed via Smart Order Routing (SOR) system to make centers on an agency basis by the broker partner.
In US markets a investors can own fractions of stocks along with full shares this is termed as fractional investing. anything less than 1 quantity is considered as fraction purchase, For example, you can purchase Google shares worth $100 or buy 0.10 share of google, as per your convenience.
Groww broker partner (VTS) allows you to invest as little as 0.0001 shares of any stock. Keep in mind you can only invest and not trade. This again is one of the USP of Groww.
Groww Review On Mutual Funds Investment:
Groww has a tie up with about 40 mutual funds houses and has more than 6000+ mutual funds available on the platform. one can invest in different mutual funds directly, without any commission.
Which means that finally you don’t have to pay up to 1.5% and 1% every year commission to the distributor/platform where you purchased the fund. These % commissions over a longer period of time compound and can become significantly big.
You can do so using Groww mobile app as well as web version flawless.
Want to know how much you will get after every month of investing in any mutual fund scheme than check moneycontain monthly mutual fund calculator here.
Apart from above Groww also offers investment in Fixed deposits and giving 6.7% returns p.a. Moreover Gold investment is another product offered by them on their platform to make investments online hassle free within minutes.
Frequently Asked Question (FAQ):
Is Groww app safe?
Groww uses 128 bit SSL Encryption which is a high level of encryption standard, it is used for all transactions which makes Groww as safe as a bank. So Yes, Groww app is safe.
Is Groww SEBI registered?
YEs, Groww is used as a brand name but it is registered with SEBI as Nextbillion Technology Private Limited, which is a member of NSE and BSE with SEBI Registration no. INZ000208032.
Groww Is CDSL or NSDL?
Grow is depository participant with CDSL, the SEBI Registration no. IN-DP-417-2019.
Does Groww take commission on mutual funds investments?
Groww offers direct investment plans in mutual fund using its platform and not regular plans, hence there are no commission charged by them. Which means that finally you don’t have to pay up to 1.5% and 1% every year commission to the distributor/platform where you purchased the fund.
My Opinion On Groww:
Groww might be new in discount broking industry, but they do have more than 4.5 years of experience in providing a rich platform for users to invest in mutual funds scheme. As we already saw they have more than 4 lakh+ active clients in stock broking and 10 million + overall clients on the platform, this itself shows the trust it has developed among the users.
In my opinion they still need to do a lot to fulfill the stock broking requirements such as allowing derivatives, currency and commodity trading which is going to happen very soon. Moreover for trading perspective they need to come up with a dedicated desktop platform for their users.
Having said that, I like their USP of allowing clients to invest in US, their strength in financial data for fundamental analysis, Free mutual funds investments.
If I have to rate Groww after looking at there breakthrough pricing model for brokerages as well as other charges and experiencing there simple yet great user interface for trading platform I would give it 8.3 out of 10. Therefore, if you are someone who do more of investing than trading than Groww is the perfect choice for you.
Moreover, going forward you might see they come up with all above points and on moneycontain you always get a updated review, so I will update the same in future.
There are no charges to open an account with groww plus no AMC plus No commission on mutual funds, so without any doubt one can open a demat and trading account.
I am still being harsh as it is a new company particularly in stock broking, but you may see the ratings may go higher with time in my opinion.
If you are a beginner in trading and investing, please read this amazing guide on how share market works in India?
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