In this Groww Vs Espresso Broker Comparison and Review, Find out how a startup companies should work and make a place in highly competitive stock broking industry.
Yes, we will going to discuss and compare the Groww and Espresso broker by Sharekhan on all parameters such as brokerage, web/desktop based trading platform (Groww App vs Espresso Mobile App), account opening charges, customer service, margin and lot more products and services both stock broker offers to its clients, but another thing to learn about is entrepreneur skills.
The reason I am saying that is because both the companies Groww and Espresso is very new to stock broking industry but they have made a significant place where we have more than 321 sock brokers as per the latest NSE data.
But before we begin let me brief you about a quick fact about both stock brokers i.e. the number of active clients and total clients as of according to the latest NSE Data. Groww have about 8,54,919 active client list whereas Espresso Broker launched last year on 22nd September 2020 created staggering 50,000 active clients within 7 months of its launch.
I know the difference is very huge but one need to know that, Groww established 4.8 years ago i.e. 2016 first as a mutual fund distributor and in 2019 they made debut in stock broking. Whereas Espresso by Sharekhan is not even completed a year. Looking at this number does shows the trust they have created for users in their products and services.
Let us now move on to compare these brokers Groww Vs Espresso in detail below step by step, However if you do not have time to read the complete comparison Below is the overall comparison talking about the clear cut and precise information of who is best among Espresso Broker and groww taking all parameters.
Groww Vs Espresso Broker Overall Comparison:
I have already used both stock broker services as well as wrote the reviews about them in detailed way separately, based on my experience and facts below are things you can consider before opening an account with them.
- Groww and Espresso are discount brokers not full time brokers, so do not expect stock recommendation as of now, may be in the future they come up with this things.
- Espresso Broker have fantastic trading platform for desktop/web/mobile app, you can do fundamental as well as technical analysis quite easily and is little better than Groww platforms.
- Espresso brokerages are lower than Groww, they charge in equity Rs.20 or 0.01% (whichever is lower) Groww charges Rs.20 or 0.05% (whichever is lower) Espresso offers free equity delivery trades as well, not only that there are No brokerage on loss-making trades as well.
- Groww offers brokerage or say commission free mutual funds investment and platform for its users this is not available at Espresso as of now.
- Square-off timing at Espresso is 3:20 and for Groww it is 3:20 for equity and derivatives.
- Call and trade charges are Rs.50 for Espresso, whereas no call and trade facility as of now with Groww, Other charges such as stamp duty, DP, transactions charges remains same for both.
- You can expect good customer service from both stock brokers.
- With Groww you can make investment in Gold, Fixed deposit US stocks such as Apple, Amazon, Google etc. online using Groww platform whereas Espresso does not have this facility as of now.
- As of now you can only trade and invest in stocks (equity) segment at groww, FNO, Commodity, Currency segments are yet to be launched, whereas with Espresso you can trade and invest in all segments.
- Overall, Espresso is better for intraday trading as well as investing in stocks, it has all segments good trading platform and lower brokerage, whereas Groww is better for investors, as the brokerage is little higher for intraday trades, those who are looking for investments in SIP’s through mutual funds, or investing in stocks in India and US or FD, Gold etc. can choose Groww.
Get additional benefits with Espresso when you open an account through this link. Such as 1 year MoneyFlix subscription free and also a 30% discount on Espresso trade booster program.
Now, let us go dive deep to cover all different services and features of Grow and Espresso step by step and see who is best between both discount brokers.
About Groww Vs Espresso Broker:
Before we dig deeper to understand the various services offered it becomes utmost import to know in brief about Espresso and Groww history.
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. As of now you can trade and invest in only stocks (equity), derivatives i.e. FNO, Commodity, Currency segment is not available yet.
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.
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 April 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 11 million users on its platform.
This year on 7, April 2021, Groww has raised $83 million in a Series D funding round led by Tiger Global, making the online investment platform the latest entrant in Unicorn list.
Groww is also backed by some of the well know investor companies such as Ribbit Capital, SEQUOIA, Combinator etc.
Sharekhan has launched a separate entity called Espresso for discount brokerage services. Sharekhan is one of the largest brokers in India, was founded in 2000 and a subsidiary of BNP Paribas since November 2016.
Espresso got launched on September 22, 2020, R. Kalyanaraman is the CEO of espresso and have worked tirelessly to build a unique platform for traders and investors.
As per the CEO R. Kalyanaraman and I am quoting “Espresso isn’t just an interface. We’re in it for the long run. We’re in it to help you to succeed. That’s why we got our platforms Beta-tested by trading and investing enthusiasts. We didn’t stop there, though! With our Pay Only When You Profit pricing model, our endeavor is to ensure you keep at it and get better and succeed. We are here to help you achieve that, backed by our Sharekhan experience.”
Espresso offers trade execution facilities for equity cash and derivatives segments on BSE and NSE, commodities trading facilities on MCX and NCDEX as well as in currency segment.
They have partnered with both CDSL and NSDL for depository services. The basic idea of espresso is to help clients succeed by ensuring that they have more money in their hands by not paying brokerage on loss-making intra-day trades, or simply put ‘‘pay-when-you-profit-pricing model”.
Groww Vs Espresso Broker Margin Comparison:
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, 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 and Espresso for intraday trading in equites and derivatives. 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.
So going forward please choose stock broker not in terms of margin or leverage as it is same for all brokers through out India.
Groww Vs Espresso Broker Brokerages Comparison:
Brokerage is the most important factor when you trade and invest, both Upstox and Groww have quite low brokerages. Let us know brokerage for both discount brokers one by one.
Groww Brokerage Structure:
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.
Espresso Brokerage Structure:
First of all the brokerage charges are kept at decent Flat Rs 20 per order, For Intraday trades across all segments (Equity, F&O, Commodity and Currency). There are no brokerage charges for delivery based trades at espresso. Moreover, No brokerage on loss-making trades, Let’s break it down with an example:
Suppose you make 20 trades a day every trading day of a year
20 trades a day x 250 trading days = 5,000 trades
5,000 trades x Rs 20 per transaction = Rs 1,00,000
Assuming 40% are loss-making trades, you don’t pay brokerage worth Rs 20,000!
Now let us how espresso brokerage structure works with another example. Suppose you bought TATA Motors 1000 shares @Rs.200 and sold the same @Rs.196, which means you made a loss on the trade. Therefore espresso will only going to charge you one side of the order either buy/sell as it was a loss making trade.
Isn’t great that you don’t pay a penny on your loss making trades by using espresso stock broker. Another thing you must know in equity cash segment the brokerage charges are kept at 0.01% or Rs 20 for every executed order (whichever is lower).
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 0.01% of 20000, is Rs.2 so they will charge that instead of flat Rs.20.
For all other segments such as derivatives (FNO) IN Equity, Commodity and Currency the brokerage charges at espresso are kept at Rs 20 for every executed order, also Zero brokerage on square-off orders in case of loss.
So, Overall if we see Espresso brokerage is lower than Groww as of now.
Groww Vs Espresso Broker Trading and Demat Account Opening 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.
If we talk about Espresso
To open a trading/demat account at espresso there are no charges Rs.0 if you open an account through this link. Whereas the Annual Maintenance charge (AMC) is Rs 400/year + GST charged quarterly.
Moreover, Get additional benefits with Espresso when you open an account through this link. Such as 1 year MoneyFlix subscription free and also a 30% discount on Espresso trade booster program.
MoneyFlix is the world’s first financial movies platform! Whereas trade booster program of espresso is provided by subsidiary company Sharekhan Education.
I think its a win-win deal for you as there are no charges to open the account for a limited period offer*.
So, overall both the stock broker are giving option to open a free trading/demat account for users for a limited time period, however the AMC is been charged yearly for Espresso but with groww there are no AMC (Annual Mainenetance Charge).
Groww Vs Espresso Broker Account Opening Process Online:
The account opening process is online and it’s very seamless and smooth. Here is what you need to do:
To open an account with Groww online for free, you can sign up using your mobile number through this link.
Similarly, To open an account with Espresso online for free, you can sign up using your mobile number through this link.
You will receive an OTP to your number and you can get started with the 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 listed below:
1. Your PAN card
2. Your Aadhaar
3. To complete the e Sign process, you will have to authenticate it with an OTP. So, make sure you have the number linked to your Aadhaar handy. If not, you will not be able to complete the process. If the number linked to your Aadhaar is inactive, or if you don’t have any number linked, then you can visit your nearest Aadhaar Seva Kendra to get it updated.
4. A photo or scanned copy of your signature proof will be required to be uploaded.
6. Income proof –
It is mandatory to submit income proof if you wish to trade in Futures and options – Equity, Commodity, and Currency. You can submit one of the below documents.
Income tax returns acknowledgment
6-month Bank statement
Latest salary slip
Demat holding statement, or
A CA certifying your net worth
Note: The documents mentioned are for a Resident Individual Account.
Groww Vs Espresso Broker Trading Platform Comparison:
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 stock broker trading 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 or more. 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.
Now, let us talk about Espresso trading platform in detail.
There are 3 trading platform offered by Espresso for all devices:
- Binge (downloadable version) for desktop/laptop
- www.myespresso.com is the web version
- Espresso Discount Broking Mobile App
I won’t be discussing all the types of platform instead will disuses the Espresso Trading platform for desktop version, as the post will unnecessary be long you can read more about it here
Espresso Binge Desktop Based Trading Platform:
With Espresso Binge unleash the power of trading using Experience class charts, real-time feeds, multiple market scanners and much more to lend a hand to your trading. It has all the features required to be one of the best trading platform in India.
Advanced market sentiment tracker
Advanced market-watch tools that aid data visualization and decision-making
A watchlist that’s simple and hassle-free
Quick updates that help you stay ahead of the curve
The user interface is so clean and up to the mark, you can easily know which icon will do what, as the moment you will hover to any it will tell you the functionality of it.
Peer tracking beyond highs and lows
If you trade in Futures or Options than this downloadable platform is worth using. You have different tools to help you in trading FNO such as option greeks calculator, option chain, implied volatility tool, black and Scholes calculator in-built.
Get the power of charts with Espresso Binge
Choose and use the best candlestick patterns or other different types of chart such as Renko chart, Bar chart etc.
Overall, Espresso trading platforms are much better in comparison to groww trading platform as of now.
My Opinion On Groww Vs Espresso Broker:
I hope you have now thoroughly understood most of the services offered by Groww and Espresso broker, if you ask me in Groww vs Espresso Broker who is better?
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 7 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 based 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 8.6 out of 10. Therefore, if you are someone who do more of investing and lesser 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.
On the other hand
Espresso by Sharekhan might be new in discount broking industry but as we know being a subsidiary of Sharekhan it has support as well as the experience that any new start-up requires. Having said that, Espresso seems to be a perfect choice for anyone who is looking to open an trading/demat account, moreover there are no charges as of now to open an account so nothing to lose at all.
It is a win-win choice for you as an trader or investor. Espresso by Sharekhan has all that is required for being one of the best in broking industry, If I have to rate Espresso 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 8.8 out of 10.
In my opinion you can open account with both stock brokers, as there is nothing to lose. Always have atleast 2 to 3 trading and demat accounts, it gives you more different experience of platform and different services offered by them.
If you are a beginner in trading and investing, please read this amazing guide on How stock market works in India?
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