This Zerodha Vs Dhan comparison will certainly going to help you in choosing the right stockbroker for you trading and investing journey. we will find out who is best stock broker among both by comparing different services such as brokerage, trading platform (Dhan App vs Kite App), account opening charges, customer service, margin and lot more products both stock broker offers to its clients.
Zerodha is at no.1 position in terms of active clients, they have about 66,04,501 (6.6 millions) whereas Dhan made their entry in one of the highly competitive broking industry in September 2021 and they have more than 1 million + users who have installed their app from playstore.
I know the difference is very high but one need to know, Dhan established just 1.5 years ago but looking at this number does shows the trust they have created for users in their products and services.
Whereas Zerodha established in year 2010 and rest is history. Zerodha brought the changes indeed required in the broking industry with his tech innovation.
Zerodha, with his low cost brokerage, technology driven fast services, left the other brokers, majorly the full time brokers such as ICICIDirect far behind the only competition as of now is Upstox for them which is at second position.
You would be glad to know that Dhan has one of the best web based trading platform I have personally seen and it may sound little exaggerated but it even beats the Zerodha trading platform due to the various features available under the same page such as technical, option chain, customised option strategy builder, fundamentals of company, financials etc.
Trust me after experiencing the dhan broker service I am very much certain that they will make a place to be in the top 3 stock broking company in India very soon.
So without further delay, let us start first with Dhan Vs Zerodha overall review in 16 brief points and later below you can check them in detailed guide if you want.
Just to let you know the post may be little long as it covers all aspects of the Dhan and Zerodha stock broker in detail, you can move through table of contents for the info you are looking.
Zerodha Vs Dhan 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.
- Zerodha and Dhan both have fantastic trading platform for Web/mobile app, you can do fundamental as well as technical analysis quite easily.
- Zerodha offers a downloadable version by name Pi but Dhan do not have this as of now. On the other hand dhan have a dedicated option trading platform (Web + App) which is not available at Zerodha.
- Zerodha have third party and it’s own in house developed other services such as Sensibull, Smallcase, Tickertape, Streak, Refinitiv.
- Recently Dhan have also made tie up with smallcase for making portfolio based investment moreover they do have a stock recommendation tool as well which gives long term investment ideas known as Stratzy and this feature is not available with zerodha.
- Dhan has also partnered with Tactic who provides Trade Ideas & Strategies of top SEBI registered traders in currently 3 modes – Intraday, Positional & BTST. This feature will greatly help the new as well as experience traders and is not available with Zerodha.
- 1Cliq by oipulse is integrated with Dhan which helps fast traders to identify trends especially scalpers. You can have trade execution with pre defined SL, auto Trailing SL, MTM target and stop loss are some of it’s amazing features which is not available with Zerodha.
- Zerodha and Dhan both are charging equal brokerages as they charging Rs.20 or 0.03% (whichever is lower) per order.
- Zerodha and Dhan both also gives free delivery based trades moreover with dhan you also get another 50% brokerage off for women’s.
- Zerodha and Dhan both offers mutual fund investment i.e. SIP in stocks and ETF.
- You can Invest and trade in all segments at Dhan as well as Zerodha broker i.e. Equity (Stocks), FNO, Commodity, Currency on NSE, BSE & MCX.
- Account opening charges as well as AMC (Annual Maintenance Charges) is Zero for Dhan for a limited time period, whereas Zerodha do charges one time fee of Rs.200 for equity and Rs.300 for (Equity, FNO, Currency, commodity) and Rs.300 AMC.
- Other than this you can make investment in Initial Public Offerings (IPO), Sovereign gold bonds (SGB), NFO’s, Bonds and many different financials service with both stockbrokers.
- If we talk about Margin at Dhan vs zerodha, after SEBI Rules on Intraday margin every stockbroker is giving same margin 5X throughout India, hence this does not matter anymore.
- Dhan also gives Margin Trading Facility (MTF) for up to 4X leverage (75% funds) from Dhan for Equity Delivery trading. You can buy 950+ stocks and hold them for unlimited period of time and this feature is not available with Zerodha.
- Dhan also offers another feature known as WelathBasket, it is a basket of stocks/ETFs, based on a strategy, theme or idea. WealthBaskets are professionally managed and help you invest in Stock Markets in a systematic way and this is not available with Zerodha.
- Overall, I find Dhan better than Zerodha looking at all the features, robust trading platform and cost effectiveness. Moreover as there are less number of clients the customer service will be much better than Zerodha for the users.
Now, let us go dive deep to cover all different services and features of Dhan and Zerodha step by step and see who is best between both discount brokers by doing in depth analysis.
About Zerodha Vs Dhan:
Before we dig deeper to understand the various services offered it becomes utmost import to know in brief about Zerodha and Dhan history.
Dhan Stock broker made their entry in one of the highly competitive broking industry last year in September 2021. Pravin Jadhav who was also the former Paytm Money CEO is the CEO of Dhan. Dhan is backed by leading investor such as MIRAE ASSET, BEENEXT, BLUME, 3ONE4 CAPITAL, Social Leverage etc.
Dhan is SEBI Registered (INZ000006031) online stock broker offering trading on all exchanges (BSE, NSE, MCX) and across all segments (equity, exchange-traded funds, futures, options, currency, commodities). Dhan have partnered with CDSL for depository services.
The company is registered by the name Moneylicious Securities Private Limited and have corporate office in, Borivali East, Mumbai, Maharashtra.
Nithin Kamath, founder and CEO of zerodha established the company in year 2010 and rest is history. The term ‘Zerodha’ is derived from the blending of an English and Sanskrit word. ‘Zero’+’Rodha’ where ‘Rodha’ means barrier in Sanskrit, thus zerodha means ‘Zero Barrier’.
Zerodha headquarter is situated at Bengaluru, and it is associated with all three major stock exchanges in India NSE, BSE & MCX. Zerodha has partnered with both NSDL & CDSL to provide the depository services to clients.
Zerodha Vs Dhan 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.
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.
Therefore, the margin or leverages offered will be equal irrespective of the stock brokers in India going forward. 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 Dhan and Zerodha for intraday trading in equites and derivatives.
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.
Zerodha Vs Dhan Brokerages Comparison:
Brokerage is the most important factor when you trade and invest, both Zerodha and Dhan have quite low brokerages. Let us know brokerage for both discount brokers one by one.
Zerodha Brokerage Structure:
Zerodha brokerage is what make them ahead in the game, as you can see , there is no charge for taking delivery of the trades to your demat account. Whereas for intraday trades across equity, currency, commodity, it is flat Rs.20 or 0.03% (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 0.03% of 20000, is Rs.6 so they will charge that instead of flat Rs.20.
Dhan Brokerage Structure:
Brokerage charge at Dhan is very low, there is no charge for taking delivery of the trades to your demat account. Whereas for intraday trades across equity, currency, commodity, it is flat Rs.20 or 0.03%(whichever is lower) and for options segment it is Rs. 20 per order.
So, overall the brokerage charges for both stock brokers are kept at quite decent priced considering the broking industry norms.
Zerodha Vs Dhan Account Opening Charges:
There are no account opening charges as of now with dhan for a limited time period. You can open dhan trading and demat account with zero AMC (Annual Mainenetance Charges).
- ₹0 Demat Account Fees
- ₹0 AMC
- ₹0 Platform Fees
- ₹0 Brokerage for Delivery Trades
- ₹20 per order for Intraday Trades
- ₹10 per order for Intraday and F&O Trades for all women investors on Dhan
If we talk about Zerodha, Account opening charges are (one time) Rs.200 for Equity and Rs.300 for Equity, FNO, Commodity, Currency segment.
Moreover you also need to pay Rs.300 Annual Maintenance charges i.e. AMC in a year on quarterly basis which gets deducted from your trading account balance.
Likewise, Coin which is a dedicated mutual fund platform for zerodha users are free to use with 0% commission charges.
So, overall Dhan is best as it is not charging anything at all for account opening of trading/demat/mutual funds as well no AMC in comparison to Zerodha.
Zerodha Vs Dhan Online Account Opening Process:
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 Dhan online, you can sign up using your mobile number through this link.
Similarly, To open an A/c online with Zerodha , Click on this link and first enter your mobile number.
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.
Zerodha Vs Dhan Trading Platform Comparison:
The most important part of any trading platform is the tools and resources it has for technical and fundamental analysis. If we talk about Dhan first below is what you can expect as an trader and investor:
Dhan have 3 trading platform for all devices known as:
- Dhan App for Mobile
- Dhan for desktop web version
- Option trading Platform (Web + App) by dhan
It is not possible to review all of them under one post however, will review the dhan web version trading platform and as the functionalities and features remains same across different version hence it does not matter.
Dhan web or say browser based trading platform, which can be opened on any web browser you use. Just like a website but with all the tools and resources needed.
Honestly, this is one of the best web based trading platform I have personally seen it may sound little exaggerated but it even beats the Zerodha trading platform due to the various features available under the same page such as technical, advanced option chain data, customised option strategy builder, fundamentals of company, financials etc.
On left hand you will see the market watch, from here you can add or delete the scrips. When you move and hover over any stock it will give you different options.
With Dhan platform you get the maximum no. of indicators you want in life. They are just one click away.
You can display and use any type of chart with different candlestick patterns
Whether you want to use:
Support and Resistance indicator and many others
Dhan gives Trading View charts along with ChartIQ on both web and mobile application. Different Candlestick patterns etc. you name the indicator and it will be there.
As, you can see in the above image of order window, you can place different types of orders in intraday trading, if you select the option delivery, it will give you the option to place different order for delivery.
You can add- withdraw funds directly and instantly, create or back-test trading strategies use DHAN API to trade and lot more.
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.
So all in all Dhan trading platform has everything what is needed for a hassle-free trading platform.
Let us now check Zerodha trading platform in comparison to Dhan in a detailed way:
Zerodha is known for its best trading platform since inception, they have 3 dedicated platforms for its users:
- Zerodha Pi for desktop, which is a downloadable version
- Zerodha Kite for Web, which a browser based trading platform
- Zerodha Kite Mobile App, which a mobile App
Let us discuss Zerodha Kite which is a web or say browser based trading platform, which can be opened on any web browser you use. Just like a website but with all the tools and resources needed.
All zerodha trading platform are very secured, because of its 2 factor authentication, you need to enter the password and than a 6 digit pin to login. Once logged in you will see this page:
On left hand you will see the market watch, from here you can add or delete the scrips. When you move and hover over any stock it will give you different option like charts, market depth, buy sell order and many more.
Below image shows when you click on to know the market depth, (just to let you only zerodha as of now have the facility for level 3 data), what it means, the market depth that you will see have more depth , usually most other brokers will show only 5 best bids but zerodha shows 20 data for buy and sell orders.
Doing technical analysis at zerodha is a blessing, with all the necessary tool and free resources available at one place, one can create, back-test & deploy whatever strategy they want. Zerodha gives Trading View charts along with ChartIQ on both web and mobile application.
With zerodha kite platform you get the maximum no. of indicators you want in life. They are just one click away.
You can display and use any type of chart with different candlestick patterns
You can also draw trend-lines, Fibonacci arc, cross-line on the chart itself.
Similarly the mobile based version i.e. Dhan Mobile App have same features as I mentioned above and Zerodha Kite also have similar features.
Overall Zerodha in comparison to Dhan does have other integrated services within the platform such as Sensibull, small case, tickertape, streak, Refinitiv, sentinel etc. But having said that, you will not going to miss any thing even if you choose dhan trading platform as it has all required tools and resources inbuilt and most important free of cost.
Zerodha Vs Dhan Other Charges Comparison:
Call and Trade Charges At Dhan?
Dhan do not have any charges for you when you call Dhan Customer Care, however for call and trade at dhan you will be charged Rs 50 + GST per order placed through Dhan trade desk.
Call and Trade Charges At Zerodha?
Zerodha offers you to place order by call and trade which will be charged Rs.50 per order through phone and you can modify an order as many times you want to during a day.
Auto squared off charges by Zerodha Vs Dhan?
The charges are INR 20/order + GST for auto square off at dhan and Rs.50 per position open (intraday) excluding GST will be charged as auto square-off at zerodha, in case you do not do it by yourself from the trading platform.
What are Payment Gateway Charges at Dhan Vs Zerodha?
There are no charges for payment gateway if making the payment through UPI and Net Banking at Dhan as well as Zerodha.
Apart from above, the following types of charges are levied on your trades at every broker:
- 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.
My Opinion On Dhan Vs Zerodha:
I hope you have now thoroughly understood most of the services offered by Dhan and Zerodha, if you ask me in Dhan vs Zerodha who is better?
Zerodha in itself is the universe, whether you are a beginner or experience trader and investor, zerodha has all resources set at one place for you.
Expressing my opinion in terms of all technological tools, advanced platforms, robust management I would rate Zerodha 9.3 out of 10.
To open an account with Zerodha right away click on this link.
On the other hand
According to the latest NSE reports there are about 300+ stock brokers in India, however what makes Dhan a leading and strong contender in the stock broking industry is the tools and resources they have in their trading platform.
Moreover there are no hidden charges and the brokerages are very minimal if we do the industry comparison. They are also backed by cash enriched investors so nothing to fear.
If I have to rate Dhan broker 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 9.5 out of 10.
I am still being harsh as it is a new company, but you may see the ratings may go higher with time in my opinion.
So if you are thinking of opening a trading/demat/mutual fund combined account, than do not put any second thought, go ahead and Open Free dhan trading and demat account with Zero AMC (Annual Mainenetance Charges) there is nothing to lose its a win-win deal.
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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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.