Looking for opening a new trading and demat account or thinking of switching your existing broker, read this post to find out the complete comparison of zerodha vs fyers.
I will be discussing both the companies, each and every services offered like brokerage charges, margin they provide, account opening charges, trading platform review and much more in detail.
Just to let you know this comparison or say review is based on facts, as i personally have account with both brokers.
As a matter of caution the review will be little long as need to cover everything, you can switch from table of contents below. So let us start and see who wins the battle in Zerodha vs Fyers.
About Zerodha Vs Fyers:
Zerodha and Fyers both have a history, in brief i have tried to explained how they both started and what is the current status.
Zerodha Vs Fyers Margin Comparison:
Before we do margin comparison between Zerodha and Fyers (Margin also known as leverages, exposure or limits) you should be aware of what margin exactly are?
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. Let us understand this with a simple example:
Suppose you want to buy shares of tata motors currently trading at Rs.80. You have 1000 rupees in your trading account, how many shares you can buy with this money?
80*12=960, so approx you can buy 12 shares, although with this low quantity, the profit you will earn if the shares prices move 1 rupee up and down is only 12. This does not look attractive at all. That is why the brokers would provide you margin to trade with larger quantity.
So they will give you 5 to 20 times margin (may be more), now multiply your initial investment 1000*10 or 20, you will have much more money to buy the stock and with more quantity. Now the profit per share will be more as the quantity got increased.
Sounds attractive now, as your 1000 becomes 20,000 and with that you can buy at least 240 shares in case of Tata motors, and per 1 rupees movement will give you 240 bucks. Take it as an extra power given to you, now its up to you to decide whether you want to use it or not.
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 at Espresso 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. I am still showing you the margin comparison in case SEBI in future rules out this.
As you can see in the image above, Fyers in comparison to zerodha gives much more margin in equity cash segment. As said with Bracket order(BO) and Cover order (CO) order types you will get extra margin which 20X for zerodha and 25X for fyers.
Which i personally feel is more than enough, always remember the margin is a double edge sword, the more you take the more riskier your trade becomes. So, it is always advisable to use the margin but in limited way.
Zerodha Vs Fyers Margin Comparison In Futures and Options Segment:
If we talk about fyers margin in futures and option segment, you can see the image below which is calculated from their margin calculator.
Fyers Margin In Options Buying:
SPAN + Exposure margins are not applicable for option buyers. To initiate a trade, you will have to pay the entire premium for 1 lot. However, do provide some leverage for near-month Nifty contracts. Normally, to buy Nifty 10800CE you’ll have to pay the entire premium of ₹5250. (70 Price* 75 Lot Size).
However, if you use cover orders to buy, you will get some margins/leverage and you can buy it for a lesser amount. With a leverage of 1.3x, you will be able to buy 1 lot with just ₹4040 (5250/1.3).
Here also in terms of margin fyers look better than zerodha.
Zerodha Vs Fyers Margin Comparison In Currency and Commodity:
Fyers Margin In Commodity(MCX):
Fyers provide margin in commodity futures as well, below are some calculation for most traded commodities in market like gold, silver and crude-oil.
As you can see, in gold its 4X times of total overnight position for bo/co order. In Intraday normal orders it is almost 2.5X times.
Similarly for silver margin is almost 3.8X and crude its 7x times.
Fyers Margin In Currency Segment:
People who loves trading in Forex or currency, fyers offer different margin for different pairs of currency like for USD/INR in intraday you need to pay Rs.672/per lot, for taking the overnight position you required to pay Rs.2038, whereas in BO/CO depending upon you stop-loss and target, you pay around Rs.355.
check the image below:
Zerodha Margin In Currency and Commodity:
|Currency Futures||3.33X(30% of NRML margins)|
|Commodity Futures||3.33X(30% of NRML margins)|
For currency the margin requirement at zerodha in intraday trades with CO is up to 3.33x and BO is up to 4x, similar for commodity segment.
Note: Beware from certain website telling you that zerodha offers 5X time or 10X times delivery margin, i have personally seen them and its pure fake articles written just to take advantage of innocent beginner traders and investors.
So overall when we compare zerodha and fyers in terms of margin fyers are much ahead of zerodha in all the major segments.
Zerodha Vs Fyers Brokerages Comparison:
Fyers and zerodha both have equal brokerages except for options in currency and commodity fyers charges flat Rs.20 per order whereas zerodha charges 0.03% or Rs. 20/executed order whichever is lower.
Fyers brokerage charges are in every segment are listed below:
Similarly, zerodha also have the same brokerage in every segments except for options in currency and commodity it is 0.03% or Rs. 20/executed order whichever is lower
So, overall if you see the brokerage charges its very nominal compare to any other broker, but fyers does charge lower brokerage as mentioned above in options for currency and commodity.
Just to make you understand,
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. I hope you got the point about the brokerages.
Zerodha Vs Fyers Trading and Demat Account Opening Charges:
Apart from this certain other charges for various services offered
Call & Trade and RMS auto-squareoff: Additional charges of ₹50 per executed order.
Physical copies of contract notes, if required, shall be charged ₹20 per contract note. Courier charges apply
Call & trade
Additional charges of ₹50 per order: for orders placed through zerodha support/dealing desk.
Payment gateway charges
₹9 + GST
Let us see some other charges at fyers:
Fyers call and trade charges is Rs. 20 per executed order
Fyers auto-square-off charges is Rs. 20 per executed order
Fyers Physical Contract Note Charges is Rs. 20 per physical contract note + courier charges
Payment gateway charges
Overall if you see the charges are very nominal for both the brokers within Rs.700 you can open the trading and demat account with AMC charges paid.
Zerodha Vs Fyers Online Account Opening Process:
Once you sign up using above links you need to upload certain documents listed below:
- Your PAN card
- Your Aadhaar
- 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.
- Cancelled cheque/Bank statement to link your bank account –
If your cheque is not personalized then the bank statement you upload should have both the IFSC and MICR code printed on it. If not then your application will be rejected. The bank statement has to be self-attested.
- A photo or scanned copy of your signature proof will be required to be uploaded.
- 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 Fyers Trading Platform Comparison:
The most important part of any trading platform is the tools and resources it has to technical analysis. Zerodha and Fyers both has all the indicators and types of chart required to make it possible.
Whether you want to use:
Different Candlestick patterns etc. you name the indicator and it will be there, so all in all zerodha and Fyers has everything what is needed for a hassle-free trading platform.
You can add- withdraw funds directly, create or back-test trading strategies and lot more from trading platform itself.
The reason i am not involving all the features of different trading platform, because unnecessary it will be long, second all the features are somewhat equal.
Zerodha Vs Fyers Orders Comparison:
|Order Type Compare||5paisa||Zerodha|
|AMO-After Market Orders|
|GTC-Good Till Cancelled|
Apart from this zerodha also have GTD(good till triggered) order type, Fyers don’t have this type of order.
Now, let us see some other features offered by zerodha and fyers
Zerodha Mutual Fund Platform Coin:
This year in Feb, 2020 zerodha applied for mutual fund license as well, In the forthcoming months you would see zerodha pioneering in asset management companies(AMC) as well.
They have also launched a dedicated platform by the name COIN, where 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.
Fyers Thematic Investing Platform:
Fyers along with the trading services gives its clients a platform to build portfolios which are pre designed and chosen by fyers. One who are looking for investment rather than trading can easily invest through thematic investing platform.
Thematic investing allows you to invest in different themes or portfolios without getting into the stock specifics. So, instead of spending your precious time doing fundamental analysis and trying to build your portfolios, you can simply choose various themes offered by fyers.
A theme is a portfolio of stocks which revolve around a particular idea or sector. Themes are intelligently designed to help investors build a good portfolio rather than individual stocks.
It is a less risky way of investing in the Indian stock market as compared to directly investing in individual stocks as it offers more diversification.
For those who are keen on investing but don’t know how to start, this is your go-to platform for building an optimal portfolio. Choosing this route, gives you a hassle-free experience as themes are rebalanced periodically to help you stay tuned with current developments in the stock market with the help of fyers research team.
As i have already told you above there are No or say zero brokerage to pay for using thematic investment in fyers.
Other than this zerodha has tied up with various other financial tech companies provide many other services, however there is some charge associated with each services.
Tickertape, Streak, Refinitiv, Smallcase, Sensibull etc.
Charges for optional value added services mentioned above for premium services:
|StockReports+||Monthly / Bi-annually / Annually||150/810/1440|
|Screener||Monthly / Quarterly / Bi-annually / Annually||100/285/540/960|
|Sensibull||Monthly||Free: 0 | Lite: 800 | Pro: 1300|
|Streak||Monthly||Basic: 500 | Premium: 900 | Ultimate: 1400|
You can read more about this services here. These services as of now are not available with Fyers.
My Opinion On Zerodha Vs Fyers:
I hope you have now thoroughly understood most of the services offered by Zerodha and Fyers, if you ask me in Zerodha vs Fyers which 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 8.9 out of 10.
Fyers is just 4 years old, have made itself a brand within this period. There are more than 300 stockbrokers in India which are working from so long, but Fyers has created its own place.
This a significant example of how a startup should work, As I have already experienced the various services offered by fyers, I must say there are ahead in the race and will be in Top 5 stock broker position very soon.
If I have to rate the Fyers in comparison with Zerodha, I will give 8.2 out of 10.
However, I want to suggest new comers or beginners in trading and investment to open an account with Fyers because of less clients they are more actively responds to your concerns.
Moreover, fyers give higher margin, offers lower brokerage than zerodha.
So don’t wait, go ahead and open an account now with Fyers.
If you are a beginner in trading and investing, please read this amazing guide on how share market works in India?
If you are looking for making an FD fixed deposit than do check best banks in India with Highest FD returns and calculate the value of your FD Moneycontain free FD calculator with inflation.
You can check my review on 5Paisa here.
You can also check my comparison for zerodha vs 5paisa here
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