In your search for the best Deamat account, you might come across multiple options which makes the choice of the best Demat account difficult. In this post, we gonna compare Paytm Money VS Zerodha. So that you don’t have any confusion regarding these two demat accounts.
Zerodha and Paytm Money both are Discount brokers. Zerodha was incorporated in 2010 as a discount broker. On the other side, Paytm Money was founded in 2017 through its parent company One97 Communications this helped them quickly become one the most popular discount brokers. Currently, Zerodha has 60lakh+ active clients whereas Paytm Money has 6lakh+ active clients.
Also Read: Best Zero Brokerage Demat Account
Paytm Money VS Zerodha Comparision
| Basic Difference | Paytm Money | Zerodha |
|---|---|---|
| Type of Broker | Discount | Discount |
| Year of Incorporation | 2017 | 2010 |
| Founders | Varun Sridhar | Nithin Kamath, Nikhil Kamath |
| Supported Exchanges | NSE, BSE | NSE, BSE, MCX, NCDEX |
| Depository | CDSL | CDSL |
Account Features
| Account Features | Paytm Money | Zerodha |
|---|---|---|
| 3 in1 Account | N/A | Available |
| Free Trading Calls | N/A | N/A |
| Free Research Report | N/A | N/A |
| Margin Funding | N/A | N/A |
| Margin Against Share | Available | Available |
| Algo Trading | N/A | N/A |
| SMS Alerts | N/A | N/A |
| Online Demo | Available | Available |
| Online Portfolio | Available | Available |
| Intraday Square off Time | 3:15 PM | 3:20 PM |
Investment Options
When searching for the best broker you should also look into their investment options as well. Since Zerodha is registered in NSE, BSE, MCX, and NCDEX it allows users to invest in Equity, F&O, Currency and Commodities. On the other side, Paytm Money doesn’t have the option to invest in Currency and Commodities as it’s not registered on MCX and NCDEX.
| Investment Options | Groww | Zerodha |
|---|---|---|
| Equity | Available | Available |
| Futures | Available | Available |
| Options | Available | Available |
| Currency | N/A | Available |
| Commodity | N/A | Available |
| Mutual Funds | Available | Available (Using Coin App) |
| IPO | Available | Available |
| SGBs | Available | Available |
| Bonds & Debt Instruments | Available | Available |
| Excahnge Traded Funds (ETF) | Available | Available |
| US Stocks | N/A | N/A |
Account Opening Charges and AMC
When looking for the best Demat account in India you should also compare the Account opening charges of that platform. Account Opening Charges are one-time fees that you have to pay to the broker during the account opening time. Whereas the broker charges fees on a monthly, quarterly or yearly basis for your account maintenance.
| Charges | Paytm Money | Zerodha |
|---|---|---|
| Account Opening Charges | Free | ₹200 (Equity, F&O and Currency.) ₹300(Equity, F&O, Currency and Commodities.) |
| Account Maintenance Charges (AMC) | Free | ₹300/year + GST |
Paytm Money has zero Account Opening Charges and AMC. However, you have to pay ₹30+GST to Paytm Money platform fees.
Brokerage Charges
Whenever you buy stock from your Demat you have to pay an additional charge in the form of Brokerage charges. So the Less Brokerage is always a good thing. As per the SEBI Rule, no broker can charge more than the brokerage of 2.5% of the total traded value.
Zerodha continues with its old charges. Paytmoney changed their brokerage charges in 2022 which means if you sign up on the platform after 5th Aug’22 then you have to pay the Brokerage Charges mentioned below.
| Brokerage Charges | Paytm Money | Zerodha |
|---|---|---|
| Equity Delivery | 2.5% or ₹15 whichever is lower | Free |
| Equity Intraday | 0.05% or ₹15 Whichever is lower | 0.03% or ₹20 Whichever is lower |
| Equity Futures | 0.02% or ₹15 Whichever is lower | 0.03% or ₹20 Whichever is lower |
| Equity Options | ₹15 | ₹ 20 |
| Currency Futures | N/A | 0.03% or ₹20 Whichever is lower |
| Currency Options | N/A | ₹ 20 |
| Commodities Futures | N/A | 0.03% or ₹20 Whichever is lower |
| Commodities Options | N/A | ₹ 20 |
| Call Trade | ₹ 100 Per Executed order | 0.03% or ₹20 Whichever is lower |
| Auto Square of Charges | ₹ 50 | ₹ 50 |
So as you can see If you want to trade a large amount in Equity Intraday, Futures and Option the charges of Paytm Money is a bit lower than Zerodha.
If you are a long-term investor then we think Zerodha is a better option to choose since it has zero brokerage. Whereas Paytm charges 2.5% or ₹15 whichever is lower on the order value.
This means if you buy a scrip worth more than ₹600 on Paytm it will charge ₹15 as brokerage. In the case of Zerodha, it’s zero.
Exchange Transaction Costs
Whether your broker offers zero brokerage, you still have to pay the Exchange transaction. the fees charged by the Stock Exchanges like NSE, or BSE.
| Exchange Transaction Costs | Paytm Money | Zerodha |
|---|---|---|
| Equity Delivery | NSE: 0.00345% BSE: 0.00375% | NSE: 0.00325% BSE: 0.00375% |
| Equity Intraday | NSE: 0.00345% BSE: 0.00375% | NSE: 0.00325% BSE: 0.00375% |
| Equity Futures | 0.002% | NSE: 0.0019% |
| Equity Options | 0.053% on Option premium | NSE: 0.05% (on premium) BSE: 0.005% (on premium) |
| Currency Futures | N/A | NSE: Exchange txn charge: 0.0009% BSE: Exchange txn charge: 0.00025% |
| Currency Options | N/A | NSE: Exchange txn charge: 0.035% BSE: Exchange txn charge: 0.001% |
| Commodities Futures | N/A | Group A Exchange txn charge:0.0026% Group B: Exchange txn charge: CASTORSEED – 0.0005% KAPAS – 0.0026% PEPPER – 0.00005% RBDPMOLEIN – 0.001% |
| Commodities Options | N/A | Exchange txn charge: 0.05% |
DP Charges
DP charges or Depository Participant charges are charged by the depository Like NSDL and CDSL. No matter how many units are sold, DP Charges are flat transaction fees. Below are the DP charges of Paytm Money and Zerodha.
| DP Charges | Paytm Money | Zerodha |
|---|---|---|
| DP Charges | Rs. 13.50 + GST per scrip per day | Rs. 13.50 + GST per scrip per day |
Margin
Margin Trading Fazcitliy is almost similar to taking a bank loan. The broker allows traders to avail margin facility and trade with an extra amount along with their own money. Since it is a type of loan, you are liable to pay interest on it. Generally, this margin trading facility is important for traders if you are Investor then you don’t have to worry about this.
| Margin | Paytm Money | Zerodha |
|---|---|---|
| Equity Delivery | 1X | N/A |
| Equity Intraday | 5X | 3X |
| Equity Futures | 1X | 2.5X |
| Equity Options | 1X | 2.5X |
| Currency Futures | N/A | 2.5X |
| Currency Options | N/A | 2.5X |
| Commodities Futures | N/A | 2.5X |
| Commodities Options | N/A | 2.5X |
Also Read: Top 10 Best FMCG Stocks in India
FAQs: Paytm Money VS Zerodha
Yes, Paytm Money is safe for trading as its SEBI Registered Stock Brokerage Firm.
Zerodha has Zero Brokerage on Delivery whereas if you have signed up on a Paytm Money account before 5th Aug 2022 then you can enjoy ₹0.01 on Equity delivery. However, if you landed on the platform after this date you have to pay 2.5% or ₹15 whichever is lower.
Paytm Money doesn’t have AMC charges but you have to pay ₹30+GST Per Month as Platform Fees.
Yes Paytm Money and Zerodha Both are Discount Broker.
Conclusion
After looking into all the aspects of Paytm Money VS Zerodha, We find Zerodha a better option to choose. Especially for long-term investors. Even though it charges ₹200 as account opening charges and ₹300+ GST it gives Zero Brokerage on equity delivery orders.
Paytm money doesn’t have any AMC or Account opening charges. However, it charges ₹30/month as a platform fee. Also, you have to pay 2.5% or ₹15 whichever is lower as Brokerage for Equity delivery. For Equity intraday, F&O Paytm money has lower charges.
Speaking of UI, Paytm has one of the simplest User interfaces. Also, you can find all the investment options like mutual funds, IPOs, Bonds, and Equity in one app. Zerodha on the other hand offer a feature reach platform so it can be overwhelming for beginners.
The Fundamentals details are extremely limited on Paytm Money. Whereas Zerodha redirects you to ticker tape for all the fundamental analysis. Even though ticker tape offers multiple company details, still it is limited to the basic version. Therefore many features are locked here. However, one of the main advantages of Zerodha is that you can get Free Sensibull Pro and Unlimited Streak. So I think Zerodha is better option for both traders and investors.
