Motilal Oswal vs Zerodha – Geniune Broker Comparison 2020
Motilal vs zerodha

Motilal Oswal vs Zerodha – Geniune Broker Comparison 2020

Motilal Oswal is a full service broker which offers research-based advisory. Whereas, Zerodha, is the leading discount broker in India which is best for traders. Comparing Zerodha (a disocunt broker) with Motilal Oswal (a full service broker) is like comparing tea with coffee. Both has their own pros and cons.

You can choose the best demat account based on your requirements. Let’s have a brief comparison of Zerodha Vs Mostilal Oswal

Motilal Oswal vs Zerodha

ZerodhaMotilal Oswal
Flat Rs. 20/order or 0.01% (whichever is lower.)0.05% brokerage on intraday 
Free equity delivery0.50% charges on delivery
Equity Options at flat Rs. 20 per executed order Equity Options at flat Rs. 75 per lot 
You can get a 3-in-1 account facility if you have a savings account in IDBI Bank.No 3-in-1 account facility
Zerodha offers direct mutual funds investment.Motilal offers regular mutual funds investment.
No market research advisory providedHigh-quality market research advisory

Let’s have a detailed review of Zerodha and Motilal Oswal for a better understanding of two leading brokers of India.

Zerodha Demat & Trading Account Review

Zerodha (check complete Zerodha review) was founded in 2010 and broke the trend of paying a hefty amount as brokerage charges. Zerodha introduced a flat fee brokerage structure in India. 

You save a decent amount of money if you are paying a flat fee like Rs. 20 per order instead of paying the percentage amount of your order.

Because, in trading, orders are usually of big amounts and you end up paying handsome charges in traditional brokerage system.

Zerodha Brokerage charges

Zerodha takes no fee on the stock delivery. That means, if you are investing in stocks for long-term & not selling shares on the same day, you won’t have to pay any brokerage.

For intraday, trading charges are Flat Rs. 20 or 0.01%, whichever is lower. 

Intraday trading includes equities, currency, and commodity trading.

CategoryCharges
Equity DeliveryZero
Equity Intraday  TradingRs. 20 or 0.01% (whichever is lower)
Equity OptionsFlat Rs. 20 per executed order 
Equity FuturesRs. 20 or 0.01% (whichever is lower)
Currency OptionsRs. 20 or 0.01% (whichever is lower) 
Commodity F&ORs. 20 or 0.01% (whichever is lower)

Zerodha Margin Provided

Zerodha offers margin on 3  different products; MIS, Bracket, and Cover Orders.

The margin provided on all products is 3-12.5% that is up to 8x depending on the script. 

For Intraday orders in F&O –

  • For Index, the margin required is 35%.
  • For Stocks, the margin required is 45%.
  • For Commodities & Currency, it is 50%.

As per SEBI’s new guidelines, no broker can give a high amount of leverage to their customers.

Zerodha Account Opening Charges 

  • Trading & Demat account opening – Rs. 200
  • Commodity account – Rs. 100 ( Free for the first year)
  • Annual Maintenance Charge – Rs. 75 every three months.

Zerodha Trading Platforms Review

#1. Zerodha Kite

Kite is a fast & intuitively designed trading platform that allows you to trade equities, F&O, commodities, and currency. You receive updated information with live streaming of the latest market trends without any lag. 

Zerodha Kite

You can search across 90,000+ stocks and live market depths up to level-3. 

You get deeper insights into the market and allows you to set trading strategies accordingly.

You get 100+ indicators with an advanced charting interface. 

#2. Zerodha Kite Connect

Kite Connect is a tool to create powerful trading platforms using simple HTTP/JSON APIs. 

Zerodha Kite Connect

You can build your own investment app using these APIs.

#3. Zerodha SmallCase Review

SmallCase allows you to build a diversified, low-cost portfolio for long-term investment purposes.  A small case diversifies your portfolio with multiple stocks and protects you against market volatility of the market.

Zerodha Small Case

You can invest in stocks and mutual funds hold them in your account. 

You can also invest in SIPs through smallcase.

#4. Streak

Streak is the world’s first platform for traders to create, backtest, and deploy trading strategies without any coding skills.

You can track real-time market trends, get alerts, and manage positions. 

Streak work in 3 steps:

  1. Create Strategies
  2. Backtest Strategies
  3. Deploy Strategies

#5. Sensibull

Zerodha has collaborated with  Sensibull to provide customers with the ‘Options Trading’ platform.

You get expert advice in real-time on  Whatsapp. 

You can also practice virtually without investing real money.

Sensibull is paid. It has three plans; Free, Lite, and Pro. 

#6. GoldenPi

Golden Pi is India’s first online platform to invest in bonds and debentures. You can invest in bonds & debentures to get fixed returns on your investments.

3 steps to start investing using GoldenPi-

  1. Choose bonds that match your goals
  2. Complete KYC online
  3. Make the payment online and receive bonds in your  Demat account. 

Best For

Zerodha is best for both newcomers where you get free equity delivery & low-cost trading.  On the other hand, if you are an expert trader, you can leverage the flat fee structure as well as create trading strategies. 

Another benefit of Zerodha is that you can also apply for IPOs using UPI (BHIM). 

Also Read – How to open Zerodha Account.

Pros 

  • Free  equity delivery
  • Flat brokerage is cost-effective for a regular trader
  • Hassle-free investments in IPO using UPI payments
  • In-depth reports and vast historical data for better analysis
  • Enable user to invest directly in mutual funds
  • Ease of creating multiple trading strategies & alerts
  • Better customer support, they even quickly respond to Google play reviews.

Cons

  • Server slows down during peak hours
  • Limited bank acceptance for NRI account
  • No research based advise facility for customers.
  • Low margin leverage as compared to Motilal Oswal

Motilal Oswal Demat Account Review

Motilal Oswal is a full service broker that provides award-winning research advice and based on their top-class advice, they cover around 95% of market capitalization.

They have more than 2200 business locations and a larger 10 lakh customer base. Motilal Oswal put sincere efforts on research by spending 10% revenue on research. 

Let’s have a look at other features of Motilal Oswal.

Motilal Oswal Brokerage Charges

Motilal Oswal charges two types of brokerage on stock purchases – Intraday Charges and Delivery Charges.

  • For each intraday transaction, the brokerage is 0.05% of the executed order.
  • For stock delivery, the amount is 0.5% of the executed order.

Let’s have a look on different charges that Motilal charges-

CategoryCharges
Equity Delivery0.50% per executed order
Equity Intraday  Trading0.05% per executed order
Equity OptionsRs. 75/lot 
Equity Futures0.05% per executed order
Currency Options0.05% per executed order
Commodity F&O0.05% per executed order

Mostilal Oswal Margin Provided

Motilal Oswal offers 20x Margin on intraday trades and 4x margin in Delivery. But in delivery, you have to pay a 25% upfront margin for select stocks.

However, as per SEBI’s new guidelines, no broker can give a high amount of leverage to their customers.

Motilal Oswal Account Opening Charges 

Motilal Oswal offers FREE account opening of Demat and trading accounts. 

Demat Annual Maintenance charges = Rs. 400.

Motilal Oswal Trading Platforms

#1. MO Investor

MO Investor is a financial fitness platform for value Investors. MO investor provides you an extensive Portfolio Snapshot.

It provides you goal-based advisory whether you want to invest in stocks or mutual funds. 

Motilal Oswal Investor

MO Invest provides personalized insights on your portfolio along with advice on alternatives that can improve your financial well-being.

Benefits of MO Investor

  • Get complete information about the company searched by you on Quote Page
  • On the Mutual Fund page, you get a snapshot of your holdings, SIPs & track record.
  • Algo based investment strategies 
  • 24*7 Portfolio Restructure that provides you with the right asset allocation 
  • Execute bulk orders in one go
  • You can also view multiple types of charts with intervals starting from 1 minute to 5 years with 9 technical indicators.
  • MO genie, a chatbot to handle instant queries

#2. MO Trader

MO Trader is a robust trading platform that provides realtime charts with historical records. MO Trader’s market screeners help you spot the trends.

Motilal Oswal Trader

Benefits of MO Trader

  • Set and manage alerts under MyAlert option.
  • 20 screeners to identify the stocks which suit your strategies
  • Bulk orders in one list and edit price & no. of stocks from saved orders and delete any unwanted orders from the list
  • Robo-advisory products like Trade guide signal, Option Writer, Option Decoder

#3. MO Desktop (Desktop)

MO Desktop is a super-fast Desktop Application that allows you trading at a 1-second refresh rate. You can enjoy high-speed trading across all asset classes ranging from Equities, Derivatives, Commodities, Currencies. 

You can also invest in Mutual Funds, Bonds & IPO ‘s from Desktop. 

Motilal Oswal Desktop

Benefits of Desktop

  • Get solid research-based recommendations, as well as auto-generated buy/sell ideas.
  • You get 40 technical indicators in a single scrip. 
  • Get more than 30,000 research reports across all asset classes in a single click
  • Get In-depth research reports across 260+ companies & 21+ sectors in a single click. 
  • Portfolio restructuring report helps you review and restructure your portfolio instantly.

#4. MO Smartwatch (Smartwatch)

India ‘s first SmartWatch App to update regarding your investments. Smartwatch app provides notifications and alerts on the latest market statistics, positions/limits updates. 

App also provides you with real-time trading alerts when you are on the move.

Motilal Oswal Smartwatch

Benefits of Smartwatch App

  • Get instant notifications on all important market updates
  • Get instant updates on global indices
  • Get information about market top gainers & losers
  • Check your portfolio net worth across asset classes
  • Get Position updates
  • Check your margin in both cash & commodities.

Mostilal Oswal Best For

Motilal Oswal is best for beginners who don’t know much about the market and like to get deep research-based quality advice. 

Pros 

  • Best in class investment advice
  • High-end super fast trading platforms
  • New generation Robo Advisory
  • Smartwatch app for tech-savvy Millenials
  • Invest in mutual funds, bonds, IPOs right from a single place

Cons

  • High brokerage on trading and delivery.
  • Tailor-made plans are also expensive
  • No direct investment in mutual funds, so you have to pay a commission.

Zerodha vs Motilal Oswal (Complete Comparison Table)

Let’s have a detailed comparison of both leading brokers.

ZerodhaMotilal Oswal
Low BrokerageOnly one brokerage for all customers – Flat Rs. 20/order or 0.01% (whichever is lower.)

No Delivery Brokerage fee.
High BrokerageIntraday Transaction Brokerage at 0.05% per order). 
Delivery Brokerage is 0.50% per order.
Account opening chargesDemat – Rs. 100Commodity – Rs. 200No account opening charges
AMC – Rs. 300 per year (Pay Rs. 75 per quarter)AMC – Rs. 400 per year 
Largest brokerage firm in India based on the number of customers4th largest brokerage firm in India based on the number of customers
The online platform gets sluggish in peak hours at timesThe robust high-speed online platform 
Create trading strategies without coding skills using Streak platformCreate investing strategies with the help of the research team.
No market research advice. Purely Execution platformAward-winning market research and wealth management advisory
No Robo advisory in ZerodhaACE is the Robo advisor for Motilal Oswal
Zerodha offers direct mutual funds investment to save more moneyYou can invest in regular mutual funds
You can get a 3-in-1 account facility if you have a savings account in IDBI Bank.No 3-in-1 account facility

Conclusion

If you are a trader who wants to save on brokerage charges by paying a flat fee and good trading platform, then go with Zerodha.

In case, you want to invest in stock for long term, then you can go with Motilal Oswal.

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