Discount stockbroking companies are ideal for traders who do not need trading/ investment advisory, research, financial planning or investment services.
Traders who use discount brokerages have no interaction or little communication with the broking company. All of which results in cost savings, that are passed on to you in the form of low or flat brokerages.
You should use discount stock brokers only when you do not require expert guidance, research report or one-to-one guidance from your broker.
I have compared the two top discount broker Zerodha vs Upstox in this article. Before going to the detailed review, let’s compare both the discount brokers on the basis of most important parameters.
Upstox Vs Zerodha (Comparison)
| Particulars | Upstox | Zerodha |
| Can trade-in | Stocks, Equity F&O, Currency F&O and Commodity F&O | Stocks, Equity F&O, Currency F&O and Commodity F&O Bonds and Govt-Securities |
| Brokerage Charges | Details for Upstox Basic Plan | Details for Zerodha Plan |
| Equity delivery | Rs. 0 | Rs. 0 |
| Equity Intraday, Futures, Options, | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Currency Futures, Options | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Commodity Futures, Options | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Charges for Call and Trade | Rs. 20 per order | Rs. 20 per order |
| Margin for Intraday | Upto 20X | Upto 12.5X |
| Account Opening Charges | Upstox | Zerodha |
| Demat Account | Rs. 0 | Charges for Demat & Trading account is clubbed – Rs.200 |
| Trading Account | Rs. 200 | Charges for Demat & Trading account is clubbed – Rs.200 |
| Demat AMC Fees | First Year – Rs. 100 Second-year onwards – Rs. 150 | Rs. 300 |
| Commodity Account | Rs. 150 | Rs. 100 |
| Apply Now | Open Free Upstox account | Open Zerodha Account |
Upstox Demat & Trading Account Review
Earlier known as RKSV Securities, Upstox is for volume traders looking for high margins (up to 20X), low brokerages, and decent trading platforms.
You get more leverage up to 20X margin on intraday trades while paying a fixed brokerage of Rs. 20 per trade irrespective of the trading volume.
Thus, you benefit on the double count; a facility to trade a high volume yet pay flat brokerage charges.
Upstox is backed by Tiger Global, Ratan Tata, and GVK Davix. So, you know that your broking firm is reliable. Upstox helps you trade in Stocks, Futures & Options, Currency and Commodity derivatives. You can use Upstox to invest in mutual funds also.
You trade fast on Upstox Pro Web, Pro Mobile App, and NEST trading platforms. For advanced traders Upstox brings in partnered platforms like;
- Dartstock – with iDarts for dartstock software.
Dartstock is helpful in setting time & sales filter, trend scanner, opportunity finder, OI change graph, track future spreads, unusual volume tracker, R&S watch, Intraday recovery and fall.
- Fox Trader– with Reliable Software India Pvt. Ltd. for FoxTrader software.
Fox Trader helps to analyze markets with multiple charting tools, backtest strategies and one-touch trading technology. You can do backtesting and live scanning 300+ studies with 200+ conditions to test data.
However, you have limited learning resources. Only basic guides (for trading and investing) are available under the Learning Centre.
Upstox Brokerage Charges
Upstox offers two trading plans; Basic Plan and the Priority Plan. Both the plans are available to all the customers.
| Trading Type | Brokerage Charges for Basic Plan | Brokerage Charges for Priority Plan |
| Equity Delivery | Rs. 0 | Rs. 0 |
| Equity Intraday | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 30 per executed order or 0.05% |
| Equity Futures | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 30 per executed order or 0.05% |
| Currency Futures | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 30 per executed order or 0.05% |
| Commodity Futures | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 30 per executed order or 0.05% |
| Equity Options | Rs. 20 per executed order | Rs. 30 per executed order |
| Currency Options | Rs. 20 per executed order | Rs. 30 per executed order |
| Commodity Options | Rs. 20 per executed order | Rs. 30 per executed order |
You can also call and trade @ Rs. 20 + GST per order.
Upstox Margin Provided
Priority trading pack is for intraday traders looking for more leverage. Upstox charges Rs. 999 per month for Equities, F&O, and CDS and Rs. 400 per month for commodities.
Upstox Margin for Intraday
| Segment | Basic | Priority Pack |
| NSE/ BSE Cash | 15X | 20X |
| Index Futures | 4X | 6X |
| Stock Futures | 4X | 4X |
| Index Option Sell | 4X | 6X |
| Stock Option Sell | 4X | 4X |
| NSE Currency | 4X | 4X |
| MCX Futures | 2.5X | 3X |
Margin in respect of OC/ OCO Orders
| Segment | Basic | Priority Pack |
| NSE/ BSE Cash | 20X | 25X |
| Index Futures | 4X | 7X |
| Stock Futures | 4X | 6X |
| Index Option Sell | 4X | 5X |
| Stock Option Sell | 4X | 5X |
| NSE Currency | 4X | 5X |
| MCX Futures | 3X | 4X |
| NSE Option Buy | 1.33X | 2X |
Upstox Account Opening Charges
Account opening process of Upstox is entirely online. The paperless account opening process can be completed in a day using Aadhaar.
Uptsox also offers a 3-in-1 account with Indusind bank
Key Points of IndusStox 3-in-1 account”
- Zero minimum balance required
- Earn interest on funds allocated from your Savings a/c for trade
- Free demat & trading account opening
Upstox does not charge a fee for opening a Demat account. But charges a Demat AMC fee of Rs. 100 for the first year. The fees for opening a trading account is Rs. 200.
Summary of charges is as under;
- Upstox Equity Demat and Trading – Rs. 300 (includes first year AMC)
- Upstox Commodity Trading Account– Rs. 150
- Upstox Demat Annual Maintenance Charges – Rs. 150 (2nd year onwards)
But I have special offer where the account opening charges are waived (limited time offer).
Upstox Trading Platforms
#1. Upstox Pro Web
Upstox Pro web comes with advanced features like API integration, algo trading, charts and technical indicators. The features help you to perform in-depth analysis and market understanding.
You also get drag and drop facility to drag a particular script and drop on the chart screen to see the script in chart form instantly. The powerful charts and 100+ indicators help you analyze the market smartly.
Pro Web is a browser-based trading platform that uses socket technology allowing access to real-time market data at a faster speed.
Additionally, the one-click trade helps you buy & sell quickly. Just present your order preference to quickly get in and out of the trade.
Upstox API
If you are a startup or a developer then, Upstox API provides a base platform required to build a complete investment and trading platform or an application.
The Upstox API supports Python, Javascript. The .NET is available through an authorized third party library.
Read – Complete Upstox Review
#2. Upstox NEST Trader Desktop
NEST trader is an advanced trading desktop software that helps you monitor markets, place orders, and buy & sell shares in real-time.
You can install the application on a desktop or a laptop.
Features of NEST Trader
- Customizable interface
- Low latency and enterprise-level stability
- Multi-monitor view
- Advanced Charting
#3. Upstox Pro Mobile App
You can track your favorite scripts, indices, and monitor the markets using charting tools and more than 100 technical indicators.
You can install Upstox Pro mobile trading platform on both Android and iOS smartphones.
Upstox Account Best For
If you are looking for an easy and advanced trading platform you should go with Upstox. You benefit from low brokerage charges and high margins, which are key points for trading.
Pros
- No brokerage charges for delivery
- Great trading platforms
- Fix & low brokerage irrespective of trade volume
- No Demat opening charges
Cons
- You cannot make direct IPO and FPO investments.
Zerodha Demat & Trading Account Review
Zerodha, started the discount broking model in India with a disruptive pricing model. Where it offers zero brokerage for delivery and Rs. 20 for other trades.
Zerodha helps you to trade-in
- Stocks & IPO
- Derivatives – Stocks, Commodity and Currency
- Direct mutual funds
- Bonds and Govt-Securities
Bangalore based Zerodha has 120 branches and partner offices across India. You can call the customer support numbers or have the option to create a ticket.
To answer all your queries, Zerodha has a resource portal containing calculators, news & circulars and application & other useful forms.
New traders can check out – Zerodha Varsity and the Trading QnA portal that covers topics from basic to advanced trading.
Additionally, on Zerodha you can benefit from the unique 60-day challenge program for traders to test trading skills and discipline.
Like Upstox, Zerodha too has a referral program, that helps you earn 300 reward points for each referral. The rewards points can be redeemed to gain access to various Zerodha tools and platforms.
Brokerage Charges
Unlike Upstox, Zerodha does not have different plans for traders. You need to pay a maximum of Rs. 20 irrespective of the trading volume.
| Trading Type | Brokerage Charges |
| Equity Delivery | Rs. 0 |
| Equity Intraday | Lower of Rs. 20 per executed order or 0.01% |
| Equity Futures | Lower of Rs. 20 per executed order or 0.01% |
| Equity Options | Rs. 20 per executed order |
| Currency Futures and Options | Lower of Rs. 20 per executed order or 0.01% |
| Commodity F&O | Lower of Rs. 20 per executed order or 0.01% |
However, Zerodha charges for value-added services like providing stock reports, screeners, and small cases.
Margin Provided
Zerodha offers margin/ leverage on Margin Intraday Square off (MIS), Cover orders (CO) and Bracket orders (BO) products.
The Margin for Intraday (MIS) is as under;
| Segment | Margin |
| Equity Delivery | No Margin |
| Intraday Equity | 3 to 12.5 times depending on the scrip |
| Index Futures | Margin required is 35% of the normal margin (NRML) |
| Equity Futures | Margin required is 45% of the normal margin (NRML) |
| Index Option Writing | Margin required is 35% of the normal margin (NRML) |
| Stock Option Writing | Margin required is 45% of the normal margin (NRML) |
| Currency Futures & Option Writing | 50% of the normal margin (NRML) |
| Commodity Futures & Option Writing | 50% of the normal margin (NRML) |
The exact scrip wise intraday margin (MIS) can be found on Margin Calculator.
In Cover Orders (CO) and Bracket Orders (BO) a stop loss is placed with the initial order. That makes the trade comparatively less risky. Hence, Zerodha provides higher leverage on CO and BO.
However, Zerodha does not disclose the margin provided. You need to make use of BO&CO margin calculators before you trade.
For example, if you want to place a CO order (sell) for the scrip Asian Paints. Then you need to indicate the quantity, price and stop-loss price.
When you click “Calculate” the BO&CO calculator will give the margin required and the leverage details on the top right-hand corner as indicated below;
Zerodha Account Opening Charges
Following are the charges for opening an account online;
| Particulars | Charges |
| Trading and Demat account opening charges | Rs. 200 |
| Commodity Account | Rs. 100 |
| Trading account annual maintenance charges | Rs. 0 |
| Demat account annual maintenance charges | Rs. 300 |
You need to pay an additional Rs. 300 in case you choose to open the account offline.
Check out – Complete Zerodha Review
Zerodha Trading Platforms
#1. Kite 3.0
Kite 3.0 is a web-based trading and investment platform which can be used for trading on mobile, tablets, desktop and laptops.
You can universally search instruments across 90,000+ stocks and F&O contracts across stock exchanges like BSE, NSE and MCX with zero latency.
Kite brings in
- Sleek User Interface
- Real-Time Widgets
- Advanced Charting
Kite 3.0 is available for free to all the customers.
For deeper insights into liquidity, Kite 3.0 discloses 20 market depth or level 3 data.
Kite Connect API
If you are a techie or a startup, then you can build your own applications using the Kite Connect APIs.
The Kite Connect is a HTTP/JSON API on which you can even build a full-fledged trading/ investment platform using your favorite language. The Kite Connect API supports Python, Java, PHP, NodeJS, C#, and .Net.
#2. Kite Mobile
Kite Mobile App is one of the most advanced trading apps in India available for both Android and iOS. You would get all the features of Kite 3.0 in the Kite app.
The app has a biometric (fingerprint and Face ID – iOS) 2FA login for better security.
You can trade and monitor live streaming data from BSE, NSE and MCX with the Kite app.
The app is fast and light, having bandwidth consumption of fewer than 0.5 Kbps for a full MarketWatch. The app has extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and Cover, and millisecond order placements.
#3. Sentinel
Sentinel is a market price alerts tool for stocks, futures & options, through the cloud. In addition to the price there are 20+ data points to set alerts like OHLC, bids and offers.
You can set alerts for over 80,000+ stocks, bonds, commodities, F&O contracts and currencies across different exchanges.
You will get alerts on Kite web and via email whenever the underlying hits the price (today, tomorrow, or months from now) that you have set.
#4. Zerodha PI (Installable Application)
Zerodha PI is an installable trading terminal. Which features advanced charting, algos, strategies, & backtesting. The application is available for free to all the clients.
You can trade across segments at BSE, NSE and MCX using Zerodha PI application.
Best For
Zerodha is best for regular traders who don’t need a large margin and don’t want to pay high brokerage.
Pros
- No brokerage charges for delivery.
- Fixed & low brokerage irrespective of trade volume.
- No minimum balance required to open and maintain the account.
Cons
- Frequent delays and service down during trading hours.
- The margin provided is low as compared to other discount brokers
- Does not upfront discloses margin for CO & BO trades
Upstox Vs Zerodha (Complete Comparison Table)
| Particulars | UpStox | Zerodha |
| Type | Discount Broker | Discount Broker |
| Can trade-in | Stocks, Equity F&O, Currency F&O and Commodity F&O | Stocks, Equity F&O, Currency F&O and Commodity F&O Bonds and Govt-Securities |
| Can invest in | Mutual funds | Mutual fundsIPO – through Bhim UPI |
| Customer Support | Through calls and e-mail | Through calls, e-mails and tickets |
| Forum | None | Trading QnA Forum |
| Program for Traders | None | 60-day challenge |
| Referral Program | Yes | Yes |
| Learning Resources | Limited to basic guides | Zerodha Varsity |
| Brokerage Plan | Basic and Priority Plans | No Plans |
| Brokerage Charges | Details for Upstox Basic Plan | Details for Zerodha Plan |
| Equity delivery | Rs. 0 | Rs. 0 |
| Equity Intraday | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Equity Futures | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Currency Futures | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Commodity Futures | Lower of Rs. 20 per executed order or 0.05% | Lower of Rs. 20 per executed order or 0.01% |
| Equity Options | Rs. 20 per executed order | Rs. 20 per executed order |
| Currency Options | Rs. 20 per executed order | Lower of Rs. 20 per executed order or 0.01% |
| Commodity Options | Rs. 20 per executed order | Lower of Rs. 20 per executed order or 0.01% |
| Call and Trade Facility | Yes | Yes |
| Charges for Call and Trade | Rs. 20 per order | Rs. 20 per order |
| Margin for Intraday | Details for Upstox Basic Plan | Details for Zerodha Plan |
| NSE/ BSE Cash | 15X | 3 to 12.5 times depending on the scrip |
| Index Futures | 4X | Margin required is 35% of the normal margin i.e. 2.857X |
| Stock Futures | 4X | Margin required is 45% of the normal margin i.e. 2.222X |
| Index Option Sell | 4X | Margin required is 35% of the normal margin i.e. 2.857X |
| Stock Option Sell | 4X | Margin required is 45% of the normal margin i.e. 2.222X |
| NSE Currency | 4X | 50% of the normal margin i.e. 2X |
| MCX Futures | 2.5X | 50% of the normal margin i.e. 2X |
| Margin for OC/ OCO | Details for Upstox Basic Plan | Details for Zerodha Plan |
| NSE/ BSE Cash | 20X | Does not disclose upfront. You need to use BO&CO margin calculator |
| Index Futures | 4X | Same as above |
| Stock Futures | 4X | Same as above |
| Index Option Sell | 4X | Same as above |
| Stock Option Sell | 4X | Same as above |
| NSE Currency | 4X | Same as above |
| MCX Futures | 3X | Same as above |
| NSE Option Buy | 1.33X | Same as above |
| Account opening | Both online and offline | Both online and offline |
| Account Opening Charges | Upstox | Zerodha |
| Demat Account | Rs. 0 | Charges for Demat & Trading account is clubbed – Rs.200 |
| Trading Account | Rs. 200 | Charges for Demat & Trading account is clubbed – Rs.200 |
| Demat AMC Fees | First Year – Rs. 100Second-year onwards – Rs. 150 | Rs. 300 |
| Commodity Account | Rs. 150 | Rs. 100 |
| 3-in-1 account | IndusStox 3-in-1 account | Zerodha IDFC First Bank 3-in-1 account |
| Trading Platforms | Upstox Pro WebUpstox NEST Trader | Zerodha Kite 3.0Zerodha PI |
| Partnered Platform/ software | Dartstock softwareFox Trader | None |
| Cloud Alert Tool | None | Sentinel |
| APIs | Upstox API supports Python, Javascript. .NET through the third party | Kite Connect API supports Python, Java, PHP, NodeJS, C#, and .Net. |
| Trading App | Upstox Pro App | Kite Mobile App |
| Apply Now | Open Free Upstox Account | Open Zerodha Account |
F&Q
Q: What documents are needed to open an account online?
A: For online Demat and Trading account opening you will need to upload scanned copy of the following documents;
- PAN card
- Aadhaar Card
- Canceled cheque
- A photo or scanned copy of your signature proof
- Income proof if you want to trade in F&O
- Form-16
- IT acknowledgment
- 6-month bank statement
- Latest salary slip
- CA certified net worth statement
Q: What is the power of attorney (PoA) and why is it needed?
A: PoA is a document that gives your broker the right to debit shares from your Demat account on your behalf.
PoA is required whenever you want to sell your shares. Without PoA, your broker will not be able to sell your shares.
Q: How can I add money to my trading account?
A: You can add money using NEFT, IMPS, and RTGS through your Net Banking facility. For that, you need to add your broker as Beneficiary (Payee) and then you can transfer the funds.
Q: What are limit and market orders?
A: A limit order is an order to buy or sell a stock, F&O at a specified price. The trade gets executed only when the specified price is hit.
A market order is an order to buy or sell at the prevailing market prices. The trade gets executed instantly after the orders are placed.
Q: What is stop loss?
A: A stop-loss order is a buy/ sell order placed to limit losses in case of adverse price movements.
For example, if you have bought a share at Rs 150 and you want to limit your loss at 145, then you can place a stop-loss order at Rs. 145. The system will automatically sell you share in case the price falls to Rs. 145. You stop from making further losses in case of a down market.
Conclusion
Discount broking is a powerful way to trade independently at a substantially lower cost. The trading platforms are fast & decent and are available on mobile through apps.
Large volume traders with high monthly turnovers can pick Upstox for the higher leverage offered at comparable prices. Whereas, Zerodha is best for regular traders who want to save on the brokerage costs.
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