ICICI Direct was the mainstream stockbroker of the last decade until Zerodha launched a discount broking model in 2010 charging a low brokerage of Rs. 20 per trade.
Even I started my stock investment journey with ICICI Direct in 2006.
Honestly speaking, both ICICI Direct and Zerodha cannot be compared because they work on entirely different business models.
Zerodha provides you a platform through which you can transact in stocks for trading and value investing.
You wouldn’t get stock investment tips, research, or Robo advisory services at Zerodha. That’s the reason we get discount brokerage rates.
On the other hand, ICICI Direct provides you with a 3-in-1 account (trading, Demat & savings account) along with research advisory services.
But higher brokerage fees and AMC will burn your pockets.
Let’s compare the brokerage charges.
Consider you make 20 trades of a total of Rs. 10,00,000 per month.
At ICICI Direct the intraday brokerage charge (under the i-Secure plan) is 0.275%. The total brokerage will be 10,00,000 x 0.275% = Rs. 2,750 monthly.
Whereas, the brokerage with Zerodha (that charges Rs. 20 per trade) comes to 20 trades per month x Rs. 20 brokerage = Rs. 400 only.
A huge difference!
ICICI even charges 0.55% for stock delivery but Zerodha provides FREE stock delivery.
If you are a regular trader or stock investor then you should open an account with Zerodha otherwise you would end up paying all your profits as brokerage charges.
Below is the side-by-side comparison of ICICI Direct vs Zerodha
Zerodha Demat vs ICICI Direct Demat
| Particulars | Zerodha | ICICI Direct |
| Helps trade-in | Stocks, Equity F&O, Currency F&O and Commodity F&O Bonds and Govt-Securities | Stocks, Equity F&O, Currency F&O and Commodity F&O |
| Brokerage Charges | Details for Zerodha Plan | ICICI Direct (i-Secure plan) |
| Equity delivery | Rs. 0 | 0.55% (including buy and sell) |
| Equity Intraday | Lower of Rs. 20 per executed order or 0.03% | 0.275% (the second leg is not charged) |
| Futures – Equity | Lower of Rs. 20 per executed order or 0.03% | 0.050% plus a flat brokerage of Rs. 50 on the second leg |
| Currency/ Commodity Futures | Lower of Rs. 20 per executed order or 0.03% | Rs. 20 per order |
| Equity Options | Rs. 20 per executed order | Rs. 95 per lot plus a flat brokerage of Rs. 50 on the second leg |
| Options – Currency | Rs. 20 per executed order | Rs. 20 per order |
| Margin for Intraday | Up to 5X | Up to 5X |
| Account opening charges | Rs. 0 | Rs. 0 |
| Demat AMC Fees | Rs. 300 p.a. | 1st Year – NIL 2nd Year onwards – Rs. 700 |
ICICI Direct vs Zerodha Account Charges Comparison
ICICI Direct offers a 3-in-1 (trading + Demat + savings) account. For that, you need to have a savings account with ICICI Bank.
If you do not have one, then you need to open it at the time you apply for a trading & Demat account.
Both Zerodha and ICICI Direct do not charge anything for account opening. You can open the account online by uploading documents and doing “In-person verification”.
Zerodha charges Rs 300 towards the annual maintenance charges, whereas you would need to pay Rs 700 AMC fee for the ICICI direct account.
ICICI also offers different top-up brokerage plans. You would need to pay subscription fees starting from Rs. 299 to Rs. 9,999 depending upon the plan selected.
I have provided the fee details in the next brokerage charges section.
Let’s compare Zerodha and ICICI direct account charges side by side
| Particular | Zerodha | ICICI Direct |
| Account Opening | Free | Free |
| AMC | Rs 300 | Rs 700 (1st year free) |
| Additional Plan Fee | No such plans | Up to Rs 9,999 |
Winner
If we look at the absolute amounts only, then Zerodha is the winner.
ICICI direct offers free AMC for 1st year, but you end up paying Rs. 400 more every year for account maintenance as compared to Zerodha.
Zerodha vs ICICI Direct Brokerage Charges
Zerodha (read full Zerodha review) keeps the brokerage charges details very simple and easy to understand. On the other side, ICICI creates the most complex brokerage plan system.
ICICI Direct offers multiple account types with different types of brokerage rates, margin funding fees, and plan subscription fees. Plans are so complex that a regular user finds it difficult to analyze which plans would suit best for his requirements.
Zerodha offers a straight forward – free equity delivery and a lower of Rs. 20 per order or 0.03% for intraday trading.
Simple!
ICICI Direct has three plans with different brokerage rates
- i-Secure Plan
- ICICI Direct Money Saver Brokerage Plan
- ICICI Direct Prime Plan
#1. Brokerage charges for the i-Secure plan
Where a fixed percentage brokerage is charged under the plan.
| Trading Type | Brokerage Charges |
| Equity Delivery | 0.55% |
| Equity Intraday | 0.275% |
| Equity Futures | First leg – 0.050% Flat brokerage of Rs. 50 on the second leg |
| Equity Options | First leg – Rs. 95 per lot Flat brokerage of Rs. 50 on the second leg |
| Currency F&O | Rs. 20 per order |
| Commodity F&O | Rs. 20 per order |
The brokerage for Margin and Margin Plus under the I-Secure Plan is 0.050%.
#2. Brokerage charges under the Money Saver Brokerage plan
| Equity Delivery | Equity Intraday/ Futures | Equity Options | Currency & Commodity F&O |
| 0.29% | 0.029% | Rs. 45 per lot | Rs. 20 per order |
#3. Brokerage charges under ICICI Direct Prime plan
| Prime Plan | Scheme validity | Delivery brokerage | Intraday/ Futures | Equity Options | Currency & Commodity F&O |
| Rs. 299 | 365 days | 0.25% | 0.025% | Rs. 35 per lot | Rs. 20 per lot |
| Rs. 999 | Lifetime | 0.22% | 0.022% | Rs. 35 per lot | Rs. 20 per lot |
| Rs. 2,999 | Lifetime | 0.15% | 0.015% | Rs. 20 per lot | Rs. 20 per lot |
| Rs. 4,999 | Lifetime | 0.10% | 0.010% | Rs. 10 per lot | Rs. 20 per lot |
| Rs. 9,999 | Lifetime | 0.07% | 0.007% | Rs. 7 per lot | Rs. 20 per lot |
Winner
Zerodha is the clear winner for me.
Not only for charging zero brokerage on delivery and lower brokerage on intraday trading but also for making the brokerage system easy.
People end up paying higher charges where the fee structure is too complex to understand, a case with ICICI direct.
ICICI Direct Vs Zerodha Margin
Let’s side by side compare the margin provided by both Zerodha and ICICI Direct.
| Segment | Zerodha | ICICI Direct |
| Intraday | Up To 5x | Up to 5X |
| Equity Futures | 1x | 1X |
| Currency Futures | 1x | 1X |
| Currency Options | 1x | 1X |
| Commodity Futures | 1x | 1X |
Winner – Both Zerodha and ICICI Direct stand equal when it comes to margins on different segments.
Zerodha Trading Platforms vs ICICI Direct Trading Platforms
Zerodha offers 2 different trading platforms to its customer
- Kite 3.0 – Web-based trading platform
- Kite Mobile – Trading mobile app
ICICI Direct provides 3 different types of trading platforms
- ICICI Direct mobile app
- Trade Racer Web – Web-based platform
- ICICIdirect Trade Racer – Desktop trading software
Winner
I tested the web-based online trading platforms of both Zerodh and ICICI Direct. I am fully satisfied with the performance of both the stockbrokers in terms of ease of use and technical indicators.
For me both are winners.
But a few traders complain that Zerodha platforms hang occasionally before market closing due to load on servers.
ICICI Direct vs Zerodha Customer Support
Zerodha users sometimes face service downtime during trading hours. Zerodha continuously keeps improving its technology to provide a better trading experience to its customers.
If we compare Zerodha customers with the full-service brokers, then still can be improved. But I would admit Zerodha provides the best service as compared to other discount brokers in India.
Winner
Zerodha provides the best customer service as compared to all other discount brokers in India but if we compare it with ICICI Direct then I would say ICICI Direct customer service is better.
Why You Might Prefer Zerodha Demat Account
Zerodha is the leading discount broker in India with more than 1 Crore+ customers. You should open a Zerodha Account if
- You are a trader or about to start trading and want to keep the brokerage cost low
- A stock investor who wants free delivery
- Do not require research advisory
- Advanced trading tools with an easy user interface
If these are your requirements then Zerodha is the best option for you to open a Demat & trading account.
Why You Might Prefer ICICI Direct Demat Account
You should prefer an ICICI Direct account only if
- You already have an ICICI savings account
- You rarely do trading/investment or want to keep stocks for a long period
- You want to keep all your financial accounts with the same company
- You don’t mind paying a higher brokerage and AMC fee
Which is Better, Zerodha vs ICICI Direct?
After comparing Zerodha and ICICI Direct based on common features like account charges, brokerage charges, margin, trading platforms, and customer support, Zerodha comes out as a winner.
You should open a Zerodha account if all your trading and stock investment requirements are fulfilled.
FAQs
Which is better, Zerodha or ICICI Demat account?
This depends entirely on your trading & investment needs.
If you like to do your own research, want to save money on trading, and need a super-fast trading platform then Zerodha will suit your trading style.
On the other hand, if you do a few trades per month (mostly long-term holdings), need help with research & portfolio building and don’t mind paying extra then ICICI Direct will suit you.
What are the Disadvantages of Zerodha?
Zerodha does not provide stock research, trading tips or other value-added services like portfolio management, margin trading facilities and insurance & loan products.
You should go with Zerodha if you do not need any of the above products.
What are the Disadvantages of ICICI Direct?
ICICI charges a high 0.55% fixed brokerage charge. It will send you all types of SMS and call you for cross-selling different products & services.
Can I open both Zerodha and ICICI Direct demat accounts?
Absolutely Yes.
You are allowed to have more than one demat & trading account for your separate trading & investment needs.
Is ICICI Direct free?
ICICI Direct does not charge any fee for demat & trading account opening.
But you have to pay Rs. 700 per annum (1st year NIL) from the second year onwards as demat account maintenance charges.
