Confused about which broker is best for you Zerodha or Dhan? Read this detailed comparison of Zerodha vs Dhan share brokers!
The trading industry is constantly evolving. In today’s world, investing is something everyone considers. Though several options are available, Zerodha and Dhan are the two most prominent names in the financial sector.
When choosing a share broker, one first looks at their reputation and trustworthiness. Both Zerodha and Dhan are very reliable platforms, but the main question remains: which one is better?
This blog will help you explore key features of these platforms, like investment options, offers, and promotions. This will help you understand which stock broker aligns best with your requirements.
Zerodha vs Dhan: Overview
You might have noticed both Zerodha and Dhan are grabbing attention in the market as share brokers.
Dhan specializes in mobile-centric financial services, while Zerodha, a pioneering discount brokerage, offers online trading solutions for stocks, commodities, and derivatives.
So, before going for a detailed analysis, let us understand some key insights about both companies.
| Details | Zerodha | Dhan |
| Broker Type | Discount Broker | Discount Broker |
| Exchange Membership | NSE, BSE, MCX, and NCDEX | NSE, BSE, MCX |
| Website | www. zerodha.com | www.dhan.com |
| Clients | 70 Lakh+ | 4 lakh+ |
| Total Client Percentage | Near 20% | Near 1% |
| Founded | 2010 | 2021 |
| Founder and Co-Founder | Nikhil Kamath and Nithin Kamath | Pravin Jadhav |
| Branches | 22 branch offices, 94 partner offices, and 6 support + call and trade offices other than the Banglore Head office | 1 |
| Head Office | Banglore | Mumbai |
Zerodha vs Dhan: Key Features Comparison
To make the right decision between Zerodha and Dhan, you need to understand a comparative analysis of the key features of these trading platforms.
Here is a detailed feature analysis of both Zerodha and Dhan
1. Account opening charges
With Dhan, you can open a free trading account. On the other hand, Zerodha charges you around Rs. 200 for opening a demat account. Also, to trade in commodities, there is a Rs 100 additional charge in Zerodha.
2. Brokerage charges
Both Dhan and Zerodha offer you similar brokerage charges. Zero brokerage charges for your equity delivery and 0.03% or Rs 20 (lower one) per executed order for your intraday and F&O order execution.
3. Investment Options
Both Zerodha and Dhan offer you various investment options. It includes stocks, commodities, currencies, direct mutual funds, bonds/NCDs, and IPOs.
4. Offers and Promotion
Dhan offers 50% off on brokerage for women. So, Dhan will charge you only Rs. 10 for intraday and F&O.
5. Customer Support
Zerodha can offer you better customer service than any other stockbroker. This is because of Zerodha’s long-term position as a dominant business in this sector.
6. Regulatory
Both Zerodha and Dhan are regulated by SEBI. Therefore, they are required to comply with SEBI’s rules and regulations.
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7. Trading platforms
Both Zerodha and Dhan offer you various trading platforms;
Zerodha Trading Platforms
1. Kite Web – Offers you a variety of order types, customizable layouts, charting tools, and a user-friendly interface.
2. Kite Mobile App – Offers you an interface for mobile.
3. Console – Allows you to view your trade history, portfolio performance, tax reports, etc.
4. Coin – Allows you to buy and sell mutual funds.
5. Sentinel – Allows you to create price alerts.
Dhan Trading Platforms
1. Dhan App – Mobile app for trading stocks, ETFs, F&Os, IPOs, currencies, and commodities.
2. Dhan Web – Web-based platform for investments.
3. Dhan Options Trading Web – Desktop app for F&O trading.
4. Dhan Options Trading App – Mobile app for F&O trading.
8. Margin offered
In June 2020, SEBI issued a circular that fixed leverage margins for all stock brokers. The circular stated that stock brokers are not allowed to offer higher margins than defined capping.
Therefore, both Zerodha and Dhan offer 5x leverage (20% margin) on trade value. This is purely based on the stock you buy.
9. Annual Maintenance Charges
Zerodha charges you Rs 75 quarterly (300 yearly) for Account Maintenance Charges. But Dhan charges you nothing for AMC.
A few other account feature comparison is shown in below table;
| Features | Zerodha | Dhan |
| NRI Trading | No | Yes |
| Online Demo | Yes | Yes |
| 3 in-1 account | No | Yes |
| Combined Ledger for Equity and Commodity | No | Yes |
| Square-Off time (Intraday) | 3:20 pm | 3:10 pm |
| Pay-in and Payout Options | Pay-in – UPI, Cheque, bank transfer via IMPS, NEFT, RTGSPayout – Bank Transfers only | UPI, RTGS, IMPS, Net banking, Smart Find Transfer using NEFT |
Zerodha And Dhan: Pros And Cons
If you are trying to choose between Zerodha and Dhan, knowing the pros and cons is important to make an informed decision. Both of these trading platforms offer many benefits, but there are drawbacks, too.
Pros and Cons of Zerodha
| Pros | Cons |
| India’s No. 1 trading platform | Charges Rs. 200 Account opening charges |
| Free equity delivery trades | Charges Rs. 75 (quarterly) Annual maintenance charges |
| Best trading platform (Kite) | Lifetime AMC plans not available |
| NRI trading available | Doesn’t offer tips for trading |
| Direct investment in mutual funds | No 3-in-1 account |
Pros and Cons of Dhan
| Pros | Cons |
| No account opening charges | Doesn’t offer a 3-in-1 account |
| Free equity delivery trades | NRI trading is not available |
| No Annual Maintenance Charges | No 3-in-1 account |
| Offers discount for women traders | Doesn’t offer tips for trading |
| Offers ready-made portfolios (small cases) | No installable trading terminal |
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Final Thoughts
In conclusion, both Zerodha and Dhan offer you competitive features. While Zerodha offers you a robust trading platform, Dhan impresses with its free account opening with discounts for women.
Ultimately, the choice is yours to make. The decision comes with your preferences and financial requirements.
FAQs
1. What are the major differences between Zerodha and Dhan?
The main difference you can see is the account opening fees and AMC. While Zerodha charges Rs 200 for opening and 75 (quarterly) for AMC, Dhan charges nothing.
2. Is Zerodha better than Dhan?
It purely depends on your preferences and requirements. The choice depends on features like fees, customer service, and trading experience.
3. Are Dhan and Zerodha reliable brokers?
Both Dhan and Zerodha are reliable stock brokers that are regularized by SEBI and registered in NSE and BSE.
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