Kotak Securities and Zerodha are at extremes in terms of brokerage and product offerings.
Zerodha is a discount broker with low brokerages, minimal support, and chargeable value products like Stock Screeners and SmallCase.
On the other hand, Kotak Securities is a full-service broker with percentage-based brokerage and a wide range of products and services like PMS and dealer-assisted trading.
Here is a quick comparison between both the brokers to help you decide better:
Kotak Securities vs Zerodha (Quick Comparison)
|Type||Full-service Broker||Discount Broker|
|Brokerage Plan||Fixed Brokerage PlanDynamic Brokerage PlanAdvance Brokerage PlanShubh Trade Brokerage Plan||No Plans. Only flat brokerage rates|
|Brokerage Charges||Up to 0.06%||Lower of Rs. 20 per executed order or 0.03%|
|Charges for Call and Trade||Rs. 20 per call.||Rs. 50 per order|
|The margin for Equity Delivery||Up to 1X||No leverage|
|The margin for Equity Intraday (MIS)||Up to 5X||Up to 5 times depending on the scrip|
|Account Opening Charges||Demat Account – Rs. 0|
Trading Account – Rs. 750
|Equity trading – Rs. 200|
Commodity trading – Rs. 100
|Demat AMC Fees||Rs. 50 per month||Rs. 25 per month|
|3-in-1 account||Yes||Only for IDFC First Bank customers|
|Trading Platforms||Kotak Smart Trader Terminal||Zerodha Kite 3.0Zerodha PI|
|Cloud Alert Tool||None||Sentinel|
|Trading App||Kotak Stock Trader App||Kite Mobile App|
Brokerage Charges Comparison
Kotak Securities offers dynamic brokerage plans and advance brokerage plans. Under the dynamic brokerage, you need to pay based on the level of the trading volume. The brokerage is 0.59% for trades under Rs. 1 Lakhs and 0.18% for trades over Rs. 2 crores.
Whereas, in advance brokerage, you need to pay (additionally over the brokerage) a certain amount of fees upfront for a particular plan. Plan A has an advance fee of Rs. 5000 which goes up to Plan D with Rs. 2 Lakhs of fees.
In comparison to which Zerodha has a brokerage of Rs. 20 per executed order or 0.03% whichever is lower.
Suppose, if you trade Rs. 95,000 in a single trade then you end up paying Rs. 20 with Zerodha. Whereas, the same trade costs 95,000 x 0.59 / 100 = Rs. 560.50.
There is a huge difference in brokerage charges.
Also read – Motilal Oswal Review
Zerodha Demat Account
Zerodha introduced the discount-broking model in India with zero brokerage for delivery and Rs. 20 for other trades.
Now Zerodha boasts 6+ million clients that contribute a little over 15% of the retail order volumes in India, making it India’s largest broker.
|Trading Type||Brokerage Charges|
|Equity Delivery||Rs. 0|
|Equity Intraday||Lower of Rs. 20 per executed order or 0.03%|
|Equity Futures||Lower of Rs. 20 per executed order or 0.03%|
|Equity Options||Rs. 20 per executed order|
|Currency Futures and Options||Lower of Rs. 20 per executed order or 0.03%|
|Commodity F&O||Lower of Rs. 20 per executed order or 0.03%|
|Equity Delivery||No Margin|
|Intraday Equity||Up to 5 times depending on the scrip|
|Index Futures||The margin required is 35% of the normal margin (NRML)|
|Equity Futures||The margin required is 45% of the normal margin (NRML)|
|Index Option Writing||The 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)|
Account Opening 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|
To open an account offline, you need to pay an additional Rs. 300 for the offline process.
if you don’t want to pay a high brokerage with a transparent fee structure.
Or if you do the research yourself and do not rely on research support and similar services then Zerodha is best for you.
- Zero brokerage on equity delivery.
- Fixed & low brokerage irrespective of trade volume.
- No minimum balance required to maintain the account.
- Frequent lags in the trading platform during peak hours.
- The margin provided is low as compared to other discount brokers
- Does not upfront discloses margin for CO & BO trades
Kotak Securities Demat Account
Kotak Securities is a full-service stockbroker backed by Kotak Mahindra Bank with a presence in 370 cities & 1200 branches in India.
1. Trade Free Plan
|Equity Delivery||0.25% of the transaction value|
|Intraday (both sides)||Claims “Free” but charges min 1 paise per scrip|
|Futures & Options||Minimum Rs. 20 per executed order or 0.25% of the transaction value|
2. Dealer Assisted Plan
|Equity Delivery||0.39% of the transaction value|
|Intraday (both sides)||0.039% per order|
|Futures & Options (Equity & Commodity)||Rs. 39/ Lot|
|Currency Futures||Rs. 9/ Lot|
|Currency Options||Rs. 5/ Lot|
Kotak Securities offer a “Call & Trade” facility at Rs. 20 per call.
The information on the margins is very minimal on the website.
Kotak Securities exclusively asks new traders to get in touch with the customer representative to know about the margins.
I could only find the below information on margins on their website:
|Equity Intraday||Up to 5x|
|F&O (Equity, Currency, and Commodities)||1.3x|
Account Opening Charges
Account Opening & AMC Charges
|Trading Account opening fees||Rs. 499 (can be waived off if negotiated)|
|Demat Account opening fees||Rs. 0|
|Trading account AMC charges||Nil|
|Demat Account AMC Charges||Rs. 50 per month|
Kotak Securities is best if you require very high margins or want to invest in ETFs, bonds, and IRF (Interest Rate Futures) and do not mind paying extra money.
- Value-added services like dealer assisted trading
- Free first 20 call on trade facility
- Up to 50X margins under Super Multiple facility
- High (Up to 0.59%) brokerage on each trade
- Account opening charges of Rs. 750
- High (up to Rs. 300 per lot) option brokerage
- No commodity trading
Zerodha Vs Kotak Securities Trading Platforms Comparison
#1. Zerodha Kite 3.0
Zerodha Kite is a web-based, sleek and snappy trading platform that allows you to access around 90,000 stocks across BSE and NSE.
You can use more than 100 technical indicators like Bollinger bands to understand the share price movements for better trade executions.
However, you have to visit separate portals if you are also interested in mutual funds (Coin portal), bonds (Golden Pi), and IPO (Console platform).
Zerodha also offers Kite mobile app that provides you a similar minimalistic interface to trade from your smartphone.
Pros of Zerodha Kite 3.0
- Sleek and snappy platform
- 90,000 stocks across BSE and NSE
- More than 100 technical indicators for day trading
- Level-3 historical price details for better analysis
Cons of Zerodha Kite 3.0
- No one place for all investment options
#2. Kotak Trade Smart Terminal
Kotak trade smart terminal is an online platform that allows you to create watchlists, charts, scanners, orders, and reports on a single screen to avoid juggling between multiple tabs.
Smart trade terminal is super-fast enough to help you get real-time price movements, which is highly important when the market is volatile.
You can also track market updates with the integrated News & Events to keep yourself updated about important events happening across the world.
You can also use the Kotak stock trader app on your mobile to enjoy the terminal’s features on the go.
Pros of Kotak Trade Smart Terminal
- Faster platform with real-time price movement
- One place for watchlists, charts, and scanners
- Integrated news for latest global events happening
- Safe and secure
Cons of Kotak Trade Smart Terminal
- Platform crawls sometimes
You should go with Kotak Securities only when you require research advisory or other investment services like dealer-assisted trading or PMS.
If your trading needs are minimal then you should pick Zerodha for its low cost and decent margins.