Edelweiss vs Zerodha, Which One is Better for You

Edelweiss Broking is a full-service stockbroking company with two separate plans, the Lite  Plan with flat Rs. 10 brokerage and Elite  Plan where brokerage is collected on a percent basis.

On the other hand, Zerodha is a discount stockbroking company with Rs. 20 fees for trading in most of the asset class except delivery trades. The delivery trades are free at Zerodha.

In the article, you will get a complete side-by-side evaluation of both the brokers. Here is the list of  key differences: 

Edelweiss vs Zerodha

ParticularsEdelweiss BrokingZerodha
Can trade-in Stocks, Equity F&O, and Currency F&OStocks, Equity F&O, Currency F&O and Commodity F&O, Bonds, and Govt-Securities
Brokerage ChargesDetails for Edelweiss Lite PlanDetails for Zerodha Plan
Equity  DeliveryRs. 10 per executed orderRs. 0
Equity IntradayRs. 10 per executed orderLower of Rs. 20 per executed order or 0.03%
Equity FuturesRs. 10 per executed orderLower of Rs. 20 per executed order or 0.03%
Currency Futures Rs. 10 per executed orderLower of Rs. 20 per executed order or 0.03%
Commodity FuturesN.ALower of Rs. 20 per executed order or 0.03%
Equity OptionsRs. 10 per executed orderRs. 20 per executed order 
Currency OptionsRs. 10 per executed orderLower of Rs. 20 per executed order or 0.03%
Commodity OptionsN.A.Lower of Rs. 20 per executed order or 0.03%
Charges for Call and TradeFreeRs. 20 per order
Margin for Intraday10 times3 to 12.5 times depending on the scrip
Account Opening ChargesEdelweiss Broking Lite PlanZerodha 
Demat & Trading AccountRs. 0Charges for Demat & Trading account is clubbed – Rs.200
Demat AMC FeesFirst Year – FreeSecond Year onwards – Rs. 300Rs. 300
Commodity AccountN.A.Rs. 100
Apply NowOpen Edelweiss AccountOpen Zerodha Account

Read further to know more about the brokerages, margins, and charges of both the broking companies.

Zerodha Demat Account 

Zerodha is a discount broker with the largest active client base in India. At Zerodha, you can invest in stocks, derivatives, mutual funds, currency, and bonds.

Zerodha has a whole ecosystem of trading platforms like KIte 3.0, Zerodha PI, and Kite mobile apps.  

Zerodha Varsity provides free and open market education to all. New investors can also gain knowledge and ideas on their Trading QnA portal. 

Brokerage Charges

The discount broking model is based on technology platforms, flat charges, and minimal support. 

At Zerodha you will not have different brokerage plans, one just has to pay a maximum of Rs. 20 irrespective of the trading volume. 

Trading TypeBrokerage Charges
Equity DeliveryRs. 0
Equity IntradayLower of Rs. 20 per executed order or 0.03%
Equity FuturesLower of Rs. 20 per executed order or 0.03%
Equity OptionsRs. 20 per executed order 
Currency Futures and OptionsLower of Rs. 20 per executed order or 0.03%
Commodity F&OLower of Rs. 20 per executed order or 0.03%

Any additional service/ product offerings like stock reports, PI Bridge, screeners, Sensibull, and Smallcase are paid services. Below is the screenshot showing details of the charges: 

Zerodha-Charges-for-value-added-services

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 –

SegmentMargin
Equity DeliveryNo Margin
Intraday Equity3 to 12.5 times depending on the scrip
Index FuturesMargin required is 35% of the normal margin (NRML) 
Equity FuturesMargin required is 45% of the normal margin (NRML) 
Index Option WritingMargin required is 35% of the normal margin (NRML) 
Stock Option WritingMargin required is 45% of the normal margin (NRML) 
Currency Futures & Option Writing 50% of the normal margin (NRML) 
Commodity Futures & Option Writing50% of the normal margin (NRML)

If you are looking for an intraday margin for MIS trades then you can find them on Margin Calculator. 

But, looking for CO/BO margins on the Zerodha website is a waste of time because Zerodha does not share the BO/CO margin details. Instead, one can use the BO&CO margin calculator

For example, the CO margins for selling 10,000 stocks of Asian Paints you need to indicate the quantity, price, and stop-loss price in the calculator. 

On clicking “Calculate” the BO&CO calculator will provide the margin details on the top right-hand corner.

Zerodha BO & CO calculator

Account Opening Charges 

Below are the charges related to opening an account online;  

ParticularsCharges
Trading and Demat account opening chargesRs. 200
Commodity AccountRs. 100
Trading account annual maintenance chargesRs. 0
Demat account annual maintenance chargesRs. 300

Zerodha has a facility to open an account offline, but you need to pay Rs. 300 for it. 

If you have an existing banking relationship with IDFC First Bank then you should go for opening a  Zerodha IDFC First Bank 3-in-1 account. 

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 

Edelweiss Demat Account 

Edelweiss demat account

Edelweiss broking is a subsidiary of Edelweiss Financial Services Limited with 200 offices across India.

At Edelweiss you can trade/ invest in shares, derivatives (F&O), mutual funds, insurance Gold ETF, and IPO. 

However, the full-service broking company has limited other value-added services that are  restricted to Portfolio organizer, guided investing, research advisory, and stock recommendations. 

Edelweiss has a strong team of 11,938 finance professionals that serves over a million clients. 

Brokerage Charges

Edelweiss has two brokerage plans on two different broking models – the Lite Plan which is like a discount brokerage offered by Zerodha. 

The Edelweiss Elite Plan charges a percentage of turnover, which is similar to other full-service broking.

ParticularsEdelweiss LiteEdelweiss Elite
Equity DeliveryRs. 10 per executed order0.30%
Equity IntradayRs. 10 per executed order0.03%
Equity FuturesRs. 10 per executed order0.03%
Equity OptionsRs. 10 per executed orderRs. 75 per lot
Currency FuturesRs. 10 per executed order0.02%
Currency OptionsRs. 10 per executed orderRs. 20 per lot

Edelweiss gives you the flexibility to switch between Lite and Elite accounts. It charges Rs. 0 when you switch from Lite to Elite and a fee of Rs. 2500 when you switch from the Elite to the Lite Plan. 

Margin Provided

Finding margin details on the Edelweiss website is hard, it does not disclose the leverage details upfront. 

Following are the margin details that I could collect from the Edelweiss website:

Trading SegmentMargins
Equity Intraday (MIS)Up to 10 times
Equity Intraday (CO)Up to 80 times

The exact margin details can be found under the “Buy/ Sell” > “Funds Available” Tab. 

Account Opening Charges 

The Elite account has no charges associated with AMC and account opening.

ParticularsEdelweiss LiteEdelweiss Elite
Account OpeningRs. 0Rs. 0
AMC ChargesFirst Year – Free
Second Year onwards – Rs. 300
Rs. 0

Trading Platforms

#1. Terminal X3 (TX3)

Edelweiss TX3 platform

Edelweiss Terminal X3 is also known as TX3. TX3’s main home can have multiple screens that help you trade multiple assets.

The terminal is a desktop-based trading platform that is loaded with tools like data analytical tools and 60+ advanced indicators that help you in trading and making strategy.

#2. Edelweiss Mobile Trader

Edelweiss Mobile Trader App

Edelweiss mobile trader app is a mobile-based trading platform that helps you trade on the go. The app provides dedicated sections for equity,  derivatives, and commodity markets

Edelweiss mobile trader app is compatible with Android and iOS smartphones.

On the app you can view multiple chart types like:

  • Heiken Ashi 
  • Renko 
  • Points & Figure 
  • Candlestick 
  • OHLC (open, high, low and close) charts

Best For

Edelweiss broking account is good for traders who want to test both the flat and percentage-based brokerages and pick the best for them.

Pros 

  • 80 times margin for CO Equity Intraday trades 
  • Flexibility to switch between Lite and Elite account
  • Rs. 10 brokerages under Lite plan
  • Zero AMC and account opening under Elite account 

Cons

  • Rs. 2,500 switch charges (from Elite to Lite Plan)
  • Does not discloses all the margin details upfront

Conclusion

Edelweiss’s Demat & trading account is for traders who want to have benefits of both the world (discount and full-services).

I mean if you are not able to make up your mind then you can choose any of its plans (Lite/ Elite). Edelweiss gives you the flexibility to move between both the plans. 

Whereas, Zerodha is for self-directed traders who need minimal trading support and are happy with low brokerage fees and average margins.