I have already discussed side by side comparison of Zerodha vs Sharekhan and I have chosen the top 5 brokers of India. A broker was my favorite only due to their research reports way back in 2011-2012 was IDBI Paisabuilder (now IDBI Direct). So in this post, I shall discuss the pros and cons of IDBI’s brokerage arm, and let’s see the side-by-side comparison of IDBI Direct vs Zerodha.
IDBI Paisabuilder is operating in equity, derivatives, mutual funds, and IPO. As per their website, they are going to launch currency trading very soon.
Brokerage And Other Charges Of IDBI Paisabuilder (IDBI Direct):
- A/c opening charge: Rs. 500
- Delivery brokerage: 0.5% (each for buy-side and sell-side)
- Intraday equity cash brokerage: 0.05% (each for buy-side and sell-side)
- Futures trading brokerage: 0.05% (each for buy-side and sell-side)
- Options trading brokerage: Rs. 100 per lot (each for buy-side and sell-side)
There is another plan for IDBI Paisabuilder called as Ace Trader plan where the company charges less brokerage for traders who are trading on volume. In the Ace Trader plan, the equity delivery brokerage can be as low as 0.1% if the trader’s turnover is ten crores. The futures trading brokerage can be lowered down to 0.02% where the trader’s volume is more than 10 crores.
IDBI Paisabuilder also has a separate HNI Advisory service to cater to high-net-worth individuals. They offer trading platforms in the form of web traders, the desktop trading platform called INFINITY, mobile trading apps, dealer-assisted trading, and dial-n-trade. The official website of IDBI Direct has a very illustrative demo page which is really easy to understand for traders.
Now, previously I have already discussed that I liked IBDI Paisabuilder mainly due to their research reports way back in 2011. At that time they were publishing highly accurate research calls on the Nifty index based on Advanced Get analysis. Nowadays too they still publish their research reports, but somehow I now miss their Elliott Wave-based accurate index research. Maybe the research team has changed now.
IDBI Direct vs Zerodha:
Let us discuss the key differences between IDBI Direct vs Zerodha
Brokerage Charges of IDBI Paisabuilder vs Zerodha
- Delivery brokerage Zerodha is the clear winner, with 0% delivery brokerage charged by Zerodha, while IDBI Paisa Builder charges up to 0.50%. That means, in a 2 lakhs turnover you pay Rs. 0 in Zerodha and Rs. 1000 in IDBI Direct.
- In futures trading brokerage comparing IDBI Direct vs Zerodha, again Zerodha is a clear winner, Rs. 10 per executed order charged by Zerodha vs up to 0.05% brokerage charged by IDBI Paisa Builder.
- Options brokerage also Zerodha is a clear winner as IDBI Direct charged huge Rs. 100 per lot per leg, hence in 1 lot options buy and sell a trader has to pay a huge Rs. 200 for buy and sell, while Zerodha will charge only Rs. 40 for buying and selling for unlimited lots.
Mobile App and Other Comparisons
- Zerodha Kite mobile app also leading way ahead with only basic operations are possible in IDBI mobile app while advanced charting and trading are possible in Zerodha Kite.
- While comparing IDBI Direct vs Zerodha, IDBI leads only in 1 segment, i.e. research. Zerodha being a discount broker has no research wing. So, we recommend traders open accounts in Zerodha instead of IDBI Direct.
Conclusion:
In conclusion, when comparing IDBI Direct vs Zerodha, it is evident that Zerodha has a clear advantage over IDBI Paisabuilder in terms of brokerage charges, mobile app features, and overall user experience. While IDBI Direct has a strong research wing, it falls short in other aspects of the trading platform. With Zerodha’s zero delivery brokerage charges, low futures trading brokerage, and minimal options trading charges, it is a clear winner in terms of cost-effectiveness. Additionally, Zerodha’s advanced mobile app and trading platform provide a more user-friendly experience. Therefore, we recommend traders opt for Zerodha as their preferred trading platform over IDBI Direct, especially for those who value cost-effectiveness and ease of use.
