Introduction: The Death of the “Flat ₹20” Myth
If you started investing recently, you were likely sold a dream: “Invest for Free” or “Flat ₹20 per trade.”
On the surface, India’s top discount brokers—Zerodha, Groww, and Angel One—look identical. They all have slick apps, claim to offer low fees, and promise to make you wealthy. But if you look at your contract notes closely, you might notice a disturbing trend. You made a profit of ₹500, but only ₹410 hit your bank account. Or worse, you lost money on a trade, but your account balance dropped even more than your loss.
Where is the money going?
In 2025, the battle for your demat account isn’t being fought on brokerage anymore. That war is over. The new battleground is the “Non-Trading” ledger debits—the Depository Participant (DP) charges, Auto-Square Off penalties, Pledge fees, and API subscriptions. These are the silent leaks that drain your portfolio while you are busy looking at stock charts.
This isn’t just a comparison; it’s a warning label. We have peeled back the glossy marketing layers to reveal the real cost of trading with India’s top 3 brokers in 2025.
The “Real Cost” Cheat Sheet (2025)
Before we dive into the deep analysis, here is the transparent cost sheet that brokers generally don’t put on their homepages.
| Charge Type | Zerodha (Kite) | Groww | Angel One |
| Account Opening | ₹200 (Equity) | ₹0 (Free) | ₹0 (Free) |
| Annual Maintenance (AMC) | ₹300 + GST / year | ₹0 (Lifetime Free) | ₹240 + GST (Free 1st Yr) |
| DP Charges (Sell Side) | ₹13.5 + GST (Per Day) | ₹20 + GST (Per Order) | ₹20 + GST (Per Debit) |
| Auto-Square Off Penalty | ₹50 + GST | ₹50 + GST | ₹20 + GST (Winner) |
| Pledge Charges | ₹30 + GST / Request | ₹20 + GST | ₹20 + GST |
| Call & Trade | ₹50 per order | Not Available | ₹20 per order |
| Netbanking Gateway | ₹9 + GST | Free | Free |
| Algo Trading (API) | ₹500/mo (Data) | Restricted/Paid | Free (SmartAPI) |
> The Big Takeaway: Zerodha has high upfront costs (Opening + AMC) but lower trading costs. Groww and Angel One are free to start but hit you harder with specific transaction fees.
1. The “DP Charge” Scandal: Why Selling is Expensive on Groww
The most common “hidden” deduction that shocks beginners is the Depository Participant (DP) Charge.
What is it?
When you buy a stock, it sits in your Demat account. When you sell it, the stock has to be moved out of your account and transferred to the buyer. This transfer is handled by the depository (CDSL or NSDL). The broker charges you a fee for this “gatekeeping” service.
The 2025 Reality:
Historically, brokers charged this fee “Per Scrip, Per Day.” This meant if you sold 10 shares of Reliance at 10 AM and another 10 shares of Reliance at 2 PM, you were charged only once because the stock (ISIN) was the same.
However, recent trends have created a divergence in how brokers calculate this.
- Zerodha: Charges ₹13.5 + GST per scrip, per day.
- Scenario: You sell 50 shares of Tata Motors in 5 different batches throughout the day.
- Total Charge: ~₹15.93. (Charged once).
- Groww: Operates on a model where the ₹20 + GST charge is often levied per sell transaction or debit instruction.
- Scenario: If you sell those same 50 shares in 5 batches.
- Total Charge: You could pay ~₹118.
The Verdict:
If you are an active investor who “scales out” of positions (selling a little bit as the price goes up), Groww is significantly more expensive in this specific area. Zerodha remains the king of low DP charges.
2. The “Lazy Tax”: Auto Square-Off Penalties
Intraday trading (buying and selling on the same day) requires discipline. You must close your open positions before the market ends (usually 3:15 PM to 3:20 PM).
If you forget to close your position, or if your internet disconnects at 3:10 PM, the broker’s Risk Management System (RMS) will automatically close (square off) the trade for you. They call this a “service.” We call it a Penalty.
- The Shock: Many new traders assume this is automated and therefore free. It is not.
The Cost Breakdown:
- Zerodha & Groww: Charge a steep ₹50 + GST per executed order.
- Nightmare Scenario: You have 4 open intraday positions. You forget to close them. Zerodha charges you ₹200 + GST (approx ₹236). This could wipe out your entire profit for the day.
- Angel One: This is where Angel One shines. Their auto-square off charge is generally ₹20 + GST (essentially the same as their standard brokerage).
The Verdict:
Angel One wins this round effortlessly. Their penalty is 60% lower than the competition. If you are a beginner who is still learning the ropes and might make mistakes, Angel One is a much more forgiving platform.
3. The “Pledge” Trap: The Hidden Cost of Leverage
In 2025, “Pledging” (using your long-term stocks as collateral to trade Futures & Options) has become mainstream. But brokers don’t tell you about the cost of entering and exiting a pledge.
- Zerodha: Charges ₹30 + GST per pledge request per ISIN.
- If you rebalance your portfolio often, pledging and unpledging stocks can rack up hundreds of rupees in fees monthly.
- Angel One & Groww: Charge ₹20 + GST per request.
It sounds small, but let’s look at Margin Trading Facility (MTF) interest rates—borrowing money to buy stocks.
- Angel One: Aggressively offers MTF at ~14.99% p.a. (often with 30 days interest-free for new users).
- Groww: Offers standardized rates around 15% p.a.
- Zerodha: Does not aggressively promote MTF for equity delivery. They rely on “Delayed Payment Charges” which can be higher (~18% p.a.) if you go into debit without a formal pledge.
Winner: Angel One. If you trade with borrowed money (leverage), Angel offers the best combination of low pledge fees and competitive interest rates.
4. The “Tech Tax”: API & Algo Trading Costs
In 2025, trading isn’t just manual; it’s automated. Whether you use Algo-trading bots, link your account to Tickertape/Sensibull, or just track your portfolio on Excel, you might need API access.
- Zerodha (Kite Connect):
- The Cost: While execution API is free, they charge ₹500 – ₹2,000 per month for historical data API access depending on the plan.
- The Hidden Barrier: Recent regulations require a Static IP for algo trading. This forces retail traders to buy cloud servers (AWS/DigitalOcean), adding a hidden tech cost of ₹300-₹500/month.
- Angel One (SmartAPI):
- The Cost: FREE. Angel One provides its trading API completely free of cost. This saves an algo trader ₹24,000 per year compared to legacy pricing models.
- Groww:
- Largely a closed ecosystem. Their API is not as open or retail-friendly for custom bots as the other two.
Winner: Angel One. For the coding trader, Angel One is the undisputed budget king.
5. The “Convenience” Fee: Adding Money
Why pay to deposit your own cash?
In the age of UPI, paying to transfer money seems archaic. Yet, it persists.
- Zerodha: If you use Netbanking to add funds, they charge ₹9 + GST per transfer.
- Why this matters: UPI has a limit (usually ₹1 Lakh per day). If you want to transfer ₹5 Lakhs for a big opportunity, you must use Netbanking. On Zerodha, you pay for this privilege.
- Groww & Angel One: Netbanking transfers are generally Free (or the cost is absorbed by the broker).
The Verdict:
For High Net-Worth Individuals (HNIs) moving large sums regularly, Groww and Angel One offer a smoother, cost-free funding experience.
6. Annual Maintenance Charges (AMC): The “Rent” You Pay
This is the recurring cost of keeping your account open, even if you don’t trade.
- Groww: ₹0 (Lifetime Free). This is their biggest selling point. You can open an account, buy one share, and disappear for 5 years—you won’t be charged a penny.
- Zerodha: ₹300 + GST / year. This is deducted quarterly (₹75/quarter) from your funds. If you have a small portfolio (e.g., ₹10,000), this fee eats up 3% of your capital annually.
- Angel One: Free for the 1st Year. Then ₹240 + GST / year (Non-BSDA accounts).
The Verdict:
For students and small investors (Capital < ₹50,000), Groww is the only logical choice. Paying AMC on a small portfolio is financially unwise. For larger portfolios (> ₹2 Lakhs), Zerodha’s ₹300 fee is negligible compared to the service quality.
User Scenarios: Which Broker Fits YOU?
Stop looking for the “Best Broker.” Choose the one that fits your behavior.
Scenario A: The “Buy & Forget” Investor
- Best Choice: Zerodha.
- Why? You pay ₹0 Brokerage on delivery. The slightly higher AMC (₹300/year) is worth it because you save massive amounts on the “Sell” side (lower DP charges) when you finally exit years later. Plus, their “No Spam” policy means you won’t be bothered by Relationship Managers.
Scenario B: The “SIP & Mutual Fund” Investor
- Best Choice: Groww.
- Why? Zero AMC. If you mostly do SIPs and only buy stocks occasionally, paying Zerodha’s ₹300/year AMC makes no sense. Groww’s user interface for Mutual Funds is superior to both Zerodha Coin and Angel One.
Scenario C: The “Active Trader” (Intraday/F&O)
- Best Choice: Angel One.
- Why?
- Cheaper Penalties: You will forget to close a trade someday; Angel won’t fine you ₹50 for it.
- Free API: Saves you thousands if you use algos.
- MTF: Best-in-class leverage facility.
Frequently Asked Questions (FAQs)
Q1: Is Groww completely free?
A: No. While Account Opening and AMC are free, Groww charges ₹20 brokerage on Intraday/F&O and a ₹20 + GST DP charge when you sell delivery stocks.
Q2: Why does Zerodha charge ₹200 for account opening?
A: Zerodha claims this upfront fee filters out non-serious users, reducing the load on their support team and keeping the platform faster for serious traders.
Q3: Can I avoid the Auto-Square Off charge?
A: Yes. Set an alarm for 3:15 PM. Manually close all your Intraday (MIS) and CO (Cover Order) positions. Never rely on the broker to do it for you.
Q4: Which broker has the best hidden charges policy?
A: Zerodha is generally considered the most transparent. They list every charge clearly on their support console. Angel One is the cheapest for “mistakes” (penalties), while Groww is the cheapest for “inactivity” (AMC).
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Fee structures are subject to change by brokers and regulators. The information provided here is based on the pricing structures active as of late 2025.
