Zerodha vs ICICI Direct Comparison

By | May 6, 2024

ICICI Direct was the mainstream stockbroker of the last decade until Zerodha launched a discount broking model in 2010 charging a low brokerage of Rs. 20 per trade.

Even I started my stock investment journey with ICICI Direct in 2006.

Honestly speaking, both ICICI Direct and Zerodha can not be compared because they work on entirely different business models.

Zerodha provides you a platform through which you can transact in stocks for trading and value investing.

You wouldn’t get stock investment tips, research, or Robo advisory services at Zerodha. That’s the reason we get discount brokerage rates. 

On the other hand, ICICI Direct provides you with a 3-in-1 account (trading, Demat & savings account) along with research advisory services.

But higher brokerage fees and AMC will burn your pockets.

Let’s compare the brokerage charges.

Consider you make 20 trades of total Rs. 10,00,000 per month.

At ICICI Direct the intraday brokerage charge (under i-Secure plan) is 0.275%. The total brokerage will be 10,00,000 x 0.275% = Rs. 2,750 monthly.

Whereas, the brokerage with Zerodha (that charges Rs. 20 per trade) comes to 20 trades per month x Rs. 20 brokerage = Rs. 400 only.

A huge difference!

ICICI even charges 0.55% for stock delivery but Zerodha provides FREE stock delivery.

If you are a regular trader or stock investor then you should open an account with Zerodha otherwise you would end up paying all your profits as brokerage charges.

Below is the side-by-side comparison of ICICI Direct vs Zerodha

Zerodha Demat vs ICICI Direct Demat

Open Zerodha Account Now

ICICI Direct vs Zerodha Account Charges Comparison

ICICI Direct offers a 3-in-1 (trading + Demat + savings) account, for that you need to have a savings account with ICICI Bank.

 

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If you do not have one, then you need to open it at the time you apply for a trading & Demat account.

ICICI Direct opens free trading and Demat accounts, whereas Zerodha charges Rs 200 for account opening. You need to pay Rs 100 extra for opening a commodity account with Zerodha.

Zerodha charges Rs 300 towards the annual maintenance charges, whereas you would need to pay Rs 700 AMC fee for ICICI direct account.

ICICI also offers different top-up brokerage plans. You would need to pay a subscription from Rs 299 to Rs 4999 depending upon the selected plan.

I have provided the fee details in the next brokerage charges section.

Let’s compare Zerodha and ICICI direct account charges side by side 

Particular Zerodha  ICICI Direct  
Account Opening Rs 200
Rs 300 (commodity account)
Free
AMC Rs 300 Rs 700
Additional Plan Fee No such plans Up to Rs 4999, depending upon the plan

Winner 

If we look at the absolute amounts only, then Zerodha is the winner.

Zerodha charges Rs 200 account opening fee as compared to a free ICICI direct account, but this is a one-time fee.

Otherside, you would end up paying Rs 400 more every year with ICICI direct account for account maintenance as compared to Zerodha.

Zerodha vs ICICI Direct Brokerage Charges

Zerodha (read full Zerodha review) keeps the brokerage charges details very simple to easily understand, on the other side ICICI creates the most complex brokerage plan system.

ICICI Direct offers multiple account types with different types of brokerage rate, margin funding fee, and plan activation fee. Plans are so complex that a regular user feels difficult to analyze which plans would suit best for his requirements.

Zerodha offers free equity delivery and a lower of Rs. 20 per order or 0.03% for intraday.

Simple!

ICICI Direct has four plans with different brokerage rates

  1. i-Secure Plan
  2. Prepaid Brokerage Plan
  3. ICICI Direct Prime Plan
  4. ICICI Direct Neo Plan

#1. Brokerage charges for the i-Secure plan

A variable percentage of brokerage is charged on the basis of quarterly turnover.

The brokerage for Margin and Margin Plus under the I-Secure Plan is 0.050%.

#2. Brokerage charges under Prepaid Brokerage plan

#3. Brokerage charges under ICICI Direct Prime plan

#4. ICICI Direct Neo Plan

Segment Brokerage
Equity Intraday Rs. 20 per order
Equity Futures Rs. 0 per order
Equity Options Rs. 20 per order
Currency F&O Rs. 20 per order
Commodity F&O Rs. 20 per order

Winner 

Zerodha is the clear winner for me.

Not only for charging zero brokerage on delivery and lower brokerage on intraday trading but also for making the brokerage system easy.

People end up paying higher charges where the fee structure is too complex to understand, a case with ICICI direct.

Save brokerage with Zerodha Account

ICICI Direct Vs Zerodha Margin

ICICI Direct charges interest rate and fee for providing the margin facility. For the ICICI Direct NEO plan, you would need to pay 0.025% per day when you keep shares as a margin, which is quite high.

Zerodha doesn’t charge any margin-providing fee.

Let’s side by side compare the margin provided by both Zerodha and ICICI Direct.

Segment  Zerodha  ICICI Direct
Intraday Up To 5x Up to 5X
Equity Futures 1x 1X
Currency Futures 1x 1X
Currency Options 1x 1X
Commodity Futures 1x 1X

Winner – Zerodha is the winner for me, as you need to pay a margin fee to ICICI Direct.

Zerodha Trading Platforms vs ICICI Direct Trading Platforms

Zerodha offers 3 different trading platforms to its customer 

  • Kite 3.0 – Web-based trading platform
  • Kite Mobile – Trading mobile app
  • Sentinel – Market price alerts tool

ICICI Direct provides 3 different types of trading platforms

  • ICICI Direct mobile app
  • Trade Racer Web – Web-based platform
  • ICICIdirect Trade Racer – Desktop trading software

Winner 

I tested the web-based online trading platforms of both Zerodh and ICICI Direct. I am fully satisfied with the performance of both the stockbrokers in terms of ease of use and technical indicators.

For me both are winners.

But a few traders complain that Zerodha platforms hang occasionally before market closing due to load on servers.

ICICI Direct vs Zerodha Customer Support

Zerodha users sometimes face service downtime during trading hours. Zerodha continuously keeps improving its technology to provide a better trading experience to its customers.

If we compare Zerodha customers with the full-service brokers, then still can be improved.  But I would admit Zerodha provides the best service as compared to other discount brokers in India.

Winner

Zerodha provides the best customer service as compared to all other discount brokers in India but if we compare with ICICI Direct then I would say ICICI direct customer service is better.

Why You Might Prefer Zerodha Demat Account

Zerodha is the leading discount broker in India with more than 1 Crore+ customers. You should open Zerodha Account if

  • You are a trader or about to start trading, wants to keep the brokerage cost low
  • A stock investor who wants free delivery
  • Do not require research advisory
  • Advanced trading tools with easy user interface

If these are your requirements then Zerodha is the best option for you to open a Demat & trading account.

Open Zerodha Account Now

Why You Might Prefer ICICI Direct Demat Account

You should prefer an ICICI Direct account only if

  • You already have an ICICI savings account
  • You rarely do trading/investment or want to keep stocks for a long period
  • You want to keep all your financial accounts with the same company
  • You don’t mind paying a higher brokerage and AMC fee

Which is better, Zerodha vs ICICI Direct?

After comparing Zerodha and ICICI Direct based on common features like account charges, brokerage charges, margin, trading platforms, and customer support, Zerodha comes out as a winner.

You should open a Zerodha account if all your trading and stock investment requirements are fulfilled.

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