To trade stocks online or make investments, choosing the right platform for the purpose is important. There are many stock trading platforms available today, offering different investment options, trading features and charges. It is therefore important to understand what each platform offers and whether it meets your investment goals.
For example, if you are looking to invest beyond the Indian market, it is important to know about the platforms that provide access for international investments along with the charges involved.
Two popular financial services platforms, Dhan and Zerodha, offer several options for investment and trading in India. However, the choice can differ when it comes to international investments, especially for investors looking to invest in US stocks and ETFs.
Dhan currently allows Indian investors to invest in US-listed stocks and ETFs through its US Stocks platform, including fractional investing starting from $1. Zerodha currently does not offer direct investment in foreign-listed stocks, although the company is looking to bring US stock investing through the GIFT City framework.
Dhan and Its offerings
Dhan is a Mumbai-based financial services platform that offers stocks, ETFs, mutual funds, IPOs and futures and options for investors and traders. It provides trading tools such as charts, watchlists and portfolio tracking.
For intraday equity and ETF trades, Dhan charges Rs 20 or 0.03% of the trade value, whichever is lower side. It has zero brokerage charges for equity delivery and Rs 20 for every order on options trading.
The platform also provides access to stocks and ETFs that are listed in the US. It offers fractional investing, which enables investors to begin with as little as $1.
Zerodha and its offerings
Zerodha is an Indian stock trading and investment platform offering stocks, direct mutual funds, bonds and other market products. Its Kite platform is used for investing and trading, and it also offers futures and options.
There is no brokerage fee charged by Zerodha on equity delivery transactions. For intraday equity and futures, the platform charges either Rs 20 or 0.03% of the value of the trade, with the lower of the two amounts applying. With respect to Options, Zerodha charges Rs 20 for each executed order.
The platform does not currently provide US stocks or other foreign stocks for direct investment on it.
International investment
Dhan enables investors in India to invest in US-listed stocks and ETFs via its Dhan US Stocks and ETFs platform, and it also provides fractional investing so that investors do not have to purchase a full share.
The brokerage amounts to 0.25% of the value of the trade, with a minimum charge of $0.01.
At the same time, Zerodha is concentrating on direct stock investing in the Indian market and at present does not provide the same facility for US stocks.
What should you choose?
Before choosing any platform, it is important to check if the products offered, brokerage and other applicable charges suit your needs. Traders should focus on:
- Dhan and Zerodha both offer investment options across stocks, ETFs and mutual funds for the Indian market.
- Both the platforms are suitable for different trading purposes. They offer various trading tools, so the choice can depend on the features you prefer to use.
- When it comes to international investment, Dhan can be a preferred option to consider, as it offers a direct investment option, while Zerodha is just beginning.
- The Zerodha vs Dhan brokerage charges are almost similar across multiple trades. So, the choice can depend on the features you prefer to use.
Conclusion
Both the platforms offer almost similar investment choices. However, if you’re looking for a US stocks investment app in India, Dhan can be a suitable choice. But always do your research and invest as per your risk appetite and long term goals.
