The Truth About Groww’s “Zero Brokerage” Claims
Let’s be real for a sec – nothing in life is truly free right? And that includes your favorite investment platforms. So when I see people asking if Groww is completely free I gotta clear things up.
As India’s largest stock broker (with more than 1.4 crore active customers) Groww has become super popular by advertising “zero” brokerage fees. But I’ve been using the platform for a while now and I can tell you there’s more to the story than what appears in those flashy ads.
The short answer? No, Groww isn’t completely free – but it does offer some genuinely free services while charging for others. Let’s break down exactly what costs you can expect when using Groww.
What’s Actually Free on Groww?
First, let’s talk about what you DON’T have to pay for on Groww:
- Account Opening: ₹0 for opening a trading and demat account
- Account Maintenance: ₹0 annual maintenance charges
- Basic Investing Tools: Their calculators, screeners, and educational content are free to access
This zero-cost entry is great for beginners and part of why Groww has gained so much popularity. I remember when I first started investing, I was hesitant to commit to platforms charging upfront fees before I even made my first trade!
Where Groww Charges You: The Brokerage Structure
Okay, so here’s where you DO pay on Groww:
Equity Brokerage
- Fixed Charge: ₹20 or 0.1% per executed order (whichever is lower)
- Minimum Charge: ₹5 per order
This means if you’re investing small amounts (like ₹5,000), you’ll pay ₹5. If you’re investing larger amounts (like ₹50,000), you’ll pay ₹20 since 0.1% would be ₹50, and the platform caps it at the lower amount.
I recently made a purchase worth ₹25,000, and my brokerage charge was exactly ₹20 – not exactly free, but reasonable compared to traditional brokers.
Regulatory and Statutory Charges: The Hidden Costs
This is where most people get confused! Even if Groww didn’t charge brokerage (which it does), you’d still pay various regulatory and statutory charges that NO platform can waive. These are mandated by law:
For Delivery Trades (Buy and Hold)
- STT (Securities Transaction Tax):
- Buy: 0% (yes, free!)
- Sell: 0.1% of transaction value
- Stamp Duty: 0.015% on buy side
- Exchange Transaction Charge:
- NSE: 0.00297%
- BSE: 0.00375%
- SEBI Turnover Charge: 0.0001%
- DP Charges: ₹20 per scrip for sell transactions (₹0 for transactions under ₹100)
For Intraday Trades
- STT: 0.025% (Sell side only)
- Stamp Duty: 0.003% (Buy side)
- Exchange Transaction Charge: Same as delivery
- SEBI Turnover Charge: Same as delivery
I’ll be honest – the first time I saw my contract note, I was a bit shocked. I thought “Wait, I thought Groww was supposed to be free!” But these charges are unavoidable and go to regulatory bodies, not to Groww.
Special Cases Where Fees Get Higher
There are specific situations where Groww charges extra:
UPI Mandate Balance Charges
If you’re using UPI Mandate balance, brokerage jumps to 1% of the order value with no maximum cap. This can be really expensive!
I made this mistake once when I was in a hurry to buy a dipping stock. I used the UPI mandate option and ended up paying way more in charges than I would have if I’d just funded my account properly.
Penalties and Special Services
- Auto Square-off Charges: ₹50 per position (for open intraday positions)
- Auction Penalties: As per actual penalties by the exchange
- Delayed Payment Charges: 0.045% per day (simple interest, compounded monthly)
- Pledge Charges: ₹20 per ISIN for pledge/unpledge orders
- MTF Charges: Brokerage of 0.1% + interest of 14.95% per annum on funded amount
A Real Example of Groww Charges
Let me walk through a real-life example to show you what you’d actually pay:
Imagine you buy shares worth ₹50,000 and later sell them for ₹55,000.
When buying:
- Brokerage: ₹20 (capped at lower of ₹20 or 0.1%)
- Stamp Duty: ₹7.5 (0.015% of ₹50,000)
- Exchange Transaction: ₹1.49 (0.00297% of ₹50,000)
- SEBI Charges: ₹0.05 (0.0001% of ₹50,000)
- GST on applicable charges: ₹3.87 (18% of brokerage + exchange charges)
- Total Buy Cost: ₹32.91
When selling:
- Brokerage: ₹20
- STT: ₹55 (0.1% of ₹55,000)
- Exchange Transaction: ₹1.63 (0.00297% of ₹55,000)
- SEBI Charges: ₹0.06 (0.0001% of ₹55,000)
- DP Charges: ₹20
- GST on applicable charges: ₹7.48 (18% of brokerage + exchange + DP charges)
- Total Sell Cost: ₹104.17
Total Trading Cost: ₹137.08
That’s about 0.27% of your total transaction value. Not huge, but definitely not free!
How Groww Compares to Other Platforms
When I compare Groww with other platforms I’ve used, here’s my take:
- Zerodha: Charges similar brokerage but has a slightly better trading terminal
- Upstox: Often runs special offers with truly zero brokerage for limited periods
- Angel One: Higher brokerage but better research tools
- Dhan: Newer platform with similar fee structure but better charting
Groww shines with its super simple interface that’s perfect for beginners. But experienced traders might want more advanced features available elsewhere.
Is Groww Worth It Despite the Fees?
Look, I’ve been using Groww for over 2 years now, and despite not being completely free, I think it offers good value for certain types of investors:
Groww is great if you:
- Are new to investing and need a simple, clean interface
- Make infrequent, long-term investments
- Don’t need advanced technical analysis tools
- Value educational content and stock screeners
Groww might not be ideal if you:
- Are an active day trader making multiple trades daily
- Need advanced charting and analysis tools
- Trade primarily in F&O (there are better specialized platforms)
- Trade using UPI mandate frequently (that 1% charge adds up fast!)
Tips to Minimize Your Costs on Groww
If you decide to use Groww, here are some tips I’ve learned to keep costs down:
- Don’t use UPI mandate unless absolutely necessary (remember, 1% brokerage!)
- Make fewer, larger trades rather than many small ones (since there’s a minimum ₹5 charge)
- Hold investments longer to spread the fixed costs over time
- Avoid intraday trading if you’re cost-conscious
- Be mindful of DP charges when selling multiple scrips in small quantities
The Bottom Line: Good Platform, Not Free
So is Groww completely free? Definitely not. But it does offer good value with its zero account opening and maintenance charges. The actual trading costs are reasonable compared to traditional brokers, though not the absolute cheapest in the discount broker space.
For beginners and long-term investors, the platform’s simplicity and educational resources might justify the costs. But active traders might find better value elsewhere.
I continue to use Groww for most of my investments because I value the clean interface and seamless experience more than saving a few rupees on each trade. But I always make sure to be aware of the actual costs involved.
Remember, when something claims to be completely free in the financial world, it’s usually worth reading the fine print!
Have you been using Groww? What’s your experience been with their charges? I’d love to hear from fellow investors in the comments below!
Groww Mutual Funds Charges: A Comprehensive Guide
Mutual funds are a popular investment option among investors in India. They provide the potential for higher returns as compared to traditional investment options like fixed deposits and savings accounts. However, before investing in mutual funds, it is important to understand the charges associated with them. In this blog, we will discuss the Groww mutual funds charges, which is one of the leading online investment platforms in India.
Groww is an online investment platform that allows investors to invest in various financial products, including mutual funds, stocks, and gold. It was founded in 2016 and has quickly gained popularity among investors due to its user-friendly interface and low fees.
Groww Mutual Funds Charges
Account Opening Charges Opening an account on Groww is completely free. There are no account opening charges or any other hidden fees.
Investment Charges When you invest in mutual funds through Groww, you will be charged a fee known as the Expense Ratio. The Expense Ratio is the annual fee charged by mutual fund houses for managing your investment. The Expense Ratio varies depending on the type of mutual fund you invest in. For example, equity mutual funds have a higher Expense Ratio than debt mutual funds.
Groww does not charge any additional fees for investing in mutual funds. The Expense Ratio charged by the mutual fund houses is directly deducted from your investment amount.
Redemption Charges When you redeem your mutual fund investment, you may be charged a fee known as the Exit Load. The Exit Load is a fee charged by mutual fund houses for redeeming your investment before a certain period of time. The Exit Load varies depending on the mutual fund scheme and the time period for which you hold your investment. Groww does not charge any additional fees for redeeming your mutual fund investment. The Exit Load charged by the mutual fund houses is directly deducted from your redemption amount.
Other Charges Apart from the above-mentioned charges, there are no other charges associated with investing in mutual funds through Groww. However, if you invest in other financial products like stocks or gold, you may be charged additional fees.
Here’s some more information that can be helpful in understanding the Groww mutual funds charges:
Expense Ratio
The Expense Ratio is the annual fee charged by mutual fund houses for managing your investment. It includes all the expenses involved in managing the fund such as administrative costs, management fees, and other operational expenses. The Expense Ratio is expressed as a percentage of the total assets under management (AUM) of the mutual fund. For example, if the Expense Ratio of a mutual fund is 1%, it means that the mutual fund house charges 1% of the AUM as the annual fee for managing the fund.
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The Expense Ratio varies depending on the type of mutual fund you invest in. Equity mutual funds, which invest primarily in stocks, generally have a higher Expense Ratio than debt mutual funds, which invest primarily in fixed income securities. This is because equity funds require more active management due to the volatility of the stock market.
Exit Load
The Exit Load is a fee charged by mutual fund houses for redeeming your investment before a certain period of time. The Exit Load is charged to discourage investors from redeeming their investment too soon, which can be detrimental to the fund’s performance. The Exit Load is usually a percentage of the redemption amount and varies depending on the mutual fund scheme and the time period for which you hold your investment. For example, a mutual fund may charge a 1% Exit Load if you redeem your investment within one year of investing.
Other Charges
Apart from the above-mentioned charges, there are no other charges associated with investing in mutual funds through Groww. However, if you invest in other financial products like stocks or gold, you may be charged additional fees. For example, if you invest in stocks, you may be charged a brokerage fee or transaction fee by the stockbroker.
Investing in mutual funds through Groww can be a great way to start your investment journey. The platform offers a user-friendly interface and low fees, making it accessible to both novice and experienced investors. Before investing in mutual funds, it is important to understand the charges associated with them. The Expense Ratio and Exit Load are the only charges associated with investing in mutual funds through Groww. Make sure to read the scheme document carefully and consult with a financial advisor if needed, to make an informed investment decision.
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FAQ
Is Groww really free?
We charge no annual maintenance fees. Pay only when you trade. Our account opening process is 100% online and free. Submit basic personal details and add a bank account.
Does the Groww app charge any fees?
Groww charges a brokerage fee for trading stocks, which is the lower of ₹20 or 0.1% of your trade value. The minimum charge is ₹5. Regulatory Cap: According to SEBI guidelines, brokerage charges can’t exceed 2.5% of the trade value for equity delivery trades.
Which is cheaper, Zerodha or Groww?
Let’s compare Zerodha and Groww, two popular discount brokers in India. Zerodha offers ₹0 brokerage on equity delivery and charges a flat ₹20 per trade for other segments like intraday and F&O. Groww also charges ₹20 per trade, but doesn’t offer free equity delivery trades like Zerodha.
What are the disadvantages of Groww?
- Limited investment products with no option to trade in commodity, and currency segment.
- No Call and Trade services.
- Do not provide stock tips, research reports, or recommendations.
- Do not offer to invest in SME shares (Companies listed on BSE SME and NSE Emerge platform).
- No branch support.