Zerodha is the biggest discount broker with over 64 lakh+ customers, while M Stock has quickly gained popularity with 9756 paying customers in less than six months since entering the Indian stock market.
In April 2022, Mirae Asset introduced M stock with the revolutionary offer of totally Zero Brokerage across all Intraday, Delivery, Currency and F&O orders. However, you can’t trade commodities with M Stock.
I doubt, how long the mStock would survive without charging any brokerage from the customers.
On the other hand, with Zerodha, you can trade or invest in Equity, Commodity, Currency, Futures and Options, Mutual Funds, IPOs & ETFs.
Let’s compare mStock vs Zerodha to see which one is better for you.
Quick Comparison of mStock vs Zerodha
| Particulars | mStock | Zerodha |
| Trade In | Equity, Currency, Futures and Options, Mutual Funds, IPOs & ETFs | Equity, Commodity, Currency, Futures and Options, Mutual Funds, IPOs & ETFs |
| Account opening charges | Rs. 999 (One time fee with lifetime free brokerage plan) Free with Brokerage Plan 2 | Rs 200+ Rs 100 for Commodity (optional) |
| Demat AMC Fees | Lifetime Free Amc by paying Rs. 999 OrRs. 120 per quarter | Rs. 300 (Rs. 75 per quarter) |
| Brokerage Plan | Life Time Zero Brokerage Plan Brokerage Plan 2 | Single plan |
| Brokerage Charges | mStock (Lifetime Zero Brokerage Plan) | Zerodha Plan |
| Equity Delivery | Rs 0 (free) | 0 (Free) |
| Equity Intraday | Rs 0 (free) | 0.03% or Rs. 20 per executed order whichever is lower |
| Equity Futures | Rs 0 (free) | 0.03% or Rs. 20 per executed order whichever is lower |
| Equity Options | Rs 0 (free) | Rs. 20 per executed order |
| Currency Futures | Rs 0 (free) | 0.03% or Rs. 20 per executed order whichever is lower |
| Currency Options | Rs 0 (free) | Rs. 20 per executed order |
| Commodity Futures | Not Available | 0.03% or Rs. 20 per executed order whichever is lower |
| Commodity Options | Not Available | Rs. 20 per executed order |
| Call & Trade Charges | Free | Rs. 50 per order |
mStock Demat Account Charges vs Zerodha
#1. Account Opening Charges
Both mStock and Zerodha offer a free Demat account facility.
Regarding trading accounts, mStock offers a one-time fee of Rs. 999 for a lifetime free brokerage plan. Alternatively, you can also choose the zero demat account charges where you need to pay the brokerage charges.
On the other hand, Zerodha charges Rs. 200 for an online account opening. However, you need to pay Rs. 100 more to open a commodity trading account with Zerodha. Commodity trading is optional in Zerodha.
| mStock | Zerodha | |
| Demat Account Opening Charges | Rs. 0 (Free) | Rs. 0 (Free) |
| Trading Account Opening Charges (One Time) | Rs. 999 (One time fee with lifetime free brokerage plan) Rs. 0 (Free with Brokerage Plan 2) | Rs 200 (equity only) Rs 300 (with commodity account) |
#2. Annual Maintenance Charges (AMC)
When it comes to the Annual Maintenance Charge (AMC) for demat accounts, mStock offers two options: you can either enjoy a lifetime free AMC by making a one-time payment of Rs. 999, or you can choose to pay Rs. 120 per quarter, which totals Rs. 480 annually.
On the other hand, Zerodha provides a more cost-effective option with an AMC fee of Rs. 75 per quarter, amounting to Rs. 300 annually for their demat accounts.
| AMC Fee | mStock | Zerodha |
| Demat AMC Fee | Lifetime Free Amc by paying Rs. 999 Or Rs. 120 per quarter (Rs. 480 annually) | Rs. 75 per quarter (Rs. 300 annually) |
mStock Vs Zerodha Brokerage Charges
Zerodha has only one plan that offers zero brokerage charges on equity delivery and 0.03% or Rs. 20 per executed order whichever is lower for intraday trading.
Whereas mStock offers two plans with different brokerage rates.
- Lifetime Zero Brokerage Plan
- Brokerage Plan 2
Let’s discuss the brokerage comparison between mStock and Zerodha based on different brokerage plans.
#1. mStock (Lifetime Zero Brokerage Plan) Vs Zerodha (Flat Brokerage Plan)
mStock offers a lifetime zero brokerage plan where you won’t incur any brokerage fees on delivery, intraday, currency, or F&O trades. You cannot trade in commodity segments. However, you need to pay the one time demat account opening fees of Rs. 999 with this brokerage plan.
In contrast, Zerodha offers a single brokerage plan, charges Rs 0 for equity trades and Rs 20 per executed order or 0.03% (whichever is lower) for intraday trades.
| Segment | mStock (Lifetime Zero Brokerage Plan) | Zerodha (Flat Brokerage Plan) |
| Equity Delivery | Rs 0 (free) | 0 (Free) |
| Equity Intraday | Rs 0 (free) | 0.03% or Rs. 20 per executed order whichever is lower |
| Equity Futures | Rs 0 (free) | 0.03% or Rs. 20 per executed order whichever is lower |
| Equity Options | Rs 0 (free) | Rs. 20 per executed order |
| Currency Futures | Rs 0 (free) | 0.03% or Rs. 20 per executed order whichever is lower |
| Currency Options | Rs 0 (free) | Rs. 20 per executed order |
| Commodity Futures | Not Available | 0.03% or Rs. 20 per executed order whichever is lower |
| Commodity Options | Not Available | Rs. 20 per executed order |
#2. mStock (Brokerage Plan 2) vs Zerodha (Flat Brokerage Plan)
Under this plan, mStock charges 0 for equity delivery and Rs. 20 per order for all other trading segments including intraday trades.
On the other hand, Zerodha charges Rs 0 for equity trades and Rs 20 per executed order or 0.03% (whichever is lower) for intraday trades.
| Segment | M Stock (Brokerage Plan 2) | Zerodha (Flat Brokerage Plan) |
| Equity Delivery | Rs 0 (free) | 0 (Free) |
| Equity Intraday | Rs. 20 per order | 0.03% or Rs. 20 per executed order whichever is lower |
| Equity Futures | Rs. 20 per order | 0.03% or Rs. 20 per executed order whichever is lower |
| Equity Options | Rs. 20 per order | Rs. 20 per executed order |
| Currency Futures | Rs. 20 per order | 0.03% or Rs. 20 per executed order whichever is lower |
| Currency Options | Rs. 20 per order | Rs. 20 per executed order |
| Commodity Futures | Not Available | 0.03% or Rs. 20 per executed order whichever is lower |
| Commodity Options | Not Available | Rs. 20 per executed order |
Zerodha vs mStock Other Charges
#1. Call and Trade Charges
mStock offers you free Call & Trade charges. Whereas Zerodha charges Rs. 50 per order.
| Zerodha | Rs. 50 per order |
| mStock | Free |
#2. Mutual Fund and IPO Investment Charges
Both mStock and Zerodha offer a lucrative advantage to you by providing zero charges for mutual fund investments through their platforms.
Additionally, both platforms do not charge any fees for IPO investments, making it easier for you to participate in the IPO.
#3. Auto-square Off Charges
Zerodha charges Rs. 50 per auto-squared off for all open intraday positions after the cut-off time.
In contrast, mStock applies an auto-square off charge of Rs. 60 per position.
#4. Pledge Creation/Confirmation/Invocation Charges
You can use the margin against Demat holdings for trading futures & options only. Zerodha charges Rs 30 per scrip on pledging creation, while mStock offers two options: Rs. 25 per ISIN with the Lifetime Free AMC plan or Rs. 32 per ISIN with the standard quarterly AMC plan.
| Zerodha | mStock | |
| Pledge Creation | Rs. 30 per scrip | Rs. 25 per ISIN with Lifetime free AMC plan Or Rs. 32 per ISIN with standard quarterly AMC plan |
#5. Margin Shortfall Penalty
mStock does not provide the information on margin shortfall penalty.
On the other hand, Zerodha charges the penalty on the debit balance in the trading account.
| Shortfall collection | Penalty |
| (< Rs 1 lakh) and (< 10% of applicable margin) | 0.50% |
| (>= Rs 1 lakh) or (>= 10% of applicable margin) | 1% |
A penalty of 5% will be applicable for
- Every further instance of the shortfall is applicable, If there are more than 5 instances of a shortfall in a calendar month.
- Each subsequent instance of the margin shortfall, If the margin shortfall continues for more than 3 consecutive days.
- For MCX, from the 4th instance of the shortfall, if the margin shortfall is reported 3 times or more during a month.
#6. Physical CMR Copy Charges
Both mStock and Zerodha provide the first CMR (Client Master Report) copy for free, subsequent requests are charged Rs. 20 + Rs. 100 (courier charge).
#7. Off Market Share Transfer Charges
For off-market share transfers, Zerodha levies Rs. 25 or 0.03% of the transfer value, whichever is higher.
Whereas, mStock charges zero for transfer in and for transfer out charges Rs. 20 per transaction or 0.50% whichever is lower.
#8. Funds Transfer Charges
For deposit through net banking, mStock charges Rs. 7 to 11 depending on the bank selection, while Zerodha applies a fee of Rs. 9.
However, if you transfer funds through UPI or IMPS, there is no charge levy by both platforms.
#9. Charges for Canceled Orders
For canceled orders, both mStock and Zerodha do not charge any fees.
Cancellation can be due to –
- Canceling orders manually
- Auto-canceled by the system
- The order rejected for the shortage of funds or any reason
#9. GTT Order Charges
Good Till Trigger (GTT) allows you to set certain trigger (price) conditions leading to buying/ selling of shares at a particular price.
Both stock brokers do not charge any fees for setting up GTT orders. However, you need to pay the brokerage fee when the order is triggered.
#10. BTST Trading Charges
For BTST (Buy Today Sell Tomorrow) trades, both mStock and Zerodha do not charge any fees, as these orders fall under the delivery product category.
mStock Vs Zerodha Government Taxes and Regulatory Charges
#1. SEBI Charges & GST
Government taxes and regulatory charges are consistent across both mStock and Zerodha. They both charge Rs. 10 per crore traded as SEBI charges.
Additionally, the Goods and Services Tax (GST) of 18% is applicable on all charges, including brokerage fees, SEBI charges, and transaction fees.
| SEBI Turnover Tax | 00.0001% on turnover (Rs 10 per crore) |
| GST | 18% of brokerage & transaction value |
#2. Stamp Duty
Stamp duty charges, which are levied by the state government on the transfer of securities. Stamp duty is charged only on the buy side.
Stamp Duty is also the same between the two platforms.
| Trading Segment | Charges |
| Equity Delivery | 0.015% or Rs 1500 / crore |
| Equity Intraday | 0.003% or Rs 300 / crore |
| Equity Futures | 0.002% or Rs 200 / crore |
| Equity Options | 0.003% or Rs 300 / crore |
| Currency Futures | 0.0001% or Rs 10 per crore |
| Currency Options | 0.0001% or Rs 10 per crore |
| Commodity Futures | Zerodha – 0.002% or Rs 200 per crore mStock – Not Available |
| Commodity Options | Zerodha – 0.003% or Rs 300 per crore mStock – Not Available |
#3. STT Charges
STT (Securities Transaction Tax) is levied by the government on securities and commodities on all trades executed on the exchange. The charges are as follows:
| Trading Segment | STT Charges |
| Equity Delivery | 0.1% on both buy & sell |
| Equity Intraday | 0.025% only on sell |
| Equity Futures | 0.0125% only on sell |
| Equity Options | 0.0625% on sell side (on premium) |
| Currency F&O | No STT |
| Commodity Futures | Zerodha – 0.01% on sell (Non-Agri)mStock – Not Available |
| Commodity Options | Zerodha – 0.05% on sellmStock – Not Available |
#4. Transaction Charges
Both mStock and Zerodha charge the transaction charges for every trade executed on the exchange. The charges are levied by the exchange and vary from one exchange to another. The charges are as follows:
| Segment | Transaction Charges |
| Equity Delivery | NSE – Rs 325 per Cr (0.00325%) BSE – Rs 375 per Cr (0.00375%) (each side) |
| Equity Intraday | NSE – Rs 325 per Cr (0.00325%) BSE – Rs 375 per Cr (0.00375%) (each side) |
| Equity Futures | NSE – Rs 190 per Cr (0.0019%) |
| Equity Options | NSE – Rs 5000 per Cr (0.0500%) (on premium) |
| Currency Futures | NSE – Rs 90 per Cr (0.0009%) BSE – Rs 22 per Cr (0.00022%) |
| NSE Currency Options | NSE – Rs 3500 per Cr (0.035%) BSE – Rs 100 per Cr (0.001%) (on premium) |
| Commodity Futures | Zerodha – 0.0026%mStock – Not Available |
| Commodity Options | Zerodha – 0.05%mStock – Not Available |
#5. DP (Depository Participant) Charges
For each Demat debit transaction (sell), Zerodha applies a DP charge of Rs. 13.5 per scrip, whereas mStock imposes a DP charge of Rs. 12 per ISIN per transaction per day for sell transactions.
There are no charges for Demat credit transactions. This is charged only on selling shares from the demat account.
Conclusion: mStock Vs Zerodha
Zerodha is the best option for retail investors with a single brokerage plan and low account opening & AMC charges. Zerodha offers free equity delivery and charges a maximum Rs. 20 per executed order for intraday trading, currency and commodity.
On the other hand, M Stock, which was introduced by Mirae Asset as a financial planning platform about 1.5 years ago, has gained recognition in a short time. However, because it’s relatively new, some people have doubts about its reliability and whether it’s a good and secure option. Therefore, it’s advisable to periodically review the offerings of the brokerage platform to make an informed decision.
FAQs About mStock vs Zerodha
M Stock offers zero brokerage for Equity Intraday under lifetime zero brokerage plan, while Zerodha charges 0.03% or Rs. 20 per executed order, whichever is lower.
Both mStock and Zerodha offer zero brokerage charges for Equity Delivery.
No, M Stock does not support commodity trading.
Zerodha charges Rs. 13.5 per scrip for Demat debit transactions (sell), while M Stock imposes a charge of Rs. 12 per ISIN per transaction per day for sell transactions. There are no charges for Demat credit transactions.
For deposit through net banking, M Stock charges Rs. 7 to Rs. 11, depending on the bank. Zerodha charges Rs. 9 for net banking deposits. Transfers through UPI or IMPS are free on both platforms.
Both M Stock and Zerodha offer free mutual fund investments through their platforms, and they do not charge any fees for IPO investments.
M Stock offers Call & Trade services for free, while Zerodha charges Rs. 50 per order for this service.
No, M Stock does not support commodity trading. You can trade commodities with Zerodha.
mStock offers two options: You can either get a lifetime free AMC by paying Rs. 999 once or pay Rs. 120 per quarter (Rs. 480 annually). Zerodha charges Rs. 75 per quarter (Rs. 300 annually) for their Demat account AMC.
With mStock, you can open an account by paying a one-time fee of Rs. 999 for a lifetime free brokerage plan. Zerodha charges Rs. 200 for an online account opening, with an additional Rs. 100 if you want to add commodity trading.
