A thorough examination is necessary before settling on a broker for your investing requirements.
Making sense of the vast amount of information available is challenging.
We understand the importance of choosing the right broker. So, we have created a complete overview covering every aspect of trading and investing at Shoonya & Dhan.
A brief overview of the companies
Shoonya
The Finvasa group was founded in 2009. It started offering trading services in August 2016. Later, the group allocated a separate domain and app to make its platform more user-friendly.
Recently, the company decided to separate its trading platform. It launched “Shoonya” on 9th December 2022. The unique selling proposition of this trading platform is that it is commission free.
Dhan
Dhan was launched by Pravin Jadhav’s Raise Financial Services. It has taken over the industry with its lauded lightning-fast speed. The app was launched in 2019; it has now amassed over 1 million registered users.
It has appreciable popularity among its target population. It is registered with SEBI (SEBI Stock Broker Registration No: INZ000006031). It provides trading services across all significant exchanges and segments in India.
Comparing Margins: Shoonya Vs Dhan
You’ve probably heard the adage,
“Cut your coat according to your cloth.”
A margin can assist you in overcoming the implications of precisely that. It refers to the security you retain with your broker to secure a loan to purchase new stocks. In the event of a default, the margin serves as collateral. Margin trading enables you to purchase shares by paying a portion of the full share value.
If you are a pro-investor, you should be up-to-date with the impact of SEBI’s latest circular dated 10th May. To ensure the novices don’t have a fear of missing out, let me quickly give an overview.
As per the circular, traders dealing in intraday trading, as well as futures and options (F&O), must maintain a 100% margin in their bank account.
This is because the only method to evaluate brokers is to take into account their trading platforms and their savings on brokerage and other fees.
Comparing Brokerage – Zerodha Vs Dhan
Brokerage is the sum you give a broker as a commission for serving as your agent in executing your trade. Imagine it as a fraction of your gift from Santa, as bittersweet as that may seem!
No one enjoys sharing their presents with others. Thus, you must carefully analyze the brokerage structures of your potential brokers.
Shoonya Brokerage Structure
Since its debut, Shoonya has had a positive record as a zero-brokerage trading platform. It has lived up to its name. In addition to its zero brokerage across all segments, it has attracted a lot of traffic in the investment community. This is because of its top-notch services.
Yes, you read that correctly. Shoonya levies shoonya brokerage, whatever the segment!
If I were you, I’d already be giving it some brownie points for that.
Dhan Brokerage Structure
Dhan competes for the neck to neck with Shoonya. It also charges a zero commission for taking the delivery of your trades.
However, a fee of INR 20 or 0.03% per executed order, whichever is lesser, applies to all intraday and futures contracts. Additionally, brokerage for all options trades remains affordable at INR 20 for each executed order across all market categories, including stock, commodities, and currencies.
There should be no bonus for predicting who the winner is here – Hail the zero brokerage provider – Shoonya.
Shoonya VS Dhan other charges comparison
| Shoonya | Dhan |
| Account Opening Charges | |
|
Shoonya charges zero as charges for account opening across segments, including demat. |
Customers can open free accounts with Dhan without paying an opening fee. |
| Annual Maintenance Charges | |
|
Shoonya, as the name suggests, does not charge any annual account maintenance charge. |
No annual maintenance charges are imposed by Dhan on its customers. |
| Payment Gateway Charges | |
|
Shoonya imposes a minimal charge of INR 7/ transaction done via a payment gateway. |
Dhan levies no charge for processing payments through its UPI and Netbanking gateways. |
| Pledge Charges | |
|
Shoonya levies a pledge charge of INR 20/instruction + GST. |
Pledge charges at Dhan are INR 12.5/instruction + GST. |
| DP Charges | |
|
Shoonya debits your trading account with a DP charge of INR 9 per script when stocks are sold. |
A DP charge of INR 12.5/script is levied to your account for every delivery sell order. |
It is important to note that besides the above-listed charges, there are a few other charges levied on your trade by every broker:
- STT – Securities Transaction tax
- Transaction Charges
- GST
- SEBI Charges
- Stamp Charges
When compared to the other fees, Dhan has an advantage. This is because its charges are more economical than Shoonya’s.
Services offered and who can invest – Shoonya Vs Dhan
As part of its platform, Shoonya allows users to trade in multiple assets, currencies, and clearing services, as well as invest in mutual funds. With the platform, you can curate, compare, and analyze various mutual fund plans for optimal investing.
Additionally, the platform is open to all retail investors, Non-Resident Indians (NRIs), Foreign Portfolio Investors (FPIs), and High Networth Individuals (HNIs).
Dhan, on the other hand, provides only trading and clearing services across multiple assets and currencies, including Exchange Trade Funds (ETFs). Furthermore, retail investors are the only ones who can use the platform.
In this round too, Shoonya hits a sixer, leaving Dhan in the dust.
Trading Platform – Shoonya Vs Dhan
Shoonya has over 100 technical indicators. These can be tailored to your preferences. Additionally, traders undoubtedly benefit from Chart IQ’s powerful charts and screeners. These are accessible via the web, desktop, and mobile devices.
Dhan, on the other hand, gives you access to various tools. It has everything, including Trading View, Dhan Trading APIs, Small case, and Options Traders App!
Comparing the exceptionally built trading platforms may not yield a true favourite. However, Dhan gets the prize since it offers a wide range of tools at your disposal.
In conclusion
We have planted the seeds of analysis. Now it is time to reap the benefits. Having said that, you shouldn’t discount any pertinent parameters because they all matter equally in choosing your ideal broker.
Finally, who is better, Shoonya or Dhan?
I would place my bet on Shoonya. It is easy to draw the same conclusion from the simple math of the points here. Aside from offering brokerage-free services, Shoonya is also accessible to all types of investors, including potential mutual fund enthusiasts.
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