Groww Overtaking Zerodha

General
21

Few things i can think of…

  • Commoditizing access to the markets and financial information,
  • while continuing to NOT promote incessant activity/churn,
  • and promoting a wholesome attitude towards one’s finances.

Basically,

  • sustainability > quick short-term profits
  • after a certain amount of money,
    (time, health, relationships ) > more money

Also, let’s not limit ourselves to “retailers”.
I think you will agree that having
a single entity that can control / nudge how a large % of the society does their trading/investing
is unhealthy for the society/economy, and hence also for all the participants in the society/economy.

22

?!?
Okay Agreed. I hope this “greater good” initiative of Z brings down their market share considerably in the near future. ‘Greater good’ all around.

23

IMHO, No… Separate apps works better, are less buggy, are less prone to unexpected crashes and other complications…
If customer is going to use say, single phone or laptop, then it doesn’t matter whether he/she/they use 1 app, 2 apps or 3 apps. (In android, second app can be launched from 1st (lets say Primary app)).

So whatever Zerodha is doing is Perfect in my opinion. They don’t need run behind mirages or Illusionary Title being number one. The most important thing for them is to be profitable and to do that over a long time horizon.

When I was looking to open my demat account 5 years ago, initially visited my bank’s service but given their bad UI and requirement of signing PoA, I gave them a Pass.

Then I compared discount brokers and what strike me instantly was the fact that Zerodha was performing eKYC without asking for photo of customer’s aadhaar and one can do the KYC with VID and without revealing your 12-Digit Aadhaar to them (just last 4 digits and VID). I liked this instantly, just because of this Pro-DataPrivacy thing.

Other brokers were asking customers to send them photographs of your aadhaar. Later after govt’s intervention now everyone is insisting on Maksed Aadhaar. But Zerodha implemented that years ago.

See, the little things that get you… :slightly_smiling_face:

@nithin

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24

Exactly…
Personally I don’t mind paying extra if service is good and there is zero nagging from company’s side, as in the long run this matters and allows us compounding of returns on our investments.

25

I am not a fan boy of anyone. I am using zerodha from 2017 and I trust them than anyone else in the industry. Then again, monopoly is wrong, regardless of the temporary benifits it brings. Competition always good for end user.

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26

What if the goal of Zerodha is not just about getting maximum signups. Remembering Simon Sinek’s comparison between Apple & Microsoft in his book Infinite Game

27

Zerodha always remained self centered. It removed NEST.EXE from clients so that they use their useless platform and make losses and to re coup the losses would trade more. Groww is much better

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28

Zerodha profit 2900 crore. More cashflow, more reinvestment, more growth. First mover advantage. As a user & regular trader I dont have any complains from Zerodha. They started this & disruption this market when likes of ICICI sec , kotak etc were charging brokerage in %.

Price penetration and first mover advantage will likely keep Zerodha in the top for long. Rest time will only tell.

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29
30

Zerodha will have to start NEST.EXE for clients because all FIIs use NEST only as trading platform. All others are way back compared to NEST

31

Given that Groww started offering trading services only in 2020 and pipped 0dha in just 3 years - they do deserve the credits due!

And don’t be mistaken that they will now take a pause, they will work even more relentlessly to poach customers from 0dha and others!

I hope 0dha will now listen more to customer feedbacks especially regarding enhancement requests etc., In my experience all the suggestions/requests I have made (in this forum and via tickets as well) have been turned down with worst possible disdain!

For example the Coin Web UI is so plain and useless! So is the Console UI (I guess it still looks the same as it did when 0dha was first started)

Another example: There does NOT exist a single page that list ALL possible charges that 0dha applies to the customers. For example, they charge a fee to add a new bank account, but I came to know about it only when I added another account! Yes, the fee charged is mentioned out there, in one of their pages, but NOT in a single page which lists all possible charges!

If history is any witness - When PaytM announced ZERO fee direct mutual funds, 0dha followed suit almost instantaneously - till then it was adamant about charging a monthly fee (with a ridiculously. low limit on free direct mutual funds) inspite of hundreds of feedback right here in these forums!

I think contrary to what the leadership says, 0dha these days is more busy in diversifying/developing new business like AMC, SmallCase, LearnApp, Insurance etc., than making its current services/products any better.

So, to be honest I am sort of happy that there are now solid challenges to “monopoly” of 0dha - there are new kids on the block too - PayTM share.market, HDFC Sky etc.!

I am watching from the sideline!

Parting Thoughts: This will become really interesting and fun if SEBI introduces “DEMAT ACCOUNT PORTABILITY”! Just like mobile numbers can be ported from one operator to another, think about how great it would be if we (customers) can move our demat accounts from one broker to another (with or without an onetime fee, within CDSL/NSDL), without having to open a new demat account when we want to switch brokers!

Right now, if I want to move to let’s say Groww, I will need to open a new demat account with them - then move all my holding to that account or sell here and by there etc - which is time consuming, expensive and NOT practical at all… So I am sort of stuck with my current broker!

6 Likes
32

For every idiot here arguing how Zerodha has “failed” because this app called Groww seems to have more users, we must remember that in life and business:

GMV,
Instagram follower count,
No. of A-list VCs backing your startup,
No. of sports cars in your garage,
Marketing budget,
No. of users a brokerage has

Do not translate to cash flow.

Business success is defined only by cash flow, provisions for rainy days, and something called trust.

It is counterintuitive only to suckers that a broker that actively discourages its users to take irresponsible risk (No MTF, No naked long option, No marketing) is the most profitable broker in the country. The market rewards cash flow and trust. Losers open trading accounts after watching IPL ads.

1 Like
33

There are other idiots to counterbalance with arguments like

So?

Naked option selling okay? Z has limitation wrt OTM option buying due to restrictions imposed by exchanges, not any other reason. It is also bad because it limits ways you can hedge…

‘Performance marketing’ (affiliate partners) is marketing. First mover advantage (foresight) helped too.

Correct.

3 Likes
34

Quality and Quantity,

Simply if no of subscribers are more that doesn’t mean Groww is better than Zerodha. if anybody think Groww is better than zerodha it doesn’t make any difference.

Give me proper reason why should i go for Groww ??? (Personally I have no reasons)

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35

Its a humble request not to call your fellow mates “idiot” directly or indirectly.

Having a constructive criticism and discussion is necessary to maintain the competitive advantage, let it be cost leadership or differentiated product.

If you ask big gaints like Nokia, Kodak, Yahoo etc today, they would have welcomed such discussion.

Nevermind my 2 cent is to respect everyone, even if perspectives are different.

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36

@nithin bhai ye nudge ko band karne ka kuch solution de de warna mene bhuk hadtal par beth jana hai tere office ke bahar.

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37

Agree with @akashtripathi

Let’s have discussion based on mutual respect even if we disagree at a fundamental level with others.

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38

Groww is very transparent and their application user friendly much much more than Zerodha

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39

What I like about Z and FY is that the top management is amenable to direct communication, although resolution of issues is retrospectively reflected.
No other broking company has such humble stalwarts.

I know nothing about Groww, and I would welcome an honest review.

40

I have been observing youth oriented advertisement of grow since past years. I am also young but the way they are portraying trading is easy is not the case most will agree.
A week back was assisting some one who was a friend of mine who was desirous to start trading investing he asked my opinion for which broker he should opt for I was reluctant later on we went ahead with grow and in 15 minutes account was open
Atleast that was grows claim although earlier online signup took at least 48 hours to successfully register .

Now when he logged in in evening since he was not use to the interface what I observed there what stocks are bought by most of our investor thread appearing on the app was idea,suzlon ,jp associate .Then I reach my conclusion that this platform is besiged by new investor cum traders who will learn hard lessons from market with time .
No offence intended to any one

3 Likes