Motilal Oswal Vs Angel One: Deciding to invest in the stock market gets spooky for many people and then comes the daunting task of choosing a broker. Some people prefer to choose brokers that their family or friends have chosen, while others rely on research to choose.
Many times people choose brokers and find that they’re not compatible with the services that are required by them. Then they switch brokers. This is a tedious task and wastes a lot of time.
In this article, we shall compare two full-service brokers: Motilal Oswal vs Angel One. The comparison will be based on the number of active clients that they have, the services that they provide, the charges, and more. Keep reading to find out!
Who are Stock Brokers?
Investors invest in companies with the help of stock exchanges like the NSE and the BSE. However, they cannot buy the shares of companies directly through these exchanges.
Therefore, they require middlemen to execute trades. These middlemen are stock brokers.
Stockbrokers are registered with stock exchanges. They have a license to execute trades on behalf of their clients, in return for remuneration. There are two types of stockbrokers in India:
Full-Service Brokers or Traditional Brokers
They provide trading, research, and advisory facilities for stocks, commodities, and currencies. These brokers charge commissions on every trade that their clients execute as a percentage of each trade executed.
In addition, they facilitate investing in Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance. For example, ICICI Direct, Kotak Securities, HDFC Securities, Motilal Oswal, and Angel One are full-service brokers.
Discount Brokers or Budget Brokers
They suit the ‘do-it-yourself’ type of clients since they do not provide advisory services. They provide trading services at low brokerage and high speed.
Their platform helps clients to trade in stocks, commodities, and currency derivatives. For example, Zerodha, RKSV Securities (Upstox), Groww, and so on are discount brokers.
Let’s compare Motilal Oswal and Angel One:
Motilal Oswal vs Angel One – About the Companies
Motilal Oswal Financial Services Limited is a well-diversified financial services firm. It was founded by Motilal Oswal and Raamdeo Agrawal in 1987 as a small sub-broking unit.
The company has a network spread in over 550 cities and towns. It has a presence in more than 2500 locations with the help of its business partners.
It offers financial products and services such as private wealth, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking, currency broking, and home finance.
Angel One Limited was formerly known as Angel Broking Limited. It was established in 1996 and has more than 8500 sub-brokers in more than 900 cities across India. As of December 31, 2021, Angel Broking was the largest listed retail broking house in India in terms of active clients on NSE.
It provides services in equities, commodities, equity derivatives, and currencies. Further, it provides portfolio management services, loans against shares, investor education, research services, and investment advisory services.
Nowadays, it is mainly known for its Robo advisory services, Angel Broking ARQ. This is an espionage tool for checking stock performance and portfolio conditions.
Motilal Oswal vs Angel One – Active Clients
Motilal Oswal Financial Services has a market share of 2.49%. It has 8,96,851 active clients as of 31st March 2022 as per BSE’s website. On the other hand, Angel One has a 10.15% market share in India with 36,57,550 active clients.
Motilal Oswal vs Angel One – Charges
Both Motilal Oswal and Angel One are full-service brokers. They do not charge their clients for opening an account with them. However, Motilal Oswal charges ₹ 199 per annum and Angel One charges ₹ 240 per annum as account maintenance charges.
|Particulars||Motilal Oswal Financial Services||Angel One|
|Equity Delivery||0.35% on order value||Zero|
|Equity Intraday||0.035% on order value||0.25% on order value up to ₹ 20|
|Equity Futures||0.035% on order value||0.25% on order value upto ₹ 20|
|Equity Options||₹ 40 per order||₹ 20 per order|
|Currency Futures||0.035% on order value||0.25% on order value upto ₹ 20|
|Currency Options||₹ 15 per order||₹ 20 per order|
|Commodity Futures||0.035% on order Value||0.25% on order value upto ₹ 20|
|Commodity Options||₹ 100 per order||₹ 20 on order value, per order.|
|Call & Trade||Free||₹ 20 per order|
Motilal Oswal vs Angel One – Leverage/Margin Details
Sometimes investors want to invest in equity or forex trading, as they see a huge potential. However, they do not possess the amount required.
In this case, they decide to borrow money from a broker or another entity to accumulate additional capital for their investment.
The broker, in return, asks the investor for some assurance that the individual will pay the borrowed sum with interest in case the trade goes in another direction. The amount invested including the collateral provided is called the margin.
This practice develops a trading power called leverage. These are the leverage/ margins charged by Motilal Oswal and Angel One:
|Particulars||Motilal Oswal||Angel One|
|Equity Delivery||4x as per exchange||1x as per exchange|
|Equity Intraday||4x as per exchange||4x as per exchange|
|Equity Futures||4x as per exchange||4x as per exchange|
|Equity Options||4x as per exchange||Buy: 3x, Sell: 4x|
|Currency Futures||4x as per exchange||4x as per exchange|
|Currency Options||4x as per exchange||Buy: 3x, Sell: 4x|
|Commodity Futures||4x as per exchange||4x as per exchange|
|Commodity Options||4x as per exchange||0x as per exchange|
Motilal Oswal vs Angel One – Additional Features
Both the brokers do not provide a 3 in one account. However, they provide free trading calls, research reports, SMS alerts, margin funding, and margin against shares.
Further, they provide other investment options like mutual funds (regular), IPO platforms, bonds & debt instruments, exchange-traded funds, and insurance.
Motilal Oswal vs Angel One – Revenue
Though Motilal Oswal has fewer clients as compared to Angel One, its revenue is higher than that of Angel One. However, both the companies show an increasing trend in revenue.
Motilal Oswal’s total revenue for FY22 is ₹ 4,319.80 crores and its net profit is ₹ 1,309.80 crores.
The consolidated annual results of Angel One are not available as of now, therefore we shall update the comparison soon.
Motilal Oswal vs Angel One – Profitability
Both the companies show an increasing trend in profits, however, the profits of Motilal Oswal are higher as compared to Angel One.
Motilal Oswal vs Angel One – Key Ratios
|Particulars||Motilal Oswal Financial Services Limited||Angel One limited|
|Face Value (₹)||1||10|
|Debt to Equity||1.3||0.8|
|Market Cap (Cr)||11,743.18||12,355.32|
|Promoter’s Holdings (%)||69.5%||44.00|
|Dividend Yield (%)||1.27||1.82|
|Stock P/E (TTM)||8.95||19.76|
|Net Profit Margin||33.03||27.67|
Motilal Oswal, as well as Angel Broking, are leading full-service brokers in India. They provide a lot of facilities as compared to discount brokers but charge accordingly. The better broker is subjective.
It depends on various factors like the ease of use of the platforms that they provide, the charges involved and the facilities provided.
Investors have to match the services that they provide as per their requirements and choose a broker that suits them the best.