Top 10 Best Discount Brokers in India
In this article
1. Zerodha Brokerage
According to a market report published by NSE in December 2018, Zerodha is considered the most prominent stockbroking firm in India (according to client wise). Standing at the number one position in the market by making the other big brokerage corporate rank low like ICICI Direct, UPSTOX, Sharekhan, etc. The most crucial fact about Zerodha is that it is the largest discount broker in the market because of innovation and practical approach.Zerodha brokerage charges
Equity delivery free of Cost: Each equity delivery investment is entirely free of cost, which is Rs. 0 brokerage amount. Rs. 20/day equity and F&O traders: The amount of per-order traded per day is Rs. 20 among equity, currency, and commodity trade across NSE and BSE. Zerodha Demat and Trading Account opening charges Zerodha takes an amount from the clients for opening and maintaining Demat and Trading account:- Equity Trading Account opening charges Rs. 200/trade.
- Commodity Account opening cost-Rs. 100/trade.
Services Offered
Zerodha Company provides trading services like equity, derivatives, currency, mutual funds, and commodities. Zerodha Trading Platforms include KITE 3.0, Kite Mobile, Console, and Sentinel, some of the widely used platforms by Zerodha.Pros:
- Each equity delivery is free of Cost.
- With the same Demat account, you can make Direct Mutual Fund Investments.
Cons:
- No market tips/recommendations are available.
2. Upstox
Next in the list according to the market, with 729,858 active clients. The Upstox came from the brand name RKSV, which is India’s fastest growing brokerage platform. The company focuses on India’s retail investors to invest in stocks, futures, currencies, and commodities at a significantly cheaper rate than full-service brokers. It is the best discount broker for intraday trading/investment.Upstox Brokerage
Upstox (formerly known as RKSV) is considered the fast-growing discount broker, supported by a group of leading investors, including Kalaari Capital, Ratan Tata, etc. Upstox (formerly RKSV) started in 2012 and changed to Upstox in 2015.Services Offered
Upstox offers trading services in equity, currency, and commodity.Upstox Brokerage charges
Basic and Pro plan are two types of brokerage plans offered by Upstox. Delivery trading in Upstox is in both these plans. Here are some of the brokerage charges:- Delivery Charge: Rs 0/trade.
- Intraday Trading: Rs 20/implemented trade (according to Basic Plan).
- Account opening charges-Rs 300.
- AMC-Rs 150.
Trading Platform
Upstox uses the Upstox Pro Web Trading Platform, Bridge for AmiBroker, Option Chain Tool, and Upstox MF Platform as trading platforms.Pros:
- Upstox provides fast/paperless account opening facilities.
- Upstox provides a Margin against each share, which is available in the market.
Cons:
- Upstox cannot provide direct trade facilities in IPO & FPO, NCDs.
- Margin Funding is not available in Upstox.
3. 5paisa
Comes in the 3rd number with 534,655 active clients. 5paisa capital ltd. Is an Indian discount broking company. This company’s services are retail broking, currencies, and commodities trading, IPO, and bonds. They were incorporated in 2016 with headquarters in Thane. The company started working as a subordinate for IIFL Holdings Ltd., which is a non-banking financial institution in India. The company is more involved in implementing technology to invest at a low cost and experience a hazel free system.5paisa Brokerage
5Paisa (also known as India Infoline) provides low-cost stock broker service in India. So, IIFL planned to launch 5Paisa as a low-cost online platform for a stock brokerage for its active clients and maintain the fast-growing competition in the stock brokerage field. This company is considered the best discount broker for commodities trading purposes.Service Offered
Trading in equity, currency, commodity are its regular services, but 5Paisa also provides services like mutual funds, insurances, and personal loans. 5Paisa Brokerage Charges 5Paisa offers free trading in equity and even in other segments. But we have provided some of the brokerage charges offered by 5Paisa:- Delivery Trading- Rs. 20/trade.
- Intraday Trading- Rs. 20/trade.
- Equity Futures- Rs. 20/trade.
- Equity Options- Rs. 20/trade.
- Currency Futures- Rs. 20/trade.
- Currency Options- Rs. 20/trade.
- Account Opening is FREE.
- AMC is Rs. 45/month.
Trading Platforms
Investor terminal web platform, 5Paisa share mobile trading app.Pros:
- Low Brokerage Opportunity- Rs. 10/trade.
- Lower Maintenance Charger.
Cons:
- No 3-in-1 account option.
- Trading in commodities not available.
4. SAMCO
Number 4 on the list with around 57,435 active customers. It is a Mumbai based online stock broker company and also works for the Indian Trading League. The fee structure is Rs. 20 per transaction on any retail broking solution. Offers dealings in stocks, equities, currencies, and many more. SAMCO Securities obtained Samruddhi Stock Brokers Limited and rebranded themselves. They are working hard so that their customers can access low-cost trading facilities.SAMCO Brokerage
SAMCO is another low-cost brokerage firm in India. SAMCO works differently from other discount brokers. It is the best discount broker in India with high leverage on trading/investment to its clients. SAMCO provides up to 4 times Discount in the Cash Markets, 80% of Leverage in Nifty, leverage for stocks, and commodities. SAMCO brokerage offers:- Delivery Trading Cost: 0.20% or ₹20/trade, whichever is less.
- Per day Trading Cost: 02% or ₹20/trade, whichever is less.
- Account Opening Charges is FREE.
- AMC is Rs 400.
Services offered
SAMCO provides trade facilities for stocks, F&Os, Commodities, and Currency. Trading platforms used by SAMCO SAMCO has widely usable trade platforms like SAMCO Trader, SAMCO Web Xpress (Website), SAMCO STAR.Pros:
- SAMCO provides maximum margin products for traders/investors.
- SAMCO also gives AADHAAR based instant paperless account opening facility.
Cons:
- Mutual Fund investment is not available inSAMCO brokerage firm.
- SAMCO doesn’t have physical branches to offer offline support.
5. Alice Blue
5th in position with 50,803 active customers. Alice Blue is a company that offers depository service (in the form of a Demat account) and also creates a membership with CDSL. The maintenance cost of the Demat account is Rs. 400 per annum. Established in 2006. The company’s broking structure aims to provide low-cost brokerage service with improved online technologies and customer service. The company aims to become the best discount broker for options trading in the Indian stock market.Alice Blue Brokerage Charges
- Equity Delivery Trading Cost: 0.10% per Trade.
- Equity Per Day Charges: 0.01% per Trade.
Services offered by Alice Blue
Alice Blue provides services in Equity, Commodity, Currency, and Depository.Trading Platforms used by Alice Blue
Alice Blue uses two trading platforms like ANT Trading Platform and ANT Mobi – The Mobile Trading App.Pros:
- Most advanced trading platform.
- Up to 20x Margin in equity per day.
Cons:
- Account opening charges are relatively high.
- Commodity trading charges are also high.
6. Master Trust
In the 6th position with 39,880 active traders. Master Trust limited is a financial services company in India. The main aim of the company is to provide interest on loans and advances. The company’s services include equity investments, insurance, tools, and calculators, and also focused on customer service. The service started in 1985. They provide honest service, which is the primary concern. Customer service is their main motto. They always offer individual pieces of advice that are thoroughly research-based, and they have a full trading channel so that customers can have many trading options. This teaches the lowest brokerage charges from the clients based in India.Master Trust Brokerage charges
- Equity Delivery Trading: 0.10% per trade.
- Demat AMC Charges: Rs. 300 per Annum.
Services Offered
Services of Master Trust include Equity, Commodity, Currency, Mutual Funds, Banks, Insurance, etc.Trading Platforms
Research reports, Mobile site platform, Live markets, Email alerts.Pros:
- Master Trust gives per day up to 33 times exposure per.
- No minimum brokerage is required in Master Trust.
Cons:
- No instant fund transfer is done in Master Trust.
- Transfers require a long time to complete.
7. Trade Smart
They are holding its position in the 7th place with 27,104 active traders. Trade Smart is an online venture company and has a partnership with VNS Finance. Trade Smart was established to enhance the experience of users who are interested in this trading business. The company uses sophisticated technologies plus the smartest innovations with a high-security level. This ensures that the clients don’t pay much and can trade/investment smartly and become winners.Trade Smart Brokerage
Trade Smart provides low brokerage costs, excellent margin products, and friendly trading platforms for usage. Trade smart online is not recently set up, like all other brokerage firms operating online. It stayed a part of VNS Finance & Capital, which worked as a traditional brokerage firm in India and is considered the best discount broker for beginners in the stock market.Services offered
Trade smart online offers different brokerage services among stocks, F & O, commodities, and currency.Trade Smart Online Brokerage charges
Trade Smart brokerage firm offers a flat brokerage of Rs. 15/trade whatever the trading volume and is involved in the ‘Value’ trading plan. Trade Smart also allows ‘Power’ trading plans and allows brokerage of 0.007% on every transaction, helping small investors. Here are some of the brokerage charges for delivery and per day trading includes:- delivery charges include Rs 15/trade (according to Power plan) and 0.007% (according to Value plan).
- Per day Trading cost: Rs 15/trade (according to Power plan) and 0.007% (according to Value Plan).
- Account opening costs: Rs 400
- AMC: Rs 300 (from the second year)
- Currently, Trade Smart Online is not taking any charges for Account Opening Charges.
Trading Platform
NEST Trader, SINE(Mobile App), SineWeb are the widely used online platforms for Trade Smart.Pros:
- Zero Demat AMC charges for the first year, which is very attractive for investors.
- Trade Smart doesn’t collect additional software charges.
Cons:
- Trade Smart provides no direct IPO Investment.
- Call and trade at Rs 20/implemented investment (plus brokerage), which increases the trading cost.
8. Trade Plus
With 16,329 active customers holding its place in the 8th position. It is an online stock broker and deals with investments in BSE, NSE, and MCX. This company offers zero brokerage investment plans, which include unlimited trading with a fixed monthly fee. Trade Plus is an online brand partnership with Navia Market Ltd. The main aim of their service is transparency, technology, and timely service to its clients. The company is also considered the lowest brokerage firm in India.Brokerage Charges
- Equity Delivery Charges are FREE of Cost.
- Equity per day costs 0.01%.
Services Offered
Commodities, Equity & Options, and Currency Derivative Segments. Trading Platform Two types of trading platforms are used INFINI Web and INFINI Power.Pros:
- An Awesome Referral Program is available.
- Reliable Financial Intermediary is also present.
Cons:
- Charge an extra monthly fee for trading software, which makes your Cost higher.
- Costlier broker firms than other trading firms available.
9. SAS Online
In the 9th position with around 13,621 active investors. The company has an average daily turnover of Rs. 10,000+ crores, which is estimated to be >1% of the Total Market. We are dealing with more than 30,000+ active clients situated in 750+ cities across India. The average orders processed per day are 1lac+. It can be taken into consideration as the best discount broker for NRI to start their investment.Brokerage Charges
- Equity Delivery and Equity per day: Rs. 9/trade.
- Turnover Charges: Rs.325/crore.
Services Offered
SAS Online deals with Equity trading only. Trading Platforms Three types of trading platforms used by SAS Online are ALPHA Trader, ALPHA Web, and ALPHA Mobile.Pros:
- No minimum brokerage is required.
- Margin is provided against each share.
Cons:
- Call & Trade is available at an additional ₹20 per implemented trade/investment.
- SAS Back-office is not useful for real-time data with trading portals/terminals. Most data gets updated on an overnight basis, which is not usable for clients.
10. Wisdom Capital
With the last position in the list with 7,472 active traders. Commenced business in 2013. It is a substitute company of Ashlar Group of Companies. Wisdom Capital maintains membership with BSE, NSE, and MCX, which allows clients to deal with equity, futures trading, and so on. The company is typically focused on using mobile technologies, which is very handy. This helps customers to invest any time by their mobiles.Wisdom Capital Brokerage
Wisdom Capital is an online-based stock brokerage firm providing services like stocks, futures, options on NSE, BSE, and MCX & NCDEX. Wisdom Capital has a scheme known as the ‘FREEDOM’ plan, which attracts many customers. Wisdom Capital Brokerage charges Wisdom Capital provides three brokerage plans: Freedom, Pro & Ultimate. You can choose any of the methods according to their choice. Details about the plans: Freedom Plan:- This plan (freedom plan) gives ZERO brokerage in any trade.
- However, this plan might not attract active traders for a low margin.
- This plan is specially designed for professional traders.
- Higher per day margins.
- Delivery trading brokerage at 0.005% of the transaction.
- Per day trading brokerage at 0.005% of the sale.
- Brokerage is Rs 9 per Trade.
- Helpful for high-frequency traders.
- Trading brokerage rate: 0.007% per transaction.
- Per day trading rate: 0.007% of the sale.
- The brokerage charged is Rs 15.
- The ultimate plan by Wisdom capital provides per day Margin in NSE cash up to 60x MIS.
- No Account Opening Charges.
- Annual maintenance charges are for lifetime 999+ Taxes included.
Services offered
Wisdom capital allows trading in equities, currency, and commodities.Pros:
- Zero brokerage charged for FREEDOM Plan.
- Flexible brokerage plan.
Cons:
- Not much indulged in developing technology platforms for online usage.
- Average customer support facility provided by Wisdom Capital.
Merits and Demerits of a Discount Stock Broker
We have enlisted some of the points that discount brokers can give you and all things you have to be aware of. The advantages are as follows:- The Cost is lower: The Cost is lower due to the lower commission rate, and also it is the primary benefit of using discount stock brokers for investment purposes.
- Object-Oriented Service: As discount brokers don't give advice, they didn't have any motive to sell any particular investment.
- Usage of Information: Top discount broker companies provide you with exclusive educational pieces of stuff for knowledge and post it on their official website.
- Improper Guidance: While choosing a discount broker, you also know that they didn't provide any guidance, and the brokers will make you clear while you start investing with them. If you are smart enough in this investment field, you know that leadership means interference in this field.
- Hidden Fees Structure: You know that discount brokers didn't take a commission, but this commission is not their only way of making money. Many discount brokers in the market may charge you extra for various services such as issuing a stock certificate and mailing statement, which is not included in their service package.
- Limited Customer Service: If you are making investments with an online broker, make sure to look at their customer service facilities. If you face any problem regarding your transaction, look for options to contact and get assistance for your investments.
Most significant and Best Discount Broker for MCX and NCDEX
The largest discount broker company in India is Zerodha and the fastest growing discount broker globally. There are other good forex brokers too but It contributes over 15% off regular retail trading, which is the most significant volume across the Indian Stock Market. The company has a mobile app known as 'KITE,' which has 10lacs+ downloads. Zerodha is the number one company and known as the best discount broker for MCX and NCDEX.The Best Discount Broker: Commodities Trading In India
The process of Commodity trading requires sure investment; instead, one needs to open a commodity trading account for purposes. One needs to trade commodities on NSE and BSE, as it started to offer commodities for trading. Thus, there are several options for brokers. If one requires trading on MCX and NCDEX, they need to fetch brokers of MCX and NCDEX, respectively. Several options, now the questions, lie about the best discount brokers for commodities trading in India. Coming to the first, 'ICICI Direct,' this is the second-largest broker firm. It is an online investment and trading firm with the securities of ICICI. This firm provides three in one service, with a Demating account, trading, and also banking. If one is looking for NSE and BSE, then ICICI Direct would be perfect for trading commodities. Talking about India's second-best brokers, let's talk about 'Alice blue,' a Tamilnadu-based, and one of India's best. Got membership in 2007 and 2008 from MCX and NCDEX, won an award in 2018. This company offers both the broker's discount and a well-established plan, which is percentage-based, on commodities trading. Through ANT MOBI (mobile app), ANT Web (web trading), and ANT Desk (desktop platform), 'Alice blue' offers the best platforms.The Best Discount Brokers: Beginners in India
Amid several best brokers, let's just differentiate the two best discount brokers for beginners in India. When it comes to first handling and learning and too about security and known to the market, the company could be, firstly, Sharekhan and then ICICI Direct.- Sharekhan falls under Zerodha and ICICI Direct to be the best, but second in the beginner's list. The outlets of this stockbroker are all over the major cities in India, which proves its accessibility. Likewise, they provide online training to the newbies through their OTA (Online Training Academy) and conduct seminars, conferences, or workshops. This could attract any newbies towards Sharekhan, as workshops or symposia help gain a visual update of the market.
- ICICI Direct, besides being the second-best for trading, falls in the third position when it comes to being handled by a beginner. The firm provides three in one service, including banking, demating account, and trading. They are recognized as the top trusted by the investors and thus attract the beginners' attention. ICICI Direct is for those who are beginners and have a caring and convenient experience for trading. Therefore, it ranks third in the list, appropriate for a beginner.
The Best Discount Brokers: NRI
Trading and engaging in investing in the Indian stock market by NRI became massive, with India's growing economy. There are several routes, including legal and illegal; one has to choose correctly. The NRI investment is for a long tenure, focusing on factors like mutual funds, ETFs, and Equity Delivery. The one with the NRI, OCI, or PIO card is allowed to trade in the Indian market that is with NRO (Investment Account as resident Indian) or NRE (Investment Account) with PIS (Portfolio Investment Scheme). SEBI and RBI mainly control the NRI account, as there are several laws for NRI to Trade. Looking at today's stock markets, NRI may trade in BTST or currency derivatives at NRE or NRO accounts and specific other formats. The two best discount Brokers for NRIs are Pro stocks and Angel Broking. Pro stocks offer the cheapest brokerage, around 100 rupees per executed order. Trading is included here inequities, future, and options on NSE and BSE, which are the most affordable as mentioned. To open a trading account, Pro stocks are free of Cost, which would attract investors more. Several criteria define Pro stocks to be the cheapest. Likewise, AMC could be Zero for a trading account, Demat account AMC could be free with around 1000 rupees of a refund at a deposit time. Here, the NRI can fill the form online through Online EKYC. Thus, Pro stocks list it to be the third-best in the market. Angel Broking is an Indian company set up in 1987. The company currently has 8500+ sub-brokers. The company’s services include online stock broking, depository services, commodities trading, and investment advisory services. The company has a membership with the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited, and Multi Commodity Exchange of India Limited. Angel Broking Brokerage Company has a PAN India presence with 110 branches around 1,800 cities and towns.FAQs
Q. How to create and use an online trading account?
An online trading account is the ultimate need of many traders in recent times. Most of the traders are providing online platforms to traders and investors. Some simple steps to use your online trading account are:
First of all, you have to choose and open a low brokerage online trading account.
Secondly, you have to learn how to use the online trading platform through demos, articles, and video tutorials.
Next, you have to learn about different types of orders, market procedures, trade books, and how to place an order.
Finally, always try to start with small investments to get adjusted with the market flow.
Q. What is a Folio Number in a Mutual Fund?
Ans. A folio number is just a unique number provided to the investors for identifying their mutual funds. It is different from other fund houses. Only existing and old investors get this folio number, not the recently joined investors. Investors have the right to make as many purchases with the same folio number within the same mutual fund.
Q. How can an NRI open an online trading account in India?
Now NRIs can also open an online Trading and Demat account in India. For this, they just need to submit the application form and do the paperwork as instructed. An NRI can open a Non-PSI NRO account guided by SEBI; 50% documents requirement is also reduced.
Q. Why is the Demat account required?
If you are planning to invest in Mutual funds, Stocks, and various government securities, you have to create a Demat account. Mutual fund units, government securities, and corporate bonds primarily require a Demat account.
Q. What is the Initial Margin?
The Initial Margin depends on the future price, and it changes every day.
Initial Margin= Span Margin + Exposure Margin
Span Margin= % of contract value
Exposure Margin= % of contract value
Contract Value= lot size* future prize
Leave a Reply