TOP 5 DISCOUNT BROKERS IN INDIA
When Zerodha was established, in the year 2010 the Indian broking business witnessed a huge interruption in terms of brokerage charges. As these brokers were offering a less costly brokerage plan, they had the option to bring in a great deal of customers compared with the costly brokers. Many of the existing brokers and firms started following the concept and offering similar cheaper plans.
After around 10 years since these discount brokers started getting attention, they are becoming more popular as compared to recent years. A significant number of such discount brokers can outshine the well-decided and large ‘traditional’ exchanging firms.
In this article, we will know about the TOP 5 DISCOUNT BROKERS IN INDIA. We’ll evaluate the discount brokers experts in India dependent on the key highlights like their account opening charges, brokerage charges, maintenance charges, services offered, trading platforms, pros, and cons.
What is a discount broker?
A discount broker provides low brokerage and a fast platform for trading in stocks, commodities and currency derivatives. The brokerage is very less compared to traditional brokers like HDFC Securities, ICICI direct, SBI cap, etc. A discount broker offers a flat brokerage rate for each trade their clients make which are usually between Rs.10 or Rs.20 per trade. Full-service brokers charge a small amount of interest on the trade volume. This charge can be as high as 0.3-0.7% of the trade volume. As the volume of the transaction increases, you need to pay more brokerage.
BEST DISCOUNT BROKERS IN INDIA
1 – ZERODHA
Zerodha was established in the year 2010 by Nitin Kamath and is the greatest discount broker in India. It has over 1.5 million clients and adds to over 10% of everyday retail trading volumes over the Indian Stock Market. Its application ‘KITE’ has more than 1million downloads on the play store. By clicking here you can open a Demat account in zerodha.
Zerodha is at first position compared to other discount brokers by volume, number of customers and growth. It is very simple and easy to understand zerodha brokerage structure. Customers who moved to zerodha gained 80% to 90% of savings in brokerage compared to all other full-service brokers. It is one of the most advanced and cheapest stock brokers in India for all kinds of investors.
Demat and Trading account opening charges:
To open a Demat and trading account in zerodha, the account opening charges are as below
- For Equity trading account, it charges Rs. 300.
- For Commodity account, it charges Rs. 200.
- If you are willing to open both Equity trading and Commodity account, it charges Rs. 500.
- The annual maintenance charge for a Demat account is Rs. 300.
Brokerage charges:
Zerodha charges 20 rupees or 0.01%, whichever is lower per every executed trade. For any transaction, the maximum brokerage you pay is 20 rupees. Equity Delivery investments will be free.
Services offered:
Zerodha provides investment and trading services in equity, derivatives, currency, mutual funds & commodities.
Trading platform:
Zerodha owns an online mobile trading application named “KITE” and back-office software named “Q”. All trading software applications including trading terminal, website, and mobile trading are available free of charge.
Pros:
- User-friendly trading platform
- Brand value
- Low brokerage
Cons:
- Customer support
- 3 in 1 account not available
2 : UPSTOX
Upstox is a discount broker started as RKSV in 2012 and rebranded to Upstox in 2015. It is supported by a group of investors Kalaari Capital, Ratan Tata, GVK Davis. By clicking here you can open Demat account in Upstox.
Demat and Trading account opening charges:
To open a Demat and trading account in upstox, the account opening charges are as below
- For Equity trading account, it charges Rs. 350.
- If you are willing to open both Equity trading and Commodity account, it charges Rs. 530.
- The annual maintenance charge for a Demat account is Rs. 150.
However if you want free demat account opening in upstox , Use this link to register Free upstox demat account
Brokerage charges:
Upstox charges 20 rupees or 0.01%, whichever is lower per every executed trade. For any transaction, the maximum brokerage you pay is 20 rupees. Equity Delivery investments will be free.
Services offered: Upstox provides trading services in equity, currency, and commodity.
Trading Platforms: The trading platforms for upstox are Upstox Pro Web Trading Platform, Bridge for AmiBroker, Developer Console, Option Chain Tool, Upstox MF Platform
Pros:
- Fast paperless account opening
- Priority brokerage
- Free delivery trading
Cons:
- Margin Funding not available
- Cannot trade directly in IPO & FPO, NCDs.
3 – 5 Paisa
5Paisa was launched in the year 2007 is a part of IIFL and offers the least valuable stock broker in India. IIFL launched 5Paisa to offer a lower brokerage for its clients and to contend with the fast-developing discount broking industry.
5Paisa Demat And Trading account opening Charges:
To open a Demat and trading account in 5 paisa, the account opening charges are as below
- For Equity trading and Commodity account, it charges Rs. 500.
- The annual maintenance charges are Rs 45 per month (only for months when you trade)
Brokerage charges:
5Paisa provides free trading in equity and flat brokerage in other segments. The brokerage charges for 5Paisa are Rs 10 per trade for Intraday Trading and delivery is free.
Services offered:
5Paisa also provides services in mutual funds, Insurances, Personal loans apart from trading in equity, currency, commodity.
Trading Platform:
The trading platforms for 5 paisa are Investor terminal web platform, trader terminal, 5Paisa share trading mobile app.
Pros:
- lowest brokerage compared to other brokers.
- Low maintenance charges.
- Offers Research Tips and Calls
Cons:
- Ordinary customer Service
- Not allowed to trade in Commodity
4 – TRADE SMART ONLINE
Trade smart online is a discount broker that is based in Mumbai, India. It is good for investors who are looking for low brokerages, high margins, and a fast trading platform. It has over 50,000+ clients, averaging a daily turnover of over Rs. 5000 crores.
Demat and Trading account opening charges:
To open a Demat and trading account in trade smart online, the account opening charges are as below
- For Equity trading and Commodity account, it charges Rs 400.
- The annual maintenance charges are Rs 300 from the Second Year.
Brokerage charges:
The brokerage charges for Delivery is Rs 15 per trade for Power plan or 0.07% for value plan and the brokerage charges for Intraday Trading is Rs 15 Per trade for Power plan or 0.007% for Value Plan.
Services offered: Trade smart online offers brokerage services in stock, futures & options, commodity, and currency trading segments.
Trading Platforms: The trading platforms for Trade smart online are NEST Trader, SINE(Mobile App), SineWeb.
Pros:
- Different Brokerage Plans
- No AMC for first year
- High margin for trades
Cons:
- No IPO Investment
- 3-in-1 not available
5. SAMCO
SAMCO is a discount broker started in 2015, in India. SAMCO offers high leverage for trading to its clients. Clients can get up to 4x Delivery Leverage in the Cash Markets, Upto 80x Leverage for Nifty, 33x leverage for stocks and 60x for commodity.
Demat and Trading account opening charges:
To open a Demat and trading account in Samco, the account opening charges are as below
- For Equity trading and Commodity account, it charges Rs 0.
- The annual maintenance charges are Rs 400.
Brokerage charges:
The brokerage charge for Delivery Trading is 0.20% or ₹20 per trade whichever is lower and for Intraday Trading is 0.02% or ₹20 per trade whichever is lower.
Services offered: Samco provides trade facilities for stocks, F&Os, Commodities, and Currency.
Trading Platforms: The trading platforms for Samco are SAMCO Trader which is an Omnesys NEST Trader, StockNote which is a Mobile Trading App, SAMCO Web Xpress is a Website, and SAMCO STAR.
Pros:
- Good margin products available for traders
- Instant paperless account opening
- FREE Trading and Demat Account opening
Cons:
- No Mutual Fund investment
- No branches to offer local offline support