Discount brokers are an excellent choice for investors and traders who trade persistently as they charge the most economical brokerage. The best thing about them is that their sole focus is on offering just one service that is stock trading. One of the reasons behind a massive disruption in Indian Broking industry were discount brokers as because of their cheap brokerage plans; they were able to attract various customers as compared to the expensive traditional brokers. Discount brokers have become really popular as many existing firms began to copy this concept and provide similar economic plans.
10 Best Discount Brokers in India
Keeping the benefits of discount brokers in mind, we have prepared a list of discount brokers in India which has immensely altered the landscape of brokerage models. These top discount brokers have risen around 90% from FY 2014-2015. They have also occupied a good range over NSE’s total number of clients in a matter of just a couple of years. You can save a lot of money brokerage expenses by choosing the right discount broker from the list below-
1. Zerodha
They were one of the first discount broker companies that brought a revolution in the trading industry. It was founded in the year 2010 by Nitin Kamath and is said to be the most significant discount broker in India. They are the ones who brought this concept in India, and since then, there is no looking back. It has more than 1.5 million clients and is known for lower brokerage charges. They charge around Rs.20 for every trade irrespective of the trade volume. Undoubtedly, now there is a significant change in how the brokerage was being charged. It gives over 15% of daily retail trading amounts across the Indian stock market. You can open an account with them by just paying a small amount of Rs.300, and its maintenance charges are Rs.300 for a year. Zerodha is quite flexible when it comes to services and features provided by them. They also have a mobile app by the name of KITE which has more than 1,000,000 downloads on play store. It is also a member of NSE, BSE, MCX, and MCX-SX. It enables you to trade on stocks, government securities, mutual funds, sovereign gold bonds, and Futures & options. They made the delivery trades free so that the investors can get an entry in the market without any hindrances. Because of its newness and approach, Zerodha has been able to rival all the big players like ICICI direct, HDFC securities, Sharekhan, etc. You can also read our detailed review of Zerodha here. Brokerage Charges
Equity Delivery: Zero Brokerage Equity Intraday or Futures:01% or Rs.20 per executed trade whichever is lower Equity Options: INR 20 Flat
Trading Platforms: Kite 3.0, Kite Mobile, Console, Pi, Sentinel, Coin Zerodha Margin Pros:
Zero brokerage for delivery Bing brand value and customer support In-house trading platforms Innovate and user-friendly trading platform
Cons:
Cannot invest in IPO through Zerodha No research report
2. 5Paisa Discount Broker
When it comes to brokerage, 5Paisa always comes in our mind. They are backed by the financial monster India Infoline (IIFL). IIFL brings the stability of being a public limited company. 5Paisa provides more than just stock trading; they offer car, health and term insurance, personal loans, and mutual funds as well. With them, you can save an enormous amount of money if you regularly trade as they just charge a flat fee of Rs.10 per trade. They enable you to buy and sell on BSE, NSE, MCX, and MCX-SX exchanges. They are pretty fast and also have a paperless account opening process. It is ideal for people who want an accessible platform for trading and want to save money on brokerage charges. They also have an app that is very user-friendly and provides you with regular updates related to the market. Brokerage Charges: — Delivery Trading: Rs 20 per trade — Intraday Trading: Rs 20 per trade — Equity Futures: Rs 20 per trade — Equity Options: Rs 20 per trade — Currency Futures: Rs 20 per trade — Currency Options: Rs 20 per trade 5Paisa Margin Pros:
Good customer care support 100% paperless account investing Lower maintenance charges Great trading platform
Cons:
No3-in-1 account Trading by calling them over the phone is costly- Rs.100 per call.
3. Upstox Demat Account
They are one of the most distinguished discount brokers in India and are for traders who look for low brokerage, huge margins, and a secure trading platform. They become even more famous after being backed by kalaari capital and Ratan Tata. The trading terminal that it offers to some of its clients Upstocks pro that is a high-speed and reliable source for seamless trading. They were initially known as RKSV as they began their company by this name in 2012 and changed it to Upstox in 2015. The good part about them is that they have high tech and advanced trading platforms, which makes trading easy. Upstox has created a completely paperless Demat opening and trading platform. You can also read our detailed review of Upstox here. Brokerage Charges: They have a set brokerage of Rs.20 for every trade irrespective of the trade amount. Upstox Demat and Trading account opening Charges: — Account opening charges: Rs 300 — Annual Maintenance charges: Rs 150 Upstox margin Pros:
Free delivery trading Great trading platforms Priority brokerage Provide online account opening process
Cons:
Cannot make direct trades in IPO & FPO, NCDs
Also Read: 12 Best Stock Market Trading Apps In India
4. Trade Smart Online
They have a set record in offering transparent and reliable broking services. It is a venture of VNS finance and has become a significant player in the discount trading business which is also known for offering low brokerage and a fast trading platform in India. They also have various plans for low and high volume traders. They provide two programs, one is a value trading plan for less volume traders and the second is a power trading plan for large-volume traders. One can choose any plan as per their requirements. They charge one of the lowest brokerages in India, i.e. 7 paise for most of the volumes if you trade less volume. For traders with less frequency, they charge Rs.15 per trade irrespective of the executed rate. It is not a new set up; it was established more than 25 years ago. It has over 50,000 customers and has an average daily turnover of Rs.5000 crores. Brokerage Charges: Trade Smart Online Demat and Trading account opening Charges: — Account opening charges: Rs 400 — Annual Maintenance charges: Rs 300 (Second year onwards) Trade Smart Margin Pros:
Zero additional software charges Value trading and power trading plans The higher margin for trades Up to 30 times margin for equity intraday BO/CO orders on NSE
Cons:
400 account opening charges No direct IPO investment
5. Wisdom Capital
It was incorporated in the year 2013; it is an online brokerage firm that offers services in stocks, futures, commodity trading on MCX & NCDEX, and options on NSE and BSE. Wisdom Capital is said to be one of the excellent discount stockbrokers because of its various features like least brokerage, vast margin, and most exceptional trading platform. Its online platform is straightforward to use, which attracts even more people to use it and trade through them. They provide their clients with three plans freedom plan, pro plan, and ultimate plan to the investors. Their plans are different as they take different brokerage charges and margins.
Freedom plan- There is zero brokerage in this in all segments, but the margin is not that great. Pro plan- It is for professional traders; in this, they charge in NSE equities 0.005% intraday and delivery. For the rest of the things, they charge Rs.9 per trade. Ultimate plan- This plan is for high-frequency trade people, delivery, and an intraday charge is 0.007% of each transaction. The brokerage is 0.005% NSE futures currency and commodity trading at MCX and Rs.15 per lot in options.
Brokerage Charges Demat and Trading account opening charges: — Account Opening Charges: Rs.0 — Annual maintenance charges: Lifetime 999 (excluding tax) The best part is that their annual maintenance charge for all accounts is the same. Wisdom Capital Margin Pros:
Zero brokerage in freedom plan High margin Flexible brokerage plans depending on client’s requirement
Cons:
Average Customer Support Poor technology
6. SAMCO
This is another discount brokerage company that has made its mark in the market by offering free account opening service and free maintenance. It was established in the year 2015 and became another sensational brokerage cost discount broker in India because of its low brokerage. They offer a complete suite of products at a discounted price with excellent quality, which makes it different from others. With Samco, customers can get up to 4X delivery leverage in cash markers, 33X leverage for stocks, up to 80X leverage for Nifty, and 60X for commodity. They support trading on NSE, BSE, MSEI, NCDEX, and MCX. As it is an online platform, you can easily trade from desktop and from your phone. They also support calls, but there is a different charge for trading through calls. Its trading platform is known as SAMCO web Xpress as it is reliable and works at high speed. Brokerage Charges SAMCO Demat and Trading account opening Charges: — Account Opening Charges: Rs 0 — Annual maintenance charges: Rs 400 (Demat account) Samco Margin Pros:
No account opening charges Flat max rate brokerage plan Rs.20 per trade High margin Aadhar based paperless account opening
Cons:
Mutual Fund investment is not available Low performing trading platform
Also Read: How to Start Investing in Share Market (Beginners Guide)
7. SAS online
This discount brokerage company was started by 2 young entrepreneurs and is a newbie in this industry. Their USP is that they are charging Rs.9 per trade for all segments. They support equity commodity and currency trading. With them, you can trade in Stocks, Intraday, Currency F&O, Equity F&O, and commodity futures. There are numerous elements that put them in the top 10 list. Some of its great features are low account opening charges, and Demat account maintenance charges are just Rs.200 per year. They provide you with the choice of operating through your desktop, mobile, and web versions to make it easy for its clients. They have an average daily turnover of Rs.10,000 crores. They process more than 1 lakh orders every day and have their clients spread in more than 750 cities. Brokerage Charges They offer the most competitive brokerage and charge Rs.9 for every trade in all the segments. You can also opt for their lump sum plans if you trade frequently. They have plans for Rs.499 or Rs.999 a month in which you make unlimited trade without being charged anything extra. SAS Online Registration & Annual Charge
Account Opening (Trading & Demat): Rs.200 Commodity Trading Account : Rs200 Annual Maintenance Charges for Trading Account: Rs.0 AMC for Demat Account: Rs.200
SAS Online Margin Pros:
Monthly Unlimited plans Low cost for trading in all segments Margin available against shares
Cons:
Charge of Rs.200 for opening the account
8. Tradejini
This discount broker company is taking an edge over its competitors because of the fantastic online support that it provides. It was incorporated in 2012 and is a Bengaluru based company. They charge a maximum brokerage of Rs.20 per completed order. People prefer choosing Tradejini because of its fast and convenient trading platform. They let you trade in NSE, BSE, MCX, and MSEI. They provide a single integrated platform for Debt instruments, Equities, commodities, mutual funds, and currency trading. They employ the NEST trader as its trading terminal. They offer various trading platforms to its clients based on their preferences and needs. Brokerage Charges: TradeJini Demat & Trading Account Opening Charges: — Account Opening Charges: Rs 300 (Trading), Rs 300 (Commodity) — Annual maintenance charges: Rs 300 (Demat AMC) TradeJini Margin Pros:
In house CDSL depository participant Enables investment in mutual funds, bonds and ETF’s Low brokerage charges Flash platform which gets curated financial and market news
Cons:
Need to courier account opening form Does not allow GTC offers Does not offer 3-in-1 account
9. Trading Bells
This one is another significant entrant in the discount brokerage market. Their USP is that they are a new generation discount broking firm. They enable you to trade in Equity, commodities, and currencies on the platform. It is a brand of Swastika Investment Ltd. They have around 80 branches and more than 600 franchises all over India. They provide you with a desktop trading tool, a web trading application, and also a mobile trading application which makes trading pretty easy for the investors. Opening account with them is elementary and can be done in just a couple of minutes. You just need an Aadhar card and can open the account online without any trouble of visiting the office. They also provide a premium brokerage plan, which is for the clients who trade frequently or do heavy trading. Brokerage Charges: TradingBells Registration & Annual Charges: Trading Bells Margin- Pros:
No AMC charges No delivery charges in the standard plan 22x leverage for equity intraday cover orders
Cons:
Auto square off on 80% margin erosion
10. Trade Plus Review
It is an online brand of Navia Markets Ltd. that has an experience of over 2 decades of broking business. They trade not only in Equity and derivates but also in mutual funds, IPO, Bonds, and ETF’s. It is a big brand that has numerous happy customers and a presence in various cities across the country. Brokerage Charges Trade plus Registration & Annual Charges
Trading account opening fees: Rs.200 Demat account opening fees: Rs.0 Annual Maintenance charges: For the first year there are no charges, the second year you have to pay Rs.200 for one year Infini Trading Solutions trading platform fees: Rs. 499 for a month or Rs. 2,999 yearly
Trade Plus Margin Pros:
No delivery charges Flexible AMC plans Analysis tools available for intraday trading Low Demat AMC or ₹90 per month
Cons:
Charge an extra monthly fee for trading software 75 charges for call and trade facility
These were the top 10 best discount brokers in India which can help increase your profits and reduce the expense plus they also provide you with excellent advice which can help you in multiplying your money.
How to select the best discount broker?
As you know about some of the best discount broker companies, it is also essential for you to understand that how can you select a good discount broker. Here are a few points to keep in mind while choosing a discount broker- These are some of the essential aspects to check on before opting for a discount brokerage firm also always watch out for the hidden charges, broker review, branch network, online trading terminal, and discount broker financial strength before choosing any broker.
Advantages of discount brokers in trading
Low cost: They provide the lowest brokerage charges as compared to the traditional full-service brokers. This helps the traders to convert ant trade in profit with a low break-even point Online platform for trading: Discount broker offers an online trading platform which allows the investors in doing trade smoothly and quickly Unbiased offer: One of the best things about them is that whether you are a prominent investor or small, discount brokers offers you the same Transparency index: They are pretty much reliable as all their deals are transparent because the margin calculator is known to everyone Client education: Numerous discount brokers provide an educational video tutorial for their clients so that it can help them in trade with them for a longer span Quick account opening: Just with the help of Aadhar card they provide you with an option of paperless account opening in just a couple of minutes Transactional Cost: They charge you with the minimum transactional cost irrespective of the volume of trade
Disadvantages of Discount Brokers
No advisory: They do not provide with advisory service whereas full-service brokers offer it without any charge No 3-in-1 account: Discount brokers provide you with an option to open trading and Demat account. They do not offer you the feature of opening a bank account No branch support: Usually the discount brokers work centrally, hence if you need branch support for paperwork then you need to choose another option for yourself PMS service: Discount brokers do not offer portfolio management service to their clients. If you want a fund manager, then a full-service broker would be the best option for you.
Recommended: Top 25 Indian Companies by Market Capitalization This was about the discount brokers and how they can benefit you while trading. All the above-mentioned discount brokerage platforms are great and really moving the trading community a step forward. There might be some small differences amongst them, so choose the one as per your requirements. Happy Trading!
