Best Discount Brokers in India

3 Mar 2021  Read 5495 Views

“Discount”, The word surely rings a bell. Well, let us see it with an example. When you go to the malls and see big banners of discount offers, you automatically get attracted to it. And this thing is all the more common when it comes to online shopping.

The biggest reason for most of the people buying from online platforms is that they can get the branded clothes for a very less price as compared to physical stores. Physical stores do provide their customers with some extra services but at extra costs, which include costs of customer service, physical store and other services.

It is so simple. Isn’t it? You just understood the difference between two complex terms Full-service broker and a Discount broker!!

Let us start from the basics. First, let us understand what a broker is?

 Table of Contents

  Who is Discount broker?
  Zerodha
  Upstox
  5paisa
  Angel Broking
  Groww
  Samco
  Trade Smart Online
  Trade Jini
  Wisdom Capital
  Fyers
  Conclusion

Who is Stockbroker? Why do we need them? 

If someone wants to invest in a listed Indian company, they have to do it through the two Indian stock exchanges, NSE( National Stock Exchange) and BSE( Bombay Stock Exchange). But these exchanges do not allow the buyers to directly buy from them; instead, there are stockbrokers that act as middlemen in these transactions. For their services, they charge some amount from their customers, which is known as brokerage.

An example will make it clearer. Let’s say you are a shopkeeper and you have to buy goods for your shop. What would you do? Would you contact your wholesaler, right? Well, it is because the factories do not work directly with the retailers.

In the above example, the factories are the stock exchanges NSE and BSE. The wholesalers are the stockbrokers, and the retailers are the customers. The main purpose of a broker is to facilitate the buying and selling of shares for its customers.

Who is a discount broker?

These types of brokers were famous and were part of a very well established concept in eastern countries, which was introduced in India by Zerodha in 2010.
Well, a discount broker, as the name suggests, is a type of broker that offers low brokerage, high speed and a fast platform for trading in stocks, commodities and derivatives. So, what is so special about them? Well, they charge a very low brokerage in comparison to the full-service brokers like HDFC Securities, ICICI Direct, Kotak securities etc. But then, they don’t provide all the services that are provided by the full-service brokers. For example, training sessions, relationship manager, branch presence, research and stock tips etc.

But there are so many discount brokers in the market, whom should you select? We understand that this is a genuine problem. So, here we present you with the “Best discount brokers in India”.

Top 10 Discount Brokers in India 

1. Zerodha

Zerodha is the pioneer in the India Discount broker segment. The concept of the discount broker was introduced in India by Zerodha in 2010. Well, they were rewarded perfectly as they have the highest active number of clients in the discount brokers’ market.Zerodha charges zero brokerage on equity delivery. The charges for intraday are as low as Rs 20 per trade.Zerodha, as per customer reviews, has a great customer support and a fast account opening process. Zerodha charges Rs 300 for opening an demat account. They charge an annual maintenance fee of Rs 300.

Pros:

  • Self-clearing broker, which means they don’t recover clearing charges from customers.
  • Zerodha Varsity has become a very famous platform for free stock market lessons and financial education.
  • Free equity delivery.
  • It has now become a trusted brand and provides excellent customer service.

Cons:

  • No research report, market tips/ recommendation.
  • Call and trade services are chargeable.

2. Upstox

Upstox is India’s fastest growing discount broker. It enjoys a lot of trust in the market because it is backed by Mr Ratan Tata, who is also the symbol of trust in India. Upstox enjoys the second-highest number of active clients in India. In 2012, Upstox started as RKSV but was rebranded to Upstox in 2015.Upstox charges zero brokerage on equity delivery. The charges for intraday are as low as Rs 20 per trade, and also, it provides a margin of 4X for higher earnings. Account opening in Upstox is a very fast and easy process. It does not charge any amount for opening an account, but it charges an annual maintenance fee of Rs. 300.

Pros:

  • Free equity delivery.
  • Free Demat A/c opening and low maintenance charges.
  • Many technical indicators which make trading easy.
  • Backing by Mr Ratan Tata makes it very trustable.

Cons:

  • Does not provide Research reports and trading calls.
  • Call and trade are chargeable.

3. 5Paisa

IIFL (India Infoline) is the promoter group of 5 paisa; with two decades of experience in the full-service broking segment, IIFL entered the Discount broking segment to offer a low brokerage platform to its clients and to compete with the fast-growing discount broking segment. 5Paisa only charges Rs 10 per trade on Intraday and charges Rs 10 per order on equity delivery. (when you subscribe to their premium plan, otherwise, it is Rs. 20 per order). 5 paisa does not charge their customers for opening a Demat account. They charge Rs 45 per month for annual maintenance charges, and that too, only in the months when you trade.

Pros:

  • Free delivery trading.
  • Low brokerage of Rs 10 per trade (applicable only on premium plans).
  • IIFL has decades of experience in the broking sector.
  • Low maintenance charges

Cons:

  • No 3 in 1 account facility.
  • High call and trade charges.
  • No free research reports in the basic plans.

4. Angel Broking

Incorporated in 1987, Angel broking has become a big brand with 30+ years of experience. From the last 2 decades, Angel broking has been a full-service broker, but recently, they changed their business model from percentage brokerage to flat rates to compete with other discount brokers.
Angel Broking charges zero brokerage on equity delivery. The charges for intraday are as low as Rs 20 per trade. Angel Broking does not charge their customers for opening a Demat account but they charge an annual maintenance fee of Rs 240.

Pros:

  • Free investment advisory and research tools.
  • Free equity delivery.
  • Provides most of the full broker services at a low cost.
  • Flat brokerage charges.

Cons:

  • Call and trade are chargeable.
  • Below Average customer support.
  • No 3 in 1 account facility.

5. Groww

Established in 2016, Groww started as a Direct mutual fund platform. Later, they started their own discount brokerage services.

Groww brokerage of Rs. 20 on equity delivery and the charges for intraday are also at Rs 20 per trade.

Groww does not charge their customers for opening a Demat account. Also, it does not charge any Annual maintenance fees either.

Pros:

  • Investment is commission-free.
  • Zero annual maintenance fees.

Cons:

  • No call and trade support.
  • Does not provide Research reports and trading calls.
  • Only offers equity investment. 

6. Samco

Incorporated in 2015, SAMCO is a very low-cost discount brokerage in India. It offers very high leverage to its clients, which makes their trading life easier.SAMCO charges 0.2 % or 20 Rs per trade, whichever is lower for both intraday and delivery.SAMCO does not charge their customers for opening a Demat account. They charge an annual maintenance fee of Rs 400.

Pros:

  • Huge margin available for traders.
  • Low brokerage.

Cons:

  • Call and trade is chargeable.

7. Trade Smart Online

Trade smart is not a recent setup. It is promoted by VNS Finance and Capital Limited, which is a traditional full-service broker in India with over 2 decades of experience.
The brokerage charges are different for the two plans: The power plan and the Basic plan.

  • Delivery: Rs 15 per trade (Power plan) or 0.07% (value plan).
  • Intraday Trading: Rs 15 Per trade (Power plan) or 0.007% (Value Plan).

Trade Smart charges Rs 400 for opening an account and charges an annual maintenance fee of Rs 300.

Pros:

  • Low brokerage and good plans.
  • High margin for trades.
  • Free tools like Span Margin tools and Brokerage calculator.

Cons:

  • Call and trade is chargeable.
  • No support for IPO and mutual funds.
  • No research and tips are provided.

8. Trade Jini

Incorporated in 2012, Trade Jini is a Bangalore based discount broker with a strong presence in south India.
Trade Jini has the following brokerage:

  • Delivery Trading: 0.10% or ₹20 per trade, whichever is lower.
  • Intraday Trading: 0.01% or ₹20 per trade, whichever is lower.

Trade Jini charges Rs 300 for opening an account and charges an annual maintenance fee of Rs 300.

Pros:

  • Single trading platform.
  • High margins for intraday.
  • Low brokerage and in house CDSL Depository participant.

Cons:

  • No 3 in 1 account facility.
  • Only non-agriculture commodity trading is allowed.
  • Call and trade is chargeable. 

9. Wisdom Capital

Incorporated in 2013, Wisdom capital is an online discount brokerage. Its most popular FREEDOM plan offers zero brokerage, which is popular among its customers.

Brokerage

Plan

Freedom

Plan

Pro

Plan

Ultimate

Plan

Equities

Zero

0.005% Intraday &

 

Delivery

0.007% Intraday &

 

Delivery

Pros:

  • Zero brokerage in FREEDOM Plan.
  • Flexible brokerage plans.
  • High margins in premium plans.

Cons:

  • Call and trade are chargeable.
  • Average customer support.
  • No focus on developing technology platforms.

10. FYERS Securities

Incorporated in 2015, FYERS is a Bangalore based online discount stockbroker. FYERS is an acronym of “Focus Your Energy & Reform the Self”, which reflects the core philosophy of the company.FYERS charges zero brokerage on equity delivery, and the charges for intraday are as low as Rs 20 per trade.FYERS does not charge their customers for opening a Demat account. They also do not charge any annual maintenance fees.

Pros:

  • Advanced charts, Analytics and screeners.
  • Low brokerage and high margins.

Cons:

  • Call and trade are chargeable.
  • Charges are higher in comparison to other discount brokers.

Conclusion

After the entry of discount brokers in India, traders and investors have got a sense of relief from the high brokerage charges of full-service brokers. Different brokers provide different services and discounts, but it is advisable that you should choose your broker by considering your trading style and priority services.

To know more about different stockbrokers and compare them for choosing your ideal broker, you can log on to SELECT by Finology. It is a platform that helps you know the key details about the leading stock brokers in India and compares them on the basis of those details. The platform also facilitates opening a Demat account with your favourite broker. 

Choose your broker wisely & Start investing now!!

About the Author: Ishan Goyal | 15 Post(s)

Ishan Goyal has pursued BBA from ITM University, Raipur, with a finance & marketing specialisation. He was also Founder & Director of a start-up "Tac Cabs". Apart from being a financial enthusiast, he likes to explore new subject areas and has also got a certification in Digital Marketing & is aiming to be a Financial Analyst.

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