list of Top Discount Brokers in India in 2020
|Digitalization in India is at its peak in the recent times. Owing to this high internet penetration in the country discount broking has become one of the most viable business model.
Discount brokers are gaining popularity among investors and hence we are here to help you find out what discount broking and who are the top discount brokers in India.
WHAT IS DISCOUNT BROKERAGE?
Discount brokerage allows the investors to buy and sell securities but does not provide any advice, planning, research or any other service related to investment.
They are different from full-service brokerage as a full-service broker provides research, planning and advisory services contrary to the low brokerage charged by discount brokers.
Discount brokers provide advanced trading technology to the investors and good for investors that do trade frequently but do not require investment advice or have a small investment portfolio.
TOP DISCOUNT BROKERS OF INDIA IN 2019
There are certain discount brokers in India who have brought a huge change in the field of brokerage models and all for the good of the investors.
Therefore, we have created a list of top discount brokers with their charges and other distinguishing features for our readers.
- Zerodha: The first broker to introduce flat brokerage model in India was none other but Zerodha.
Zerodha has grown to become one of the largest and fastest growing discount broker in the country.
Zerodha was the first discount broker who introduced the idea of flat fee which was based on trading at a fixed brokerage of INR 20 regardless of the volume of the trade placed by the investor.
Traditional full-service brokers on the other hand charge a certain percentage of the volume of trade as brokerage from investors.
If the volume of the trade placed by the investor is large then the burden to pay brokerage on them is also increased.
The other benefit which Zerodha gave to its investors making the delivery trades free so as to make it easy for the new investors to enter the market.
The structure of Zerodha’s fees is as follows:
- Equity Delivery- Free
- Equity Intraday or Futures- 0.01% or Rs. 20 per executed trade whichever is lower.
- Equity Option- INR 20 Flat
- Trading and Demat Account Opening Charge- Rs 300 (one-time payment)
- Trading Account Annual Maintenance Charge (AMC)- Free
- Demat Account Maintenance Charge (AMC)- Rs. 300
- 5Paisa: Next to Zerodha, 5Paisa is considered as the second largest discount broker in India. 5Paisa is backed by the financial giant India Infoline (IIFL). India Infoline is a public limited company which in turn provides stability to 5Paisa.
5Paisa offers not just stock trading to its clients but also the facility of buying car, term and health insurance.
Though it is a discount broking firm it still provides advisory services to its clients who are looking for it.
5Paisa has a flat brokerage structure which is simple for the investors to understand. There is a flat brokerage of INR 10 charged per executed order in the equity segment (Equity F&O, Delivery and currency F&O).
The rest of the charges are as follows:
- Trading Account Opening Charge- INR 650 (One-time payment)
- Trading Account Maintenance Charges (AMC)- Free
- Demat Account Opening Charges- Free
- Demat Account Maintenance Charges (AMC)- INR 400
- SAS Online: Another remarkable entry to the world of discount broking is SAS Online which was started by two entrepreneurs. It supports Equity trading, commodity trading at MCX and currency trading and aims to offer the lowest brokerage.
The trading software provided by SAS online include desktop, mobile and web based software for the ease of online trading.
They charge only Rs. 9 per trade across all the segments which is the most competitive brokerage charged across the industry.
The other benefit that they have for regular heavy traders is that they can buy a plan by paying a lumpsum amount of Rs. 499 or Rs 999 per month after which the investors can place as many trades as they want without paying any extra fees.
- Wisdom Capital: Next in the line of discount brokers is Wisdom Capital. It provides services for stocks, futures, and options on NSE & BSE. Investors also get the support in commodity trading on MCX and NCDEX. The online trading platform is highly automated but easy to use. As for the brokerage they have three different plans. Investors can choose from any of the three plans as per their needs:
- Freedom Plan: it offers trading in all three segments (BSE, NSE and MCX) at zero brokerage but with little margin/exposure.
- Pro Plan: It is good for professional traders. The brokerage charged under this plan is as follows for NSE equities it is 0.005% intraday and delivery. The brokerage charged in NSE futures, options and MCX is Rs. 9 per trade.
- Ultimate Plan: It is suitable for high frequency traders who want high exposure/margin. The brokerage charged is as follows for NSE equities it is 0.007% Intraday and delivery. For NSE futures, currency and commodity trading at MCX it is 0.005%. The brokerage for options trading is Rs. 15 per lot.
Demat account opening is free for all the three plans whereas the Demat Account Maintenance Charge is Rs.999 plus taxes for lifetime.
- Samco: Fifth in the list is Samco Securities which brings a whole suite of products for the investors at a discounted price with high quality services.
The investors can trade in Stocks, F&Os, Commodities and Currency in Samco dashboard.
It supports trading on NSE, BSE, MSEI and MCX. They have different software and back office support for all types of investors. The investors can choose from desktop to mobile app and algorithmic trading if you are a high frequency trader.
They have call and trade facility but the facility is separately charged.
The brokerage charged is flat Rs.20 or 0.02% per executed trade whichever is low for all the segments and there is no other hidden cost.
- Upstox (PKSV): The other popular discount broker in the list is Upstox which gained popularity after being backed by Kalaari capital and Ratan Tata. They have a paperless demat account opening and trading platform.
It supports trading in Intraday/commodity/F&O/Currencies on its platform.
They also have a separate platform for those who wish to invest in mutual funds and supports desktop, web and mobile trading platforms.
It charges a flat brokerage of Rs.20 per trade and no other additional cost.
- Trade Smart Online: Trade Smart Online is a venture of VNS Finance and is one of the top discount brokers in India. It also offers different brokerage plans for the investors depending on their requirements.
The two plans offered by Trade Smart Online are as follows:
- Value Trading Plan: This plan is suitable for low volume traders. The brokerage charged under this plan for Intraday cash, futures, currency, and commodities is 0.007% and delivery is 0.07%. For options the brokerage charged is Rs.7 per lot.
- Power Trading Plan: Under this plan the brokerage charged is Rs.15 per trade irrespective of the volume of trade executed. It is suitable for traders that have less frequency but high volume.
- ProStocks: One of the fastest growing brokerage firm in India is ProStocks. The founders of the company have a good experience in the brokerage business and hence are providing commendable services to the traders.
Traders can trade in Equity (Delivery, intraday, F&O) and in currencies on ProStocks platform.
Account opening with ProStocks is absolutely free. Traders are charged a flat brokerage of Rs.15 per executed trade.
For the benefit of the high frequency traders they have monthly and yearly packages. They provide all the three of web, browser and mobile trading platforms.
- TradingBells: Supporting 15 minutes account opening TradingBells is the new age discount broker where the traders can trade in Equity (Delivery, intraday, F&O), currencies and commodities. Traders get a desktop, mobile and web trading platform for their convenience.
The Equity Delivery brokerage is free.
Brokerage for Equity Intraday or Futures is 0.01% or Rs.20 whichever is lower.
Brokerage for Equity options is flat Rs.20.
Conclusion:
The discount broking industry is growing at a fast pace with new broking firms coming up and introducing lucrative plans and offers to the traders.
From the list of the discount brokers along with their brokerage structure and charges, we can conclude that there are only minor differences between the above mentioned brokers.
It is advisable to keep a note of your priorities and financial goals while choosing a discount broker.
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