After the establishment of Zerodha in India, a new era of discount broking has become a trend and today whenever a trader or investor talks about opening his/her demat or trading account, he/she gives more importance to the discount broker.
The reason for people’s attraction towards discount brokers is the minimum charges involved in them, due to which people do not have to pay much money in the form of brokerage.
So in today’s article, I will try to know how a discount broker is different from a full service broker and what are the benefits of using it:
What is a Stockbroker? Is Broker Required
Whenever we think of investing in a listed company, we have to do this work through 2 exchanges – NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) but we cannot buy shares directly through these exchanges. . For this we need a broker as a link. The broker also charges some charges for providing these services to us which is known as brokerage.
If we talk in easy language, then we do not buy mobile directly by going to the factories or the companies that make mobile.
Whereas we buy our goods by going to retail stores and these retail stores take goods from other big stores and the goods come directly from factories in those stores. Similarly, here BSE or NSE can be counted as factories and that retail store can be understood as a broker.
Meaning of discount broker
If we talk about western countries, then this type of broker was in vogue in them for a long time while in India they came in 2010 when Nitin Kamath founded Zerodha. Discount broker is a broker who charges very low brokerage and provides a fast and high speed platform for trading. If we talk about a full service broker like HDFC Securities, Motilal Oswal, etc., then instead of these discount brokers charge very less brokerage but these discount brokers do not provide as many services as you get in a full service broker. Facilities like Training Sessions, Relationship Manager, Branch Presence, Research, and Stock Tips are not provided in a discount broker.
But at present, there are many discount brokers offering their services in the market and you must be having a dilemma regarding their selection, so let’s talk about some of the best discount brokers in India:
10 Best Discount Brokers in India
1. Zerodha
The foundation of Indian discount broking was laid by Zerodha itself. This is the reason why Zerodha has the largest number of clients among all the discount brokers. Zero brokerage is charged at Zerodha on equity delivery. Similarly, flat Rs 20 per trade is charged for intraday trading. Zerodha provides excellent customer support as per the customer reviews and apart from this its account opening process is also very fast and easy. In this, you get a charge of Rs 300 while opening the account and also a maintenance fee of Rs 300 for one year.
Pros :
- It is a self-clearing broker i.e. customers do not have to pay any kind of clearing charges.
- Zerodha Varsity is a great platform for free stock market and financial education.
- Get the benefit of free equity delivery.
- It has a good customer support and has now become a trusted brand.
Cons:
- No research reports or market tips or recommendations of any kind are available.
- There is a charge for Call and Trade services.
2. Upstox
One of the fastest growing brokers in India is Upstox which is funded by Sir Ratan Tata. This stockbroker was established in the year 2012 as RKSV but later it was renamed as Upstox in 2015. It is the second largest broker in India by number of clients. In this, zero brokerage is levied on equity delivery and Rs 20 per trade is also charged on intraday. It also gives you four times the margin. The process of opening an account in upstox is very easy and in this, you do not have to pay any kind of charges to get the account opened but Rs 300 is charged as an Annual Maintenance Fee.
Pros :
- Free Equity Delivery.
- Free Demat account opening and low maintenance charges.
- It also provides the facility of many types of technical indicators for trading.
- Funded by Ratan Tata, it has become a well-known and trusted broker.
Cons :
- Research reports and trading calls are not available.
- Charges have to be paid for Call and Trade.
3. 5Paisa
IIFL (Indian Infoline) is the promoter of 5 paisa brokers. After serving for over 2 decades in full service broking, IIFL entered the arena of discount broking to provide its clients with a low brokerage platform. Intraday trading in 5 Paisa is charged Rs.10 per trade and equity delivery is also charged at Rs.10 per order (if you are not a subscriber to their premium plan, it is Rs.20 per order) ). In this, you do not have to pay any kind of fee to open a Demat account. There is a maintenance charge of Rs 45 per month and that too only when you are trading.
Pros :
- Free Delivery Trading.
- 10 brokerage per trade (applicable only for premium plan).
- Low maintenance charges.
Cons :
- The facility of 3 in 1 account is not available.
- Call and trade charges are very high.
- The facility of free research reports is not available in the Basic plan.
4. Angel Broking
Angel Broking was established in the year 1987 and has become a well known broker with more than 30 years of experience. Though it was a full service broker but recently they have changed their business model a bit to compete with other brokers and now it charges flat rates instead of percentage brokerage. For intraday, it charges you Rs 20 per trade and you do not have to pay any kind of fee to open an account in it, but in this, you have to pay 240 rupees as an annual maintenance fee.
Pros :
- Free investment advisory and research tool.
- Free Equity Delivery.
- Full broker facility is available at low cost.
- Flat brokerage charges.
Cons :
- You have to pay a charge for the service of Call and Trade.
- Customer support is below average.
- 3 in 1 account facility is not available.
5. Groww
Groww was established in the year 2016 as a direct mutual fund platform but later on, they also started their own discount brokerage facilities.
In this, you are charged a brokerage of Rs 20 on equity delivery and Rs 20 per trade for intraday trading.
In this, you do not have to pay any kind of charges for opening the account and also in the form of an annual maintenance fee.
Pros :
- Commission free investment facility is available.
- You do not have to pay any kind of fee as an annual maintenance fee.
Cons :
- Call and trade facility is not available.
- Research reports and trading calls are not available.
- Only equity investment facility is available.
6. Samco
Samco was established in the year 2015 and is a very low fee discount broker. It provides the facility of heavy leverage to its clients. In this, you have to pay Rs 20 per trade or 0.2% whichever is less, on intraday and delivery trades. In this, you do not have to pay any kind of fee for opening the account and have to pay Rs 400 as an annual maintenance fee.
Pros :
- Traders get the facility of a huge margin.
- Brokerage is very low.
Cons :
- A separate charge has to be paid for the facility of Call and Trade.
7. Trade Smart Online
Trade Smart Online is a discount broker. VNS Finance and Capital Limited is its promoter group which is providing its services as a full service broker for the last 2 decades.
In this, you get to see 2 types of plans –
- Delivery – Rs.15 per trade in Power Plan and 0.07% in Value Plan
- Intraday Trading – Rs.15 per trade in Power Plan and 0.007% in Value Plan
In this, a fee of Rs 400 is charged for opening the account and Rs 300 has to be paid as annual maintenance.
Pros :
- The brokerage seems to be very low.
- Traders get the facility of very high margin.
- Free tools are also available like – Span Margin Tools and brokerage calculator
Cons :
- There is a charge on the facility of Call and Trade.
- IPO and mutual fund facility is not available.
- Research and tips are not available.
8. Trade Jini
Trade Jini was established in the year 2012 and this broker has a very good presence in Southern India.
The brokerage in this is as follows –
Delivery Trading – 0.10% or Rs.20 per trade whichever is less.
Intraday Trading – 0.01% or Rs.20 per trade whichever is lower.
In this, you have to pay a fee of Rs 300 to open an account and also have to pay Rs 300 as an annual maintenance fee.
Pros :
- Single trading platform facility is available.
- High margin facility is available for intraday.
- The brokerage has to be paid very less.
Cons :
- 3 in 1 account facility is available.
- Only the facility of Non-Agriculture Commodity Trading is available.
- A separate charge has to be paid for the facility of Call and Trade.
9. Wisdom Capital
Wisdom Capital is a very famous online discount broker which was established in the year 2013. In its most famous FREEDOM plan, you get the facility of zero brokerage. Its other plans are as follows –
h 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 is available in the FREEDOM plan.
- Flexible brokerage plans are available.
- Higher margin facility is available in premium plans.
Cons :
- A charge has to be paid for the facility of Call and Trade.
- Average customer support.
- There is no focus of any kind on the development of the technology platform.
10. FYRES Securities
It is an online discount broker established in the year 2015. FYRES in a way shows Focus your Energy & Reform the Self. There is zero brokerage on equity delivery and you have to pay brokerage of Rs 20 per trade for intraday. In this, you do not incur any kind of charge for opening the account and also in the form of an annual maintenance fee.
Pros :
- Advanced charts, analytics, and screeners are available.
- The brokerage is very low and the facility of high margin is available.
Cons :
- There is a separate charge for Call and Trade.
- It charges a lot more than other discount brokers.
Conclusion
Till the time discount brokers were not much in vogue in India, people had to pay a lot of brokerage but after the advent of discount brokers, heavy brokerage has been got rid of.
Different types of services are provided by different brokers, so you should choose the right broker according to your convenience.
My personal experience with Groww if you want to open a Demat account I suggest you open it with Groww – Click Here
If this post is valuable to you, please share who needs the proper knowledge of discount brokers.