A while back, only the wealthy stock market investors could afford to hire a broker. However, the great advancement made in technology and the development of the Internet have promoted easier access to a wide range of discount brokers in India.
Nowadays, there are even cheaper discount brokers for individuals with smaller trading capital. Simply put, there will always be a discount broker for all stock market investors.
However, you may wonder; just who is a discount broker?
And, why should you get a discount broker if you are a stock market investor in India?
Those questions are the main focus of this article. Read along, also, to find out which best-reviewed discount brokers in India you can consider.
Must Read about Best Stock Brokers in India.
Who is a Discount Broker?
A discount broker can be defined as a stockbroker who buys and sells orders for investors, at lower commission rates than regular stock brokers. Most of these discount brokers operate online.
However, these types of stockbrokers do not provide investors with add-ons, such as offering advice, neither do they analyze investments for their clients. This is what makes discount brokers different from full-service brokers, who perform analysis and offer advice to their clients. More so, the fact that they do not provide these add-on services is what makes discount brokers very cheap.
Why Should You Choose a Discount Broker?
If you are a stock investor in India, working with a discount broker can bring you many benefits. For instance, you are able to acquire cheaper access to investments. Compared with the other full-service brokers, discount brokers offer very low brokerage charges of over 60% less. This cheaper access to investments, in turn, guarantees increased profits to your investment over time.
Having a discount broker is also the best option for those investors who engage in trade frequently. Engaging a discount broker would prove to be very cheap, as compared to if the regular trader went for a full-service broker. The cheap services that discount brokers offer are what led to these being also referred to as ‘budget brokers,’ or ‘flat-free brokers.’
Also, almost every discount broker offers online trading software to their clients, at free costs. Therefore, whether you are new to the stock market in India, or have been investing for several years, you would do well to have a discount broker.
8 Best Discount Brokerage in India
With so many discount trading brokers available in India, an investor may find it tough to choose which broker to employ. If that explains your current state, then worry not.
The following are 8 of the best discount brokers in India that you can consider getting:
Zerodha was founded by Nitin Kamath, in the year 2010. It is the most popular discount broker in India, with a large database that registers more than 1.5 million clients.
Zerodha’s high popularity is mainly due to the excellent services and products that this discount trading brokerage offers, as well as the practical approach that it puts into practice.
This particular discount broker has a mobile application known as ‘KITE.’ This mobile phone application has more than 1 million downloads on Playstore.
Also, Zerodha offers very low brokerage fees, charging fixed 0% brokerage rates of Rs. 20 for every trade. This rate still applies, regardless of the trading volume in play.
The following are the charges associated with the Zerodha discount trading brokerage;
- Charges for opening a Zerodha trading account – Rs. 300
- Charges for opening a Zerodha demat account – Rs. 100
- AMC for Zerodha trading account – Rs. 0
- AMC for Zerodha demat account – Rs. 300
2. Angel Broking
The Angel Broking discount brokerage in India was founded in 1987. This brokerage company, therefore, boasts more than 30 years of experience in discount trading. It also has a very large database, with more than 1 million investors, and having a presence in more than 1800 cities in India.
This discount brokerage offers discount trading services in Equity, Commodities, as well as F&0. It also offers currency across different facilities, such as BSE, MCX, NSE and NCDEX. Also, Angel Broking offers very cheap discount trading services, charging fixed rates of Rs. 20 per trade.
Before, the Angel Broking discount trading broker used to offer full-service brokerage. However, for several years Angel Broking has been offering flat free brokerage plans, known as ‘Angel iTrade PRIME.’ With this brokerage plan, investors can enjoy delivery trading that is completely free.
The main advantage about the Angel Broking discount brokerage is that; they provide advice and recommendations about the stock market to their investors. They also provide research reports for companies.
5Paisa is ranked as the cheapest discount brokerage in India. It is part of the India Infoline (IIFL), and offer a brokerage platform with very low rates.
Clients and investors are able to compete with the larger discount brokerage industry on this platform. The good thing about this discount trading brokerage is that it is fast, and the opening of an account does not require the investor to bring/show any papers. The whole documentation process usually takes a maximum of 15 minutes.
This discount trading broker charges a flat free brokerage rate of Rs. 10 for every trade. Therefore, for those investors who trade large volumes frequently, partnering with 5Paisa discount brokerage saves these very huge amounts of money.
The main services offered by 5Paisa discount broker are; trading in Equity, commodities and offering currency. Also, this discount broker in India provides its clients with services in insurances and personal loans.
Upstox is one of the fast-growing discount brokers in India. It is supported by some of the most successful investors, such as, GVX David and Kalaari Capital. Upstox was founded in 2012. However, it used to be referred to as ‘RKSV’ back then. The name ‘Upstox’ was adopted in 2015.
This Indian discount brokerage mainly targets those investors who are looking for low brokerage, but with a higher margin, as well as an effective trading platform. Higher margins and reduced brokerage charges make the key aspects for successful trading. Upstox provides all of these, incorporating an high technology and an advanced platform for trading.
The trading platform provided by Upstox is also very advanced, yet very simple to use. It charges a fixed low brokerage rate of Rs. 20 for every trade, irrespective of how big the volume of the trade is.
5. Trade Smart
Trade Smart discount brokerage was founded more than 25 years ago. It has its headquarters located in Mumbai, India, and is part of a famous traditional discount brokerage, know as the VNS Finance and Capital Limited. The discount brokerage boasts over 50,000 clients, which leads to an average daily turnover of more than Rs. 5,000 crores.
Trade Smart has two types of brokerage rates, dependent on the volume traded. These are;
- A value trading plan for investors trading with lesser volumes
- A power trading plan for investors trading with bigger volumes
This discount trading broker ensures that traders always acquire high margins at very low brokerage rates, as well as a platform that is fast-trading. Trade Smart offers an even lower brokerage rate for those investors who trade lesser volumes. It offers a flat free brokerage of Rs. 15 per trade. This, however, applies to the volume trading that falls under the value trading plan.
SAMCO is one of the best discount brokerages in India. It was founded in 2015. Unlike most of the other discount brokers, SAMCO offers high leverage rates for trading to its investors.
With this discount broker in India, clients can acquire a maximum of 4x Delivery Leverage for cash markets, as well as a maximum of 80x leverage in Nifty. Other high leverages offered to clients by this discount trading broker include a 33x leverage and another 60x leverage for stocks and commodities, respectively.
Not only does the SAMCO discount brokerage offer lower brokerage fees, but it also provides its clients with a high margin, more exposure, as well as a free trading platform. With this discount broker, clients are able to take loans, with the stocks and other different financial products as their collateral.
7. Wisdom Capital
Wisdom Capital was incorporated in 2013. It mainly offers services in stock, commodity training (such as the MCX and NCDEX), as well as other options such as the NSE and BSE.
This discount broker in India constitutes a plan known as the ‘FREEDOM plan.’ Just like its name suggests, the FREEDOM plan offers 0% brokerage to investors. It is mainly what attracts customers to partner with Wisdom Capital.
This highly recommended discount trading broker provides its clients with 3 different plan options. These are;
- Freedom plan
- Ultimate plan
- Pro plan
The main difference between these 3 plans is on the brokerage fees, and the margins offered. The freedom plan offers zero brokerage rates, but with a poor margin. On the hand, the pro and ultimate plans offer higher margins, and require the clients to pay a higher brokerage rate.
Tradejini discount brokerage was incorporated in 2012. It offers its clients a maximum brokerage rate of Rs. 20 (0.01%) per any executed trade.
With this Indian discount broker as a partner, an investor is able to trade with different facilities, such as, the NSE, MCX, BSE, as well as MSEI, just to mention a few. Other services that the Tradejini discount trading broker offers are Equity, derivatives, currency trading, ETFs, commodities and mutual funds.
The Tradejini discount brokerage doesn’t just offer a lower brokerage rate; it also offers a very good single trading platform to its customers. However, this discount brokerage requires investors to have a courier account form, so as to open an account with them.
Summary – Discount Stock Brokers in India
If you are a regular trader and investor, then you would do well to consider partnering with an efficient discount broker in India. The above most recommended 8 discount trading brokers are guaranteed to offer you reasonable brokerage charges, as well as a trading platform. So, go ahead and open an account with one of the above best discount brokerages in India, and see how your investment gains a high success in the market!