If you are looking to invest in stocks without spending a fortune on brokerage, counting on the best discount brokers in India seems the best way forward. In recent times, the idea of zero brokerage has become immensely popular in India with a large number of investors opting for it to save on brokerage. In this post, you will get to know more about choosing the best discount broker in India and the top 10 discount brokers in India that offer the best value to their clients in all aspects of stock trading.
The Indian stock market has seen rapid advancement by discount brokers. Pure-play discount brokers’ percentage share of all active NSE clients increased from little over 25% in FY20 to 47% as of FY21. Their percentage of current NSE clients reached 60% as of FY23.
The top discount brokers in India provide quick transaction execution and trading services at a reduced brokerage fee. A zero brokerage account is still a very good choice for individuals who are confident in their investing choices even though it does not offer the other services that a typical Demat account does.
What Is A Discount Broker?
A discount broker is a company that operates in the financial industry that aids investors in purchasing and selling assets on the stock market by assessing costs that are substantially cheaper than those of a regular brokerage firm, but it does not offer financial guidance or support.
Key Highlights Of A Discount Broker
- A discount brokerage firm is a business that assists investors in purchasing and selling assets on the stock market by assessing costs that are much lower than those of a conventional brokerage firm.
- In contrast to brokerage companies and full-time brokers, who give financial advice and assistance, discount brokers often do not offer financial and market analysis, advise, or support.
- In India, there are over top 10 discount brokers in India. One of their main offerings is a platform for buying and selling different assets without receiving suggestions or recommendations about the particular stocks.
- Discount Brokers can dramatically lower trading costs for investors, but they still require greater backing from sound financial experience-backed trading and investing.
Advantages And Disadvantages Of The Top Discount Brokers
Below are some of the advantages associated with choosing the best discount broker in India.
- One of the main reasons why one should choose the top discount broker in India because it has lower costs, which is one of its best benefits.
- Prior to now, markets were closed to investors with small cash.
- They were able to invest after the creation of these brokers by paying minimal discount broker fees and brokerages.
- Since they don’t provide investing advice, there is no need to worry about biased service. They don’t have any ulterior motives or entrenched interests. They only provide the service of buying and selling, or carrying out a transaction.
- There wouldn’t be any meddling with investing choices.
Now, look at the disadvantages of a discount broker.
- There is very little interaction with the live broker and very little customer service.
- The commission is not the sole source of income for the brokers. A notion known as hidden costs exists.
- Discount brokers don’t have a policy of offering margin money in exchange for shares, mutual funds, and fixed deposit accounts.
- It is only appropriate for investors who have conducted their own research because there are no financial advising, consulting, or research services available.
How Discount Brokers Are Different From Full Service Brokers?
A stock broker who/that offers investment counselling services, portfolio creation, and similar services in addition to doing business and executing transactions is known as a full service broker.
|Parameter||Discount Broker||Full Service Broker|
|Broker||A standard brokerage is levied irrespective of the trade category||In most cases, brokerage is charged at a certain percentage of the trade value|
|Main Service||Just basic trading services||Along with trading, other services like stock advisory and research services are also provided.|
|Research||No separate stock research section||Dedicated research department in place for the delivery of advisory related services.|
|Communication||Online services with low or no client communication||Personalized customer support services are provided|
|Suitable for||Self-aware investors who carry investing knowledge i||Those who look for stock advisory for their investment;|
|Additional services||Just trading services||Investment, portfolio advisory, stock research, stock recommendations, Bonds, Insurance, mutual fund associated services;|
|Dedicated Relationship Manager availability||No dedicated Relationship manager available for support||A relationship manager is assigned to high net worth clients.|
Top 10 Discount Brokers In India
After gaining the basic knowledge about discount brokers, it’s time to look for the top 10 discount brokers in India. If you are looking for the best discount broker in India or the top discount broker, you can look at the following most popular discount brokers in India and choose the one that matches your needs the best.
|S. No.||Broker’s Name||Active no. of clients||Minimum brokerage charges||Best features||Customer ratings|
|1||Zerodha||63, 48, 249||Zero for Delivery; Rs20/trade for all other segments||Advanced online trading tools, margin funding, 20x leverage, zero comission direct mutual funds||9.88/10|
|2||Groww||62, 89, 836||Rs 20 per trade (or 0.05% whichever is lower)||0 comisision direct mutual funds, digital account opening, informative content, investment in US stocks||9.70/10|
|3||Angel One||113, 59, 489||Zero for Delivery; Rs20/trade for all other segments||`Free stock advisory, RM services, margin trading, zero cost fund transfer||9.30/10|
|4||Upstox||1,48, 490, 499||Zero for Delivery; Rs20/trade for all other segments||Advanced order types, margin against shares, ambbroker, margin trading||9.10/10|
|5||Paytm Money||60, 49, 747||Rs 20 per executed order or 2.5% whichever is low||Zero maintenance cost, zero comission direct mutual funds, paperless account opening, online IPO application||8.98/10|
|6||5Paisa||20, 55, 583||Rs20/executed Trades||Research ideas, paperless account opening, all-in-one account, algo trading, and robo advisory||8.60/10|
|7||Alice Blue||1, 48, 498||0 for delivery, Rs. 15 for other segments||Advanced order types, bracket orders, cover orders, instant account opening, after trading hours||8.50/10|
|8||Fyers||1, 96, 168||Rs 20/Executed order; Rszero for delivery||No hidden charges, single margin account, free trading software, no brokerage for cash & carry trades||8.35/10|
|9||Nuvama Wealth||12, 00, 000||Flat Rs. 10 per trade order||Advanced trading software, excellent branch network, free stock advisory||8.20/10|
|10||SAS Online||15, 0000||0 for delivery and intraday under Rs. 999 plan||Algo trading, margin against shares,||7.50/10|
Zerodha emerges on the top in the list of top 10 discount brokers in India with over 6 million client base. In fact, Zerodha is the first broker in India that brought the concept of discount broking in India. The top discount broker was launched in the year 2010 by Mr. Nitin Kamath who encountered several hurdles during this journey but overcame all of them successfully.
“Zerodha” is an acronym for “Zero” and “Rodha”. Rodha means “barrier” in Sanskrit. As its name implies, they therefore had the vision to remove any obstacles that the average Indian trader and investor would have encountered at the time.
In terms of Zerodha levies zero brokerage for trade in equity delivery whereas for other segments, the most famous discount broker charges a brokerage of flat Rs. 20 or 0.03% of the order value.
Zerodha Brokerage Charges
|Monthly Fee (Fixed)||NA|
|Equity Delivery||Rs 0 (Free)|
|Equity Intraday||Rs 20 per executed order or .03% whichever is lower|
|Equity Futures||Rs 20 per executed order or .03% whichever is lower|
|Equity Options||Rs 20 per executed order|
|Currency Futures||Rs 20 per executed order or .03% whichever is lower|
|Currency Options||Rs 20 per executed order|
|Commodity Futures||Rs 20 per executed order or .03% whichever is lower|
|Commodity Options||Rs 20 per executed order|
Another best discount broker in India is Groww. During its initial launch somewhere in 2016, Groww was mainly intended for mutual fund investment but later it expanded its wings and included other services too in 2020. The best online discount broker in India also provides its clients with Fixed Deposit, US Stocks, and Digital Gold as additional investment possibilities.
Based out of Bangalore, Groww charges a flat fee each trade that is either Rs 20 or 0.05%. No matter the size or price, the brokerage fee for each order is capped at Rs 20. Groww is known for offering zero-cost mutual fund investment which means there is no charges for purchasing or redeeming mutual funds.
Groww Brokerage Charges
|Equity Delivery||Rs 20 per trade (or 0.05% whichever is lower)|
|Equity Intraday||Rs 20 per trade (or 0.05% whichever is lower)|
|Equity F&O||Rs 20 per trade|
3. Angel One
Setup in 1987, Angel One is one of the top 10 discount brokers in India and offers a wide assortment of trading services across different categories like stocks, commodity, and others. Other services offered by the most famous discount broker are investment advisory, loan against shares, margin funding, commodity broking, and others.
As of 2022, Angel One has 110 branches, 11,000 trade terminals, and more than 18,000 authorized personnel spread over 1800+ Indian cities. The company’s registered users and app downloads total over 1 crore. The stock broker provides a single trading app that allows users to trade and invest in all securities from one location.
Angel One offers its flagship flat rate brokerage scheme with the name of The ‘Angel iTrade’. Apart from levying zero brokerage on equity delivery, this brokerage plan allows investors to trade in all sectors (intraday, F&O, currencies, and commodities) at a standard brokerage of Rs 20 per order. The same elementary brokerage is applied across all exchanges and categories.
Angel One Brokerage Charges
|Equity Delivery||Flat Rs 0 (Free)|
|Equity Intraday||Flat Rs 20 or 0.25% (whichever is lower)|
|Equity F&O||Flat Rs 20 or 0.25% (whichever is lower)|
|Currency F&O||Flat Rs 20 or 0.25% (whichever is lower)|
|Commodity F&O||Flat Rs 20 or 0.25% (whichever is lower)|
Upstox is one of the most renowned discount brokers in India and caters to traders seeking low brokerage, large profit margins, and a safe trading environment. After receiving funding from Ratan Tata and Kalaari Capital, they become even more well-known.
Some of its clients can trade using the Upstocks pro trading terminal, which is a fast and trustworthy source. When they started their business in 2012 under the moniker RKSV, they later renamed it to Upstox.
Upstox Brokerage Charges
|Monthly Fee (Fixed)||NA|
|Equity Delivery||Rs 20 per executed order or 2.5% whichever is low|
|Equity Intraday||Rs 20 per executed order or 0.05% whichever is lower|
|Equity Futures||Rs 20 per executed order or 0.05% whichever is lower|
|Equity Options||Rs 20 per executed order|
|Currency Futures||Rs 20 per executed order or 0.05% whichever is lower|
|Currency Options||Rs 20 per executed order|
|Commodity Futures||Rs 20 per executed order or 0.05% whichever is lower|
|Commodity Options||Rs 20 per executed order|
5. Paytm Money
Paytm is one of the most popular discount brokers in India and offers a wide range of trading and investment services to its users. Paytm is already a well-known name in India as the country’s biggest digital payments company. Paytm Money app has an easy-to-use interface which helps stock investors in analyzing the stock markets quickly.
Paytm Money provides free equity delivery trading along with competitive trading fees. With no fees for investing in or redeeming mutual funds, Paytm Money offers Free Mutual Fund services.
Paytm Money Brokerage Charges
|Trading Segment||Brokerage Charges|
|Equity Delivery||Rs 20 or 2.5% of turnover (whichever is lower)|
|Equity Intraday||Rs 20 or 0.05% of turnover (whichever is lower)|
|Equity Future||Rs. 0.01 upto Rs 20 per Executed Order|
|Equity Options||Rs 20 per order|
Based out of Mumbai, Upstox is of the best discount brokers in India. Although it was just recently founded, it soon became well-known in the stock brokerage industry after enrolling 1 million clients in just 4.5 years. The main objective of 5Paisa is to provide investors and traders with cutting-edge online trading platforms in order to ease transactions between the BSE and NSE.
For each order placed through 5Paisa, a brokerage fee of Rs. 10 is applied. A transaction and an order for each of the three brokerage systems that were subsequently implemented cost Rs. 20 and Rs. 10, respectively. For package delivery, they are responsible.
5Paisa Brokerage Charges
|S. No.||Trading Category||Basic Plan||Power Investor Pack||Ultra Trader Pack|
|1||Monthly Charges||0||Rs. 499||Rs. 999|
|2||Equity Delivery||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
|3||Equity Intraday||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
|4||Equity Futures||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
|5||Equity Options||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
|6||Currency Futures||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
|7||Currency Options||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
|8||Commodity||Rs. 20 per order||Rs. 10 per order||Rs. 10 per order|
7. Alice Blue
Counted among the top 10 discount brokers in India, Alice Blue was founded in December 2006 in Tamil Nadu with just five staff members and an MCX membership. As a discount broker, Alice Blue started doing business in 2007. All operations were handled out of Chennai. The corporate headquarters of the organization were moved to Bangalore in 2017.
With a Pan-India presence in 20 major cities, Alice Blue has expanded from a team of 5 to a workforce of over 400 workers, 12000 partners, and about 5 lakh clients.
Alice Blue has had memberships with the MCX, NSE, NCDEX, MCX-SX, BSE, and CDSL for a considerable amount of time.
Alice Blue Brokerage Charges
The brokerage charged by Alice Blue under its Freedom 15 plan are:
|Monthly Fee (Fixed)|
|Equity Delivery||Rs 0 (Free)|
|Equity Intraday||Rs 15 per order or 0.05% whichever is lower|
|Equity Futures||Rs 15 per order or 0.05% whichever is lower|
|Equity Options||Rs 15 per order|
|Currency Futures||Rs 15 per order or 0.05% whichever is lower|
|Currency Options||Rs 15 per order|
|Commodity Futures||Rs 15 per order or 0.05% whichever is lower|
|Commodity Options||Rs 15 per order|
Fyers Securities is a Bangalore-based best discount broker in India and it was established in 2015. The NSE’s Equity Cash, F&O, and Currency Derivatives divisions are where Fyers offers trading. FYERS stands for Focus Your Energy & Reform the Self, which highlights the broker’s core value.
In India, Fyers is a stock broker with minimal brokerage. They are among the least expensive online stock brokers. Fyers’ straightforward pricing structure allows trading across segments for a fixed brokerage charge of no more than Rs 20 per successfully placed transaction. Fyers levies a brokerage of Rs 20 every executed order, no matter what’s the volume of the order. In the Equity Delivery category, Fyers doesn’t charge any brokerage.
Fyers Brokerage Charges
|Equity Delivery||Free (No Brokerage)|
|Equity Intraday||Rs 20 per executed order of 0.03% whichever is lower|
|Futures (Equity, Currency, Commodity)||Rs 20 per executed order of 0.03% whichever is lower|
|Options (Equity, Currency, Commodity)||Rs 20 per executed order|
9. Nuvama Wealth
Nuvama Group (Earlier known as Edelweiss Securities) is the biggest and most reputable wealth management service provider in India. It is a technology-driven full-service broker that offers the entire range of financial products, such as mutual funds, IPOs, commodities, equity derivatives, and margin trading.
Brokerage fees may be a major issue for many people when looking to create an account with a full-service broker. The leading discount brokers in the nation, including Zerodha and Upstox, charge an incredibly competitive flat brokerage fee of Rs. 20 per order brokerage, whilst Nuvama Wealth charges Rs. 10 per order brokerage on all sectors.
Nuvama Wealth Brokerage Charges
|Plan Name||Nuvama Lite|
|Equity Delivery||Flat Rs. 10 per executed order|
|Equity Intraday||Flat Rs. 10 per executed order|
|Equity Futures||Flat Rs. 10 per executed order|
|Equity Options||Flat Rs. 10 per executed order|
|Currency Futures||Flat Rs. 10 per executed order|
|Currency Options||Flat Rs. 10 per executed order|
10. SAS Online
Online discount brokerage house, South Asian Stocks Ltd. or SAS Online (SASO) is based out of Delhi. Despite having launched late in 2013, it is one of the most popular discount brokers among traders since it offers the best trading perks at the lowest brokerage rates.
In addition to offering IPOs and mutual fund investments, SAS Online is a registered member of the BSE, NSE, and MCX to enable online trading in the currency, commodities, and equity derivatives sectors. The main benefit of choosing SAS Online is the flat brokerage rate of Rs. 9 per transaction or the SAS monthly brokerage plans, which allow for an unlimited amount of trades each month. It offers monthly share trading plans for Rs. 999, currency trading plans for Rs. 499, and MCX trading plans for Rs. 1,999.
SAS Online Brokerage Charges
|Plan Name||Max Rs 9 Per Order Trading Plan|
|Equity Delivery||0.1% or Rs 9 whichever is lower|
|Equity Intraday||0.01% or Rs 9 whichever is lower|
|Equity Futures||0.01% or Rs 9 whichever is lower|
|Equity Options||Flat Fee Rs 9|
|Currency Futures||0.01% or Rs 9 whichever is lower|
|Currency Options||Flat Fee Rs 9|
|Commodity||Flat Fee Rs 9|
Factors To Consider While Choosing A Discount Broker
Selecting the cheapest discount broker in India is one of the first things to think about if you want to begin investing in the stock market. A discount broker acts as a middleman between an investor and an exchange. An equities broker might be a business or platform that charges fees or commissions to carry out buy/sell orders, or it could be a single agent. While some equity brokers solely provide stock or equities broking, others provide a wider range of investment choices. Brokers are licensed by either the National Securities Depository Ltd. (NSDL) or the Central Depository Services India Ltd. (CDSL), two share depository institutions.
1. Determine Your Investment Needs
The first step is to be clear about your personal investing goals before choosing an equity broker. Your capacity to invest, your plan, and the level of risk you are ready to accept. When deciding on an equity broker, the first thing to consider is whether or not they can meet your demands. You could want to start making long-term investments, for instance. If so, you could choose a brokerage with cheaper account maintenance costs (AMC). You can be an aggressive investor who wants to make day trades, or you might be a passive investor who doesn’t require a lot of daily contact. You could want a broker who is similarly prepared and experienced for the latter.
2. Broker’s History
When selecting the best discount broker in India, the brokerage’s history is crucial to consider. Verify the broker’s reputation, the degree of price transparency it has maintained, and the extent of its disclosures. Additionally, confirm their overall track record by conducting research and asking other investors. To judge a broker’s popularity, you may also look at a list of brokers and their market share.
3. Brokerage Charges
The advantage for a trader who wants to invest regularly is higher the lower the costs imposed by your brokerage. Additionally, smaller fees could be a sign of the scale of a brokerage or agent’s operation. However, while choosing an equity broker, consider other factors as well, such as the brokerage’s credentials and track record, in addition to minimal fees.
4. Other Offerings
When deciding on an equity broker, be sure to look at the services they provide. Any value-added services, such quick delivery of tutorials or information on new laws or regulations to clients, would be very beneficial. This is especially helpful if you’re just getting started with investing and want to stay up with what’s going on in the world of equities trading.
5. Technical Leverage
It is advantageous to have a technology-driven equities broker/brokerage business. This indicates that the platform is frictionless, guarantees a good client experience, and aids in your simple navigation of trade.
If you want to invest in stocks and other stock market instruments without spending a fortune on brokerage, you can refer to the above-given top 10 discount brokers in India. However, it is necessary to do a thorough research on the best online discount brokers in India and choose the one that outperforms others in various aspects like customer service, brokerage, account maintenance, investment products, and others.
Qu1. Which is the best discount broker in India?
Ans. At present, Zerodha is the best discount broker in India in terms of active client base and brokerage.
Qu2. Is it safe to invest in stocks through the top discount broker?
Ans. Yes, it is completely safe to trade in stocks through the best discount broker in India. All the top 10 discount brokers in India use high-end, safe technology to keep their clients’ data safe & secure.
Qu3. What is a discount broker?
Ans. A discount broker works similar to a typical stock broker but at a lower brokerage. However, a discount broker may not provide extensive level of services just like a full-service stock broker.
Qu4. Which discount broker in India has the best trading app?
Ans. The mobile app “Kite” from Zerodha has proven to be extremely valuable and is currently the best trading app.
The user interface of that programme is highly user-friendly, and it is not too difficult to use. Multiple market watch with extensive information about the live market is one of the most dangerous aspects.
Qu5. Why should you open a Demat account with the best discount broker in India?
Ans. Opening an account with the cheapest discount broker in India is quite advantageous if you are considering trading. They provide you a rapid trading platform and have exceptionally low brokerage fees, which is a useful tool for any trader to save money and make more money.