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10 Best Discount Brokers in India (2020)

10 Best Discount Brokers in India (2020)

10 Best Discount Brokers in India

Best Discount Brokers in India: Usage of the internet has increased immensely and along with it has increased discount broking. As its name suggests, they give immensely cheap brokerage on trading. They do not propose stock market trade service, unlike a full-service broker. They render a trading platform for investors where they can get an excellent platform for investing and trading.

Discount brokers are an excellent choice for investors and traders who trade persistently as they charge the most economical brokerage. The best thing about them is that their sole focus is on offering just one service that is stock trading. One of the reasons behind a massive disruption in Indian Broking industry were discount brokers as because of their cheap brokerage plans; they were able to attract various customers as compared to the expensive traditional brokers.

Discount brokers have become really popular as many existing firms began to copy this concept and provide similar economic plans.

10 Best Discount Brokers in India (2020)

Keeping the benefits of discount brokers in mind, we have prepared a list of discount brokers in India which has immensely altered the landscape of brokerage models. These top discount brokers have risen around 90% from FY 2014-2015. They have also occupied a good range over NSE’s total number of clients in a matter of just a couple of years.

You can save a lot of money brokerage expenses by choosing the right discount broker from the list below-

1. Zerodha

They were one of the first discount broker companies that brought a revolution in the trading industry. It was founded in the year 2010 by Nitin Kamath and is said to be the most significant discount broker in India. They are the ones who brought this concept in India, and since then, there is no looking back.

It has more than 1.5 million clients and is known for lower brokerage charges. They charge around Rs.20 for every trade irrespective of the trade volume. Undoubtedly, now there is a significant change in how the brokerage was being charged.

It gives over 15% of daily retail trading amounts across the Indian stock market. You can open an account with them by just paying a small amount of Rs.300, and its maintenance charges are Rs.300 for a year. Zerodha is quite flexible when it comes to services and features provided by them.

They also have a mobile app by the name of KITE which has more than 1,000,000 downloads on play store. It is also a member of NSE, BSE, MCX, and MCX-SX. It enables you to trade on stocks, government securities, mutual funds, sovereign gold bonds, and Futures & options.

They made the delivery trades free so that the investors can get an entry in the market without any hindrances. Because of its newness and approach, Zerodha has been able to rival all the big players like ICICI direct, HDFC securities, Sharekhan, etc. You can also read our detailed review of Zerodha here.

Brokerage Charges

  • Equity Delivery: Zero Brokerage
  • Equity Intraday or Futures:01% or Rs.20 per executed trade whichever is lower
  • Equity Options: INR 20 Flat
Transaction Fees
Trading & Demat Account Opening Charges Rs.200 (One time) for Online Account Opening
Trading Account Maintenance Charges (AMC) Free
Demat Account Maintenance Charges (AMC) Rs.300

Trading Platforms: Kite 3.0, Kite Mobile, Console, Pi, Sentinel, Coin

Zerodha Margin

Stock Market Segment Margin
Equity Delivery No Margin
Intraday Equity Up to 20 times
Equity Futures 40% of the normal margin (NRML)
Equity Options No margin
Currency Futures 40% of the normal margin (NRML)
Currency Options No margin
Commodity 40% of the normal margin (NRML)

Pros:

  • Zero brokerage for delivery
  • Bing brand value and customer support
  • In-house trading platforms
  • Innovate and user-friendly trading platform

Cons:

  • Cannot invest in IPO through Zerodha
  • No research report
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2. 5Paisa Discount Broker

When it comes to brokerage, 5Paisa always comes in our mind. They are backed by the financial monster India Infoline (IIFL). IIFL brings the stability of being a public limited company. 5Paisa provides more than just stock trading; they offer car, health and term insurance, personal loans, and mutual funds as well.

With them, you can save an enormous amount of money if you regularly trade as they just charge a flat fee of Rs.10 per trade. They enable you to buy and sell on BSE, NSE, MCX, and MCX-SX exchanges. They are pretty fast and also have a paperless account opening process.

It is ideal for people who want an accessible platform for trading and want to save money on brokerage charges. They also have an app that is very user-friendly and provides you with regular updates related to the market.

Brokerage Charges:

— Delivery Trading: Rs 20 per trade
— Intraday Trading: Rs 20 per trade
— Equity Futures: Rs 20 per trade
— Equity Options: Rs 20 per trade
— Currency Futures: Rs 20 per trade
— Currency Options: Rs 20 per trade

Transaction Fees
Trading Account Opening Charges Rs.650 (One time)
Trading Account Maintenance Charges Free
Demat account opening charges Free
Demat Account Maintenance Charges Rs.400

5Paisa Margin

Segment 5 Paisa Optimum Plan 5 Paisa Platinum Plan 5 Paisa Titanium Plan
Equity Delivery Trading Up to 4 times Up to 4 times Up to 4 times
Equity Intraday Trading Up to 3.5 times Up to 5 times Up to 5 times
Equity Futures Up to 3.5X 5X 5X
Equity Option Writing 2.5X 5X on normal and 10X on expiry 5X on normal and 10X on expiry
Currency Futures 1 time 1 time 1 time

Pros:

  • Good customer care support
  • 100% paperless account investing
  • Lower maintenance charges
  • Great trading platform

Cons:

  • No3-in-1 account
  • Trading by calling them over the phone is costly- Rs.100 per call.
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3. Upstox Demat Account

They are one of the most distinguished discount brokers in India and are for traders who look for low brokerage, huge margins, and a secure trading platform. They become even more famous after being backed by kalaari capital and Ratan Tata.

The trading terminal that it offers to some of its clients Upstocks pro that is a high-speed and reliable source for seamless trading. They were initially known as RKSV as they began their company by this name in 2012 and changed it to Upstox in 2015.

The good part about them is that they have high tech and advanced trading platforms, which makes trading easy. Upstox has created a completely paperless Demat opening and trading platform. You can also read our detailed review of Upstox here.

Brokerage Charges:

They have a set brokerage of Rs.20 for every trade irrespective of the trade amount.

Type Brokerage
Equity Delivery Free
Equity Futures They charge under Rs. 20 per completed order or 0.01%
Equity Intraday They charge under Rs. 20 per completed order or 0.01%
Equity Options Rs. 20 per completed order
Commodity F&O Under Rs. 20 per executed order or 0.01%
Currency Futures & Options Under Rs. 20 per executed order or 0.01%

Upstox Demat and Trading account opening Charges:

— Account opening charges: Rs 300

— Annual Maintenance charges: Rs 150

Upstox margin

Segment Basic Priority Pack
NSE/BSE Cash 20X 25X
Index Futures 3X 4X
Stock Futures 3X 3X
Index Option Sell 3X 4X
Stock Option Sell 3X 3X
NSE Currency 4X 5X
MCX Future 3X 4X
NSE Option Buy 1.33X 2X

 Pros:

  • Free delivery trading
  • Great trading platforms
  • Priority brokerage
  • Provide online account opening process

Cons:

  • Cannot make direct trades in IPO & FPO, NCDs

Also Read: 12 Best Stock Market Trading Apps In India

4. Trade Smart Online

They have a set record in offering transparent and reliable broking services. It is a venture of VNS finance and has become a significant player in the discount trading business which is also known for offering low brokerage and a fast trading platform in India.

They also have various plans for low and high volume traders. They provide two programs, one is a value trading plan for less volume traders and the second is a power trading plan for large-volume traders. One can choose any plan as per their requirements.

They charge one of the lowest brokerages in India, i.e. 7 paise for most of the volumes if you trade less volume. For traders with less frequency, they charge Rs.15 per trade irrespective of the executed rate.

It is not a new set up; it was established more than 25 years ago. It has over 50,000 customers and has an average daily turnover of Rs.5000 crores.

Brokerage Charges:

Trading Segment Brokerage for Value Trading Plan Brokerage for Power Trading Plan
Equity delivery 0.07% Rs. 15 per finished order
Equity Futures 0.007% Rs. 15 per finished order
Equity Intraday 0.007% Rs. 15 per finished order
Options Rs. 7 per lot Rs. 15 per finished order
Commodities 0.007% Rs. 15 per finished order
Currency 0.007% Rs. 15 per finished order

 Trade Smart Online Demat and Trading account opening Charges:

— Account opening charges: Rs 400

— Annual Maintenance charges: Rs 300 (Second year onwards)

Trade Smart Margin

Trading Segment MIS Intraday CO Intraday BO Intraday
NSE Cash Up to 10X 30X 30X
BSE Cash Up to 10X NA NA
Equity/Index futures 3X 7X 7X
Equity/Index Options writing (selling) 3X 7X 7X
Equity/Index Options buying 1X 1X 1X
Currency futures 3X 3X 3X
Currency Options writing 3X NA NA
Currency Options buying 1X NA NA
MCX Futures 2X 6X 6X

 Pros:

  • Zero additional software charges
  • Value trading and power trading plans
  • The higher margin for trades
  • Up to 30 times margin for equity intraday BO/CO orders on NSE

Cons:

  • 400 account opening charges
  • No direct IPO investment
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5. Wisdom Capital

It was incorporated in the year 2013; it is an online brokerage firm that offers services in stocks, futures, commodity trading on MCX & NCDEX, and options on NSE and BSE.

Wisdom Capital is said to be one of the excellent discount stockbrokers because of its various features like least brokerage, vast margin, and most exceptional trading platform.

Its online platform is straightforward to use, which attracts even more people to use it and trade through them. They provide their clients with three plans freedom plan, pro plan, and ultimate plan to the investors. Their plans are different as they take different brokerage charges and margins.

  • Freedom plan- There is zero brokerage in this in all segments, but the margin is not that great.
  • Pro plan- It is for professional traders; in this, they charge in NSE equities 0.005% intraday and delivery. For the rest of the things, they charge Rs.9 per trade.
  • Ultimate plan- This plan is for high-frequency trade people, delivery, and an intraday charge is 0.007% of each transaction. The brokerage is 0.005% NSE futures currency and commodity trading at MCX and Rs.15 per lot in options.

Brokerage Charges

Brokerage Plan Freedom Plan Pro Plan Ultimate Plan
Equities Rs.0 0.005% Intraday & Delivery 0.007% Intraday & Delivery
Commodity Rs.0 Rs. 9 per trade 0.005%
Options Rs.0 Rs. 9 per trade Rs. 15/Lot
Future Rs.0 Rs. 9 per trade 0.005%

 Demat and Trading account opening charges:

— Account Opening Charges: Rs.0

— Annual maintenance charges: Lifetime 999 (excluding tax)

The best part is that their annual maintenance charge for all accounts is the same.

Wisdom Capital Margin

Brokerage Plan Freedom Plan Pro Plan Ultimate Plan
NSE Cash Up to 5X Up to 40X Up to 60X
NSE Futures (MIS) 1X 6X 15X
NSE Futures (Cover Order) 1X Up to 20X Up to 20X
NSE Options 1X 1X Buy &
6X Sell
1X Buy &
Up to 15X Sell
MCX (MIS) 1X 6X Up to 10X
MCX (Cover Order) 1X Up to 20X Up to 20X
Deliver in NSE Cash 1X Up to 4X Up to 5X

Pros:

  • Zero brokerage in freedom plan
  • High margin
  • Flexible brokerage plans depending on client’s requirement

Cons:

  • Average Customer Support
  • Poor technology
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6. SAMCO

This is another discount brokerage company that has made its mark in the market by offering free account opening service and free maintenance. It was established in the year 2015 and became another sensational brokerage cost discount broker in India because of its low brokerage.

They offer a complete suite of products at a discounted price with excellent quality, which makes it different from others. With Samco, customers can get up to 4X delivery leverage in cash markers, 33X leverage for stocks, up to 80X leverage for Nifty, and 60X for commodity.

They support trading on NSE, BSE, MSEI, NCDEX, and MCX. As it is an online platform, you can easily trade from desktop and from your phone. They also support calls, but there is a different charge for trading through calls. Its trading platform is known as SAMCO web Xpress as it is reliable and works at high speed.

Brokerage Charges

Segment Brokerage
Equity Delivery Lower of 0.2% or Rs. 20 per order
Equity Intraday Lower of 0.2% or Rs. 20 per order
Equity Futures Lower of 0.2% or Rs. 20 per order
Equity Options Lower of 0.2% or Rs. 20 per order
Currency Futures Lower of 0.2% or Rs. 20 per order
Currency Options Lower of 0.2% or Rs. 20 per order

SAMCO Demat and Trading account opening Charges:

— Account Opening Charges: Rs 0

— Annual maintenance charges: Rs 400 (Demat account)

Samco Margin

Equity MIS Up to 3 to 10 times on MIS
Equity Cover Order Up to 50 times
Futures Up to 50% of NRML* Margin
Options N/A
Currency Futures Up to 60% of the NRML margin
Currency options 50% of the NRML margin
Commodity 40% of the NRML margin

Pros:

  • No account opening charges
  • Flat max rate brokerage plan Rs.20 per trade
  • High margin
  • Aadhar based paperless account opening

Cons:

  • Mutual Fund investment is not available
  • Low performing trading platform

Also Read: How to Start Investing in Share Market (Beginners Guide)

7. SAS online

This discount brokerage company was started by 2 young entrepreneurs and is a newbie in this industry. Their USP is that they are charging Rs.9 per trade for all segments. They support equity commodity and currency trading. With them, you can trade in Stocks, Intraday, Currency F&O, Equity F&O, and commodity futures.

There are numerous elements that put them in the top 10 list. Some of its great features are low account opening charges, and Demat account maintenance charges are just Rs.200 per year. They provide you with the choice of operating through your desktop, mobile, and web versions to make it easy for its clients.

They have an average daily turnover of Rs.10,000 crores. They process more than 1 lakh orders every day and have their clients spread in more than 750 cities.

Brokerage Charges

They offer the most competitive brokerage and charge Rs.9 for every trade in all the segments. You can also opt for their lump sum plans if you trade frequently.

They have plans for Rs.499 or Rs.999 a month in which you make unlimited trade without being charged anything extra.

Segment Monthly Charges
Unlimited trading in commodities – MCX Plan Rs 999
Trade unlimited across NSE Cash, BSE Cash and NSE F&O Rs 999
Unlimited trading in currency derivatives Rs 499

See Also
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SAS Online Registration & Annual Charge

  • Account Opening (Trading & Demat): Rs.200
  • Commodity Trading Account : Rs200
  • Annual Maintenance Charges for Trading Account: Rs.0
  • AMC for Demat Account: Rs.200

SAS Online Margin

Stock Market Segment Margins/ Leverage
Equity Delivery No margin
Equity Intraday (MIS) Up to 5 times on F&O stocks and Up to 3 times on Non-F&O stocks
Equity Intraday (CO & BO) Up to 10 times on F&O stocks & Up to 5 times on Non-F&O stocks
Equity Futures (MIS) 2 times limit is provided in all the future and option selling contracts
Equity Futures (CO & BO) 5 times limit is provided in Index futures contracts
3 times limit is provided in Stock futures contracts
Equity Options (MIS) 2 times limit is provided for option selling.
100% premium required for option buying
Currency Futures (MIS) 2 times limit is offered in all the Currency futures contracts
Currency Futures (CO & BO) 3 times limit is offered in all Currency futures contracts
Currency Options (MIS) 2 times limit is provided for option selling.
100% premium required for option buying
Currency Options 3 times limit is offered for option selling.
50 % premium needed for option buying
Commodity Future (MIS) 2 times limit is given in all the futures Contracts
Commodity Future (CO & BO) 3 times limit is given in all futures contracts

Pros:

  • Monthly Unlimited plans
  • Low cost for trading in all segments
  • Margin available against shares

Cons:

  • Charge of Rs.200 for opening the account
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8. Tradejini

This discount broker company is taking an edge over its competitors because of the fantastic online support that it provides. It was incorporated in 2012 and is a Bengaluru based company. They charge a maximum brokerage of Rs.20 per completed order.

People prefer choosing Tradejini because of its fast and convenient trading platform. They let you trade in NSE, BSE, MCX, and MSEI. They provide a single integrated platform for Debt instruments, Equities, commodities, mutual funds, and currency trading.

They employ the NEST trader as its trading terminal. They offer various trading platforms to its clients based on their preferences and needs.

Brokerage Charges:

Trading Segments Charges
Equity Intraday Rs. 20/completed order or 0.1% of turnover whichever is lower
Futures (Equity/ Currency/ Commodity) Rs. 20/completed order or 0.01% of turnover whichever is less
Equity Delivery Rs. 20/completed order or 0.01% of turnover whichever is less
Options (Equity/ Currency) Rs. 20/completed order

TradeJini Demat & Trading Account Opening Charges:

— Account Opening Charges: Rs 300 (Trading), Rs 300 (Commodity)

— Annual maintenance charges: Rs 300 (Demat AMC)

TradeJini Margin

Trading Segments Margins Provided
Equity Intraday up to 10 times
Equity Futures 40% (2.5 times) of the margin prescribed by the exchange
Equity Options (writing) 40% (2.5 times) of the margin specified by the exchange
Currency Futures and writing Currency options (NSE CDS) 50% (2 times) of the margin prescribed by the exchange
Commodity futures 50% (2 times) of the margin prescribed by the exchange

Pros:

  • In house CDSL depository participant
  • Enables investment in mutual funds, bonds and ETF’s
  • Low brokerage charges
  • Flash platform which gets curated financial and market news

Cons:

  • Need to courier account opening form
  • Does not allow GTC offers
  • Does not offer 3-in-1 account
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9. Trading Bells

This one is another significant entrant in the discount brokerage market. Their USP is that they are a new generation discount broking firm. They enable you to trade in Equity, commodities, and currencies on the platform.

It is a brand of Swastika Investment Ltd. They have around 80 branches and more than 600 franchises all over India. They provide you with a desktop trading tool, a web trading application, and also a mobile trading application which makes trading pretty easy for the investors.

Opening account with them is elementary and can be done in just a couple of minutes. You just need an Aadhar card and can open the account online without any trouble of visiting the office. They also provide a premium brokerage plan, which is for the clients who trade frequently or do heavy trading.

Brokerage Charges:

Trading Segment Standard Plan Premium Plan
Equity Delivery Zero 0.30%
Equity Futures 0.01% or Rs. 20/finished order whichever is lower 0.30%
Equity Intraday 0.01% or Rs. 20/ finished order whichever is less 0.30%
Currency Options Flat Rs. 20/finished order Rs. 30 per lot
Currency Futures 0.01% or Rs. 20/finished order whichever is lower 0.03%
Equity Options Flat Rs. 20/finished order Rs. 30 per lot
Commodity Futures 0.01% or Rs. 20/finished order whichever is less 0.03%
Commodity Options Flat Rs. 20/finished order Rs. 30 per lot

 TradingBells Registration & Annual Charges:

Equity (trading + demat) and commodity account: Rs. 750
Annual account maintenance charges NIL

Trading Bells Margin-

Trading Segments Margin
Equity Intraday Up to 10X depending on the stock
Equity Futures Up to 3X
Equity Options (buy/ sell) 1X
Commodity Up to 3X
Currency Up to 3X

Pros:

  • No AMC charges
  • No delivery charges in the standard plan
  • 22x leverage for equity intraday cover orders

Cons:

  • Auto square off on 80% margin erosion
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10. Trade Plus Review

It is an online brand of Navia Markets Ltd. that has an experience of over 2 decades of broking business. They trade not only in Equity and derivates but also in mutual funds, IPO, Bonds, and ETF’s.

It is a big brand that has numerous happy customers and a presence in various cities across the country.

Brokerage Charges

Trading Segment Flat Zero brokerage Scheme Flexi Brokerage Scheme
Equity Delivery 0% 0%
Equity Intraday N.A. Under Rs. 9 per traded order or 0.01%
Equity Futures Rs. 799 a month Rs. 9 for one traded order
Equity Options Rs. 99 a month Rs. 9 for one traded order
Currency Futures & Options Rs. 99 a month Rs. 9 for one traded order
Commodity Future & Options Rs. 99 a month Rs. 9 for one traded order

 Trade plus Registration & Annual Charges

  • Trading account opening fees: Rs.200
  • Demat account opening fees: Rs.0
  • Annual Maintenance charges: For the first year there are no charges, the second year you have to pay Rs.200 for one year
  • Infini Trading Solutions trading platform fees: Rs. 499 for a month or Rs. 2,999 yearly

Trade Plus Margin

Trading Segment MIS Intraday Margin CO/BO Margins
Equity Intraday Leverage of 10x is offered for all stocks trading in the futures segment where (VAR+ELM) <=20%. Between 20X – 30X on all F&O stocks
Equity Futures/ Option selling 50% SPAN +50% Additional margin 5% of the Contract value & Stop Loss 3% Compulsory
Currency Derivatives 50% SPAN +50% Additional margin N/A
Commodity Futures/ option selling 50% SPAN +50% Additional margin 20% SPAN or SPAN / 5 for commodity futures and NA for Commodity options
Equity / Commodities options BUY 100% of Premium Value for Equity and Commodity NA N/A

Pros:

  • No delivery charges
  • Flexible AMC plans
  • Analysis tools available for intraday trading
  • Low Demat AMC or ₹90 per month

Cons:

  • Charge an extra monthly fee for trading software
  • 75 charges for call and trade facility

These were the top 10 best discount brokers in India which can help increase your profits and reduce the expense plus they also provide you with excellent advice which can help you in multiplying your money.

How to select the best discount broker?

As you know about some of the best discount broker companies, it is also essential for you to understand that how can you select a good discount broker. Here are a few points to keep in mind while choosing a discount broker-

  1. Brokerage- Ensure that the charge of the broker should be minimum as if you trade a lot then it is a paramount thing to compare with others and choose the one with the best and economical pricing
  2. Trading Platform- Before opting for any trading platform always choose the one which is user-friendly and should make things simple for you like order placing, research tools, etc. so that you can get the maximum benefits
  3. Customer Support- It is substantial for you to even check about the customer support offered by the discount brokerage firm as it helps in maintaining smooth and seamless trading.
  4. Leverage- Margin trading should never be ignored while selecting a discount broker as it is a significant aspect that differentiates between two brokers.

These are some of the essential aspects to check on before opting for a discount brokerage firm also always watch out for the hidden charges, broker review, branch network, online trading terminal, and discount broker financial strength before choosing any broker.

Advantages of discount brokers in trading

  • Low cost: They provide the lowest brokerage charges as compared to the traditional full-service brokers. This helps the traders to convert ant trade in profit with a low break-even point
  • Online platform for trading: Discount broker offers an online trading platform which allows the investors in doing trade smoothly and quickly
  • Unbiased offer: One of the best things about them is that whether you are a prominent investor or small, discount brokers offers you the same
  • Transparency index: They are pretty much reliable as all their deals are transparent because the margin calculator is known to everyone
  • Client education: Numerous discount brokers provide an educational video tutorial for their clients so that it can help them in trade with them for a longer span
  • Quick account opening: Just with the help of Aadhar card they provide you with an option of paperless account opening in just a couple of minutes
  • Transactional Cost: They charge you with the minimum transactional cost irrespective of the volume of trade

Disadvantages of Discount Brokers

  • No advisory: They do not provide with advisory service whereas full-service brokers offer it without any charge
  • No 3-in-1 account: Discount brokers provide you with an option to open trading and Demat account. They do not offer you the feature of opening a bank account
  • No branch support: Usually the discount brokers work centrally, hence if you need branch support for paperwork then you need to choose another option for yourself
  • PMS service: Discount brokers do not offer portfolio management service to their clients. If you want a fund manager, then a full-service broker would be the best option for you.

Recommended: Top 25 Indian Companies by Market Capitalization

This was about the discount brokers and how they can benefit you while trading. All the above-mentioned discount brokerage platforms are great and really moving the trading community a step forward. There might be some small differences amongst them, so choose the one as per your requirements.

Happy Trading!

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