Even though you are making a good income by trading on the share market, who would not like to save money on brokerage charges?
In order to invest money in the stock market, you must have a stock broker for yourself and they charge something according to the amount you invest. There are types of brokers in the market,
Full-time broker.
Discount broker.
Most of the beginners who start their investment journey with minimal wealth go with these discount brokers.
If you are also looking for discount brokers, you are in the right place.
In this article, we will walk you through some best and most reputed discount brokers in India who allow you to invest your money in the share market without paying substantial brokerage commissions either.
But before we dive into the lists, let’s have a closer look at,
What is a discount broker?
A discount broker is a type of financial intermediary that offers brokerage services at lower fees or commissions than traditional full-service brokers. Discount brokers typically execute trades on behalf of their clients, but do not provide advice, research, or financial planning.
Discount brokers may also offer other services, such as online platforms, robo-advisors, or access to third-party research providers. Discount brokers can appeal to investors who are comfortable making their own investment decisions and want to save money on trading costs.
Let’s understand the
Difference between discount brokers and full-time brokers:
If you are looking for a broker to help you invest in the stock market, you may wonder what is the difference between a discount broker and a full-service broker. Let’s see both types of brokers’ pros and cons.
Discount broker pros and cons:
A discount broker is a type of broker that offers low commissions and fees but provides limited or no advice, research, or guidance. Discount brokers charge lower commissions and fees than full-service brokers, which can save money for investors who trade frequently or in large volumes. For example, a discount broker may charge $5 per trade, while a full-service broker may charge $50 or more.
However, the main disadvantage is that you have to do your own homework and make your own decisions, which can be challenging and risky if you are not experienced or knowledgeable.
Full-service broker pros:
The main advantage of using a full-service broker is that you can benefit from their expertise and recommendations, which can help you achieve your financial goals.
A full-service broker is a type of broker that charges higher commissions and fees but provides a range of services, such as financial planning, portfolio management, tax advice, and market analysis.
However, the main disadvantage is that you have to pay more for their services, which can reduce your returns and limit your choices.
Full-service vs discount brokers: who needs them?
The choice between a discount broker and a full-service broker depends on your personal preferences, goals, budget, and level of confidence. If you are a self-directed investor who likes to research and trade on your own, you may prefer a discount broker. If you are a busy or novice investor who needs more guidance and support, you may prefer a full-service broker. Either way, you should compare different brokers based on their fees, features, reputation, and customer service before making a decision.
If you are looking for a way to save money on your investments, you might want to consider finding a discount broker. A discount broker is a type of financial intermediary that offers lower fees and commissions than a full-service broker but also provides less advice and guidance. Discount brokers are ideal for investors who are confident in their own research and decision-making skills, and who want to trade frequently and cheaply.
To find a discount broker, you need to do some research and comparison. You can start by looking online for reviews and ratings of different discount brokers, as well as their fee structures and services. You should also check the regulatory status and reputation of the brokers you are interested in, and make sure they are registered with the appropriate authorities.
Factors to consider while choosing a discount broker are:
- Types of investments they offer, such as stocks, bonds, mutual funds, ETFs, options, etc.
- The trading platforms and tools they provide, such as web-based, mobile, or desktop applications, charting, analysis, news, etc.
- Customer service and support they offer, such as phone, email, chat, or social media, and their availability and responsiveness.
- Minimum deposit and account balance requirements they have, as well as any other fees or charges they may impose.
- The security and protection they offer for your account and personal information, such as encryption, authentication, insurance, etc.
In India, there is no sort of brokers. After the internet boom, more and more discount brokerage companies have come to light. They are known as discount brokers, who don’t like to invest and grow their money by spending less as brokerage charges.
However, not all discount brokers are the same and accurate fit. Not only in terms of brokerage charges but also in certain other aspects, different companies have different points to consider.
That’s why we have prepared a list of top discount stock brokers in India. So, let’s get started with the list.
Zerodha:
There is a strong reason, to place Zarodha in the first place. After all, they are the first discount broker in India and started their journey back in 2010 in Bengaluru.
The company offers services such as currency(Forex) Trading, Mutual Funds, Equity Stock Trading, and Commodity Trading. The company has over 1100 employees and over 40 lakh customers which makes it the number one discount stock broker in India.
Zerodha charges zero fees for equity delivery. For the equity options you are charged only Rs. 20 per trade no matter what your trading volume is.
If you go for an online account opening in Zerodha, you will require an Aadhaar card and RS. 200.
You can invest directly in mutual funds through Coin which is a newly introduced platform by them. As it is the largest brokerage firm in India, they have the lead in this. Only some people find these two points a drawback in Zerodha, and the call and trade are chargeable on the platform.
5Paisa:
5paisa is yet another excellent option if you are looking for a discount broker. It is basically a mobile trading app that allows you to do online trading, mutual funds, insurance, Equity trading, Forex trading, IPO, and more. The company is associated with the Bombay Stock Exchange, National Stock Exchange, and Multi Commodity Exchange. The platform offers a smooth mobile app experience that helps buy and sell shares much more conveniently.
It is one of the cheapest discount brokerage companies.
Similar to the Zerodha, it charges a flat RS. 20 per trading without any price cap of the trade amount.
Angel Broking:
Angel Broking is one of the veterans in the stock brokerage industry in India. Even Though it started its journey as a full stock broker model but later in 2019, Angel Broking adopted the discount brokerage model.
They offer services like bonds, Online trading, mutual funds, and portfolio management services.
The equity delivery charges in Angel Broking are Zero. For Equity Intraday, Equity Futures and Equity Options, and Currency Futures Angel Broking charges Rs. 20 per trade.
Gor Commodity Options. For commodity Futures and Currency options, the charges are the same.
The platform uses state-of-the-art technology that offers recommendations for investments.
Upstox:
Upstox is yet another great discount broker that started its journey in 2012. The company was established under the name RKSV in Mumbai. Now the company has its headquarters in Delhi. Upstox offers its services to over 2.5 lakh customers pan India and does over 7500 crore business every day. The company is also a member of NSE, MSE, and MCX. The company is funded by the most renowned businessman Mr. Ratan Tata. The equity delivery charges are Rs. 2.5% or Rs. 20 per trade. Equity Intraday charges are 0.05% or Rs. 20 per trade.
The demat account opening charge in Upstox is nil and for a trading account, it charges RS. 150.
Trade Smart Online:
TradeSmartOnline is a part of VNS financial services that started out in the Indian stock market twenty years ago in Mumbai. Later, they embraced the discount brokerage niche looking towards the opportunity. For Equity Delivery, Equity Intraday, Equity Futures, and Equity Options They charge Rs.15 per trade with the Power Plan.
Many people may find this a disadvantage that they do not provide any tips and recommendations and there is no support at all for IPO and mutual funds.
Groww:
Groww is one of the most popular discount brokers in India which started their journey not a while ago but in a small period it creates lots of hype amongst people. If you ever searched for something related to online trading or investments, chances are high that you must have come across their ads.
The company behind the operation is, Nextbillion Technology Private Limited which is SEBI registered stockbroker firm. It is a Bangalore-based company that offers brokerage service through a flat fee. Investors can invest in equity, IPO, and Mutual Funds through it. The company is not only limited to equity trading, but also, to US stocks, digital golds, and more.
Groww offers features such as Instant and paperless account opening, Rs. 20 brokerage charge which is the maximum for a single trade.
If you are looking to invest your money into mutual funds, Groww offers zero-charge services for that.
These are some of the most popular discount brokers in India right now. These platforms are all reputed and they are in the market for a long time. So, you can trust them and start your investment journey. However, each platform has some pros and cons. Also, their charges are different. So, before you choose any platform, make sure to read their account opening charges, commissions, and other aspects. Then you decide whether you should choose it or not.
Wrap up:
Finding a discount broker can help you reduce your trading costs and increase your returns. However, you should also be aware of the risks and limitations of using a discount broker. You will have to take more responsibility for your own investment decisions and actions, and you may not have access to the same level of research, advice, and education as with a full-service broker. You should also be careful about hidden fees or charges that some discount brokers may have, such as inactivity fees, account maintenance fees, or extra fees for certain services or features. You should always read the fine print and understand the terms and conditions before opening an account with a discount broker.
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