If you are trading or investing in stock markets then you must have heard about new community of stock brokers called ‘discount brokers’. Some of the Best Online Discount brokers in India are brokers offering trading in stock market are very low cost also called as deep discounted brokerage plans. In contrast to full service brokers, which charges brokerage as a percentage of turnover value, discount brokers charges on per trade or fixed value per month for each segment be it large value traders or small traders.
These discount brokers in India, are the first choice of traders who are looking for lowering their costs. Also to get a lower break even point while trading and eventually increase their profits. Now even investors are also moving to them with an aim to reduce their brokerage cost for their delivery trades.
Discount brokers in India survives on the cost cuttings and normally operates out of a single location. They do not offer relationship managers or research or any other value add services. With few of the discount brokers, even phone trading are charged at an differential or additional cost. From 2010, number of discount brokers have started their operations. Rather few large brokers have also started their off shoots on the discount brokerage side.
While looking for the Best discount brokers in India, we should look upon different parameters apart from the brokerage cost.
Firstly, Brokerage charging methodology, as how a brokers is levying the brokerage to its clients. Is it fixed per trade or fixed per month. Also what are other associated costs or allied charges. Most of the discount broker charge separately for phone trading or their could be other hidden costs.
Secondly, Trading Platform i.e. features offered in trading platform that may ease trading or support clients research capabilities. Few brokers also offers Algo trading capabilities also as such any one may initiate system trading sitting at his home with minimal capital.
Thirdly, Back office software to inform about the trade summary and ledger details. Discount brokers believes only online way of communication as such reports or contract note may be expected in your mailbox only.
Lastly, Exchanges or segments Offered on the platform like commodities, currency etc.
Best Discount brokers in India
Zerodha
Among one of the first discount brokers in India, they started with the same brokerage across segments i.e Equity, F&O, Currency and Commodities. They offer a single brokerage plan of Rs. 20 per trade or 0.01% /0.1%, whichever is lower per executed order. They offer trading through their proprietary software Zerodha Pi that offer tremendous capabilities. Also it offers a 60 day challenge. Zerodha brokerage plan and Reviews
In an unimaginable move, Zerodha made all investments in stock markets free of cost. From Dec 01, 2015, it started offering Free delivery trades without any brokerage. However brokerage for intraday and F&O transaction will remain at Rs. 20 per trade.
In another first, Zerodha offers a Multilingual Trading Platform. Currently it is available in few languages however they have a plan to increase it to 15+ languages.
RKSV
RKSV started their operation in 2012 and offers three different kind of brokerage plans. The plans are targeted for Active traders and Passive traders with rates on per trade basis as well as fixed amount per month per segment. Their ultimate plan at Rs. 9,999/- offers unlimited trading per month for all segments. RKSV brokerage plan and Reviews
In other plans, they offer plan 3999/- for unlimited trading in Securities, plan 2999/- for unlimited trading in commodities and 1999/- for unlimited trading in currency.
RKSV is known for their Dream Plan, they offer 5 free trades for life across all segments. And beyond 5 trades will be charges at Rs. 20 per trade.
TradeJini
TradeJini is a discount brokerage that offer an integrated platform for Equities, Derivatives, Commodities and Currency With flat Rs. 20 per trade, they aim to break the traditional barrier of percentage brokerage. Trade Jini also offer phone based trading with an additional cost of Rs. 20 per trade. TradeJini brokerage plan and Reviews
Tradejini offers 50 free trades for all new registration. So anyone opening a new trading account with tradejini will get first 50 free trades.
SAS Online
SAS Online is a Delhi based discount brokerage that offers brokerage as cheap as Rs. 9 per trade. In their Other plans, they offer unlimited trading at Rs. 999 per segment per month. Only for currency segment, they charge 499 per month. SAS Online is an organization By Traders for trades, that’s what they call them. Also like various other players, they also offer margin against shares. You will get SAS Nest trader as their trading platform, which is faster as well as reliable.
TradeSmartOnline
TradeSmartOnline is another discount brokerage that offers three different brokerage plan. For traders who trade in small volume, they offers 0.007% brokerage rates that means Rs.700 for every crore of trading volume. In another plan, ‘Power’, they charge Rs. 15 per executed order. They also offer ‘infinity’ plan where they charge Rs. 3999 per month, Rs.1999 per month and Rs. 3999 per month for Equities, Currency and Commodities trading. Again, They also offer trading through Now and Nest trading platform.
Most of the brokers in this segment maintains online and phone as their communication channel and the response for your queries becomes an important element.
Conclusion
The discount broking concept in India is not a new concept that we have evolved. It is a very popular and successful concept globally. Large brokers like E-Trade, Ameri-Trade are the among the most successful examples. When you look for a discount broker for your trading, it is important to first understand your own trading style or your own particular requirement. The broker can be best only if you are satisfied and satisfaction can be very individualistic. Another way to look for best is have a collective views from the users of the same.
I hope you will give your suggestions, in the interest of other about the one you are trading with. Please do not forget to state the reason for suggesting or not suggesting any particular broker(s).
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