Online broking or E broking is now a successful concept in India. With continuous growing internet community and day by day improving internet speed, people are finding is lot easier to do thing online than walk in to offices. The Online broking in India was started log back with brokers like Sharekhan, 5 paisa, ICICI direct who build their platform to attract more and more people without any dependence on increasing servicing teams.
Online brokers can be broadly classified into three categories.
Bank promoted brokers
Bank promoted brokers are entities which are subsidiaries of bank and generally offer 3 in 1 accounts, which is a inter-linked combination of Trading account, Demat account and a Saving bank Account. Normally, the Demat and Saving account are opened with banks and trading accounts are opened with broking entities. Few banks have also tied up with non promoted broking entities and offers a similar proposition. However two entities being from different promoters, the integration are not as seamless as bank promoted brokers. Some of the most popular bank brokers are
ICICI Direct
HDFC Securities
Axis Direct
SBI Cap Securities
IDBI Capital
Online Full service brokers
Brokers which offer online services along with value adds like Phone trading, Relationship Manager, walk in offices are termed as Full service brokers. Now a days, these brokers also offer online access to clients for trading through sophisticated software which works on all types of devices like mobiles, tablets apart from desktops. These brokers offer online trading and Demat services along with the online payment gateway mechanism which works with select bankers like HDFC Bank, ICICI, SBI, IndusInd, etc. Some of these brokers have also tied up various banks and act as a partner for 3 in 1 account. Normally, these tie ups works on revenue sharing mechanism between bank and broker. Examples of such brokers are
Sharekhan
IndiaInfoline
Angel broking
Online Discount brokers
Discount brokers is a relatively newer way of broking where a broker offer its services at a deep discounted rates. They offer no frill account without any value adds and mostly operates out of one location. The discount brokers charges are on per trade or fixed amount per month per segment. These charges are are great saviour for traders as it not only reduces the cost of transaction but also bring down break even point significantly for each trade. The most popular discount brokerages in India are
Zerodha
RKSV
TradeJini
MyValueTrade
So if you are a person who operates internet on almost on regular basis, so it is the time for you participate in Stock market in the most sophisticated and cost effective way.
