I am sure we all have crossed paths with a broker at least once in our lives. He is the guy who buys and sells things on behalf of others and serves as a sort of middleman. A stockbroker is an authorized member of the stock exchanges (BSE, NSE) who buys and sells stocks on the behalf of an investor and charges him a small fee as his commission.
The ones who offer research and advisory, local support,
wealth management and bank support apart from stock trading are called the
Full–Service Brokers.
Whereas, online brokers only offering stock and commodity
trading services are known as the Discount Stock Brokers. In this article, I
have listed out the top 10 best stock brokers in India by their client base and
policies and ease of transaction, so kindly read till the end.
Click here to start your investment journey with one of the best stock brokers in India, upstox.
10 Best Stock Brokers in India!
1.Zerodha
The Inception:
Zerodha began its operations in the year 2010
with Nithin Kamath as Founder and CEO of the company. The main initiate was to
break the barriers that the investors face in India in terms of cost, support,
and technology, and on this principle stands the name of the company which can
be seen as a combination of “Zero” and “Rodha (Sanskrit word for barrier)”.
Since then, the company has seen huge growth and attracting
some huge investors such as Rainmatter, who now is their fintech fund and
incubator. Zerodha has been awarded “Economic Times Startup of the Year – 2020”
and currently has an active client base of 3.4 million as of the fiscal year
2021.
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Services offered:
Stocks – Both intraday and delivery facility for the
stocks listed on NSE and BSE.
Direct Mutual Funds – customers can invest in over 2000
direct mutual funds and can save up to 1.5% commission money.
Futures and Options – the facility to trade oil, metal, and Agri
commodities on MCX and NSE.
IPO – people can invest in IPO by using UPI.
Gift Stocks – users can even gift friends and family stocks
or gold bonds to welcome them to the world of investing.
Fixed Income – users get to invest in Govt. Securities and
Sovereign Gold Bonds as well.
Pricing:
All direct mutual fund investments and equity
delivery investments are free of cost. While a charge of Rs. 20 or 0.03%
(whichever is lower) per order on intraday trading is applicable.
2. Upstox
The Inception:
This Mumbai-based broker was found in 2010 by
Ravi Kumar (CEO) as RKSV Securities India Pvt. Ltd. and was limited only to a
select clientele. It was later re-branded as Upstox in 2012 and opened to the
general public.
By building a strong business model and maintaining strong
customer relations the company has managed to grow as one of the leading
brokers in India and has attracted some huge investors such as Ratan Tata,
Tiger Global Management, and Kalaari Capital, and currently has around 2 million
active clients.
Services offered:
The services offered by Upstox are Stocks,
Futures and Options, Mutual Funds, Digital Gold starting with Rs. 1 investment,
and IPOs listed by NSE.
Upstox offers its customers all the services on Web/Desktop
as well as in the form of an app on both Android and IOS platforms.
Pricing:
All digital gold, mutual fund, and equity delivery investments are brokerage-free. Intraday and F&O trades have charge of Rs. 20 or 0.05% (whichever is lower). It also charges Rs. 25 for maintaining the Demat account.
Click here to open your Demat account now.
3. 5Paisa
The Inception:
“A Paisa Saved is a Paisa Earned” is the
motto of this company which was established in the year 2007 as a Public
Limited Company. Spearheaded by Mr. Prakash Gagdani, Director and CEO of the
company, 5Paisa has seen tremendous growth in business as well as clients since
its inception with nearly 1.2 million active users as per FY 19-20.
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Services offered:
5Paisa offers stock trading for all NSE or
BSE listed stocks, it offers F&O Derivatives trading, Commodity trading,
Currency trading, mutual funds, and digital gold trading as well.
The company also offers Loan and Insurance facilities to its
users as well.
Pricing:
There is a charge of Rs. 20 per order on Stocks,
Commodities, and Currency for any value, and any type. The mutual funds'
transactions however incur zero commission.
Equity Intraday at 0.00325% (NSE) and Equity Delivery at
0.00325% (NSE) an extra SEBI fee may be applicable.
4. Angel broking
The Inception:
One among the oldest stockbroking firms in
India, Angel Broking was established in 1987 and is a member of NSE, BSE, NCDE,
and MCX. The company has more than 8500 franchisee outlets across India and now
one of the leading contenders in the digital race. Backed by some good
investors such as arm International Finance Corporation with an 18% stake,
Angel Broking is looking forward to a promising future.
Also Read: 8 Best banking stocks to buy in India in 2021.
Services offered:
Angel Broking offers Equity, Commodities,
Derivatives, and Currency Trading as its products for the customers to choose
from.
Pricing:
Equity Delivery Trades are free for a lifetime and
AMC charges are levied off for the first year while a charge of Rs. 20 or 0.25%
(whichever is lower) is applicable for Intraday, F&O, Commodities, and
Currencies per executed order.
5. Groww
The Inception:
Groww was founded by four ex-Flipkart
employees in 2017 to start a venture that would make investing easy. Lalit
keshre heads the company as Co-founder and CEO. Initially, Groww started as a
direct mutual fund distribution platform and later on went to adding many other
products to its portfolio. Groww has been successful in attracting big
investors such as Sequoia Capital India, Ribbit Capital, YC Continuity, and
Propel Venture Partners and raising some huge funds.
Services offered:
Groww as usual offers Mutual Funds and it
has expanded its product offering to Stocks, Futures and Options, US Stocks,
Digital Gold, and Fixed Deposit services.
Pricing:
For Stocks, there is no charge for opening a Demat
account and AMC while Rs. 20 (or 0.05%) on Equity Brokerage and Rs. 20 on
F&O per order is applicable.
Mutual Funds incur zero charges for opening the account as
well as for transactions.
For US stocks there is a one-time fee for opening the
account and a quarterly fee as AMC while no fee is charged on brokerage.
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6. Motilal Oswal
The Inception:
Also, one of the earliest stock broking firms
in India, Motilal Oswal Financial Services Ltd was founded by Motilal Oswal and
Raamdeo Agarwal in the year 1987. The company entered into investment banking
in 2005 with its headquarters in Mumbai and started showing interest in private
equity funds in 2006. Over a million active users strong, the company looks
forward to heavy business.
Services offered:
Motilal Oswal has a plethora of products
in offering such as Equity, Mutual Funds, ME Gold, Commodities, Small cases,
PMS, Currency, IPO/Bonds/FD, and US Equities.
Pricing:
The interested customer has to pay a one-time fee
of Rs. 1000 for opening Trading Account, while AMC charges are zero. There are
zero fees for opening a Demat Account while users have to pay Rs. 299 AMC. The
brokerage charges are broken down into 3 unique plans viz Default Brokerage
Plan, Value Pack plan, and Margin Scheme which is available in detail on their
website.
Read here; 10 Largest companies in India by market capitalization in 2021.
7. ICICI Direct
The Inception:
ICICI Direct is the largest retail
stockbroker in India. It is part of the ICICI Group and offers online trading
and investment services to more than 50 lakh customers with over two decades of
service. ICICI Direct boasts of 1.4 million active clients as of the fiscal
year 2021.
Services offered:
Mutual Funds, ETF, Derivative,
Commodities, Currency, IPO, FD & Bonds, Loan, and Insurance are the bounty
of services provided by the company.
Pricing:
ICICI Direct has six uniquely tailored brokerage
pricing plans for its diverse customer base which are available in detail on
their website. It also offers zero brokerage charges for trades squared off
within five minutes.
8. HDFC Securities
The Inception:
HDFC Securities is a subsidiary of HDFC Bank
which began functioning in 2000. With a plethora of service offerings, HDFC
Securities also boast of multiple platforms and ease of trading. The strong
background and backing secure the future of the business which has over 250
branches for personal experience and advice. It has around 1.9 million active
customers in FY 2021.
Services offered:
Equities, Mutual Funds, SIP, ETF,
Derivative, Commodities, small cases, IPO, FD & Bonds are the services
offered by HDFC Securities.
Pricing:
Rs. 25 (or 0.5%) applicable on Equity, Rs. 25 (or
0.05%) on Derivatives for non-square off trades and Rs. 23 per contract for
Currency Derivatives is charged.
9. Sharekhan
The Inception:
Sharekhan was founded in 2000 as a subsidiary
of BNP Paribas and was one of the first brokers to offer online trading
services in India. With around 2 million customers, 153 branches, and more than
2400 business partners over 541 locations, Sharekhan has cemented its roots
into the Indian financial market, it also enjoys an international presence in
over 70 countries.
Services offered:
Sharekhan offers plenty of products such as Equity and Derivatives, Mutual Funds, Currency Trading, and IPO. It is also well known for offering education to customers regarding investment opportunities. It also provides PMS (portfolio management schemes) to handle multiple portfolios.
Pricing:
As a limited-time offer, Sharekhan is not charging
anything for opening an AMC of Trading account and zero charges on the opening
of a Demat account, but there is a fee of Rs. 400 as AMC for Demat account.
A minimum charge of 5 paise per share is applicable on
intra-day trades and a minimum charge of 10 paise per share on delivery-based
trades. It also offers prepaid and postpaid plans, details of which can be
found on their website.
10. Kotak Securities
The Inception:
Kotak Securities is a full-service broker
since its inception in 1994 with a huge customer base of 1.2 million and 1209
branches across India. Kotak Securities offers its customers a three-in-one
account which allows investors to open Demat, trading, and bank account at the
same time with Kotak Mahindra Bank Ltd for the feasibility.
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Services offered:
It offers Mutual Funds, Currency Trading,
IPO, ETF, Digital Gold, and Stock research and analysis.
Pricing:
There is a one-time fee of Rs. 750 for the opening
of a trading account while its AMC is free. Demat account opening is free of
cost but there is an annual maintenance charge of Rs. 600.
Kotak Securities offers three brokerage plans viz Fixed
Brokerage plan, dynamic Brokerage Plan, and Unlimited Trading Plan details of
which can be found on their website.
Bottom Line
Before deciding to go onboard with any of the brokers above
there are certain factors to keep in mind that are:
Brokers History – check if the broker has any dark past or
any complaints registered with SEBI, a simple internet check will suffice.
Ease of Investing – the very advantage of digital trading is
the ease of investing and the services provided by the broker must be easy to
use and available on multiple platforms.
Customer Support – This is the utmost important factor as
the world of the stock market has many surprises for the investor and it is
good to have someone to guide you and solve your problems whenever needed.
Follow the above things and you are good to go! If you like
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