7 Best Discount Broker in India 2021 (UPDATED List)

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Best Discount Broker

The Indian brokerage sector is undergoing major changes. In comparison to the pricey traditional brokers, these discount brokers were able to attract a large number of customers since they offered a lower brokerage plan. Following this upheaval, several established brokers and organisations began to mimic the model and offer similar, lower-cost policies.

Discount brokers have revolutionised the stock broker environment for the better in recent years. Discount brokers charge a flat brokerage per trade, regardless of the trade volume, allowing you to save a significant amount of money on your brokerage fees.

Discount brokers have grown in popularity in recent years after gaining notice for nearly a decade. In fact, several of these inexpensive brokers are able to outperform the well-established and large ‘traditional’ trading organisations. As a result, many traditional brokers have joined the discount broking model or aim to offer a cheap brokerage option to their clients.

Paying brokerage to a full-service broker in a single transaction may not seem like a big deal. However, if you add up the total amount you pay the broker across a number of transactions, you’ll see that you’re probably spending a lot of money.

In this article, we’ll look at eight of the greatest discount brokers in India. We’ll assess cheap brokers in India based on major elements such as brokerage fees, account opening fees, maintenance fees, services offered, trading platforms, pros and disadvantages, and more.

What is Discount Broker?

A discount broker is a stockbroker who offers basic trading services at a lower commission cost. It focuses on providing a reliable online platform for buying and selling. In some situations, a discount broker may also give the necessary knowledge material for trading. For trading stocks, commodities, and currency derivatives, discount brokers provide low brokerage, high speed, and a quick interface. The charges charged by these cheap brokers are significantly lower than those charged by typical Indian brokers like as HDFC Securities, ICICI Direct, SBI Cap, and others.

However, such brokers do not provide ancillary services that are not directly related to trading, such as investment advising, market analysis, and so on. In other words, a discount broker facilitates order execution for its clients but does not offer trading analysis or advice.

Furthermore, a discount broker’s business plan is extremely simple. They charge a fixed brokerage rate for all trades made by their clients, regardless of the size of the deals. This cost normally ranges between Rs 10 and Rs 20 each order.

Full-service brokers, on the other hand, charge a fraction of the fee based on transaction volume. For delivery transactions, this cost might be as high as 0.25-0.7 percent of the transaction volume. When a result, as the transaction volume grows, you’ll have to pay more and more brokerage.

Top 7 Discount Brokers in India

ZERODHA

Zerodha, the largest discount brokerage in India, was started in 2010 by Nitin Kamath and offers free equities and mutual fund investments as well as flat brokerage for intraday and all other traders. It has over 8 million customers and accounts for over 15% of daily retail trading volume on the Indian Stock Exchange. Its smartphone app, KITE, has been downloaded over 5,000,000 times on Google Play.

For intraday trades, Zerodha charges a set fee of Rs. 20 per trade, with no cost on delivery. Most traders prefer Zerodha because of its trading platforms, which are packed with comprehensive charts and tools. Other tools such as Sensibull, Streak, and Smallcase can be linked to your Zerodha account.

From the moment you register an account with Zerodha through the end of your trading trip, you can anticipate excellent customer service. Customer service may be harder to come by with other cheap brokers.

Zerodha brokerage charges

  • Brokerage-free equity delivery: All of your equity delivery investments (NSE, BSE) are completely free.
  • 20 intraday equities and F&O trades: 20 or 0.03 percent (whichever is lower) per executed order on NSE, BSE, and MCX intraday equity, currency, and commodity trades.

Zerodha Demat and Trading account opening Charges:

For opening a trading and demat account at Zerodha, here are the charges:

  • Equity Trading Account: Rs 200
  • Commodity Account: Rs 100

As a result, the total account opening charges for a Trading, Demat, and Commodity account with Zerodha will be Rs 300. In addition, the Demat account’s annual maintenance charge (AMC) is Rs 300.

Services offered: Zerodha offers trading and investment services in equity, derivatives, currency, mutual funds & commodities.

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

Why to choose Zerodha

  • Most trusted & reputed broker in India
  • Best in customer support
  • Fix Rs 20/trade on intraday
  • Free Long-term Equity Delivery Trades
  • Innovative & User-Friendly trading platform
  • Big brand value and financial education materials
  • Direct Mutual Fund Investment from same Demat account

Upstox

For traders looking for low brokerage, high margins, and good trading platforms, Upstox is one of the finest discount brokers in India. Upstox is a rapidly expanding discount broker backed by a number of notable investors, including Kalaari Capital, Ratan Tata, GVK Davix, and others. RKSV is another name for it. Upstox began as RKSV in 2012 and changed its name to Upstox in 2015. Upstox, behind Zerodha, has the second-highest number of active clients on the NSE as of January 2021.

For bigger profits, you can trade with minimal brokerage fees of Rs 20 per trade and high margins of up to 28X. For value investing, the stock delivery is free.

Upstox’s high-tech and innovative trading platforms are what I like best. After Zerodha, Upstox just surpassed 10 Lakh users and became the second-largest discount broker.

Services offered: Upstox offers trading services in equity, currency, and commodity

Upstox Brokerage charges

Equity delivery trades are free when trading with Upstox. It is 0.05 percent or up to Rs. 20 per order traded for intraday trading on the BSE, NSE, and MCX, as well as F&O. The brokerage cost is merely Rs. 20 every order traded, regardless of order size.

  • Delivery Charges:  Rs 0
  • Intraday Trading:      Rs 20 per executed trade or 0.05% whichever lower
  • Futures Trading Charges:   Rs 20 or 0.05% (whichever is lower) per order
  • Options Trading Charges:  Rs 20 per trade

Upstox Demat and Trading account opening Charges:

  • Account opening charges: Rs 299
  • Annual Maintenance charges: Rs 300

Trading Platform: Upstox Pro Web Trading Platform, Bridge for AmiBroker, Developer Console, Option Chain Tool, Upstox MF Platform

Why to Choose Upstox

  • Free brokerage credit of Rs 1000
  • Zero stock deliver brokerage 
  • Great trading platforms with advance tools 
  • Fast paperless Demat and trading account opening,
  • Margin against share is available,
  • Zero Brokerage on Delivery and Flat Rs 20/order on other trades

5Paisa

5Paisa is a subsidiary of IIFL (India Infoline), and it is India’s cheapest discount broker, with a flat fee of Rs. 10 per trade on the titanium and platinum plans. IIFL created 5Paisa to compete with the fast-growing discount broking market by providing a reduced brokerage platform for its clients.

5Paisa is ideal for traders who require a simple trading platform or who trade in large volumes and want to save money on brokerage fees. So far, the 5paisa mobile trading app has been the best mobile trading app.

The best part about 5Paisa is how quick and painless it is to register an account. I was able to finish all of the paperwork in within 15 minutes.

Services offered: Apart from trading in equity, currency, commodity, 5Paisa also offers its services in mutual funds, Insurances, Personal loans.

5Paisa Brokerage charges Details

5Paisa offers free trading in equity and flat brokerage in other segments. Here are the brokerage charges offered by 5Paisa:

  • 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

5Paisa Demat and Trading account opening Fees:

  • Account opening charges: FREE (Rs 650 Waived)
  • Annual Maintenance charges: Rs 45 per month (only for months when you trade)

Trading Platform: Investor terminal web platform, trader terminal, 5Paisa share trading mobile app

Why to Choose 5Paisa:

  • Free delivery trading
  • Cheapest brokerage of flat Rs 10 per trade
  • 100% paperless account investing
  • Zero brokerage on delivery
  • Fastest & complete paperless account opening process
  • Decent customer support
  • Investment in stocks, mutual funds & insurance from the same account
  • Lower maintenance charges
  • Multiple brokerage plans available based on clients preference offering flexibility
  • Although there is some disadvantages of trading with Angel 

Although there is some disadvantages of trading with 5Paisa, which must be considered by traders before they opt this broker, they are:

  • No 3-in-1 account
  • Higher exchange transaction charges
  • No commodity trading facility

Angel Broking

Angel broking, founded in 1987, is a well-known brand with over 30 years of expertise in the broking industry and over 4 million satisfied consumers. They are present in over 1800 Indian cities. Angel Broking provides trading services in equity, futures and options, commodities, and currency on the BSE, NSE, NCDEX, and MCX.

Angel Broking was a full-service broker for nearly two decades, and it charged a 10% brokerage fee to its clients. To compete with fast increasing discount brokers like Zerodha, 5Paisa, Upstox, and others, they have altered their business model from percentage brokerage to flat fees (November 2019).

Angel Broking currently provides the ‘Angel iTrade PRIME’ flat-rate brokerage package. The delivery trading is completely free here. They charge a fixed rate of $20 for all other sectors, such as intraday, F&O, Currencies & Commodities. Across exchanges and segments, the same straightforward rate applies.

One of the major benefits of trading with Angel Broking is that they offer personalised stock market advice and recommendations, as well as company research reports and a variety of other value-added products and services.

Services Offered: Angel Broking offers its services in Equity, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.

Angel Broking Brokerage Charge:

  • Delivery charges:  Rs 0
  • Intraday Trading:  Flat Rs 20 Per Trade
  • Equity F&O:  Flat Rs 20 Per Trade
  • Currency F&O:  Flat Rs 20 Per Trade
  • Commodity F&O:  Flat Rs 20 Per Trade

Account Opening Charges with Angel Broking:

  • Account opening chargeRs 0 (Currently Waived)
  • Annual Maintenance Charge: Rs 240 (Rs 20 Per Month)

Trading Platform: Angel iTrade, Angel Broking Mobile App, Angel BEE

Why to Choose Angel Broking

  • Cheapest full-service broker with personalized services
  • Fast account opening process
  • Zero Brokerage on Long-term (Delivery) Trades, 
  • Flat Rs 20 per order for all other trades, 
  • Expert Research Reports & market advisory

Although there are some disadvantages of trading with Angel, which are:

  • No 3-in-1Account
  • Call and Trade facility is extra chargeable

Kotak Securities (Trade FREE Plan)

One such broker is Kotak Securities, which is part of the Kotak group. With its Trade FREE Plan, Kotak Securities, a traditional full-service broker, entered the discount brokerage market in November 2020. Here, they launched the first-of-its-kind strategy in India: zero brokerage for intraday training across segments. It’s also known as the FIT (Free Intraday Trading) strategy.

KSL’s TRADE FREE PLAN offers zero brokerage on intraday transactions and Rs. 20 per order on all other futures and options (F&O) trading, such as stock, commodity, and currency.

Here are a few key points to remember about the Kotak Securities Trade FREE Plan:

  •  Zero Brokerage on Intraday Trades
  • All other F&O Trades at Rs 20 per order
  •  FREE Demat Account (Rs 499 Opening Charges Waived Currently)
  • Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.

The rates that apply are listed in the table below:

  • Account Opening Charges: Rs 0
  • Annual Maintenance Charges: Rs 50 Per Month
  • Intraday Brokerage Charges (Equity): FREE
  • Delivery Brokerage Charges: 0.25% of Transaction

Why to Choose Kotak Securities:

The following are a few of the most significant benefits of the Kotak Securities Trade FREE Plan:

  • Zero Brokerage on Intraday Trading
  • Flat brokerage of Rs 20/per order of F&O Trades
  • Use of Stocks as Margin (Instead of Cash Margin)
  • Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.
  • Multiple trading platforms to fulfill almost all customer requirements.
  • In-depth Market Research Reports

Disadvantages of Kotak Securities:

The following are some of the major drawbacks of the Kotak Securities Trade FREE Plan:

  • Higher Brokerage Charge on Delivery trades compared to discount brokers
  • Higher AMC compared to other leading brokers

Fyers

Fyers, a Bangalore-based fast-evolving online discount stock broker, was formed in 2015 by young entrepreneurs with extensive trading and stock broking experience. FYERS appears to be an acronym for “Focus Your Energy & Reform the Self,” which defines the company’s primary ideology.

In India, Fyers is a low-cost stock broker. They are one of the most affordable stock brokers available online. Trading across segments is possible with Fyers’ straightforward pricing approach, which charges a flat brokerage cost of up to Rs 20 per executed transaction. Fyers charges a limit of Rs 20 every executed order, regardless of its size. In the Equity Delivery area, Fyers does not charge any brokerage fees.

Service Offered: Fyers offers trading in Equity Cash, F&O and Currency Derivatives segments at NSE.

Fyers Brokerage charges:

  • Delivery Trading: Rs 0
  • Intraday Trading:  Flat brokerage fee of maximum ₹20 per executed order.

Fyers Demat and trading account opening charges:

  • Account Opening Charges: Rs 0
  • Annual maintenance charges: Rs 0 (Demat AMC Waived)

Trading tools: Fyers One (Trading Terminal), Fyers Markets (Mobile Trading App), Fyers Web Trader, Thematic investments

Why to Choose Fyers:

  • Free online account opening
  • Free delivery trading and low brokerage
  • Advanced charts, real-time screeners and analytics
  • Thematic investment platforms for investing in the latest themes
  • Moderately high exposures- Offers up to 16 times margin in equity intraday segment

Disadvantages of Fyers

  • Higher Demat account maintenance charges
  • Slightly higher exchange transactions compared to other discount brokers

GROWW

Groww is one of India’s most rapidly expanding investment platforms. Nextbillion Technology Private Limited, a SEBI-registered stockbroker and member of the NSE and BSE, is known as Groww. Groww, a Bangalore-based firm, was founded in 2016 as a platform for direct mutual fund investing. In order to meet the increased demand for equity trading during the pandemic, the company added equity trading to its services.

The goal of the Groww App was to create a strong yet simple-to-use trading app that could be used from anywhere. As a result, the app’s idea is that “Investing should be as straightforward as internet shopping.” Mutual Funds, Demat Services, Trading Services, Intraday Services, IPO Services, and Trading Exposure are now available from the organisation.

The rates that apply are listed in the table below:

  • Account Opening Charges: Rs 0
  • Annual Maintenance Charges: Rs 0
  • Brokerage Charges: Rs 20 or 0.05% per executed trade (Whichever is lower)

Why to Choose Groww:

  • The user interface is simple and intuitive.
  • Stocks, mutual funds, gold, and US stocks can all be purchased on one platform.
  • A facility for investing in US stocks is offered.

Disadvantages of Groww

  • Currency and Commodity trading facility not available yet.
  • As a newer entrant, the trading platform yet to be tested to work smoothly on high trading days.

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