A broker is a firm or an individual that charges a particular amount of commission for buying or selling. They get the orders by their clients. In other words, a broker is an intermediate agent between you as a client and the exchanges (for example BSE Bombay stock exchange and NSE national stock exchange).
A broker charges a brokerage fee to the client, and it includes fees to conduct transactions between buyers and sellers.
So let’s dive in straight to what are different types of brokers available in the market and let us see some of the best discount brokers in India
As we break down brokers, in the early years only the wealthy could access the stock market. The internet gave a tremendous rise to discount brokers (example: zerodha,5paisa) which allow investors to trade at a lower cost, but don’t provide personalized advice; now almost anybody can afford to trade as the fees charged by such brokers is a flat fee and which is very cheap. Usually, a full service broker will charge a percentage of the trade value traded at the end of the day. The discount brokers charge a fixed amount irrespective of the number of trades the client conducts.
In the wide market of India, there are many stock brokers available with their own rules and specifications. Investors have to choose the right one based on their requirements. The Top 10 Stock Brokers in India with their specifications are listed as below:
1) Zerodha (Discount Broker): It is one of the largest and oldest discount brokerage firms in India, with a client base of around 50,000 and a daily turnover of about Rs.5000 Crore.
They also provide a proprietary software named Pi; it is an advanced charting software provided free of cost. They are the first discount brokers opening franchise offices in many Indian cities.
Zerodha is very well known for the digital services that it provides to the clients such as zerodha
kite web, kite mobile, zerodha pi, Kite connect API. It charges a flat fee of Rs.20 for each trade
irrespective of your transaction volume or size.
2) Sharekhan (percentage broker): It is one of the best brokerage firms and has various products for the clients such as Trade tiger, sharemobile and share classic. They charge around 0.015% to 0.1% depending on the selected plan via the client. It has been acquired by PNB Paribas recently for 2200 Crore.
3) ICICI Direct (percentage broker): due to its high brand equity, it charges a high percent for a simple reason of trust factor among the clients. It charges around 0.5% to 0.75%. it has a client base of around 23 million with around 200 branches in all over India.
4) RKSV (Discount broker): RKSV is an India-based discount brokerage company headquartered in Mumbai. The also have Trade Academy which is educational arm of RKSV. It has also launched upstox which includes native mobile applications, web trading platform, and a desktop trading platform. Some of the features include charting indicators, margin trading, and margin against shares. They charge around Rs.20 per trade irrespective of the size of the trade. They also offer their clients with five free trades per month for life.
5) HDFC Securities (percentage broker): It is another brokerage which enjoys brand equity gained by banking services. It allows 4 in 1 trading account, giving the trader to seamlessly move between saving account, demat account and trading account. It charges a 0.5% as brokerage commission.
6) India Infoline IIFL (Percentage broker): It is very well known for the offline presence especially in north India. Due to its good research, it offers regular tips, recommendations to its clients. Established in 1995 it has a wide offline presence through its 4000 sub-brokers and franchise branches. It has multiple options when it comes to brokerage fees; clients can choose as per their preferences for this plans.
7) 5paisa (Discount broker): It is one of the leading discount stockbrokers in India which had a backing of IIFL, but now it operates as a separate entity. It is one of the best discount brokers as it charges a flat fee of Rs10 per executed trade. It also offers free tips and recommendations as no other discount stock broker provides this kind of service. It offers first 5 trades for free of cost. And even the account opening charges are waived off if the initial deposit of the client is above Rs.25000.
8) Motilal Oswal (percentage broker): Motilal Oswal of MOSL is one of the oldest full-time broker established in 1987. It also is a bit expensive stock broker, but recently they are providing various plans for as per client preferences.
9) My Value Trade (Discount broker): My Value Trade, a subsidiary of Master Trust Group, started its brokerage firm operations in 2014. It has a large client base because of that brokerage can achieve a turnover of Rs.4500 Crore per day. It offers Rs.10 per executed order for BSE, NSE and MCX exchanges
10) Kotak Securities (percentage broker): It is another bank based brokerage firm which also gives you a benefit of 3 in 1 Demat account while commissioning a high fee from its clients for brand equity that it enjoys in due to its banking services. They have a variety of plans to choose from including fixed percentage brokerage and plan based on subscription charges. It is one of the expensive brokerages as compared to others, but they have a very good technical and analytical customer service.