For a trader who trade in options, the brokerage is one the most important factor which decide if you end up in profit or loss. Before discount broker operation were started in India, option brokerage was very high and most of the retail investor were never able to make money in Option trading. If you are a beginner and want to know more about option trading, have a look at our video on basics of option trading.

Full service broker like ICICI, Angel Broking and Sharekhan charge brokerage for each lot. The brokerage could vary from Rs 10 – Rs 100/option/lot. You should keep in mind that this brokerage is per lot, so if you trade in more than one lot in a trade, the brokerage would be multiplied. For example, if your broker charges Rs 50/option lot and you brought 10 lot, you will have to pay a brokerage of Rs 500 and there would be an additional taxed which you have to pay. With this high charges, option trading was a loss making area.

But with the coming of discount broker, option trading has become much cheaper and lot of retail investor have started to dabble in this. Compared to these expensive brokers, discount brokers have a much lower brokerage charge in option trading.

Major discount brokers in India are Zerodha, Upstox and they charge a flat fee of Rs 20 per trade of options. So what it means is if you buy 10 lots of NIFTY, the brokerage charged would be Rs 20. This is saving of almost 90% brokerage compared to full service broker.

So if you are an option trader, and you already don’t have a account with a discount broker, it is high time that you look at discount broker and choose the one which best fits your need. Keep in mind that a money saved is money earned.

The best brokerage for option trading in India are provided by Zerodha and Upstox. There are some discount broker who provide even lower brokerage than both of them but most are not very reliable. You can even get an unlimited trading plan for trading in option with some broker but reliability and usability remains an issue.

Another important aspect to keep in mind is the margin provided by your broker for trading in Options. If you are buying option, almost all the broker will take full premium in cash from you. If you are selling, the margin for each broker would be very different. Most of the broker provide for pledging of shares, which mean after a small haircut, you can use the rest as margin for selling option.

If you are concerned with how much margin would each broker provide, I would advise you to get in touch with the broker directly and understand margin requirements of the brokers.

To know more about the major broker in India, have a look at top 10 stock broker.

YES SECURITIES Limited (YSL) is a wholly-owned subsidiary of YES BANK Limited. They were incorporated on 14 March 2013 and SEBI registered since 8 July 2013. They are the member of both the exchanges National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). They provide different types of investment options to the retail and institutional customers using their broad network of YES Bank.

Yes Securities limited is an online investment and trading platform. They offer inter alia, trading/investment in equity and other financial products along with various value added services. They offer trades in different segments which includes direct equities, index and equity derivatives, currency derivatives, ETFs and OFS. They provide equity products for helping investment requirements. You may opt for various cash or derivative products as per your needs. [Read more…]

Leverage is a double edged sword. And while it could enhance you profit if the stock moves as per your expectations, the losses could also mount pretty quickly if it moves in opposite direction. Just to explain, leverage means that if you have Rs 100 in your account, you can trade for upto Rs 1,000. For a beginner this seems to be a very good product but if you talk to experienced traders, they will advise you to stay away from this.

To show how losses could mount, if you have Rs 10,000 in your account and you take a position of Rs 100,000 and the stock move 3% against your position, you actually lose Rs 3,000 plus the brokerage. On a capital of Rs 10,000 that is a huge loss of 30% of capital in one trade.

Now that we have told you have leverage can create issue, we will talk about the brokers who provide high leverage when you trade with them. [Read more…]

Zerodha is one of the leading discount brokers in India. They are Bangalore based firm and were started in 2010. They have grown tremendously in last 7 years and have more than 2.5 lakh customer trading with them now.

They have an attractive brokerage plan for different segments:-

• ZERO Brokerage plan: – They have a special plan for investors. For delivery (holding) of shares, you don’t need to pay any brokerage.

• Fixed Brokerage: – For daily traders (Intraday and F&O), they charge as per a range means max rs.20 else .01% whichever is lower (Out of 20 and .01% whichever is lower charged as a brokerage)

In March 2017, they have started providing online account opening using AADHAR card. All you need for that is-

• You must be KYC registered(Check below) and
• Secondly you must have number which is linked with Aadhaar, because online account opening is Aadhaar based using OTP sent on your mobile.

[Read more…]

Zerodha is the largest discount broker which was started in 2010. It is HQ in Bangalore and provide fixed brokerage plan. So irrespective of the volume of the trade, you will never have to pay more than Rs 20 per trade. Compared to some full service broker like ICICI direct and Sharekhan, you can save almost 90% of brokerage.

Zerodha offers trading in NSE, BSE and MCX. You can use them for trading in stock, currency, commodities and Mutual funds all under one roof making life easier for you. They also are a DP with CDSL. They don’t keep your shares in pool but the shares are directly transferred to your Demat account.

They have grown tremendously in 7 years and have more than 2.5 lakh customer trading with them in 2017. [Read more…]

Whether you are a trader or investor and heard about Zerodha online or from a friend, most of you would have felt that the brokerage are too good to be true. In case you were trading with some full service broker like ICICI direct or Sharekhan, you could reduce your brokerage by more than 90% with them. But then the next question would have come to you,

Is Zerodha Safe ?

Would my money be safe with them ?

What if Zerodha closes ? What will happen to my shares/money ? [Read more…]

ANGEL  BROKING TRADE is an all in one trading platform which is developed by Angel Broking Limited and its browser based platform. You don’t need to install it, just open URL, login and use trade.angelbroking.com

This platform is very simple and easy to use. You will have each facility in this platform like buy and sell of stocks, Mutual fund, SIP, Funds view etc.  It will provide you real time market data. You will get research tips and all through this platform too.  Even you can access it in less internet speed like 2G. Its lite weight to load and use. [Read more…]

ANGEL Eye is a browser based trading Platform which is developed by Angel Broking Limited. It is a very simple platform to use and you don’t need to install anything for using this platform. Just go to trade.angelbroking.com and provide your credentials and you should be able to login.

You will get many features inbuilt in it like historical data of shares, you can check top 5 buy and sell price of a share, Market Watch, Orders Book, Trade Book & Funds View. It provide real time market updates. Another important feature provided on Angel Eye in ARQ – Angel automated intelligent investment engine which provide the best stock recommendation as per your holding period and risk appetite. [Read more…]

ANGEL SPEEDPRO is an application Trading Platform which was developed by Angel Broking Limited. It’s simple platform to trade and you have to install .exe file to use this. This is provided free of cost when you open account with Angel broking. The software is basically made to connect to the Internet and adds a Windows Firewall exception in order to do so without being interfered with. It’s installer includes 52 files and is usually about 117.26 MB.

You will get many features inbuilt in it like historical data of shares, you can check top 5 buy and sell price of a share, Market Watch, Orders Book, Trade Book & Funds View and even you can see different charts for intraday trades which are 30 days old.  They provide real time market updates. Multi Desktop Options is their which gives ability to arrange preferred windows/tools in multiple desktop screens & toggle between them. [Read more…]

This is the latest offering by ZERODHA for purchasing mutual funds. Lot of you should already be aware that they already have a platform called mf.zerodha.com, so why a new platform. The major difference between these two is on COIN you will buy DIRECT mutual funds and mf.zerodha.com was providing regular mutual funds purchase.

Most of you should be confused by know as to what is the difference in between these two. I will try to explain it in simple terms. So when you buy regular funds, there is no brokerage charge or extra fees you have to pay but there is still a upfront commission and trail commission which the agent receive. So in this case, when you are buying regular mutual funds from mf.zerodha or any other stock broker, there is an upfront commission and trail commission which is paid. This commission is not deducted from your funds deposited but gets reflected in the NAV of the regular fund. Will explain this is detail below.

Compared to this, while purchasing direct mutual funds, there is no commission paid to anyone. What is means is 100% of your funds directly goes to AMC. So, NAV for direct mutual funds are always higher compared to that of regular funds.

We will try to explain it with an example so that it make more sense. Suppose you brought a NFO of ICICI Prudential Growth Fund – Series 2 which was launched on Aug 1, 2014. If you brought it through a broker or direct through AMC, the price you should have paid is Rs 10 per unit. The NAV for regular fund on Mar 28th, 2017 is Rs 12.81, giving it a total return of 28.1%.

The NAV for the same fund would is Rs 13.31 if you would have brought a direct fund either through AMC or some service which provide direct purchase of MF. In this case, they return was 33.1% for the same time.

The difference of 5% is what was paid to the brokerage house through which the MF were purchased. Even if you brought it through ICICI bank thinking that you are not paying any commission, you still ended up paying 5%. The issue with this is most of the user purchasing this NFO are not aware of this. Even later, if client would have checked the price of his fund, it would have shown as 12.81% for regular fund and there was no way to know that you are paying  any commission.

Still have some question, do have a look at our video review of Coin by Zerodha

Zerodha is trying to do something commendable here but the task is difficult as not many people are aware of difference between direct and regular funds.

With COIN, Zerodha is using BSE Star Mutual fund platform and they will charge a flat fee of Rs 50 per month if your portfolio of MF is more than 25,000. Many people would have issue with paying the fees. But if we look at the commission people are paying, Rs 600/year charge is a steal. Even if you have a MF portfolio of Rs 30,000 you are paying upfront and trail commission of more than Rs 600 per year.

But if you are not comfortable to pay these 600 Rs, then you can always buy direct mutual funds from AMC or use MFUtility.com to buy funds directly. But with Zerodha, you will get the benefit of keeping all your holding at one place and doing SIP with Zerodha is very easy compared to MFUtility.

To know more about COIN platform or opening account with Zerodha