Lately people have a lot of option while choosing a stock broker because of increase in number of stock broker in India. But still it is not easy to choose the best one. You need to be sure of what is important for you before deciding on the stock broker. Some pointers to keep in mind are
1) Full service or discount broker : The main difference among them is full service would allow you to trade in all financial instrument while discount broker will generally allow you to trade in one financial instrument (Stock, commodity) .
2)Online trading vs Phone trading: Depending on how comfortable you are with online trading,if you are not choose a broker which provide you phone trading.
3) How often do you trade : Decide if you are going to trade or invest that is, will you be trading often or you will just buy stock couple of time a year in which case the brokerage is less important than if you are a trader.
4) Will you require advice : Would you need financial adviser to trade or would you be trading on your own. If you need adviser, remember to get some historical data of how good the adviser is and would you be comfortable with giving him your money.
1) ICICI Direct : By far the biggest and most well know stock broker in India. They have decent service and easy to use user interface but there brokerage is really high compared to what other discount brokers are providing. There biggest selling point is there seamless integration with your ICICI bank account which make transfer/withdrawal of funds really easy and quick. Great for investor but not for tarder. You can find detailed information about ICICI Direct brokerage charges here.
2) Sharekhan : Incorporated in February 2000, Sharekhan is India’s 2nd largest stock broker providing brokerage services through its online trading website Sharekhan.com and 1950 Share shops which includes branches & Franchises in more than 575 cities across India. They are full service broker and provide various other services like asset management etc. You can find my detailed review for Sharekhan brokerage charges here.
3) RKSV : RKSV is a discount broker operating from Mumbai. They provide very competitive rates of Rs 20 per trade irrespective of the size of the trade, with 5 free trades per month for life. They also have unlimited tradings plan in which, for a fixed monthly fee, the customer can do unlimited trading at zero brokerage. You can find RKSV review here.
4) HDFC Security: They are one of the larger broking house in India and with there bank branches, they have one of the largest network which is only after ICICI. They have a vast network of bank branch in even smaller town. You can find detailed review about HDFC security here.
5) Kotak Security : They are one more well know name in Financial services and with there bank branches in big cities they are able to cater to clients in big cities. There online service is decent but brokerage is not that competitive. You can find detailed review about Kotak Security here.
6) Reliance Money: They came with a bang but lately have lost a lot of sheen from there name. There have been lots of question about there business practices. You can find detailed review about reliance money here.
7) Motilal Oswal : These are one of the decent broker operating in India. You can find detailed review about Motilal Oswal here.
8) Karvy : They are one of the oldest broking house operating in India. They are the brokers which your fathers used to use for buying there IPO and MF but there online service are not that great. Lately they are upgrading there online platform and there brokerage is also comparable to other full house brokers.
9) SBICapSec : This is the broking arm of State Bank of India but there broking service is not very great. There brokerage structure is also not very competitive and being a public sector bank, there is a lot to be desired as far as the customer service is concerned. You can find detailed review about SBI Capital Security here.
10) Zerodha : They are one of the new stock broker in India which have started discount trading in India. They have a very competitive brokerage structure and decent customer service. These type of discount brokers are new in India and providing tough competition to full service brokers. You can find detailed review about Zerodha here.
If you are a NRI or have moved out of India on work VISA but still want to trade in Indian Stock market, read out in depth article about opening Demat account for NRI.