One of the most asked question on this blog is “Tell me who is the best broker in India” and that is very difficult question to answer. For example if someone ask you ” Tell me which is the best bank”, can you tell him 1 bank which is the best. The best answer you can give is ” IT DEPENDS, on what you are looking for in a Bank. If someone is looking for best online service, one set of bank will be good for him(maybe ICICI, AXIS). But if someone is looking for many physical locations, another bank will fit him needs(SBI, Bank of Baroda).
Same way, there is no one best broker in India. It depends a lot on what client is looking for in a broker. You may want a broker with the lowest brokerage of maybe a broker who has a physical location near your place. Some of you may want advisory support from the stock broker. I will try to discuss the main strengths of Top 3 brokers which will help you in choosing one of them.
ICICI Direct : This is by far the largest broker in India with more than 30 lakh clients. They are full service broker which provide all the financial advisory service like investment in IPO, Mutual funds, Stocks, currency, insurance and commodity. Opening account with them is easy as you can walkin any of the ICICI bank branch and most of them should be able to open account for you.
There trading software is also easy to use and they also provide advisory service, so if you are new that should help you a lot. The only drawback with them is the high brokerage charges. The normal brokerage charge is .55% for delivery and .05% for intraday. This is on higher side compared to other brokers in India.
Also they are one of the few brokers who are able to provide 3-1 accounts to their customer, which means that the Demat & trading account is linked to bank account. This makes the transfers and withdrawals real time. So if you are someone who don’t want to have multiple account and would prefer to trade with one company, they are your best bet.
Zerodha : If you are comfortable trading online and looking for a broker with the lowest brokerage, you should look at discount broker and specifically at Zerodha. Zerodha is the oldest and largest discount broker in India and have more than 1.5 lakh client. The brokerage structure for them is easy to understand as they charge Zero brokerage for delivery based trade and for intraday and F&O they charge a flat brokerage of Rs 20 per trade irrespective of the volume of the trade.
They have an awesome web trading platform called KITE and desktop based platform called PI. One thing to remember with them is these broker are best for people who are comfortable trading online. So if you are just starting to trade, you have to decide how comfortable you are trading by yourself. They also don’t provide any advisory service, so you have to research on your own before purchasing any shares.
Angel Broking : If you are not looking for a bank subsidiary and are fine to open account with a stock broker, Angel broking would be a good option for you. They also provide trading facility in all the segment of market like equity, commodity, currency and mutual funds. They also provide good advisory service and account opening with them is also easy as they are also available in most cities in India. There brokerage is much lower than ICICIdirect and they charge .22% for delivery and .02% for intraday. They also provide decent support if you are just starting and it should be easy to start trading with them.
Hope this article would have helped you in comparing the major stock broker if you are new investor. In case of any questions, let me know and I will try to answer the same for you. This list is not exhaustive and you can find bigger list of major stock broker in India here.