Comparison of discount broker

If you are a day trader, there are three important points which you should look in a broker.

1) Brokerage – For a day trader, brokerage can mean whether you are profitable or not in the long run. It is extremely important for a day trader that brokerage are as low as possible. You should look at discount broker as they have some of the lowest brokerage in India right now.
2) Margin – This is also something which is important for you if you are into day trading but remember that this is a double edged sword. It could be profitable for you but at the same time it open your trade for huge losses also. As a day trader, you should always have stop loss on every trade. Full service broker generally provide much higher margin limits but nowaday discount broker also provide higher margins with the use of complex order types like Cover Order which define your losses at the time of the trade.
3) Time of cut off – This is also important for you if you to intraday trade as someone who starts putting a cut off time of 2:45 would invariably mean that you have 20 mins less than a broker who provide cut-off time of 3:15.
4) Number of stock – Every broker have a list of stock which they provide for intraday. Check first with the broker if they have the stocks which you trade in. Almost all the brokers provide large cap stock for intraday trading, put few provide small cap stock for intraday trading. So this is something which you should look at while looking for a stock broker.

Based on these points, I have tried to put in the list of top 3 brokers which would be best fit for day traders.

S. NO	Broker Name	Brokerage
1	Zerodha	0.01% or Rs 20 per trade whichever is lower
2	Upstox	Rs. 20 per trade
3	Angel	0.03% per trade

1) Zerodha: This is one of the largest discount broker in India with more than 150,000 clients. They started the discount broking in India in 2010 with a fixed brokerage structure.
They charge .01%( 1 paisa) per trade upto Rs 2 lakhs. (which is Rs 20 brokerage). If you have a trade of more that Rs 2 lakh, the brokerage is capped at Rs 20. So for any trade whether it is Rs 5 lakh or Rs 20 lakh, the maximum brokerage you would have to pay is capped at Rs 20.
Apart from this, they have a state of the art trading platform called PI and browser based platform called Kite. They also have apps for playstore/appstore called KITE. They provide advanced order like bracket order, cover order to trade for intraday traders. To open account with them, just click on the buttom below and provide your details.

2) Angel Broking: They are one of the largest full service broker in India and have more than 10 lakh clients trading with them. There brokerage is a little higher and they charge brokerage of .03%(3 paisa) for intraday trading which is high compared to discount broker but if you look at their customer service, it is better than discount broker. Angel provide a dedicated dealer you can trade with and also provide you advisory service free of cost. So if you are looking for a broker from whom you can take advice, then you can open account with them.
They also provide T+6 day trading when you buy the stock, which means you can convert the position from intraday to delivery and vice versa upto 6 day. There is a nominal interest rate which is charged on this though.

3) Upstox: This is the second largest discount broker in India having around 30,000 clients. They have similar brokerage structure as Zerodha and charge .01% or Rs 20 whichever is lower per trade for intraday. They also have an awesome trading app called UpstoxPro which provides lots of feature right on your mobile phone.
They also provide advanced order like Bracket order and Cover order to there clients. They have also started online account opening so that the customer can fill the form online and start trading in 10 mins.

 

Hope this article would have helped you on what to look in a day trading broker and how you should choose them. In case of any question, do let me know and I will try to answer then to the best of my knowledge. You can read further review of the best broker to trade with on Top 10 brokers in India.

Both these brokers are discount brokers and have a very competitive brokerage structure. We will try to compare them on various factors so that you can take a educated decision is selecting the right discount broker.

Brokerage fees

As far as Zerodha brokerage is concerned it is very simple. They charge you 0.10% of the trade value or Rs. 20 (whichever is lower ). It means that maximum brokerage they will charge you for one side of the trade is Rs. 20 irrespective of the value of trade. There are no fixed monthly charge involved. So whether you are a small trader with less than 20 trade or doing more than 80 trades per month, this broker turns out to be cheaper.

 

Upstox has very similar plan when compared to Zerodha. For delivery based trading they also charge Zero brokerage and for intraday and F&O they charge 0.01% or Rs 20 whichever is lower.

Both brokers charges call and trade charge. It is Rs 20 for Zerodha andRs 25 for Upstox. Other thing to keep in mind about discount broker and both of them don’t allow to trade in IPO, Mutual funds or FPO. They don’t provide any margin trading option but being discount brokers, these added services are not expected from them.

Both brokers charges call and trade charge. It is Rs 20 for Zerodha and Rs 25 for Upstox security. Other thing to keep in mind about discount broker and both of them don’t allow to trade in IPO, Mutual funds or FPO. They don’t provide any margin trading option but being discount brokers, these added services are not expected from them.

Now that you know all the major difference take a informed decision and choose the options which best meets your need.

Want to know about the brokers who have Low Brokerage Trading Account. You have come to the right place. But remember brokerage is just one part of the picture, if you are a new investor and don’t have much idea about trading, you should see at other services like stock recommendations etc. Below you will find the list of 5 brokers with the lowest brokerage charges.

2) SAS Online : They also provide a very competitive rate of Rs 9 per trade which is lowest among all the discount broker. They even have a unlimited plan for equity and MCX for Rs. 999 and unlimited currency plan for Rs 499. You can open the account with SAS Online here.

1) Trade Smart Online : They are one of the newer entrants in discount brokers area in India but they have the lowest brokerage of Rs 15 per trade irrespective of the volume of the trade.But do remember that this is just the brokerage but there are other charges like STT, SEBI charges which are still applicable on the trade. But they do provide one of the lowest brokerage account in India.

3) RKSV Security : They are of the older discount brokers in India and provide a competitive brokerage rate of Rs 20 per trade irrespective of the volume. The one thing which they offer which differentiates them from other discount broker is they provide 5 free trade every month. So if you are a investor or don’t trade that often you can actually trade without paying any brokerage. They also have unlimited trading plans and you can know more about them at RKSV trading plans. Open account with RKSV here.

4) Zerodha : The are the largest and one of the first discount brokers in India. They started to provide service in 2009 and have more than 45,000 active accounts till now. There brokerage rate is very competitive and they charge Rs 20 per trade irrespective of the value of the trade. They don’t provide any unlimited trading plans but they do have one of the most active community at Z-connect and they also offer Algo trading to there customer. Open account with Zerodha here.

5) TradeJini : They are also one of the discount brokers operating out of Bangalore. They also offer a competitive brokerage rate of Rs. 20 per trade. They also provide other services like call and trade and lot more. You can find there review here.

Hope that this list of lowest brokerage account will help you choose the cheapest brokers. But still remember brokerage is just one of the part and just make sure before becoming the member of one of the brokerage house. Most of the time it is difficult to change the brokerage house once you have started to trade with them.