India’s two share markets- Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), as well as the country’s sole commodities market- Multi Commodities Exchange (MCX), offer excellent opportunities for people to get rich quickly.
Investing in stocks and Mutual Funds is growing at an unprecedented pace in India, thanks to rapid economic growth and future projections combined with the stable political environment.
Consequently, anyone with a modest budget of Rs.25,000 can enter the stocks market and begin trading in shares to make money fast.
Understandably, stock trading is not an easy game: you require astute knowledge about working of the share bazaar and judgment on when to buy, sell or hold stocks.
Stock Trading in India
In India, you can trade in stocks directly through your online account or signup with an excellent brokerage to deal in shares on your behalf.
Usually, a stockbroker will assign you a sub-broker who will trade in shares on behalf of other investors and you, to ensure maximum profits on your investment.
Hence, you need to open a stock trading account, also called Dematerialized Account (Demat) with any bank or stock brokerage. You can open a Demat Account with a bank or a brokerage.
Under existing laws of Securities and Exchange Board of India (SEBI), which regulates stock trading as well as BSE and NSE, individuals cannot buy or sell shares directly at the two exchanges.
Hence, to invest in the stock markets, you need an account with a broker.
Opening Brokerage Account
There are two ways of opening a brokerage account.
Visit the website of your preferred stock brokerage, complete your e-KYC (electronic Know Your Customer) formalities and deposit money into the account.
Details of the bank account from where you will fund the account and receive money from share trading also have to be submitted. This brokerage account is called your Trading account.
You will need to visit a bank or Non-Banking Financial Company that offers brokerage service, complete KYC formalities by submitting copies of your Aadhar Card and Permanent Account Number as well as bank details from where you will fund your trading account. Again, this is your Trading Account.
Top 10 Full-Service Brokerages Companies in India
India has two types of stock brokerages: Full-Service Brokerage and Discount Brokerage.
Full-Service Brokerages offer a slew of benefits: They offer investment advice and a full range of trading such as stocks, commodities, and currencies.
FSBs operate out of multiple locations in India and have qualified staff to provide advisory and investment services.
They charge fees based on your trading and profits. Here we take a look at top 10 FSBs in India.
1. India Infoline Finance Ltd (IIFL)
IIFL is a member of BSE and NSE. The company is registered with National Securities Depository Ltd and Central Depository Service India Ltd.
IIFL provides broking services in cash, derivatives, and currency through online and offline platforms.
IIFL is first Indian broker to hold membership Colombo Stock Exchange and is also the first Indian broker having an in-principle approval for membership of the Singapore Stock Exchange.
2. Indiabulls Ventures Ltd
Indiabulls Ventures Ltd is one of India’s leading capital market companies providing securities, commodities, and currency broking services.
Commodities services are provided through Indiabulls Commodities Ltd. Indiabulls is also listed on BSE, NSE, and Luxembourg Stock Exchange.
It was the first company to be assigned the BQ-1 grading by CRISIL, which is the highest broker quality grading, states the company website.
3. Karvy Stock Broking Ltd
Karvy Stock Broking Limited (KSBL) which is the broking arm of Karvy Group.
Karvy Stock Broking Limited (KSBL) ranks as a leading financial services organizations. KSBL has a nationwide network of offices.
KBSL have a combined account facility that caters to all investment opportunities such as trade in equities, derivatives, currency, Initial Public Offerings, Mutual funds and other options.
4. Reliance Securities Ltd
Reliance Securities Ltd is the broking arm of Reliance Capital.
RSL offers the entire range of brokerage services such as trading in equities, derivatives, currency, IPOs, mutual funds, bonds, and corporate Fixed Deposits and others.
“Reliance Securities positions itself amongst strong & innovative brands in the financial services space. Reliance Securities has over 800,000 customers, strong affiliate network with over 1,000 offices across India,” states the company’s website.
Sharekhan is a subsidiary of BNP Paribas since November 2016. Sharekhan ranks among the first brokers to offer online trading in India.
According to the company website, Sharekhan has over 1.6 million customers, some 153 branches and more than 2,400 business partners spread across over 575 locations.
Sharekhan is one of the largest brokers in and offers a wide range of savings and investment solutions including equities, futures and options, currency trading, portfolio management, research and mutual funds and investor education.
On an average, Sharekhan executes more than 400,000 trades daily, the company states.
6. ICICI Direct
ICICI Direct is a division of ICICI Securities Ltd and operates in collaboration with the eponymous private sector bank.
This brokerage firm provides an online trading account for customers to deal in stock markets, derivatives, currencies, commodities and other financial products available through BSE, NSE, and MCX.
Through ICICI Direct, you can open a 3-in-1 account which includes a Savings Bank, Demat, and Trading. ICICI Direct enables customers to invest in IPOs and the secondary share market.
The NBFC also offers financial advisory services for investors in stock markets.
You can apply online for an ICICI Direct account and complete KYC formalities at home or workplace through the company’s executives who will visit the location.
7. HDFC Securities Ltd
HDFC Securities Ltd is an NBFC that operates under the aegis of India’s leading private sector lender, HDFC Bank.
You can avail the full spectrum of brokerage services through HDFC Securities Ltd such as investing in equity, gold, debt and real estate, stocks, derivatives, Mutual Funds, fixed deposits, insurance, bonds, currency derivatives and other products.
HDFC Securities offers the option to trade via multiple platforms including online, mobile, telephone or through any of its branches.
“You can even place an order for an IPO / Negotiable Certificate of Deposit online via your trading account, or with the help of our Customer Care executives,” states its website.
8. SBICAP Securities Ltd
SBICAP Securities Ltd (SSL) is the broking arm of the State Bank Group and a wholly owned subsidiary of SBI Capital Markets Ltd.
The company website states, SBICAP Securities Ltd caters to a wide base of clients including banks, financial institutions, Mutual Funds, corporate sector, high net-worth Individuals, Non-Resident Indians and retail domestic investors.
“Its broking product range covers institutional and retail equity, derivatives, Depository Participant (DP) services, online trading and a wide variety of third-party distribution products.
Also Read: List of Top 10 Nationalised Banks in India
9. Kotak Securities Ltd
Kotak Securities was founded in 1994 as an NBFC of Kotak Mahindra Bank.
The company had Rs 1.53 billion worth Assets Under Management (AUM) on March 31, 2017. Kotak Securities Ltd has 1.36 million customer accounts, conducts Over 500,000 trades per day.
KSL also has some 1, 281 branches, franchisees and satellite offices in over 377 cities across India.
It is a corporate member with BSE and NSE and a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
10. Motilal Oswal Investment Services
Motilal Oswal Investment Services ranks among the premier brokerage companies of India.
It has won the prestigious f Best Performing Equity Broker (National) by UTI-CNBC TV18 Financial Advisor Awards four times. MOIS has over 30 years of wealth creation experience that has benefitted countless Indians.
MOIS has over 900,000 customers with Rs. 695.61 billion worth depository assets. The NBFC provides Indian-wide coverage at over 2,200 locations in more than 500 cities.
Motilal Oswal Investment Services offers the whole range of brokerage facilities online and through physical transactions. You can also avail excellent advisory services from this company for your investing.
Before concluding, we emphasize, the above listing does not indicate rankings, financial standing, popularity or any other parameters required to open an account with stockbrokers.
This list is generated at random and purely for educational purposes. Hence, you can finalize on which stockbroker to patronize, based upon your personal needs for investing in stocks and other options.
It is important to learn about terms and conditions of these brokerages as well as commissions and other charges they levy on your transactions.
Based on your need, you can choose an online trading account where you can deal in stocks personally. Alternatively, you can assign trading to an experienced sub-broker assigned by these brokerages.
For first-time investors, it is advisable to register with any top stock brokerage company in India. This allows you to get vital advice on investing in stocks in the primary and secondary market.
Additionally, you can also get excellent reports for investments in other options such as Mutual Funds and Systematic Investment Plans, through financial advisers working with these brokers.
Understandably, Full-Service Brokers charge a commission on every transaction. However, for the advice you get and profits you can make by investing wisely, these charges are very reasonable and justifiable.