Are you aware that there are many Discount Brokers available who can guide you to invest in the stock market?
But you have to choose the best Discount broker based on your requirement.
Despite occasional highs and lows, stock markets in India provide excellent opportunities for ordinary citizens to build wealth.
If you want to know how to invest in the share market then check this Beginners Guide on How to Invest in Share Market.
Under existing laws of Securities and Exchange Board of India (SEBI), any individual cannot trade in stocks directly on the country’s two share markets: Bombay Stock Exchange and National Stock Exchange or the sold Multi Commodities Exchange.
Hence, you need a stockbroker who offers a Dematerialize Account and Trading Account.
Types of Stock Brokers
In India, we have two types of stockbrokers:
- Full-Service Brokerages
- Discount Brokerages
While FSBs provide the entire range of investment services, they also offer excellent advice on investing in stocks and IPOs for building wealth.
However, they charge commissions and other fees for every transaction completed through their Trading Account.
FSBs are excellent for newcomers to the stock trade, since you get valuable advice that prevents losses.
On the other hand, there are several Discount Brokerages too. Discount brokerages generally do not offer financial advice to their customers.
Instead, they allow you to trade in stocks and commodities through their online Trading Account.
Some Discount Brokerages offer basic and general advice to investors posted on their website daily while yet others charge additional fees for the service.
Also Read: Top 20 Brokerage Companies in India
Why Discount Brokers?
This is a great question. For newcomers in the stock trade, financial advice from FSBs is vital.
However, for stock trading veterans who invest Hundreds of thousands of Rupees, such advice is irrelevant: they are aware of the nitty-gritty of stock trade.
Further, hefty commissions and other charges levied by FSBs eat heavily into profits made by these veterans.
Hence, they prefer Discount Brokers. Discount Brokers charge fees between Rs.10 and Rs.20 only per successful transaction.
List of Top 10 Discount Brokers in India
Discount Brokers are ideal for NEWCOMERS who do not wish to invest a large amount of money in stocks and trade shares of very few companies, they are well acquainted with.
Here we look at the list of 10 best Discount Brokers in India.
1) Zerodha
Zerodha ranks as a topmost discount broker in India. The company launched operations in Bangalore in August 2010.
It is amongst the fastest growing, top volume contributors on National Stock Exchange, Bombay Stock Exchange and Multi Commodities Exchange with an average daily trading turnover of over Rs 100 billion.
It provides a variety of services including subscriptions to Initial Public Offerings and investing in the secondary stock market, Mutual Funds and other financial products.
2) 5Paisa
5paisa.com is backed by one of India’s leading financial services companies – IIFL which has over 2.9 million customers across various business segments.
The company offers a full range of investments in stocks through its online platform and charges very low commission per every successful transaction.
3) ProStocks
ProStocks is a venture by Sunlight Broking LLP and it is the fastest growing discount brokers in India.
It is a leading online brokerage firm in India allowing customers to invest and trade in stocks listed on BSE and NSE.
“Customers can trade at BSE and NSE in segments including Equity Cash (Intraday and Delivery), Equity Derivatives (Futures and Options), Currency Derivatives (Futures and Options) and Depository Services,” states the company website.
4) Upstox
Upstox is India’s leading Discount broker and was launched in May 2011. The company website states it is backed by Kalaari Capital, Ratan Tata, and GVK Davix Group.
As a discount broker, Upstox also offers you the facility of opening a Demat and Trading account for buying and selling stocks on BSE and NSE or commodities on MCX.
5) Samco Securities
Samco Ventures Private Limited was incorporated in March 2015. It acquired Samruddhi Stock Brokers Ltd and re-branded it to Samco Securities.
In May 2015, SAMCO launched the country’s first capital market league, Indian Trading League (ITL), states the company website.
Samco has traders and investors in over 2,000 locations across India. The company offers an online trading platform and charges only Rs.20 per order.
6) Trade Smart Online
Tradesmart Online is a venture VNS Finance.
“With the use of the latest technology and smartest automation with high-grade security, we run a business model where our clients don’t have to pay too much and yet everyone walks out a winner.
Tradesmart was formed with a single agenda in mind, to improve the experience of the users indulged in the trading business,” states the company website.
With a Tradesmart Online account, you can deal on BSE, NSE, and MCX.
7) Wisdom Capital
Wisdom Capital is a top online discount brokerage firm. The company offers discount trading facilities for regular, active and professional traders who trade in equities, currencies, derivatives, futures, options, and commodities.
The company is offering Free Lifetime plans such as Lifetime Zero Brokerage Freedom Plan without hidden charges.
The company offers a slew of stocks and commodities market-related services to customers.
8) Trading Bells
Trading Bells is an online discount broking house. The company offers Demat and Trading accounts that can be opened online.
With an account, you can trade for a very low price on BSE, NSE, and MCX. Like other discount brokers and FSBs, you can allow Trading Bells to deal with your shares directly through a Power of Attorney.
9) Beeline Broking
Ahmedabad-based Beeline Broking offers some of the most competitive rates- at Rs.18 per successful order in stocks buying, selling or IPO subscription.
It also offers investors the facility of opening an online trading account for dealing in stocks on BSE and NSE.
10) Compositedge
Another great discount brokerage in India is Compositedge. In addition to providing latest tools for clients to deal with shares, commodities, and currencies, among other financial investment products, this company also offers a referral program.
Through the referral program, you can earn money to invest.
Wrap Up
Trading in shares through discount brokers is fine provided you are very confident of going it alone and without expert advice.
Nowadays, several courses that train you in basic and advanced stock trading are available. You can take some such training course and enter stocks trade.
Generally, companies and individuals that offer these courses also post investment advice online daily. Some trainers charge additional fees for investment advice they provide.
In Conclusion
Before opening an account with any Discount Broker in India, it is advisable to compare the benefits you get and the charges they levy.
Also, compare the services of Discount Brokers and FSB to see which service best suits your investment needs. Discount Brokers are also popular among Indian investors in the stocks and commodities markets.
Their popularity stems from low rates charged per order and almost zero charges for opening an online Trading or Demat account.
Discount Brokers also operate under laws of SEBI and other concerned authorities. According to various report, Discount Brokers are now fast becoming popular among investors in the share bazaars of this country.