Best Online Discount Brokers in India
Any transaction in the share market, be it buy or sell, requires a broker’s intervention who works as an agent between the market and market participants. Security and Exchange Board of India popularly known as SEBI is the agency that regulates Stockbrokers and they need to register themselves with SEBI. There are a lot of Share brokers who have a Pan India Presence and they offer a varied range of plans and products to place them in the top 10 stock brokers in India.
These brokers are broadly divided into 2 segments, One "Full-Service brokers or Traditional Brokers" and the second one is "Discount brokers".
Here we will be talking about Discount brokers
Discount Brokers or Online Discount Brokers:
These brokers came into existence as a result of an increased preference for the Internet. A discount or online brokerage could be a better choice for Investors who are fee-conscious and prefers to go it alone without expert advice. These brokerages will generally not offer investment advice. With a discount brokerage, you can either execute a trade online automatically through a computerized trading system or call in your order with a broker over the phone— although the latter option will likely cost you more.
The discount brokerage firms opened their shops in India in the year 2010. Since then thousands of investors and traders migrated from traditional brokers (i.e. ICICI Direct, Sharekhan) to discount brokers. As they offer 50% - 90% cheaper brokerage and free trading terminals for everyone, they are well accepted and become very popular brokers.
Zerodha who is currently number one in terms of the active customer on NSE is a pioneer of the Indian discount brokerage industry and among the most popular. Zerodha offers flat Rs 20 per trade brokerage which allows traders to execute trades of any size and pay only flat Rs 20 brokerage on the trade. Zerodha also offers no Brokerage on Delivery trades.
Comparison between Full-Service Brokers v/s Discount Brokers:
| Factors | Full-Service Brokers | Discount Brokers |
|---|---|---|
|
Service |
Advisory for shares, mutual funds, bonds, currencies, commodities, etc |
Provides trading platform |
|
Brokerage |
Average daily brokerage is 0.3%-0.5% per trade |
Charge as low as Rs 10/trade, irrespective of the order value |
|
Presence |
Operates through a number of branches |
Normally do not have many branches and provide online services |
|
Suitable For |
An investor and Trader who is new to the stock market and seek hand-holding along with trading tools. |
For an Investor/Trader who is well versed with the Stock market and can carry out their own research |
|
Deciding Parameters |
a) Brokerage & Other Charges |
a) Brokerage |
Top 10 Online Discount brokers in India 2022, Best Discount Brokers in India
| Rank | Share Broker | Active Clients 2022 | Active Clients 2021 | % Growth |
|---|---|---|---|---|
| 1 | ZERODHA | 6513036 | 5685723 | 14.6% |
| 2 | Upstox | 5596268 | 4551755 | 22.9% |
| 3 | Groww | 4268383 | 2964344 | 44% |
| 4 | ANGEL ONE | 3926697 | 3060398 | 28.3% |
| 5 | 5PAISA | 1727458 | 1459744 | 18.3% |
| 6 | PAYTM MONEY | 467814 | 318897 | 46.7% |
| 7 | Market Wolf | 299954 | 236678 | 26.7% |
| 8 | Alice Blue | 147195 | 147637 | -0.3% |
| 9 | FYERS | 135268 | 98458 | 37.4% |
| 10 | Bajaj Finserv | 96221 | New | New |
Frequently Asked Questions:
-
1. How many discount stock brokers are there in India? What are their rankings?
There are over three hundred stockbrokers in India registered with SEBI & various stock exchanges, out of which discount brokers would not be more than 30. National Stock Exchange (NSE) alone has 225 registered stockbrokers as of 30th August 2020.
Online Discount Broker Ranking: The best way to rank the stockbrokers is based on their active client’s base. Below is the list of Top 10 Discount brokers in India:
- ZERODHA
- Upstox
- 5PAISA
- SAMCO
- Master Trust
- Alice Blue
- TRADE SMART ONLINE
- FYERS
- SAS Online
- Tradeplus
User Reviews
Post New Message
0 Comments