Steps-by-Step How to Open Demat Account with Kotak Securities: Kotak securities is one of the reputable full-service brokers in India that offers discount brokerage along with premium full broker offerings in its Trade FREE Plan. In this article, we’ll discuss how to open demat account with Kotak Securities Trade FREE Plan within 60 minutes.
Kotak Securities was traditionally a full-service broker with premium offerings, but high brokerage charges. However, after the entrance of the discount brokers in the Indian stock broking industry, they started getting a lot of competition from the new disruptors like Zerodha and Upstox. Discount brokers started offering cheaper brokerage charges with technically advanced technology platforms which attracted a lot of customers.
To fight back with the disrupting discount brokerage, Kotak securities launched its TRADE FREE PLAN in November 2020. Here are key facts about Kotak Securities Trade FREE Plan:
It offers ZERO Brokerage on Intraday Trades
For all other F&O trades, the brokerage is charged at Rs.20 per order
MIS & Super Multiple (Cover Order) at also charged at just Rs.20 per order
Trade FREE Plan offers Margin Trading Facility
Investors can also use Stocks as Margin (Instead of Cash Margin) in this plan
Finally, Customer Satisfaction Guarantee is offered by Kotak Securities Trade FREE Plan
Quick Note: Under the Customer Satisfaction Guarantee, if the customer is not satisfied with the services, they can ask for a refund of fees and brokerage within one month of account opening.
Another exclusive feature of this new Kotak Securities TRADE FREE Plan is that here customers can open their broking account in just 60 minutes and start trading the same day.
— Documents Required to open a demat account with Kotak Securities.
Here are the documents required to open a demat and trading account at Kotak Securities. No hard copy will be required. Simply, keep the soft copies of all these documents ready before you apply for opening the accounts as you’ve to enter the details during the account opening process:
PAN CARD
Aadhar Card (with linked mobile number)
Bank Account Proof:
Your Signature on a piece of paper (Photo or Scan copy).
— Account opening charges at Kotak Securities Trade FREE Plan
Currently, the account Opening Charges to open demat and trading account with Kotak Securities Trade FREE Plan is waived. In other words, you can open a FREE Demat and Trading account with them.
How to open your Demat account with Kotak Securities Online?
Short Answer to Open Your Kotak Securities Account
First of all, let me give a short answer on How to Open Demat Account with Kotak Securities - Trade FREE Plan?
On this page, the first step is to signup using your full name, mobile number, city details. Then, verify the OTP. Next, you’ll be required to enter your PAN Card, bank account, Aadhar-OTP verification, and personal details to complete with the signup.
All the instructions are clearly mentioned in the each-step of the account opening page. If you are good at following instructions efficiently, then you do not need to read this entire post. Just go to the account opening page, follow the instructions, upload the documents and your account will be opened.
Detailed Steps to Open Demat Account with Kotak Securities
Here are the exact (Step-by-Step) explanation to open demat account with Kotak Securities:
Here, enter your full name, phone number, city and click on Sign Up.
On the next page, enter your email id. Enter correct email id as you’ll receive OTP on the same to be verified next.
Then, you’ll receive an OTP on your registered phone number and email id. Enter and verify OPT of both phone and email.
Step 1: Product Selection
In this step, you’ve to select products where you want to trade and invest like Cash (Equities), Currency, F&O, and Commodities. By default, all will be checked. Keep all selected and click on “NEXT” to move on to the next step.
Step 2: Proof of Identity
Here, you’ve to enter your PAN CARD number and date of birth to confirm the proof of your identity.
Step 3: Personal Info
In this step, first, you’ve to upload your latest pic or you can take and upload your picture directly using your webcam.
Further, you have to enter your key details like Father’s Name, Mother’s Name, Marital Status (Single/Married), Annual Earnings, and Trading Experience (Number of Years). After entering all these details, click “Next” to move forward with the account opening process.
Step 4: Bank Proof
Here, you’ve to enter the bank details with which you want to link your trading account. You’ve to mention the Account Number and IFSC Code. All the other details will be auto-fetched and your account will be verified. Once, you’ve bank is verified, move to the next step.
Step 5: IPV and Signature
In this step, you’ve to complete In-Person-Verification. You can complete this step using your webcam. Simply, read the OTP mentioned on the SCREEN, record a video using your webcam and submit.
After IPV, you’ve to submit your signature. Simply, sign on a blank paper, take a picture of it and upload. Once both these are done, you can move to the next step.
Step 6: Proof of Address
Here, your Address will be verified using your Aadhar card. If you’ve already done your KYC, all the details will be auto-fetched. Else, you can delete and re-upload.
Step 7: Review Application
Finally, you’ve to review your application and click on ‘eSign and Submit Form”
Step 8: Esign on NSDL
Once you click on ‘eSign and Submit Form” in the last step, it will redirect you to the NSDL Electronic Signature Service page. Here, you’ve to enter your Aadhar Number first. You’ll receive an OTP on your Aadhar registered phone number.
Enter the OTP and verify to complete the eSign.
Step 9: Congratulations
Congratulations, you’ve completed the Kotak Securities account opening process. All the account opening steps are complete by now.
Next, you’ve to wait for Form verification and approval from the Kotak securities team. Generally, it will be done within an hour during working hours. Once your account is verified, you’ll receive emails regarding “Account is approved” and your login credentials to start trading.
In general, you can actually complete all these account opening processes within 60 minutes and start trading/investing the same day.
Closing Thoughts
Till now, we only discussed How to Open Demat Account with Kotak Securities - Trade FREE Plan. Anyways, once your account is verified and active, you can start investing or trading in stocks using Kotak Securities trading platforms. Here’s a link to their trading platform. Simply login using the credentials that you’ve received on your email and start trading/investing.
That’s all for this article on How to open demat account with Kotak Securities. If you’ve got any doubts or queries, feel free to comment below. I’ll be happy to help. Have a great day and Happy Investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Kotak Securities Trade FREE Plan Review 2021: While looking for the best demat and trading account to trade in Indian stocks, two of the key criteria that you should check are the brokerage charges and broker’s reputation.
Kotak Securities, being a part of the Kotak group is one such broker. Traditionally a full-service broker, Kotak Securities entered the discount brokerage model in November 2020 with its Trade FREE Plan. Here, they announced zero brokerage for intraday training across segments, a first of its kind plan in India. It is also known as Free Intraday Trading (FIT) plan.
In this post, we’ll look into the Kotak Securities Trade FREE Plan Review and discuss whether FREE Intraday trading plan is actually legit for the traders and investors. Further, we’ll also look into some of the pros and cons of Kotak Securities Trade FREE Plan. Let’s get started.
Before we start the detailed review, let us give you a quick review of the Kotak Securities Trade FREE Plan highlighting the Key Features for the reader.
Kotak Securities Limited (KSL) is a part of Kotak Mahindra Bank Ltd. In its TRADE FREE PLAN, KSL is offering zero brokerage on intraday trades and Rs. 20 per order for all other future & options (F&O) trades including equity, commodity, and currency. Here are a few of the key points on Kotak Securities Trade FREE Plan to note:
— Zero Brokerage on Intraday Trades
— All other F&O Trades at Rs 20 per order
— FREE Demat Account (Rs 499 Opening Charges Waived Currently)
— Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.
About Kotak Securities Limited
Kotak Securities Limited (KSL) is a part of Kotak Group with a legacy of over +20 Million Customers. Looking into the parent Kotak Group, they offer a wide range of financial services in the fields of commercial banking, stockbroking, mutual funds, life & general insurance, and investment banking. Kotak Group caters to the diverse financial needs of individuals and the corporate sector.
Kotak Securities operate in five main areas of business: Stock Broking (retail and institutional), Depository Services, Portfolio Management Services, Distribution of Mutual Funds, Distribution of Kotak Mahindra Old Mutual Life Insurance Ltd products. Being a full-service broker, they also provide in-depth market research reports to their clients.
Kotak Securities Trade FREE Plan Review
After the entrance of the discount brokers in the stockbroking industry, the traditional full-service brokers started getting a lot of competition from the new disruptors like Zerodha and Upstox. They started offering cheaper brokerage charges with technically advanced technology platforms which attracted a lot of customers.
To fight back with the disrupting discount brokerage, Kotak securities launched its TRADE FREE PLAN in November 2020. Here are key facts about Kotak Securities Trade FREE Plan:
The plan is also known as FIT (Free Intraday Trading).
It offers ZERO Brokerage on Intraday Trades
For all other F&O trades, the brokerage is charged at Rs.20 per order
MIS & Super Multiple (Cover Order) at also charged at just Rs.20 per order
Quick Note: Under the Customer Satisfaction Guarantee, if the customer is not satisfied with the services, they can ask for refund of fees and brokerage within one month of account opening.
Another exclusive feature of this new Kotak Securities TRADE FREE Plan is that here customers can open their broking account in just 60 minutes and start trading the same day.
Overall, through the newly offered TRADE FREE Plan, Kotak securities is migrating from the trading broker model to the discount brokerage model.
Brokerage and Other Charges of Kotak Securities Trade FREE Plan:
Brokerage Charges of Kotak Securities Trade FREE Plan
Segment
Brokerage
Intraday (All Segments)
FREE
Delivery (Equity, Commodity)
0.25% of Transaction
Margin Intraday Square off (MIS) & Super Multiple
Rs 20 per executed order
FREE : Intraday Trades — All Segments: Zero brokerage for intraday trades across Cash, Futures & Options, Currency & Commodity
Rs 20 Per Order : All other F&O, MIS & Super Multiple (Cover Order) — Flat fee of Rs 20 per executed order
0.25% of Transaction: Equity & Commodity Delivery — Equity & Commodity Delivery at just 0.25% of transaction value. This brokerage is subject to a minimum brokerage of Rs 20 per executed order.
Is Intraday Trading actually FREE under the Trade FREE Plan?
In the Trade FREE Plan, No brokerage is charged for intraday trades for which you provide at least the exchange-prescribed margins. However, in order to adhere to statutory requirements, a nominal brokerage of only 1 paisa per scrip/underlying is charged. Further, the catch is that higher exposure intraday trades using Super Multiple will incur a flat brokerage of Rs 20 per executed order.
Trading Platforms by Kotak Securities
Kotal Securities limited offers multiple trading platforms so that the customers can choose the one that suits their requirements the best. Here are the trading platforms offered by Kotak Securities:
Kotak Stock Trader: It is a is a widely used mobile trading app for trading in the Indian stock market. The app allows you to trade Equities, Futures & Options (F&O), Currency F&O, and Commodity, track your portfolio, get live streaming market updates and stock quotes, keep a watch on our research calls, and much more. Here’s a link to Kotak Stock Trader App on Google playstore.
TradeSmart Terminal: This terminal comes loaded with advanced trading features like Powerful watchlists, Integrated market depth in order form, Comprehensive fundamental and technical market data, Advanced charting (integrated with Chart IQ), 15-minute built-up screen (for derivatives), Sentiment and price heatmap, Option chain, Future rollover data and more.
Keat Pro X: This is Kotak’s high-speed online stock trading software to make the trading experience vivid and alive. A few of the key features of Keat Pro X are Live-streaming of stock market data, High-speed stock market trading, Up-to-date account information, Well-researched stock recommendations and more.
.com: This new trading website by Kotak securities is designed for simplicity, high-speed and performance. It comes with an intuitive interface and is loaded with new features to enhance the client’s trading experience.
PROS and CONS Of Kotak Securities Trade FREE Plan
Pros of Kotak Securities Trade FREE Plan
Here are a few of the top advantages of Kotak Securities Trade FREE Plan:
Zero Brokerage on Intraday Trading
Flat brokerage of Rs 20/per order of F&O Trades
Use of Stocks as Margin (Instead of Cash Margin)
Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.
Multiple trading platforms to fulfill almost all customer requirements.
In-depth market Market Research Reports
Cons of Kotak Securities Trade FREE Plan
Here are a few of the top disadvantages of Kotak Securities Trade FREE Plan:
Higher Brokerage Charge on Delivery trades compared to discount brokers
Higher AMC compared to other leading brokers
Closing Thoughts
Kotak Securities is a brand of the leading private bank in India “Kotak Mahindra Bank”. The Trade FREE Plan is an added benefit for the traders and investors who want to open their demat account with a reputed bank along with enjoying lower brokerage charges.
Moreover, Kotak Securities stockbroking, being a full-service broker also offers add-ons like Research Reports, Advisory, multiple investment options, etc which can be beneficial for the investors. Overall, if you want to enjoy full-service broker services along with lower brokerage charges, then you should definitely go with Kotak Securities Trade FREE Plan.
That’s all for this post on Kotak Securities Trade FREE Plan Review. Do let me know what you think about this brokerage plan by commenting below. Have a great day. Happy Investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Tips for Beginners on How to Ch0ose a Stockbroker: Selecting your online stockbroker is one of the biggest steps that you will take while entering the world of investing. You cannot start investing or trading in stocks in India until you have a stockbroker (unless you are using someone else’s account :D). These stockbrokers offer demat and trading accounts that are essential for the investors to buy/sell stocks.
When I first opened my brokerage account, I had no one to guide me. I belong to a family where no one invests in stocks. My father has few holdings in mutual funds (paper certificates) and LICs. However, he never had an online stock broking account and never invested directly in the stock market. Therefore, I had to go through a number of websites to educate myself about where to start and how to choose a stockbroker in India.
That’s why I am writing this post for beginners so that they don’t have to go through all those troubles and also can save a lot of time. In addition, I’ll also recommend the three best stockbrokers in India for beginners for the ease of the readers. Let’s get started.
Word of Advice: Picking your first Stockbroker
First of all, I would like to mention that your first broker doesn’t necessarily is required to be your stock broker for life. You can definitely switch to another broker anytime you like. Moreover, you can even transfer your existing shares from one brokerage account to another. Personally, I have also switched brokers from ICICI Direct to Zerodha.
However, it is not recommended to switch brokers as it involves some hassles and wastes time unnecessarily. Why not go with the best stockbroker itself so that you don’t have to switch accounts later. Moreover, it is good to start with a suitable broker, and choosing a bad stockbroker may ruin your first experience in investing/trading. In addition, it may also cost you some bucks as switching costs if you moved to another broker.
Next, you’ll need to open Demat and Trading Accounts (2-in-1 account) with your stockbroker. Most brokers offer these two accounts altogether. These accounts are necessary to invest or trade in stocks in India.
Before we dive into the topic, let me give you the smallest explanation of what’s the difference between demat and trading accounts so that we are all on the same page.
Just as money is kept in your savings account, similarly your bought stocks are kept in your demat account. When you buy a stock, it gets credited to your demat account. And when you sell it, it gets debited from the same. At any time, your demat account reflects all your holding stocks. By the way, a demat account is a short form for a ‘Dematerialised account’.
On the other hand, a trading account is a medium to buy and sell shares in a stock market. It is used to place purchase or selling orders for a stock in the market. Here’s a guide to learn more about demat and trading accounts in India.
How to Choose a Stockbroker? – Factors to Consider
In order to Choose a Stockbroker in India, it is required that you spend some time researching about the stockbrokers. Conduct your own independent research. Listen to the advice of the experienced investors on which stockbroker they use, but do not follow them blindly. Their requirements might be different from yours. You can carry out your own research. Get a general idea about the stockbroker, their account opening charges, facilities offered, trading apps/websites etc.
Next, there are a number of factors that you need to check before choosing your stockbroker. Here are a few of the must-check factors while choosing a stockbroker in India:
– Background & Reputation of the broker
The first step is to check the background of the stockbroker and their reputations. How old are the brokers and what their customers say about their platforms? You can read the reviews, complaints and have a survey of the personal experience of the existing users. If you are going to use the mobile app to make investments, check the mobile app ratings on the google or app store.
Another way of checking the reputation of brokers is by looking into how big they are based on their total number of active clients. The bigger the stockbroker, the more stable will be its trading platform. Here’s a list of 15 of the biggest stockbrokers in India based on the number of clients as of 28 Feb 2021:
S.No
Name of Stockbroker
# of Active Clients
Market Share (%)
1
ZERODHA BROKING LIMITED
3391059
18.85%
2
RKSV SECURITIES INDIA PRIVATE LIMITED (Upstox)
1960861
10.90%
3
ANGEL BROKING LIMITED
1454167
8.08%
4
ICICI SECURITIES LIMITED
1435356
7.98%
5
HDFC SECURITIES LTD.
944091
5.25%
6
5PAISA CAPITAL LIMITED
845879
4.70%
7
KOTAK SECURITIES LTD.
717658
3.99%
8
SHAREKHAN LTD.
676631
3.76%
9
NEXTBILLION TECHNOLOGY PRIVATE LIMITED (Groww)
656519
3.65%
10
MOTILAL OSWAL FINANCIAL SERVICES LIMITED
543311
3.02%
11
AXIS SECURITIES LIMITED
439273
2.44%
12
SBICAP SECURITIES LIMITED
322353
1.79%
13
IIFL SECURITIES LIMITED
287503
1.60%
14
GEOJIT FINANCIAL SERVICES LIMITED
197001
1.10%
15
EDELWEISS BROKING LIMITED
157198
0.87%
– Brokerage and Other Key Charges
Stockbrokers are the registered members of the stock exchange and they facilitate buy & sell orders in the share market for their clients. They charge some commission for offering this facility known as brokerage charge.
Now, there are two types of stockbrokers in India: A) Full-service broker & B) Discount broker.
A full-service broker provides advisory service and other premium facilities along with the trading platform. These brokers charge high commissions on every trade their clients execute as a percentage of each trade executed. On the other hand, discount brokers only provide the trading facility. They offer low brokerage and charges a flat fee per transaction.
Choose a suitable broker according to your preference. If you want stock research advisory, research reports, and other personalized facilities, go with a full-service broker. If you are planning to invest or trade on your own and want to may the least brokerage, go with a discount broker.
Brokerage Charges for different brokers:
Full-service brokers: 0.3-0.5% of Turnover of Delivery | 0.1-0.275% of Turnover on Intraday
Discount brokers: FREE for Delivery trades | Flat Rs 10 or 20 for All other trades
These days, most investors and traders are preferring discount brokers (like Zerodha, Upstox, Angel Broking, etc) as it helps them to save thousands of rupees which is deducted as brokerage. Moreover, many discount brokerage firms have started offering premium features to their clients at no additional cost.
Quick Note: You can use this brokerage calculator to get an idea of how much brokerage and other charges you’ll pay while trading or investing in stocks.
— Customer Services
If you are new to investing/trading, you will require some customer service, unless you already have a mentor or advisor. Check the customer service provided by the stockbroker.
Investing using online platforms is easy to use and has a number of resources available on the internet. However, there may be a few times when you will require technical support. It’s good to have someone to look for in such cases. Do not avoid customer services. Look for the reviews before opting for any stockbroker and if the customer service is poor, then search another broker.
An easy way is to try calling their customer care helpline number. If it takes years for the customer executive to pick up the phone, then avoid that stockbroker. Further, if you want one-to-one customer service, then check the website of the stockbroker if they provide personal services. In addition, you can also look into if Investors Education initiatives or archives of issues are available that you can navigate through in case you’ve stuck anywhere.
— Trading Platforms Offered
This is one of the most important factors to examine. Inspect whether the trading platform offered is friendly, its user interface, latency, and easy to use. Check the demo videos of the trading platform on youtube. Moreover, also read the reviews of the mobile app on Google and iOS platform.
Checking the trading platform is the key factor while choosing a stockbroker and all other factors are secondary. This is because you’ll spend a lot of time on the trading platform only to make your buy/sell orders. If you’re not comfortable with the platform, it will be a lot of trouble for you.
— Advisory & Research Facilities
If you are ‘not’ planning to invest on your own and need an advisory/ research report, then check for the facility offered.
The reliability of the advisory is also a must to check. The stockbroker should have a good reputation in advisory and research works. Many leading stockbrokers in India offer Research reports and advisory facilities like Angel Broking, ICICI Direct, Motilal Oswal, Sharekhan, etc.
– Range of Facilities Offered
If you are looking for diversified investing and trading options, look for the one stockbroker which offers all. For example, if you’re planning to trade in Stocks, Derivatives (futures & options), currencies, commodities etc, then look for a broker that offers the facility to trade in all, not in just one.
Similarly, if you’re planning to also invest in other options like mutual funds, bonds, etc, then check if this range of facilities is available with that broker or not. These days, most leading brokers offer services in multiple investments and trading instruments.
— Hidden Charges
There should be ‘no’ or minimal hidden charges while investing and trading. All the charges incurred while transactions should be specifically mentioned. Aske for any hidden charges with your customer care executive before selecting the stockbroker. Besides, you can also check the pricing and charges section of the stockbroker to know about all the charges that must be paid by clients.
Most stockbrokers offer brokerage calculators on their websites now. Remember, transparency is the key to any service.
— Fund Transfer
The easy linking facility of your trading account with your saving account should be available. Look for the fund transfer process in your stockbroker. Online money transfer and withdrawal should be fast and easy. Moreover, also check if there is any fund transfer fee with that stockbroker.
— Tools for Education/Learning
Many stockbrokers provide education facilities to their clients. For example, Zerodha educates its clients via ‘Varsity’ and through its blog for free. If you are in the learning phase, look if any tools of education are available with your stockbroker.
This is not a ‘must have’ factor for your stockbroker, however, it can be a worthy add-on.
A few other points to know while Choosing Stockbroker
Most of the important points while picking your stockbroker are already covered above. However, there are few other points also that a beginner should know on how to choose a stockbroker. They are listed below:
– Discounts and low-commission are not always good:
If you are new to the market and you will need a lot of help in the service while getting started. Although, it’s good to pay less, however, if you are getting premium facilities at a commission, it’s better for beginners. Once you are experienced, you can carry out your investing/trading on your own.
Further, these days, there are a lot of discount brokers in India which offer the cheapest brokerages. You have multiple options even in the discount brokers. Do not always go with the cheapest one, but also look into the other factors discussed in this article.
— Offline/Local Branches Availability
There are very few offline branches of discount brokers, whereas there are tons of branches of older full-service brokers. For newbies who are not that comfortable online, offline branches can be a good alternative. If you can find a branch in your city, where you can easily go and personally meet the customer care executive to clear all your doubts, then it’s good to go.
— Look for Extras/Add-ons
Many stockbrokers provide extras like FREE Account Opening, or ‘No Annual Maintenance Charges (AMC), free additional vouchers, etc. Check the add-on and added benefits. It’s always good to have some bonuses.
Top Picks For Best Demat & Trading Account in India
No 1 STOCKBROKER IN INDIA Zerodha
Free equity investments | Flat ₹20 intraday and F&O trades
That’s all for this post on how to choose a stockbroker in India. The points discussed in this article are key factors to look at before selecting stockbrokers. I hope this post on How to choose a stockbroker? was helpful to you. If you have any doubts, feel free to comment below. I will be happy to help you out. Have a great day and Happy investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
List of Biggest Stockbrokers in India (Updated: Mar 2021) In this article, we are going to look at the 15 Biggest Stockbrokers in India based on their total number of unique active clients.
There are over three hundred stockbrokers in India registered with SEBI and different stock exchanges. Even on National Stock Exchange (NSE), there are 299 registered stockbrokers in India (including defaulters or expelled) as of 28th Feb, 2021. When you are looking for the best stock broker to open your demat and trading account, one of the most straightforward factors to look into is its total number of active clients. Although a large client base doesn’t guarantee a better service, however, being a big firm, it reduces the possibility of the brokerage firm disappearing or running out of the service soon enough.
These days, one and all stockbrokers will argue that they are trustworthy as they are registered with SEBI. However, just because they are registered with SEBI doesn’t make them reliable for the long term. Time and again, a lot of such small brokers are either expelled out of the exchange or simply go out of the business and files for bankruptcy. And this leads to a lot of trouble for their current clients.
Therefore, a safer option for the customers to avoid any such kind of inconvenience is by opening their trading account with the biggest stockbrokers in the Industry.
15 Biggest Stockbrokers in India with Highest Active Clients
Several websites rank stockbrokers in India based on different factors like their brand value, trading platforms, customer services, facilities offered, complaint ratio, etc. However, in this article, we are not going to look into these factors.
Here, we are going to look at just one factor, i.e. the total number of unique active clients for that stockbroker. In this post, the stockbroker with the highest number of clients is ranked first, followed by the subsequent stockbrokers with top active clients.
For this approach, we are going to use the data available on the NSE India website. The national stock exchange website provides the details of the monthly total number of unique clients of the different stockbrokers registered with it. Here’s a quick link to the page. You can also download the spreadsheet available on this page to analyze the stockbrokers further.
Here are the 15 Biggest Stockbrokers in India based on the total number of unique active clients:
S.No
Name of Stockbroker
# of Active Clients
Market Share (%)
1
ZERODHA BROKING LIMITED
3391059
18.85%
2
RKSV SECURITIES INDIA PRIVATE LIMITED (Upstox)
1960861
10.90%
3
ANGEL BROKING LIMITED
1454167
8.08%
4
ICICI SECURITIES LIMITED
1435356
7.98%
5
HDFC SECURITIES LTD.
944091
5.25%
6
5PAISA CAPITAL LIMITED
845879
4.70%
7
KOTAK SECURITIES LTD.
717658
3.99%
8
SHAREKHAN LTD.
676631
3.76%
9
NEXTBILLION TECHNOLOGY PRIVATE LIMITED (Groww)
656519
3.65%
10
MOTILAL OSWAL FINANCIAL SERVICES LIMITED
543311
3.02%
11
AXIS SECURITIES LIMITED
439273
2.44%
12
SBICAP SECURITIES LIMITED
322353
1.79%
13
IIFL SECURITIES LIMITED
287503
1.60%
14
GEOJIT FINANCIAL SERVICES LIMITED
197001
1.10%
15
EDELWEISS BROKING LIMITED
157198
0.87%
Please note that the total number of active clients of all stockbrokers is 1,79,87,749 (1.79 Cr) as of Feb 2021, mentioned on the NSE India website.
From the above table, you can quickly notice that Zerodha is the biggest stockbroker with the highest numbers of unique clients registered on the National stock exchange in India.
As of 28th Feb 2021, Zerodha constitutes around 18.85% of the total market share of the active clients registered on the National Stock Exchange. It has over 33.9 lakh active customers compared to a total of over 1.79 Crore active clients of all stockbrokers on the NSE.
What makes this list even more interesting is that Zerodha was just founded in 2010 and still has been able to outrank all the old and well-matured traditional brokers. Anyways, other discount brokers like RKSV Securities (Upstox), Angel Broking, 5Paisa, and Groww (NextBillion Technologies) have also made into the top ten stockbrokers in India as per the number of active clients.
According to the above table, Zerodha is followed by Upstox, which ranks second and has over 19.6 lakhs unique clients.
The other most prominent stockbrokers in this list are Angel Broking (14.5 lakh clients), ICICI Securities (14.35 lakh clients) HDFC Securities (9.44 Lakh clients), 5Paisa (8.45 lakh clients), Kotak Securities (7.17 lakh clients), Sharekhan (6.76 lakh clients), Groww (6.56 lakh clients) and Motilal Oswal Group (5.43 lakh clients). Together these 15 biggest stockbrokers constitute over 70.19% of the total share of the unique clients registered on NSE.
Here is a list of the ‘Next’ 15 biggest stockbrokers in India with the highest active clients registered on the National stock exchange as of 28th Feb, 2021.
S.No
Name of Stockbroker
# of Active Clients
Market Share (%)
16
SMC GLOBAL SECURITIES LTD.
135715
0.75%
17
RELIGARE BROKING LIMITED
129855
0.72%
18
NIRMAL BANG SECURITIES PVT. LTD.
123768
0.69%
19
ALICE BLUE FIN SVCS P LTD
119106
0.66%
20
RELIANCE SECURITIES LIMITED
117799
0.65%
21
MARWADI SHARES AND FINANCE LIMITED
109049
0.61%
22
VENTURA SECURITIES LTD.
95070
0.53%
23
ANAND RATHI SHARE AND STOCK BROKERS LIMITED
84795
0.47%
24
SAMCO SECURITIES LIMITED
76436
0.42%
25
JAINAM SHARE CONSULTANTS PRIVATE LIMITED
74348
0.41%
26
ASTHA CREDIT & SECURITIES (P) LTD
69993
0.39%
27
PAYTM MONEY LTD.
69879
0.39%
28
TRADEBULLS SECURITIES (P) LTD.
66866
0.37%
29
CHOICE EQUITY BROKING PRIVATE LIMITED
60671
0.34%
30
ADITYA BIRLA MONEY LIMITED
55042
0.31%
That’s all for this article. I hope this list of 15 Biggest Stockbrokers in India with highest Active Clients was helpful to you. Further, please comment below which brokerage firm you’re using for trading in the Indian stock market and your review for the same. Happy investing!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Paytm Money Review and it’s Demat & Trading Account Services: In 2019, Paytm announced its entry into stockbroking through the launch of Paytm Money. The discount broking segment which Paytm enters involves only executing orders on behalf of the clients has become synonymous with online broking.
Despite its widespread acceptance in the brokerage community it still can be debated if entering this segment was wise. This is because less than 3% of the population of the country is currently involved in the stock market. In addition, the segment already includes players like Zerodha, Upstox, ET Money, Groww, Angel Broking, Sharekhan, etc. Today we discuss this move and the features brought to the table by the new product.
Why has Paytm entered stockbroking?
Paytm received approval from the SEBI in 2019 in order to enter the stockbroking segment. Paytm over the years has tried to establish itself as the one-stop platform for anything money-related in the recent past. After gaining traction post demonetization the online payments platform offered banking services, mutual fund, SIP, pension products. They also have acquired Raheja QBE in its plans to enter the insurance segment before expanding into the discount broking.
Paytm’s plans to enter stock broking couldn’t have come to fruition at a better time. In the months of April and May, NDSL and CDSL saw an addition of 2 lac and 12 lac new Demat accounts respectively. The lockdown imposed due to the COVID-19 pandemic has forced the work from home model to be adopted. This has led to an increase in the first time investors flocking to the stock markets with the added disposable income, as they as they are forced to spend less on leisure due to the pandemic.
The markets too favored the entry of first-time traders as after the steady fall from Feb-March the markets rebounded gaining over 45%. This allowed new entrants to gain profits making trading all the more attractive. In addition, the added information availability in the new environment has made it easier for new entrants to learn the trade.
Paytm Money, however, has not set the existing trading community as the only probable consumer base. India is expected to have 44 crore smartphone users whereas there currently exist only 1.2 crore active traders in the market. Paytm predominantly functioning on smartphones will have multi-folds of unexplored markets available for them. Paytm Money which has investors from over 98% of the pin codes in India will have the added advantage due to this existing under penetration in the country.
— Zerodha on Paytm
Zerodha which currently dominates the market with 4 million customers and an 18% share last year made a profit of over Rs.1000 crores. Nithin Kamath, CEO of Zerodha, commented on its new competitor saying,
“The big problem in India to solve is to grow the capital market ecosystem. While it has increased over the last six months, there are 90 lakh Indians who invest in the stock market. There is another one crore more who can enter the market. For that one crore to come, you need platforms with great distribution capability Paytm is one of those who can. If anyone in the country can expand fast, I think Paytm can do that.”
Paytm Money Review – Delivery, Intraday and F&O Charges
Here are the brokerage charges offered by Paytm Money:
Delivery: ₹0.01 per executed order
Intraday: Minimum of 0.05% of turnover or ₹10
Futures: 0.02% of turnover or Rs. 10/- per Executed Order, whichever is lower
Paytm Money Review – Attractive features offered by Paytm Money
One of the most attractive features comes with the attractive prices offered by Paytm which even trump many market leaders. They offer the lowest charges on intraday trade which is at Rs. 10 per trade.
The app also provides in-depth financial and historical price data for every listed company which enables investors to research the stock market on their own.
Using the Smart Search and notification option the users can discover and set alerts for as many as 50 stocks and get notified when the price is reached.
The app also has the added advantage of offering not only stock and derivative trading options but also offers other mutual funds and National Pension Scheme products.
The app also includes a built-in calculator that enables users to find out the transaction charges and know the precise breakeven price to sell the stocks on profit.
Users can automate stock investing by setting buy orders on a weekly or monthly basis.
Advanced charts and other options like cover order and bracket order have been offered in order to make the experience more rewarding
The brokerage fees for the segment futures are the same as those for intraday. The options brokerage offers flat Rs 20 per trade regardless of the number of lots.
Delivery segments allow the transactions you are brokering shares today on another day. No additional charges are made for these, where no purchases and sale is made on the same day.
Another advantage that Paytm offers will be with respect to data security. Paytm being in the digital walled industry comes with absolute data privacy to keep investor data safe with bank-level security.
Opening a Demat Account with Paytm Money?
Opening a Demat or Trading Account using Paytm Money can be done within 24 hrs by the following steps:
Download the Paytm Money App
Click on complete your KYC by filling in the required information.
Upload the documents i.e. PAN, Aadhaar and bank details (Cancelled cheque/Account statement)
Submit and You can start trading/investing once your account is active
Pricing comparison between Paytm and Zerodha
Activity
Paytm
Zerodha
Account Opening
Rs. 200 - One time Digital KYC + Rs 300 Account Opening Charges
Rs. 300 ( Equity and Commodity)
Delivery Charges
Rs. 0.01/- per executed order
FREE
Intraday Charges
Rs. 10 or 0.05% of turnover
Rs. 20 or 0.03% per trade
Futures Charges
0.02% of turnover or Rs. 10/- per Executed Order, whichever is lower
0.03% or Rs. 20/executed order whichever is lower
Options Charges
Rs. 10/- per Executed Order
Rs. 20/- per Executed Order
AMC (Account Maintenance Charges)
Rs. 0 *
Rs. 300/ year + GST
Pledging Charges
Rs. 32 (including the depository transaction charges)
Paytm money stockbroking and its demat & trading accounts are still in the early phase and yet to be tested customer’s feedbacks and expectations. Anyways, here are a few limitations of Paytm Money that it is facing or will face in the future:
No Offline Branch Support
Paytm Money doesn’t offer Commodity and currency trading services for customers.
Unlike the popular trading platforms like Zerodha or Upstox, which has been in the market for years, Paytm’s trading platform is yet to test handling large volumes and market volatility.
Advanced order types like GTC (Good Till Cancelled) not available.
Closing Thoughts
By venturing into stockbroking Paytm has now become one of the most comprehensive wealth management platforms in the country. Their extensive existing customer base acts as their biggest leverage as they have access to the market not penetrated by other platforms. This can also be seen in the app which has a UI that is friendly and minimalistic, enhancing its approach.
Comparing Paytm to market leader Zerodha, the former makes financial inclusion a priority to suit its customer base. Zerodha on the other hand according to CEO Nitin Kamath caters to people who are more than just investors by offering a more evolved product.
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
List of Best Stock Brokers in India 2021: Are you looking to open your demat and trading account, but confused about which stockbroker to choose? We have got you covered in this post. Today, we are going to discuss the 14 best stock brokers in India (2021) to open your demat and trading account.
This list of best stock brokers in India will provide you with a brief overview of the leading full-service and discount stockbrokers in India. All these stockbrokers offer the best demat account and trading account services. Let’s get started.
14 Best Stock Brokers in India 2021
Top Picks For Best Demat & Trading Account in India
No 1 STOCKBROKER IN INDIA Zerodha
Free equity investments | Flat ₹20 intraday and F&O trades
Zerodha is the biggest and the best stockbroker in Indian with over 4 million clients that make up the +15% of daily retail trading volumes on Indian stock exchanges.
Started in 2010, Zerodha popularized the concept of the discount brokerage in the Indian equity market with a no brokerage model for investors and a flat Rs 20 per trade brokerage charges for the intraday and other trades.Competing with big players like HDFC and ICICI is indeed a difficult task but Zerodha has managed to remain the Number One discount broker of the country. There are other competitors too in discount broking, however Zerodha, being the largest discount broking firm in India, enjoys a massive customer base in India.
Here are a few key points and features to know about Zerodha stock broker:
Long term investment/Delivery Brokerage Charges: Rs 0
Mutual fund investments: ZERO Brokerage
Intraday Charges: 0.01% or Rs 20 per executed trade (whichever is less)
Zerodha offers a universe of trading platforms and products to help their clients from education to trading tools. Their trading platform consists of Kite 3.0 trading platform, Kite Mobile, Console, Pi, Sentinel, Coin
A few of the pros of Zerodha stockbroking are Free Equity Delivery trading, Innovative & User Friendly trading platform, Max brokerage per trade is Rs 20, FREE partner platforms for their clients, etc. However, the biggest cons of Zerodha is that they do not provide research reports or advisory.
The ICICI Direct which is a part of ICICI Securities ranks number one in the full-service stockbrokers’ list. It is armed by the leading private financial services provider ICICI Group which is in existence since 1994. The high-quality and customized services along with the 3-in-1 account facility are what the company counts on to be able to capture such a vast number of active clients.
ICICI Direct have been number one in terms of active customers until 2019 when the top discount broking firm Zerodha toppled them with a client base of more than 2 million. However, ICICI Direct is the most visited trading platform in India.
The reason why a lot of investors and traders would want to trade through this company is that they not only provide the general stockbroking products and services but also a huge range of insurance products, financial distribution products, investment banking, institutional trading, wealth management services, Home Loans, Bonds, Fixed Deposits, IPO services, NCDs and loan against shares.
Here are a few key points and features to know about ICICI Direct:
ICICI Direct offers different types of brokerage plans like I-Secure, I-Saver & Prepaid to choose from. However, recently they also entered the discount brokerage model with ICICI Direct Prime brokerage plan. Here are the details:
Delivery Brokerage charges: 0.15% – 0.25%
Intraday Brokerage Charges: Rs 15 per trade
Futures/Options/Currency/Commodity Charges: Rs 20 per trade
ICICI Direct offers a high-speed and technology-driven web-based trading platform, which was one of the first best online trading platforms that started online trading in India in 2000. They have charting, analytics, and fundamental statistics reports feature enabled on this platform for any investor or trader to understand the performance of their portfolios. Other key trading platforms by ICICI Direct are Trade Racer and its mobile trading app.
A few of the pros of ICICI Direct stockbroker are 3-in-1 Account, facility to invest in US Stocks, Brand Value, and multiple brokerage plans – ICICI Direct Prime, ICICI Direct NEO, I-Secure, I-Saver, Prepaid plan etc to choose from. On the other hand, a few cons of ICICI Direct are High charges, Poor Mobile App Performance, and a little complicated Brokerage Plan.
3. HDFC Securities
HDFC Securities Limited is a subsidiary of the largest private sector bank HDFC with a huge online and offline presence and has been in existence for the last two decades. The company is named as one of the topmost full-service stockbrokers of India and has its headquarter in Mumbai with more than 270 offices and branches across the country.
Known for its comprehensive services to a variety of clients and professional traders with online as well as offline trading services, HDFC Securities Limited offers a wide range of stockbroking services along with the distribution of financial products. The customers of this broking house can trade through stocks, mutual funds, commodities, fds, bonds etc, and have the benefit of trading and investing with an award-winning broking house.
Here are a few key points and features to know about ICICI Direct:
Delivery charges: 0.07%-0.32% on transaction value
Intraday Charges: 0.40%- 0.15% on transaction value
Account opening charge: Rs 999
Annual Maintenance Charge: Rs 750 (Second year onwards)
HDFC Securities offers web trading platforms, Blink, ProTerminal, and Mobile App to their clients to trade and invest in stocks. A few of the best pros of HDFC securities are 3-in-11 Account (Demat+Trading+Savings), facility to invest in US stocks, Umbrella platform for different investment instruments, Research Reports, Equity Recommendation to Clients, and NRI Section. On the other hand, like every other big full-service broker, the cons of HDFC securities are High brokerage charges and no commodity trading facility.
4. Angel Broking
Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.
Although Angel Broking worked as a full-service broker and offered a percentage brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.
Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per. The same simple rate is applicable across exchanges and segments.
One of the key advantages of trading with Angel Broking is that they provide guidance/recommendations for investing in the stock market along with research reports on companies and many other value-adding tools and services.
Services Offered: Angel Broking offers its services in Equity, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.
Angel Broking Brokerage Charge:
Delivery charges: Rs 0
Intraday Trading: Flat ₹20 Per Trade
Equity F&O: Flat ₹20 Per Trade
Currency F&O: Flat ₹20 Per Trade
Commodity F&O: Flat ₹20 Per Trade
Account Opening Charges with Angel Broking:
Account opening charge: Rs 0 (Currently Waived)
Annual Maintenance Charge: Rs 450 (Second year onwards)
Trading Platform: Angel iTrade, Angel Broking Mobile App, Angel BEE
5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to compete with the fast-growing discount broking industry.
Services offered: Apart from trading in equity, currency, commodity, 5Paisa also offers its services in mutual funds, Insurances, Personal loans.
5Paisa Brokerage charges
5Paisa offers free trading in equity and flat brokerage in other segments. Here are the brokerage charges offered by 5Paisa:
Delivery Trading: Rs 20 per trade
Intraday Trading: Rs 20 per trade
Equity Futures: Rs 20 per trade
Equity Options: Rs 20 per trade
Currency Futures: Rs 20 per trade
Currency Options: Rs 20 per trade
5Paisa Demat And Trading account opening Charges:
Account opening charges: FREE (Rs 650 Waived)
Annual Maintenance charges: Rs 45 per month (only for months when you trade)
Trading Platform: Investor terminal web platform, trader terminal, 5Paisa share trading mobile app
Pros of 5Paisa:
Free delivery trading
A low brokerage of flat Rs 10 per trade
100% paperless account investing
Investment in stocks, mutual funds & insurance from the same account
Upstox is a fast-growing discount broker, backed by a group of leading investors including Kalaari Capital, Ratan Tata, GVK Davix, etc. It is also known as RKSV. Upstox started as RKSV in 2012 and rebranded to Upstox in 2015. As of Jan 2021, Upstox has the second-highest number of active clients on NSE after Zerodha.
Services offered: Upstox offers trading services in equity, currency, and commodity
Upstox Brokerage charges
While trading with Upstox, equity delivery trades are free of cost. For intraday trading on BSE, NSE and MCX, and F&O it is 0.05% or up to Rs. 20 per order traded. Irrespective of the order size, the brokerage cost is only Rs. 20 per order traded.
Delivery Charges: Rs 0
Intraday Trading: Rs 20 per executed trade or 0.05% whichever lower
Futures Trading Charges: Rs 20 or 0.05% (whichever is lower) per order
Trading Platform: Upstox Pro Web Trading Platform, Bridge for AmiBroker, Developer Console, Option Chain Tool, Upstox MF Platform
Pros of Upstox:
Free delivery trading,
Fast paperless demat and trading account opening,
Margin against share is available,
3-in-1 Account available (Partnership with IndusInd Bank)
Cons of Upstox:
Good Till Cancelled (GTC) and Good Till Date/Time (GTD) Orders are not available
Margin Funding not available on delivery trades
Small technical glitches on app reported by customers
7. Sharekhan
With over 2 million customer base, Sharekhan has been one of the top three stock brokers in India. The journey of Sharekhan from being part of the SSKI Group to a BNP Paribas subsidiary had been enticing for not only the investors but also the traders. It is the first stockbroker in India to introduce an online trading website sharekhan.com.
The finest investment platform provides a wide range of products and services namely stock quotes, news alerts on the share market, fundamental and analytical research reports on equity, mutual fund investments, IPOs and so on. The customer-centric account types enable investors and traders to select the best plan for their needs.
Intraday Brokerage Charges: 0.1% on the buy side and 0.1% on the sell side
Delivery Brokerage Charges: 0.5% on the buy side and 0.5% on the sell side
Futures Brokerage Charges: 0.10% on the first leg, 0.02% on the second leg if it is squared on the same day
Options Brokerage Charges: Rs 50 per lot or 2.5% on the premium
Annual Maintenance Charge: Rs 400 (Second year onward)
Quick Note: Sharekhan recently launched a discount broking platform named “espresso”. It offers Flat Rs 20 per order for Intraday trades across all segments (Equity, F&O, Commodity, and Currency). You can read more about it here.
Multiple Brokerage charges depending on the requirement,
Offers offline training, workshops, etc
Cons of Sharekhan:
No 3-in-1 A/c facility
Higher brokerage charge
8. Motilal Oswal
With over 20+ years of experience in trading and investment, spread over 500+ cities and comprising 2,200+ Business Locations, it is one of the most reputable stock brokers in India. From sub-brokers to the pioneering entrepreneurs of a business in the financial services, Mr Motilal Oswal and Mr Ramdeo Agrawal are the two big names in the Indian stock market who have focused on providing high-quality research based stock recommendations to the clients and today they are big players in the stock market and are one of the largest stock-broking firms in this industry.
They just not stuck into the broking business but also entered many new avenues eventually such as private equity, investment banking, mutual funds, portfolio management service, wealth management and all of that a typical financial service company would provide.
Motilal Oswal Securities Limited is a subsidiary firm of Motilal Oswal Financial Service Limited. Today, this diversified financial service firm holds diversity in the clients too as they have retail customers, foreign institutional investors, High Net Worth Individuals, financial institutions and small and large corporates.
Delivery charges: 0.50% on transaction value
Intraday Charges: 0.05% on on transaction value (Both side)
Account opening charge: Rs 0
Annual Maintenance Charge: Rs 400 (From 2nd Year onlwards)
Trading Platform: Motilal Oswal Trade, Desktop trading platform, web trading platform, Mobile App
Pros of Motilal Oswal:
Award-winning research services,
Wide investment choices,
Personal advisor/advisory,
Multiple brokerage plans depending on requirements
Cons of Motilal Oswal:
High brokerage compared to discount brokers,
Doesn’t offer a 3-in-1 account,
Additional hidden charges
9. Kotak Securities
Founded in 1994, Kotak Securities Ltd is a subsidiary of Kotak Mahindra Bank with a presence in 360+ cities. Ranked among the top five full-service brokers and one of the very few stockbrokers who provide a 3-in-1 account facility, Kotak Securities Limited is acclaimed to be unconventional when it comes to delivering unique services to their clients.
As a part of the well known financial service provider The Kotak Mahindra Group, Kotak Securities along with its group offer various multi-asset class investment and trading product and services, distribution services, insurance products, investment banking and a lot more to their wide range of clients spread across India as well as the globe.
The company has been the first broker all over the country to introduce Margin Finance for online trading, IPO and Mutual Fund Investments over the phone, SMS alerts right before the execution of the depository transaction, Autoinvest and Margin against securities using shares in the Demat account. This is the reason why it is renowned for its innovations and using advanced technologies to make investment and trading experience smoother for their clients.
Recently Kotak securities launched Trade FREE plan with a discount broking model. Here are the details:
Delivery charges: Rs 0
Intraday Charges: Rs 0
Futures Charges: Rs 20 per trade
Options Charges: Rs 20 per trade
MIS & Super Multiple (Cover Order): Rs.20 per order
Trading Platform: XTRALITE (web), KEAT PRO X (terminal application), Fastlane, Stock Trader(mobile app)
Pros of Kotak Securities:
Flat brokerage charges full-service broker
Wide investment options,
Fast and high-performance platforms,
3-in-1 account available,
Offers multiple brokerage plans- FREE trade, Fixed, Dynamic & FIT
Cons of Kotak Securites:
High brokerage on other plans
Average Trading Platform
10. India Infoline (IIFL)
Incorporated in 1995, India Infoline (IIFL) has a wide network of over 4,000+ branches spread over 900+ cities across India. It is also the parent company of 5Paisa securities (discount broker). IIFL is a well-trusted financial service provider in India which offers fast online trading along with research-based advisory services. It offers services to invest and trade in Stocks, Derivatives, Commodities, Insurance, FDs, Loans, IPO and Bonds, etc.
Multiple brokerage plans depending on the client’s requirements
A wide network of branches across India
Cons of India Infoline (IIFL):
High Brokerage Plans,
Average customer service
11. SBI Cap Securities (SSL)
SBICAP Securities Limited (SSL) is one of the popular names in the stockbroking industry who are listed amongst the few large full-service stockbrokers that offer 3-in-1 account facilities. It is the stockbroking arm of the SBI Group which is the leading group of the financial services provider with their presence for many decades.
Due to its vast presence across the country and the globe, they have developed their customer-base quite well and that is the reason they have many customers availing financial services as well as the trading facilities with them. The SBI Group provides all facilities related to banking, insurance, mutual fund, and other stockbroking services to its customers.
The SBICAP Securities review article from Trade Brains is exclusively made available to you that will serve as your complete manual and will enable you to study the full-service stockbroking company from its beginning, the brokerage they charge.
Account opening charge: Rs 850
Annual Maintenance Charge: Rs 500
Delivery charges: Higher of 0.50% or 5 Paisa per share
Intraday Charges: Higher of 0.15% of 5 Paise per share
Trading Platform: SBI Smart web trading platform, eZ-Trade@sbi
Pros of SBI Securities Ltd (SSL):
3-in-1 account,
Umbrella platform to invest in stocks, bonds, mf, fds etc,
Large offline presence
Cons of SBI Securities Ltd (SSL):
High brokerage charges
Doesn’t offers Commodity trading.
Brokerage charges are high if compared
Poor customer care service
12. Trade Smart
Trade smart is a Mumbai, India-based discount broker good for traders and investors looking for low brokerages, high margins, and a fast trading platform. Unlike most discount brokers, Trade smart online is not a recent setup. It is a part +25 years old VNS Finance & Capital Limited, which is a traditional broker in India. It has over 50,000+ happy customers, averaging a daily turnover of over Rs. 5000 crores
Services offered: Trade smart online offers brokerage services in stock, futures & options, commodity, and currency trading segments.
Trade Smart Online Brokerage charges:
This discount broker offers a flat brokerage of Rs 15 per trade irrespective of the trading volume in its ‘Value’ trading plan.
Further, it also proposes a ‘Power’ trading plan with a brokerage of 0.007% on the transaction, which is suitable for small-volume traders. Here are the brokerage charges for delivery and intraday trading:
Delivery Charges: Rs 15 per trade (Power plan) or 0.07% (value plan)
Intraday Trading Charges: Rs 15 Per trade (Power plan) or 0.007% (Value Plan)
Trade Smart Online Demat And Trading account opening Charges:
Paytm received approval from the SEBI in 2019 in order to enter the discount stockbroking segment. Paytm over the years has tried to establish itself as the one-stop platform for anything money-related in the recent past. After gaining traction post demonetization the online payments platform offered banking services, mutual fund, SIP, pension products.
Paytm’s plans to enter stock broking couldn’t have come to fruition at a better time. In the months of April and May, NDSL and CDSL saw an addition of 2 lac and 12 lac new Demat accounts respectively. The lockdown imposed due to the COVID-19 pandemic has forced the work from home model to be adopted. This has led to an increase in the first time investors flocking to the stock markets with the added disposable income, as as they are forced to spend less on leisure due to the pandemic.
Here are the charges for Paytm Money Demat and Trading Account:
Groww is one of the fastest-growing investment platforms in India. Groww is the brand name for Nextbillion Technology Private Limited – a SEBI registered stockbroker and a member of NSE and BSE. Initially, Groww a Bangalore-based startup was set up in 2016 as a platform to directly invest in mutual funds. Keeping up with the increase in demand for equity trading in the midst of the pandemic the company also offered equity trading.
The vision behind the Groww App was to set up was to create a powerful yet simplest to use App for trading from anywhere. With this, the app came up with the philosophy of making “Investing should be as simple as online shopping”. Today the company offers Mutual Funds, Demat Services, Trading Services, Intraday Services, IPO Services, and Trading Exposure.
The following table sheds light on the rates applicable:
Account Opening Charges: Rs 0
Annual Maintenance Charges: Rs 0
Brokerage Charges: Rs 20 or 0.05% per executed trade (Whichever is lower)
Particulars
Groww Charges
Account Opening Charges
Free
AMC Charges
Free
Equity Delivery Trading
Rs.20 per executed order or 0.05% of order value (whichever is lower)
Equity Intraday Trading
Rs.20 per executed order or 0.05% of order value (whichever is lower)
Pros of Groww Demat & Trading Account:
Simple and intuitive user interface
One platform to invest in stocks, mutual funds, gold and US stocks.
Investing facility for US Stocks available
Cons of Groww Demat & Trading Account:
Futures & Options (Derivatives), Currency and Commodity trading facility not available yet.
As a newer entrant, the trading platform yet to be tested to work smoothly on high trading days.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
List of Top Discount Brokers in India – Best Discount Brokers in India 2021 (Updated): With the rise of Zerodha, the discount broker which was founded in 2010, the Indian broking industry saw a massive disruption. As these discount brokers were offering a cheaper brokerage plan, they were able to attract a lot of customers compared to the expensive traditional brokers. After this disruption, many of the existing brokers and firms started copying the concept and offering similar cheaper plans.
After around a decade since these brokers started getting attention, discount brokers are becoming more and more popular in recent years. As a matter of fact, many of such discount brokers are able to outrank the well-determined and big ‘conventional’ trading firms. In this post, we are going to discuss eight of such best discount brokers in India.
Here, we’ll be evaluating the discount brokers in India based on the key features like their brokerage charges, account opening charges, maintenance charges, services offered, trading platforms, pros, cons and more. By the end of this article, you’ll have a better understanding of the different discount brokers in India so that you can choose the one that suits you the best. Let’s get started!
What exactly is a discount broker?
Discount brokers offer low brokerage, high speed and a fast platform for trading in stocks, commodities and currency derivatives. The brokerage charge while trading with these discount brokers are way lower compared to the traditional brokers in India like HDFC Securities, ICICI direct, SBI cap, etc.
Besides, the business model of a discount broker is quite straight forward. They offer a flat brokerage rate for every trade that their client makes, and it does not depend on the size of the trades. This rate can is usually between Rs 10 or 20 per trade.
On the other hand, full-service brokers charge a fraction of fee on the transaction volume. This commission can be as high as 0.3-0.7% of the transaction volume. Therefore, as the volume of the transaction increases, you have to pay more and more brokerage.
Now that you have a basic understanding of the discount vs full-service brokers in India, let us discuss eight of the best discount brokers in India which are worth investigating.
Top Picks For Best Demat & Trading Account in India
No 1 STOCKBROKER IN INDIA Zerodha
Free equity investments | Flat ₹20 intraday and F&O trades
Zerodha, founded in 2010 by Nitin Kamath, is the biggest discount in India that offers free equity and mutual fund investments and flat brokerage on Intraday & all other traders. It has over +3 million clients and contributes to over 15% of daily retail trading volumes across the Indian Stock Market. Its mobile app ‘KITE’ has got over +1,000,000 downloads on the play store.
Quick fact— According to the Jan 2021 report by NSE, Zerodha is the biggest stockbroking firm in India (client-wise), outranking many old and big broking corporates like ICICI direct, HDFC Securities, Sharekhan, etc. Through its innovation and practical approach, Zerodha has been able to outrank all these big players.
Zerodha brokerage charges
– Free equity delivery: All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.
– ₹20 intraday equity and F&O trades: ₹20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.
Zerodha Demat And Trading account opening Charges:
For opening a trading and demat account at Zerodha, here are the charges:
— Equity Trading Account: ₹200
— Commodity Account:₹100
So, if you wish to open the Trading, Demat & Commodity account with Zerodha, the total account opening charges will be Rs 300. Further, the annual maintenance charge (AMC) for the demat account is Rs 300.
Services offered: Zerodha offers trading and investment services in equity, derivatives, currency, mutual funds & commodities.
Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.
Although Angel Broking worked as a full-service broker and offered a percentage brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.
Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per. The same simple rate is applicable across exchanges and segments.
One of the key advantages of trading with Angel Broking is that they provide guidance/recommendations for investing in the stock market along with research reports on companies and many other value-adding tools and services.
Services Offered: Angel Broking offers its services in Equity, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.
Angel Broking Brokerage Charge:
Delivery charges: Rs 0
Intraday Trading: Flat ₹20 Per Trade
Equity F&O: Flat ₹20 Per Trade
Currency F&O: Flat ₹20 Per Trade
Commodity F&O: Flat ₹20 Per Trade
Account Opening Charges with Angel Broking:
Account opening charge: Rs 0 (Currently Waived)
Annual Maintenance Charge: Rs 450 (Second year onwards)
Trading Platform: Angel iTrade, Angel Broking Mobile App, Angel BEE
5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to compete with the fast-growing discount broking industry.
Services offered: Apart from trading in equity, currency, commodity, 5Paisa also offers its services in mutual funds, Insurances, Personal loans.
5Paisa Brokerage charges
5Paisa offers free trading in equity and flat brokerage in other segments. Here are the brokerage charges offered by 5Paisa:
— Delivery Trading: Rs 20 per trade — Intraday Trading: Rs 20 per trade
— Equity Futures: Rs 20 per trade
— Equity Options: Rs 20 per trade
— Currency Futures: Rs 20 per trade
— Currency Options: Rs 20 per trade
5Paisa Demat And Trading account opening Charges:
— Account opening charges: FREE (Rs 650 Waived)
— Annual Maintenance charges: Rs 45 per month (only for months when you trade)
Trading Platform: Investor terminal web platform, trader terminal, 5Paisa share trading mobile app
Pros of 5Paisa:
Free delivery trading
A low brokerage of flat Rs 10 per trade
100% paperless account investing
Investment in stocks, mutual funds & insurance from the same account
Upstox is a fast-growing discount broker, backed by a group of leading investors including Kalaari Capital, Ratan Tata, GVK Davix, etc. It is also known as RKSV. Upstox started as RKSV in 2012 and rebranded to Upstox in 2015. As of Jan 2021, Upstox has the second-highest number of active clients on NSE after Zerodha.
Services offered: Upstox offers trading services in equity, currency, and commodity
Upstox Brokerage charges
While trading with Upstox, equity delivery trades are free of cost. For intraday trading on BSE, NSE and MCX, and F&O it is 0.05% or up to Rs. 20 per order traded. Irrespective of the order size, the brokerage cost is only Rs. 20 per order traded.
Delivery Charges: Rs 0
Intraday Trading: Rs 20 per executed trade or 0.05% whichever lower
Futures Trading Charges: Rs 20 or 0.05% (whichever is lower) per order
Paytm received approval from the SEBI in 2019 in order to enter the discount stockbroking segment. Paytm over the years has tried to establish itself as the one-stop platform for anything money-related in the recent past. After gaining traction post demonetization the online payments platform offered banking services, mutual fund, SIP, pension products.
Paytm’s plans to enter stock broking couldn’t have come to fruition at a better time. In the months of April and May, NDSL and CDSL saw an addition of 2 lac and 12 lac new Demat accounts respectively. The lockdown imposed due to the COVID-19 pandemic has forced the work from home model to be adopted. This has led to an increase in the first time investors flocking to the stock markets with the added disposable income, as as they are forced to spend less on leisure due to the pandemic.
Here are the charges for Paytm Money Demat and Trading Account:
Groww is one of the fastest-growing investment platforms in India. Groww is the brand name for Nextbillion Technology Private Limited – a SEBI registered stockbroker and a member of NSE and BSE. Initially, Groww a Bangalore-based startup was set up in 2016 as a platform to directly invest in mutual funds. Keeping up with the increase in demand for equity trading in the midst of the pandemic the company also offered equity trading.
The vision behind the Groww App was to set up was to create a powerful yet simplest to use App for trading from anywhere. With this, the app came up with the philosophy of making “Investing should be as simple as online shopping”. Today the company offers Mutual Funds, Demat Services, Trading Services, Intraday Services, IPO Services, and Trading Exposure.
The following table sheds light on the rates applicable:
Account Opening Charges: Rs 0
Annual Maintenance Charges: Rs 0
Brokerage Charges: Rs 20 or 0.05% per executed trade (Whichever is lower)
Particulars
Groww Charges
Account Opening Charges
Free
AMC Charges
Free
Equity Delivery Trading
Rs.20 per executed order or 0.05% of order value (whichever is lower)
Equity Intraday Trading
Rs.20 per executed order or 0.05% of order value (whichever is lower)
Pros of Groww Demat & Trading Account:
Simple and intuitive user interface
One platform to invest in stocks, mutual funds, gold and US stocks.
Investing facility for US Stocks available
Cons of Groww Demat & Trading Account:
Futures & Options (Derivatives), Currency and Commodity trading facility not available yet.
As a newer entrant, the trading platform yet to be tested to work smoothly on high trading days.
Trade smart is a Mumbai, India based discount broker good for traders and investors looking for low brokerages, high margins, and a fast trading platform. Unlike most discount brokers, Trade smart online is not a recent setup. It is a part +25 years old VNS Finance & Capital Limited, which is a traditional broker in India. It has over 50,000+ happy customers, averaging a daily turnover of over Rs. 5000 crores
Services offered: Trade smart online offers brokerage services in stock, futures & options, commodity, and currency trading segments.
Trade Smart Online Brokerage charges:
This discount broker offers a flat brokerage of Rs 15 per trade irrespective of the trading volume in its ‘Value’ trading plan.
Further, it also proposes a ‘Power’ trading plan with a brokerage of 0.007% on the transaction, which is suitable for the small volume traders. Here are the brokerage charges for delivery and intraday trading:
— Delivery: Rs 15 per trade (Power plan) or 0.07% (value plan)
— Intraday Trading: Rs 15 Per trade (Power plan) or 0.007% (Value Plan)
Trade Smart Online Demat And Trading account opening Charges:
— Account opening charges: Rs 400
— Annual Maintenance charges: Rs 300 (Second year onwards)
Incorporated in 2015, SAMCO is another low brokerage cost discount broker in India. However, SAMCO differs from other discount brokers by offering higher leverage for trading to its clients. Here, customers can get up to 4x Delivery Leverage in the Cash Markets, Upto 80x Leverage for Nifty, 33x leverage for stocks and 60x for commodity.
SAMCO Brokerage charges:
Here are the brokerage charges offered by SAMCO:
— Delivery Trading: 0.20% or ₹20 per trade whichever is lower
— Intraday Trading: 0.02% or ₹20 per trade whichever is lower
Incorporated in 2015, Fyers is Bangalore based fast-evolving online discount stock broker founded by young entrepreneurs with broad experience in trading and the stockbroking industry. Apparently, FYERS word is an acronym of “Focus Your Energy & Reform the Self”, which represents the core philosophy of the company.
Services offered: Fyers offer services in equity Cash, F&O and Currency Derivatives segments at NSE.
Fyers Brokerage charges:
— Delivery Trading: Rs 0
— Intraday Trading: Flat brokerage fee of maximum ₹20 per executed order.
Incorporated in 2013, Wisdom Capital is an online discount brokerage firm providing services in stocks, futures, options on NSE and BSE and commodity trading on MCX & NCDEX. It also offers zero brokerage in its FREEDOM plan which attracts a lot of customers.
Wisdom Capital Brokerage charges:
Wisdom Capital offers three different brokerage plans to its customers: Freedom, Pro & Ultimate. Customers can choose whichever suits them the best. Here are the brokerage charges for each plans:
Freedom Plan:
Freedom plan offers ZERO brokerage in all segments
However, this plan does give a very little or no margin/exposure and hence might not be suitable for active traders.
Pro Plan:
The pro plan by Wisdom capital is designed for professional traders.
Suitable for the traders who need higher intraday exposures/margins
Delivery trading brokerage: 0.005% of the transaction
Intraday trading brokerage: 0.005% of the transaction
For rest, the brokerage is Rs 9 per trade (for NSE futures & options, currency & Commodity Trading at MCX).
Pro plan offers an intraday margin In NSE cash up to 40x MIS.
Ultimate Plan:
The ultimate plan is designed for high-frequency traders
Delivery trading brokerage: 0.007% of the transaction
Intraday trading brokerage: 0.007% of the transaction
For rest, the brokerage charged is Rs 15 per lot in options, 0.005% NSE futures, currency & Commodity Trading at MCX.
Ultimate plan by Wisdom capital offers intraday margin In NSE cash up to 60x MIS
Wisdom Capital Demat and Trading account opening charges:
— Account Opening Charges: FREE
— Annual maintenance charges: Lifetime 999+ Taxes
Services offered: Wisdom capital offer services in equities, future, and options, currency, and commodities on NSE, BSE, MCX & NCDEX
Trading platform:NEST Trader (trading terminal), BSE Bolt – a trading platform by BSE to trade across stocks listed on it.
Pros of Wisdom Capital:
Zero brokerage in FREEDOM Plan,
Flexible brokerage plans depending on client preference,
High exposure/margin in higher plans
Cons of Wisdom Capital:
No facility to invest in IPO, FPO, Mutual Funds, FDs, and NCDs
Incorporated in 2012, Tradejini is a Bangalore based discount broker which offers a brokerage of 0.01% or ₹20 per executed order. It offers a single integrated platform for Equity, Derivatives, Commodities & Currency trading.
Tradejini Brokerage charges:
— Delivery Trading: 0.10% or ₹20 per trade whichever is lower
— Intraday Trading: 0.01% or ₹20 per trade whichever is lower
While choosing a stockbroker, look for the broker which offers a reasonable brokerage charge, low yearly maintenance cost, high-quality trading tools, active customer service, and no hidden account fees. Besides, put your priority and personal trading style in preference of the brokerage firm before opening your account.
These days, the discount brokers often start a new campaign every month to attract new customers by offering Zero account opening charges, referral clients benefits or even brokerage cashback. The competition among the brokers is challenging them to innovate faster, give more customer support and hence traders/investors are able to enjoy better trading facilities and services.
Need more guidance to help you pick the right online stockbroker. Here are the best resources to read further:
Understanding can a Person Open multiple demat accounts in India: If a person already has a demat account and trading account with a stockbroker in India, the obvious question that comes to him before opening a new demat account is whether he can legally open multiple demat accounts in India.
Well, the short answer to this question is that you can open multiple demat accounts in India and there’s no limitation on the number of demat accounts a person can have. However, there a few things related to multiple demat accounts in India that you need to understand.
In this post, we are going to discuss the topic “Can I Open Multiple Demat Accounts in India?” and also look into some of the pros and cons of the same. Let’s get started.
Can I Open Multiple Demat Accounts in India?
As mentioned above, the simple answer is that: Yes, it is okay to have multiple demat accounts in India. You won’t face any legal problems. Like you can have multiple savings accounts in different banks, similarly, you can have multiple demat accounts with different brokers in India.
A person can open as many demat accounts as he/she wants. You can have one demat account with Zerodha, another with ICICI direct, a third with Upstox, and others with any brokers that you prefer.
Why there won’t be any problem while opening multiple demat accounts?
Well, each demat account is mapped with one PAN Card. Obviously, you cannot have multiple PAN Cards as it is unique for every person. Therefore, as long as your PAN Card is correctly connected with your demat account, all the equities that you buy will be mentioned as your property. And hence, a person can open multiple demat accounts with different using the same PAN Card.
Fun Note: You have to open multiple demat accounts from different brokers. But, you cannot open two demat accounts with the same broker.
Can you open multiple ‘Trading’ accounts with the same demat account?
Yes, it is possible. You can open one demat account and link it with multiple trading accounts. Here are few other points that you should also know:
If you want to enjoy the facilities of both discount and full-service broker at the same time– you can open multiple trading accounts with different brokers mapped to a single demat account.
However, not all brokers allow opening only the trading account. Most brokers offer 2-in-1 account i.e. you have to open both demat and trading account at the same broker.
Pros and Cons of Multiple demat accounts
Although there isn’t any problem with opening multiple demat accounts, however, there are few significant advantages and disadvantages of doing so. Here are a few common Pros and Cons of having multiple demat accounts in India:
— Pros of Multiple Demat Accounts in India
Frankly speaking, there are not many advantages to having multiple demat accounts. One advantage is that you can enjoy using different interfaces offered by multiple brokers.
Another advantage worth mentioning is that you can segregate your traders or long-term investments & short-term/frequent trading in different accounts.
For example- You can keep the stocks that you’ve purchased with a long-term vision in one demat account (generally full-service broker) and your stocks with frequent trades or Short term in another account (Generally discount broker). This will help you to avoid confusions and bring discipline to your purchases.
— Cons of Multiple Demat Accounts in India
Having multiple demat accounts has more disadvantages compared to advantages. A few major ones are:
1. You have to pay Multiple Annual Maintenance Charges (AMC) for different accounts:
There’s no free lunch in this world. If you’re having a demat account with a broker, you have to pay the annual maintenance charge. This amount will vary depending on your broker, but almost every broker charges AMC. Therefore, if you have multiple demat accounts, then get ready for paying multiple AMCs.
For example- If you have a demat account with ICICI direct (AMC= Rs 600) and another with Share Khan (AMC= Rs 441), then you’ve to pay an annual AMCs on both (total of Rs 1,041 per year). The more the number of accounts you have, higher will be the total AMCs.
2. It is difficult to keep track of multiple demat accounts:
Let’s assume that you’ve 10 stocks in your first demat account and 8 in another, then it might be little difficult to continuously track both accounts. There may be cases that you completely forget about a stock that you’ve brought in a demat account to which you do not ‘login’ frequently.
3. Your account can get freezed if you remain inactive for a specific long period of time
Yes, it’s true. Many people forget the credentials (login and password) of their accounts when they are using multiple demat accounts. Moreover, they don’t even care to contact the customer care of that broker anymore.
Obviously, you’ll receive multiple notifications and alert from your broker before freezing your account. But if you remain inactive for a very long period of time, then they might freeze your account. And your stocks along with it (Relax your demat shares are with NSDL or CSDL and can be recovered). Still, to avoid any inconvenience, you should remain active on your accounts periodically.
Quick Explanation: The demat account is opened with your depository participant (DP) (i.e. your broker like HDFC Sec, ICICI direct etc), however, the shares actually remain in the custody of the depositories (CDSL or NSDL). When you open your account, you specify whether you’re opening your account with CDSL or NSDL. Therefore, even if your account gets freezed or your broker gets bankrupted, you can recover the stocks from the depository.
In this post, we discussed the pros and cons of having multiple demat accounts in India. As explained, the straight answer to the question- ‘Is it okay to have multiple demat accounts in India?’ is YES! It is okay to have multiple demat accounts in India.
However, before opening your second or third demat account, please reconsider about the advantages and disadvantages of having multiple accounts. Multiple demat accounts in India come with added costs. That’s all for today. Have a great day and happy investing!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Groww App Review and Charges 2021 (Stockbroking): Online investing and intraday trading have seen a rise in the number of users in the last year giving a much-needed push to several discount brokers. Many stockbrokers have emerged in the last few years offering amazing investment and trading facilities to their clients. One such platform is GROWW.
Here is the Groww App review – an investing platform that has had significant growth amidst the pandemic.
Groww App – About the Company
Groww is one of the fastest-growing investment platforms in India. Groww is the brand name for Nextbillion Technology Private Limited – a SEBI registered stockbroker and a member of NSE and BSE. Initially, Groww a Bangalore-based startup was set up in 2016 as a platform to directly invest in mutual funds.
Keeping up with the increase in demand for equity trading in the midst of the pandemic the company also offered equity trading. The vision behind the Groww App was to set up was to create a powerful yet simplest to use App for trading from anywhere. With this, the app came up with the philosophy of making “Investing should be as simple as online shopping”. Today the company offers Mutual Funds, Demat Services, Trading Services, Intraday Services, IPO Services, and Trading Exposure.
According to the business model set up Groww is a discount broker and has no physical presence. The company operates online and consumers can contact them through these means. Groww earns revenue through a subscription revenue model, where it offerspremium features to its customers. The company has a team of over 100 members.Using technology the company has grown to provide quick, easy-to-use solutions for investing and trading from the comfort of our homes. The company is known for its offers and low expenses.
Groww App Review – Key Features
1. Mutual Funds Investment
Investing in Mutual Funds online can be done through the apps released by the individual asset management companies (AMCs). But these investments will be limited to the products offered by that particular AMC. The Groww app aggregates mutual fund products offered by various fund houses. This allows investors to find the best product in one place.
Investors can find small-cap, large-cap, mid-cap, multi-cap for the long term, and higher returns. The app also includes balanced funds, gold funds, sector funds, and international funds. Groww offers investors more than 5,000 MF schemes. Investors can sort through the various options depending on returns, tax-saving, and sector bets.
The app also provides ratings for mutual funds by Value Research Online. By offering a platform for direct investment in mutual funds investors can save up to 1.5% of their returns.
2. Simple Interface
As mentioned earlier the app is made as simple to use as possible. In addition, Groww also provides investors the option to trade both via the web and through their phones. Groww features a desktop browser platform, Mobile Site Platform, Android App, and an iOS app.
The app provides live price movements, candlestick charts, online orders, information to explore stocks, and the ability to invest in IPO’s. Investors can also create a market watch to personally monitor their favorite stocks. One can also create customized market watch lists. The Charts in the app are simple and easy to understand with complete information for investing.
In addition, Groww also provides resources for beginners like Ebooks, and blogs, and video courses. The platform is convenient and fast.
3. Equity Investments
Apart from mutual funds, the App provides the perfect platform for both investing and trading stocks. Although the initial focus of the company lay in Mutual Funds the company released its trading platform in June 2020.
Currently, you can do delivery (long-term) investment and intraday and intraday trades using Groww platform.
The app also provides investment in US Stocks, Digital gold, and Corporate FD.
4. Payment Options
Groww app lets users pay through various options like UPI, Net Banking, NEFT, a one-time mandate for SIP installments for Autopay using OTP’s. The app also sends timely notifications of all existing transactions like monthly SIPs and unit allotment. This makes payment and transfer of funds easy and convenient.
5. Tracking Investments
Another unique feature provided by the app is the ability to track investments across all platforms. The app does this by scanning the Consolidated Account Statement (CAS) from CAMS or Karvy. This can be done by providing the app access to Gmail or by manually forwarding the latest statement.
Once this is done the app also gives the investor an analysis of his investments using pie charts. This chart depicts the percentage of his investments from mutual funds in equity, debt, etc.
6. Security
Groww app contains a high-level 128-bit encryption standard. This is maintained for each and every transaction. The encryption is similar to those in banking standards.
The app also provides a unique and convenient fingerprint scanner to log in securely. This feature is the first of its kind for similar platforms. The app also saves the time a username and password was logged in. It also ensures that if the device is misplaced or stolen, no access takes place.
7. No minimum balance
The app does not require investors to maintain a minimum balance in the Groww balance account. This balance can be maintained as per investor preference.
Groww App Review – Opening & Brokerage Charges
One of the biggest perks of using Groww is its competitive charges. The following table sheds light on the rates applicable:
Particulars
Groww Charges
Account Opening Charges
Free
AMC Charges
Free
Equity Delivery Trading
Rs.20 per executed order or 0.05% of order value (whichever is lower)
Equity Intraday Trading
Rs.20 per executed order or 0.05% of order value (whichever is lower)
— Groww Delivery Brokerage Charges
— Groww Intraday Brokerage Charges
Closing Thoughts
Groww is slowly becoming one of the top investing/trading platforms. But still, there are a few concerns raised regarding the quality of the app. For example, Groww doesn’t offer to trade in Derivatives i.e. futures and options as of current.
Further, based on the feedback provided on the play store users complained over the lack of customer service provided. But despite this, the app has a stellar rating of 4.4 stars on the play store with over 10 million downloads. Let us know what you think about Groww below. Happy Investing!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
Steps to apply for an IPO with Zerodha Account: In this article, you’ll find out the exact process to apply for an IPO with Zerodha account. Investors can apply for IPO’s directly within the Zerodha console. And the best part is that the process is really simple.
Next, you need is a UPI account. And this is nothing new. These days everyone uses UPI to make fast and secure payments. For example, you can use apps like Phonepe, Google pay, Bhim app, iMobile by ICICI, etc. Here is the link to the UPI apps and banks that allow IPO payment.
4. Select the IPO that you wish to apply from the list of active IPOs and click on ‘Place bid’.
5. A pop-up screen will launch with IPO information. Here you can find details like issue date, issue price, market lot, discount (if any), minimum order quantity, etc.
6. Next, enter your UPI id. Make sure to select the correct bank account.
7. Place your bid by entering the ‘Quantity’ and ‘Bid price’.
For the quantity, it should be minimum order quantity or the multiple of the lot size. For the ‘bid price’ you can enter any price between the offered issue price range. Anyways, for the maximum chances to get an allotment, it is recommended to use the ‘Cut-off’ price.
8. After filling the details, click on the ‘checkbox’ stating that you’ve read the prospectus and you’re are an eligible UPI bidder as per the applicable provisions of the SEBI.
9. Finally, recheck the details and click on ‘Submit’.
10. Besides, if you want to make any changes if the bidding later, simply click on ‘Bid details’ on the IPO page and make the changes.
Once submitted, you’ll receive the request to complete the “UPI Mandate” on your UPI app.
Please note that sometimes it may take a few hours to receive the UPI mandate request. Anyways, in my case, it was instantaneous and I received the payment request on my iMobile ICICI app as soon as I submitted the application on the Zerodha Console. Accept the request once you receive it to complete the process.
Note: If you use Google Pay, Phonepe, or any other similar app for UPI payment, you’ll receive a similar message and notification on your phone to complete the payment.
On accepting the payment request, your UPI app will block the IPO funds in your bank account till the date of allotment. You’ll receive an SMS from the exchange once your application is placed successfully.
If you’re allotted the IPO shares, the amount will get debited from your account and shares will be credited to your demat account. On the contrary, if shares are not allotted, then blocked funds are released on the date of the payment. You can read more about the process of IPO share allotment to retail investors here.
That’s all. This is the exact step-by-step process to apply for an IPO with Zerodha Account.
Closing Thoughts
Zerodha is continuously innovating to provide a better investing and trading facility to its customer. The procedure to apply for IPO is a lot simpler now. You should definitely check it out. Further, comment below if you face any difficulty in applying for IPO using the Zerodha account. Happy Investing!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Understanding Zerodha Product Codes- CNC, MIS, SL & More: Zerodha is one of the biggest stock brokers in India with over 30+ lakh clients. And with this huge client base, obviously Zerodha products and trading platforms are quite widely used. One such popular product offered by Zerodha is its Kite Trading platform.
Anyways, the client is net to trading or investing, a few of the acronym used on this platform may be difficult to understand. For example, terms like CNC, MIS, SL etc might not make much sense to you if you do not know what they stand for and what’s their use. Nonetheless, the different Zerodha product codes will be simple to use once you understand it.
In this post, we’ll discuss the different Zerodha product codes and will try to simplify them. Let’s get started.
Zerodha product codes are basically short forms for different codes to perform different actions. For example CNC, MIS, QTY, PRICE, SL, etc. Here is a screenshot of the KITE app while placing a buy order by showing different codes.
You can note the different Zerodha product codes in the above image. Understanding what these quotes mean is really important if you want to place your buy/sell order correctly. Let’s start with the two easily understandable codes are QTY and PRICE.
Here, QTY means the number of quantities of stock that you want to buy. PRICE is the cost at which you want to buy the share.
Next, here are the abbreviations of the other codes are that we are going to discuss in this article:
CNC: Cash N Carry
MIS: Margin Intraday Square-off
MKT: Market Order
LMT: Limit Order
SL: Stop Loss
SL-M: Stop loss market
Trigger Point
Disclosed quantity
Now, before we discuss the other Zerodha product codes, here are a few frequently used terms that you need to know first.
— Market order (Market): When you want to buy/sell a share at the current market price, then you need to place a market order. For example, if the market price (current trading price) of a stock is Rs 100 and you are ready to buy the share at the same price or the price of the market, then you can place a market order. Here, the order is executed instantaneously at the market price.
However, please note that the market price keeps fluctuating second-by-second. Therefore, your purchase price might be little different than what you may have noticed before placing the order.
— Limit order (Limit): A limit order means to buy/sell a share at a limit price. If you want to buy/sell a share at a given price, then you place a limit order. For example, if the current market price of a company is Rs 200, however you want to buy it at Rs 195. Then you need to place a limit order. When the market price of ABC falls to Rs 195, then the order is executed.
— Stop-loss (SL): STOP LOSS is used to limit the losses when the price of a stock starts falling. For example, let’s say that you are entering stock at Rs 300. However, the price of that stock starts falling and you fear to book losses. In such a scenario, you can place an order to limit the loss to Rs 295. It specifies that you want to execute a trade but only if the specified price is met. Stop-loss is a very good tool to limit risks.
Quick Note: Before we move forward, here’s a quick video on Zerodha Stock Trading Tutorial which explains how exactly the Zerodha Kite Trading Platform works. A Must watch for beginners planning to trade/invest with the Zerodha platform:
Common Zerodha product codes (SL, MIS, CNC, etc)
LMT: This is used for placing a limit order.
MKT: This is used for placing a market order.
Trigger Price: This is used in stop loss orders. It is the price at which you want ‘stop-loss’ to be triggered.
Stop Loss (SL): This is used to place a stop loss at the limit price. Here you need to specify a Limit price and a trigger price. When the trigger price is reached, then the stop loss order is sent to the exchange at a limit order mentioned by you.
Stop loss market (SL-M): This is used to place a stop loss at market price. Here you just have to specify the trigger price. When the trigger price is reached, then the stop loss order is sent to the exchange at market price.
MIS in Zerodha: MIS stands for Margin Intraday square off. It is used for Intraday trading with leverage. All MIS position is auto squared off at the end of the day session.
CNC: It stands for Cash n carry. CNC is used in delivery based equity. There is no leverage provided in CNC. However, there is also no auto square off at the end of the session.
Disclosed quantity: This allows traders to disclose only a part of the actual quantity of the stocks that he bought or sold. This disclosed quantity should be more than 10% of the order quantity. For example, let’s say you bought 1000 stocks. However, you can disclose only 400 stocks (if you want). Only the discloses quantity will be shown on the market screen.
Quick Note: What is the use of disclosed quantity? The order book is open to all active people on the exchanges. Therefore, all these people can see what quantity of stocks you have ordered. However, the problem here is that once they know your quantity and price, they can change their own order (increase/decrease their order amount/quantity). This might affect your orders adversely. Disclosed quantity is beneficial for those people who trade in large quantities.
Now, these were the common terms that are shown in the marketplace section while placing buy/sell order in Zerodha.
However, there are also a few other Advanced Zerodha product codes. Although you can execute all your buy/sell orders without changing the advanced order, however, it’s better to have full knowledge of these product codes.
Advanced Zerodha Product Codes (BO, CO, IOC, etc)
Here are the advanced Zerodha product codes:
REGULAR: Regular orders
BO: Bracket order
CO: Cover order
AMO: Aftermarket order
DAY: Day validity
IOC: Immediate or Cancel
AMO: It stands for aftermarket orders. You can use this facility to place an order when you can’t buy/sell during the trading time. You can place your order between 4:00 PM to 08:59 AM i.e. after the post-closing session and before the pre-opening session.
Bracket Order (BO): Bracket order is used for higher leverages (than that of MIS). Here, you place an Intraday buy or sell at limit order with a target price and a compulsory stop loss. All the orders are squared off before the end of the day.
Cover Order (CO): Cover order is used for placing intraday buy or sell at the market order for high leverage (that trading using MIS). Here you just have to specify the stop loss. All the orders will be squared off before the end of the day.
IOC: It stands for ‘Immediate or cancel’. Here the order is executed as soon as it is released. If the order fails to execute, then it is immediately canceled. In the case of part execution, the remaining quantity (which is not executed) will be canceled.
Summary: Zerodha Product Codes
Let’s quickly summarise a few of the most frequently used Zerodha product codes discussed in this post.
LMT: This is used for placing a limit order.
MKT: This is used for placing a market order.
Stop Loss (SL): This is used to place a stop loss at the limit price.
MIS in Zerodha: MIS stands for Margin Intraday square off.
CNC: It stands for Cash n carry. CNC is used in delivery based equity.
That’s all for this post. I hope the article is useful to the new traders and investors. If you have any questions regarding any Zerodha product codes, feel free to comment below. I will be glad to help. Happy Investing!!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
How to open a demat and trading account at Zerodha? (Updated: Feb 2021): In this article, we’ll discuss the exact steps to open a demat and trading account at Zerodha. By the end of this article, you’ll have an active Demat account with Zerodha for you, provided you’ve got all the personal documents and follow the procedure discussed in this post correctly.
Anyways, before getting into the steps in this article, let me tell you how and why I opened my Demat and trading account at Zerodha. When I first started investing, I used ICICI direct as my stockbroker for opening my demat and trading account. Although I was happy with the facilities and platforms provided by it, I soon realized that ICICI Direct was very expensive.
Many times, profits were killed by the brokerages in ICICI direct. The worst part was paying too much of brokerage even when you were selling the stock at a loss. Then, I asked for feedback from my friends who were using SBI Smart and HDFC securities. They both were also paying high brokerages and suggested not to go with them. Finally, after researching a lot, I opened my second demat and trading account at ZERODHA.
Zerodha is the biggest discount broker in India with over 30+ lakhs customers. The charges offered by Zerodha are nominal and the trading platform provided by it is also fast and friendly. It charges a brokerage of 0.03% or Rs 20 per executed order, whichever is lower, irrespective of the number of shares or their prices.
This is way cheaper compared to ICICI direct which asked a brokerage of 0.55% on each transaction in equity. If you buy stocks for Rs 50,000 in ICICI direct, then you have to pay a brokerage of Rs 275 (on the other hand, Zerodha will ask for a maximum of Rs 20 any trade). Further, as this amount is charged on both sides of the transaction (buying & selling), hence you have to pay a total of Rs 550 for the complete transactions (which is way too expensive than Zerodha).
In short, if you are planning to enter the stock market world (or even an existing participant), I would recommend opening accounts in this discount broker “Zerodha” so that you can save lots of brokerages.
Why should you open a demat and trading account at Zerodha?
Zerodha is the biggest stockbroker in India in terms of daily trading volume, growth, and active customer base. It is one of the most technologically advanced and affordable stockbrokers. Zerodha has over +3 million clients and contributes to over 15% of daily retail trading volumes across NSE, BSE, MCX. Even in terms of Active clients trading just on NSE, it has outranked all the other new and traditional brokers.
Started by Nitin Kamath in 2010, as of Aug 2020, Zerodha has been awarded “Startup of the Year” by Economic Times (ET) Startup Awards 2020 and joined the list of distinguished winners that have displayed the potential to go on to become blue-chip corporations. You can read the complete story here. Ironically, Nithin Kamath was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:
— ET Startup of the Year (2020)
— National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)
— Outlook Money “Retail broker of the year 2017”
— Ernst & Young “Entrepreneur of the year (Startup) 2017”
Benefits of Opening your demat account with Zerodha: If you are still confused about why you should open a demat and trading account at Zerodha, then here are top reasons:
Rs 0 (FREE) for equity delivery trades.
Rs 20 or 0.03% whichever is lower per executed order intraday trading and for everything else
Same pricing for across all exchanges
No upfront fee or turnover commitment
Z-Connect, interactive blog, and portal for all your queries
Over 1.5 million happy customers with a reputable brand name
300+ dedicated support team to ensure the fastest turnaround time for your queries via email or phone
Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
How to open a demat and trading account at Zerodha?
Documents required to open a demat and trading account at Zerodha.
Here are the documents required to open a demat and trading account at Zerodha. I will recommend keeping soft copies of all these documents ready before you apply for opening the accounts as you’ve to upload them during the account opening process:
PAN CARD (Card not valid without a sign, check reference below).
Aadhar Card (with linked mobile number)
Bank Account Proof: Bank passbook front-page photo/ Scan copy or online statement or cancelled cheque. [If you are submitting cancelled, Your name should be PRINTED ON IT, then only it’s accepted]
Your Signature on a piece of paper (Photo or Scan copy).
*Income proof(Optional): Proof of Income is required if you wish to trade in F&O or commodity. Acceptable documents are the recent salary slip or the last six months’ bank statement or ITR.
Account opening charges at Zerodha
Here are the account opening charges at Zerodha
Demat and Trading Account: Rs 200
Commodity Account: Rs 100
If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 200+Rs 100 = Rs 300. However, if you want to trade just in equity (stocks), then you need to pay the charge of Rs 200 only.
Now, there are two ways to open a demat and trading account at Zerodha:
Online method
Offline method
Using the online method, you can open your account with Zerodha within 15 minutes, if you have all the required documents.
However, in the online method, to complete the eSign process, you will have to authenticate it with an OTP. So, make sure you have the number is linked to your Aadhaar. If not, you will not be able to complete the process. If the number linked to your Aadhaar is inactive, or if you don’t have any number linked, then you can visit your nearest Aadhaar Seva Kendra to get it updated.
Anyways, if you don’t want to use your Aadhaar, you can still open your account via the offline route. However, I would recommend you to open online as it is fast and easier.
In the trading world, you need to be tech-savvy and comfortable with doing things online. All the transactions (buy/sell) etc that you’re going to perform in future, once your account is opened, will be online and through advanced trading platforms. They will require you to be technically smart. And therefore, start taking the online route as you can’t ignore the digital path in the future.
How to open your account with Zerodha Online?
Short Answer to Open Your Zerodha Account
First of all, let me give a short answer on how to open your account at Zerodha before my step-by-step explanation.
On this page, the first step is to signup using your mobile number and verifying the OTP. Then you’ll be required to enter your PAN, bank account, Aadhar verification, and personal details to continue with the signup.
All the instructions are clearly mentioned in the each-step of the account opening page. If you are good at reading and following instructions efficiently, then you do not need to read this entire post. Just go to the account opening page, follow the instructions, upload the documents and your account will be opened.
Besides, if you face any difficulties while opening an account online, you could contact Zerodha at – 080 4913 2020.
A Quick Intro to DigiLocker
While opening your account online with Zerodha, it will ask you to connect with your DigiLocker account. However, if you are new to DigiLocker, let me give you a quick introduction about it.
I was quickly impressed with DigiLocker concept when I first heard about it in early 2017. DigiLocker is an online service provided by the Ministry of Electronics and IT, Government of India under its Digital India initiative. I always keep this app on my mobile phone and let me tell you why.
If you live in a city, many times, you may face a similar situation like this. You went out to buy some groceries from a nearby shop or to drop someone. And because of a hurry, you forgot your wallet. This means that you don’t have your Driving license or vehicle registration doc with you. Next, if a traffic police stop you, then it might be a little trouble for you to explain to them why you traveling without docs.
However, if you have the DigiLocker app on your phone, you can show the driving license and vehicle registration from the app itself. Motorists can show docs in Digi locker during a traffic check as it is provided by the government of India. Moreover, it is more secure and acceptable by traffic police compared to the camera pic that you keep in your phone gallery.
Overall, if you don’t have a DigiLocker account yet, I’ll highly recommend you to open one and download the app on your phone. It will help you to keep all your docs secured.
Moreover, this account is required while performing Aadhar verification during your Zerodha Account opening.
———————————————————
Detailed Zerodha Account Opening Process – Steps to Open your Account with Zerodha online
Now that you’ve got a basic idea of how to open your account at Zerodha online and what are the docs/things required, next, let me give you a detailed step-by-step explanation of the process:
Once you click on the above link, Zerodha’s account opening page will appear as shown below.
STEP 2: Enter your mobile number to Sign-up. You’ll receive an OTP to verify the mobile number.
The OTP will be valid to login for the next 30 mins. Please check your SMS and use the same OTP for you mobile number verification.
Quick Note: In this step, you can sign up with any mobile number that you prefer. However, you also need to have the Aadhar linked mobile number (that will be used in a later step for Aadhar based OTP verification process). Only then you’ll be able to complete the online account opening process.
STEP 3: Next, enter your PAN Card number along with date of birth (D.O.B) details in the field provided. Make sure to enter these properly. Below is the screenshot for your reference.
STEP 4: Now, you have to complete the account opening payment which is a one-time investment.
For equity– you’ve to pay Rs 200 and for commodity, the charge is Rs 100. (Commodity account is optional. If you wish to trade in the commodity, you can make this payment, else you can enable it later.)
You can complete the payment through UPI or Net-banking/Card payment (recommended). Below is the screenshot of this step for your reference.
STEP 5: After completing the payment, the next step is to connect your Aadhar details via Digilocker.
As already mentioned earlier, DigiLocker is a government initiative to share your aadhar details and highly secured. You need to create a ‘DigiLocker: Towards Paperless Governance’ account and link your Aadhar with it.
Below is the screenshot for your reference. Click on ‘Connect to DigiLocker’ and this will open a new page to sign up to Digilocker using your phone number. If you already have an account, click on ‘Sign in’ option in the bottom.
While connecting the Digilocker, you will be receiving the OTP to your AADHAR linked mobile number for your information. Once you get the OTP, enter it and hit continue. (Note: If you don’t have the security PIN, then click on the forgot my PIN and reset it.)
Next, click on allow so that you can share a copy of your Aadhar to Zerodha. Finally, your Aadhar details will appear on the screen. Make sure you are entering the details correctly. Note: This step will only come if you haven’t done KYC earlier.
STEP 6: Once your Aadhar verification is complete, next you need to enter your personal details like father’s name, mother’s name, your occupation, etc., Below is the Screenshot of this step for your reference. After entering the details, click ‘CONTINUE’
STEP 7: Next, you need to Link Bank Account. Here, you need to fill up more details starting by filling up Bank Details i.e. your bank account number, bank name, branch’s IFSC Code & MICR code
Make sure you choose all the options (checkboxes) and after reading the information, hit on the continue button.
Note: Please cross verify the bank account details with bank passbook or cancelled cheque or online statement (soft or hard copies) to avoid re-processing the forms again. Here is the Screenshot of this step for your reference.
STEP 8: Next is IPV Verification over webcam/phone.
IPV or In-person-verification is a process where a depository participant in personal verifies documents and other details as per the law by SEBI. It is compulsory for every investor to go through the in-person verification process before opening a demat and trading account.
First, you’ve to allow the Camera on your browser/phone to start to IPV process (check the below screenshot). You should click on the Allow button. If you click on the Block button, the camera will be disabled, and you may not be able to enable it easily.
STEP 9: Next, they’ll display an OTP on the screen. You need to clearly write down this OTP shown on a piece of paper or your smartphone. Then, hold the piece of paper/ mobile phone with the code in front of your mobile phone/ webcam.
Make sure to take the correct photo while holding the OPT written on Paper. You can take reference of how the person takes the photo in the below screenshot. Finally, click on the capture button.
Note: While taking the photo please don’t move here and there until it gets captured and hold the paper (OTP written paper) in front of the camera.
STEP 10: In this step, you have to upload the relevant documents that we mentioned in the beginning. You have to upload documents like Bank Details, PAN CARD, Signature and, Proof of Income(optional).
Income Proof is optional & only required if you want to trade Futures & Options, currency, and commodity. Then click on continue. It will be redirected to the equity eSign page.
STEP 11: Next, it’s time to eSign. Click on ‘eSign Equity’ button and proceed to the next step.
Once you click on the eSign button, the following screen will appear.
STEP 12: Once you click on the eSign equity, you’ve to verify your email. Here, two options will be available i.e. Google login or email login.
If you’re going with an email login, please enter your email address correctly as you’ll again receive an OTP to verify your email id. This is the same email where you’ll receive all your future correspondence from Zerodha.
Enter the OTP that you’ve received on your registered email and verify.
STEP 13: Once your email verification is complete, a new page with the “SIGN NOW” option will be opened. Here’s a screenshot for your reference. You should check the form.
Next, Click on the “Sign Now” button at the bottom of the page. It will redirect you to the NSDL page.
STEP 14: Once, you’re on the NSDL Page, Click on the check box top left stating “I hereby….”
Next, enter your AADHAR number at the bottom of the page and click on the Send OTP. Finally, enter the OTP and verify.
STEP 15: Once last step is complete, and it’s verified, the entire page will become with green background and a message appearing as “You have successfully signed the document”. This is a confirmation that your esign process is complete for the equity segment.
STEP 16: Next, you will be able to see the tick mark on the Equity segment which means that you’ve successfully signed up for this segment. You will also be able to download the eSigned Document on this page.
STEP 17: This step is applicable only for those who want to enable the commodity segment on their account. Here, they have to eSign again for the commodity segment.
Click on the commodity eSign. It will redirect you to the NSDL page. Next, click on the check box on the top left corner and enter the aadhar number. You will receive an OTP to the AADHAR linked mobile number. Once you enter the OTP and it is verified, the documents will be eSigned for the commodity segment too.
STEP 18: Congratulations, you have completed all the steps. A final Congratulations message will appear on your screen, once you’ve completed all the previous steps. Here’s the screenshot for your reference.
Quick Note: Once you complete all the steps, then the Zerodha document verification team will verify your documents. Once it’s verified, then you will get an email from the document verification team stating your documents are successfully verified. After receiving this email, you will get the login credentials within 24 hours.
Offline Account Opening Process
How to open your demat and trading account with Zerodha offline?
You can also open your account with Zerodha offline. However, the offline account opening charges are different than the online charges. Here are the charges for offline account opening:
Rs. 400 – for Trading & Demat Account
Rs. 600 – for Trading, Demat & Commodity account
In this approach, you will have to download application forms from Zerodha website, print out the forms, fill it up and sign it. If you need help at any point in filling out the application form you can call us on 080 4913 2020.
Here are the applications forms that you’ll need to fill and courier for account opening:
POA (Power Of Attorney) – Already included in the Application form above
ECN (Electronic Contract Note) for enabling Commodity segment – Already included in the application form 2
Nomination Form: In case you would like to appoint a nominee to your trading and DEMAT account like your wife, father, mother or any other.
The documents required for opening your account offline is the same as that of the online process. You need to get a photocopy of your PAN Card, Address proof (Aadhar Card, Driving License, Voter-Id etc), Cancelled Cheque/Bank statement, Income proof & Passport size photographs. You also have to cross sign as self-attest on all these docs. You can find the list of all acceptable docs for account opening here.
Once you fill it up and sign it, you have to send the application forms over to the Zerodha head office address:
Alternatively, you can schedule a meeting with a Zerodha representative at an address, date and time as per your convenience, by calling up the account opening helpline (080 4913 2020) or by placing a request with the sales manager assigned to you.
Here, a Zerodha representative will contact you and direct you to keep all such necessary documents ready at the decided time and place of the meeting. The representative would take all necessary signatures and self-attested documents/attachments as required to complete the account opening procedure.
I will recommend using the online method while opening your account. Zerodha is working towards the Digital India initiative and you should be a part of it too. Although online methods seem to have too many steps, they do not take too long. Once you’ve started the application form, you can build a flow and complete the form within 15-20 minutes.
The offline method is good if you do not have an Aadhar card and you want to provide another address proof like Driving license, Voter Id, etc. However, if you are living in a village/small city, it might be a little difficult for you to get a Zerodha executive. Moreover, the offline method can easily take 7-10 days to open a demat and trading account. You can read Zerodha review 2021 here.
That’s all. These are the steps to open a demat and trading account at Zerodha, online and offline. I hope this post on ‘How to open a Demat and trading account at Zerodha?’ is useful to the readers. If you have any doubts, comment below.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
A complete Zerodha Review 2021– Brokerage, Trading Platform & More: Zerodha is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It offers a zero brokerage for delivery equity & direct mutual fund investments.
For all intraday, Futures & Options, currency, and commodity trades across NSE, BSE, MCX, it offers a brokerage of Flat ₹20 irrespective of the trading volume. It doesn’t matter whether you trade for Rs 1 lakh or 1 crore, you have to pay a flat low brokerage of Rs 20 per trade. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.
In this Zerodha review, we will discuss the brokerage charges, account opening charges, maintenance charges, trading platforms, products, my personal experience of using Zerodha & more. By the end of this post, you’ll have a complete understanding of Zerodha trading services and whether this broker is right for you or not. Let’s get started.
Zerodha Review –Brokerage, Charges, Trading Platforms & More
1. Introduction
There are two types of stockbrokers in India. Full-Service brokers and Discount brokers. The full-service brokers offer a trading platform along with advisory. However, their brokerage charges are high. A few major full-service brokers in India are HDFC Securities, ICICI Direct, Motilal Oswal, etc.
On the other hand, discount brokers offer trading platforms with minimum brokerage charges. Nonetheless, they do not provide advisory services. The biggest advantage of a discount broker is that it saves a lot of brokerages for the traders/investors. On all other prospects, like performance, computerized trading systems etc- both offer similar facilities.
An important point to know here is that all the brokers- Full service or discount brokers are licensed and regulated in India by regulating bodies like SEBI.
Zerodha is a leading discount broker in India in terms of daily trading volume, growth and customer base. It is one of the most technologically advanced and cheap stockbrokers. Zerodha has over +1 million clients and contributes to over 10% of daily retail trading volumes across NSE, BSE, MCX.
Ironically, the term ‘Zerodha’ is derived from the fusion of an English and Sanskrit word. ‘Zero’+’Rodha’ where ‘Rodha’ means barrier. Overall, Zerodha means ‘Zero Barrier’.
It was started by Nitin Kamath, an Engineer by qualification, in 2010. Nithin bootstrapped and founded Zerodha in 2010 to overcome the hurdles he faced during his decade long stint as a trader. He was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:
— National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)
— Outlook Money “Retail broker of the year 2017”
— Ernst & Young “Entrepreneur of the year (Startup) 2017”
2. Zerodha Brokerage Charges
Zerodha offers trading services to buy and sell stocks, futures & options in equities, commodities, and currency segment. Here are the Zerodha brokerage charges:
– Free equity delivery
All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.
– ₹20 intraday equity and F&O trades
₹20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.
Type
Brokerage Charges
Equity Delivery
Rs. 0 (FREE)
Equity Intraday
Lower of Rs. 20 per executed order or 0.03%
Equity Futures
Lower of Rs. 20 per executed order or 0.03%
Equity Options
Flat Rs. 20 per executed order
Currency F&O
Lower of Rs. 20 per executed order or 0.03%
Commodity
Lower of Rs. 20 per executed order or 0.03%
Quick note:
1. You can use this Zerodha Brokerage Calculator to get more ideas.
2. Apart from brokerages, there are also a few other charges that you have to mandatorily pay on your transactions like Exchange transaction charge, STT, SEBI turnover charges, GST, etc.
You have to pay these charges no matter which stockbroker you prefer to trade in stocks and that too on both sides of transactions i.e. while buying and selling. However, the brokerage cost can be controlled by choosing a discount broker. For example, in the case of Zerodha, you can notice the total brokerage of Rs 40 for both sides of Intraday equity trading, even though the total turnover is Rs 8.4 Lakhs.
If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 200+Rs 100 = Rs 300. Anyways, if you are just interested in trading in stocks i.e. equities, you can open demat and trading for equity account at Rs 200. The demat account annual maintenance (AMC) charge is Rs 300 per year.
4. Zerodha Products & Features
Zerodha has built its own trading applications for the customers. It offers different trading terminals, websites, and mobile apps (Android/iOS) which are free for the customers.
— Kite 3.0
Kite 3.0 is a modern technology-based trading platform with streaming market data, advanced charts, an elegant UI, and more. It is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Kite provides Bandwidth consumption of fewer than 0.5 Kbps for a full market watch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and more.
Overall, Kite provides an excellent experience to the users through its groundbreaking innovations presented with hassle-free usability.
— Kite mobile
This is a mobile version of KITE for a seamless experience for mobile-users and available in both Android and iOS devices.
— Coin
Zerodha Coin is a platform that lets you buy mutual funds online directly from asset management companies. This platform is absolutely free since August 24, 2018. Here, you can make your investments without any commissions.
With the help of Zerodha Coin, you can have Direct mutual funds in DEMAT form, with the convenience of one portfolio across equity, MF, currency, etc. Moreover, it also provides a Single capital gain statement, P&L visualizations, and more. This Coin by Zerodha has made investments through SIPs really simple and flexible.
Other Partner Products
Apart from the above products, Zerodha also offers a few other partner programs:
Smallcase: This thematic investment platform is powered by Kite Connect APIs. Smallcase helps users to invest in different themes by intelligently providing weighted baskets of stocks in each theme.
Sensibull: This is an options trading platform which offers simplified options trading for new investors by providing powerful trading tools. Sensibull aims to make options trading safe, accessible, and most importantly, profitable for all.
Besides, Zerodha has also started a few educational initiatives to improve financial literacy and increase the participation of the common people in the financial world. Here are a few other products offered by Zerodha
Zerodha Varsity: An educational platform to educate people about investing and trading. Zerodha Varsity offers free modules on Technical analysis, fundamental analysis, futures, options, risk management, trading psychology & more. Recently, Zerodha Varsity also launched its Varsity mobile app.
Trading Q&A: An online forum powered by Zerodha to answer people’s most troublesome investing and trading questions.
5. Pros and cons of Zerodha Discount broker
Here are a few advantages and disadvantages of using Zerodha trading platforms:
Pros of Opening Account with Zerodha
Zero Brokerage Charges for Delivery
Flat Charge for Intraday (Rs 20 or 0.03% whichever is lower per executed order for everything else)
Same pricing for across all exchanges
No upfront fee or turnover commitment
Z-Connect, interactive blog, and portal for all your queries
Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
Note: Zerodha has recently started offering Zerodha IDFC FIRST Bank 3-in-1 account. However, to open a 3in1 account at Zerodha, you need to have an existing account with IDFC FIRST Bank. Accounts can only be opened online. Read more here.
6. Is Zerodha a Reliable Stockbroker? And is Free investing legit?
Is Zerodha safe for long-term investments? This is one of the biggest questions that come in the mind of first-time investors. Obviously, HDFC Securities, ICICI Direct, SBI cap, Kotak securities, etc are big brands in the name of the broking industry and been in the market for decades. Hence, they have built greater trust compared to Zerodha, especially for the ones who have never heard its name before.
Anyways, Zerodha, the discount broker, originated only in 2010. Therefore, if you’re not involved in the share market investments/tradings in the last decade, it’s no surprise to say that you might have not known this broker. However, in the short span of around 10 years, this broker has been able to beat all the big traditional brokers. Currently, Zerodha is the biggest stockbroker in India, based on the number of clients (over 15 lakh users), followed by ICICI Direct and HDFC securities ranking second and third.
Now, answering your question, Yes, Zerodha is safe and reliable. In fact, since origin, Zerodha has never faced any case of major violations from SEBI or any of the other exchanges. It is a profitable private company with no debts or liabilities. Here are a few points why Zerodha is safe and reliable for investors and traders.
Zerodha is a zero-debt financial services company. There is no borrowing of any kind.
There is no credit risk, less than 5% of Zerodha’s own capital is lent to customers in any form.
Zerodha own funds in the business are greater than 25% of all client funds put together.
Their ratio of ‘complaints to active clients’ is among the least on the exchange.
Zerodha is profitable as a business and has enough reserves to sustain, even if there was an extended downturn in the economy.
Moreover, Zerodha is partnered with Central Depository Services Limited. CDSL’s main function is the holding securities either in certificated or uncertificated form, to enable the book-entry transfer of securities. Therefore, when it comes to the security of the shares in your demat account with Zerodha, you do not need to worry at all. The stockbrokers are just the agents of depositories.
Your stocks are actually held by central depositories and not by the depository participants (brokers). Therefore, even if something didn’t work out well with Zerodha, your stocks in the demat account are safely intact with CDSL. In short, Zerodha is completely legit and reliable for your trading or long-term investments in the Share market.
7. My experience of using Zerodha
It’s been over three years since I’m using Zerodha and I’m satisfied with the trading services provided by Zerodha.
Initially, I started with ICICI direct as my broker, but later I switched to Zerodha when I realized that I was paying way too much brokerages for my trading transactions.
Most beginners do not consider the brokerage charges while calculating the profits. I use to make the same mistake. And that’s why many times the final profits in my bank account (after deducting the brokerage and other charges) disappointed me as it was considerably lower than what I calculated in my head. I wish I had switched to a discount broker earlier as it could have saved me a lot of ‘unnecessary’ brokerages and moreover trading experience is even better on Zerodah. Nonetheless, I use Zerodha for making all my stock investments now.
Besides, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard. But this issue is also solved by Zerodha. Investors can now apply for IPOs directly within the Zerodha console. And the best part is that the process is really simple.
Finally, a lot of people complain that Zerodha doesn’t provide advisory services or buy/sell calls. I believe that one should never invest or trade based on the broker’s recommendation. There’s a conflict of interest here as the brokers will always make money when you trade and doesn’t matter whether you win or lose. Therefore, they might always motivate investors to trade frequently. Overall, Zerodha not giving advisory services doesn’t bother me. Moreover, they make us for these cons by providing educational initiates like Varsity.
8. How to open your trading & demat account with Zerodha?
Opening a demat and trading account with Zerodha is really fast and hassle-free. In fact, if you’ve all the documents, you can open your account and start trading within an hour.
Here are the documents required to open a demat and trading account at Zerodha: PAN CARD, Aadhar Card, 2 Passport size photos, Canceled cheque/ Saving bank account passbook. I will recommend keeping photocopies of all these documents ready before you apply for opening the accounts.
To open your trading & demat account at Zerodha, go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the direct link.
In the last decade, Zerodha has earned trust and respect among the trading population by providing reliable and technologically advanced trading services. It is definitely the largest discount broker in India. If you are looking to open your brokerage account with a reputable brand that offers low brokerages, and have a fast trading platform, Zerodha is definitely one of the best options.
That’s all for this post. I hope this Zerodha review is useful to you. If you have any additional queries regarding Zerodha or if you want to share your review of Zerodha, you can post it in our forum. I’ll be happy to answer your questions. Have a great day!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Zerodha Success Story in Stockbroking Industry in India: Trading and Investments are the two terms everyone wishes to experiment but are reluctant to step in due to many reasons like lack of knowledge, hefty commission and brokerage charges, uncertainties in the market and so on. 2008-2010 were the years when the biggest global financial crisis happened and the world was facing a trading hush. In India, the stockbroking companies that existed also experienced a downfall and were using old technologies to provide stockbroking services. Many young generation people were not educated enough to even think of trading at a very young age.
While all of these were encountered by almost every broker in India, Bangalore based discount broking firm, Zerodha was founded in 2010 by Mr. Nithin Kamath that provides trading services at discounted brokerage fees and user-friendly interface with reliability. This firm enjoys a massive client base of over 2.5 million users. Let us deep dive into the journey of how Zerodha success story and discuss how it became the biggest discount broker in India in this article.
Quick Note: As of October 2020, Nithin Kamath and Nikhil Kamath, the founders of Zerodha, India’s biggest stock brokerage company in terms of volume of trade, are the newcomers in the Forbes’ list of India’s 100 richest 2020. Their net worth is estimated at $1.55 billion. Read more here.
The founding of Zerodha: How did it start?
The Co-founder of Zerodha “Nithin Kamath”, before establishing Zerodha, was working in the call center in the night and he used to trade during the morning hours. At the age of 17, he got introduced to the stock markets by his friend and since then he started trading.
Although he made a good chunk of money by trading in stocks, he lost all the money during 2001 and 2002 when the markets crashed. Over a period of time, he was landed a cheque from a foreign HNI to manage his money. Eventually, he joined Reliance Money as a sub-broker and made a lot of money by adding big clients to Reliance money. Nevertheless, again lost a significant amount of money in the second market crash in the middle of the global financial crisis in 2008-09.
After trading for full time for over 10 years, this Maverick decided to become a broker when he thought that the time has come to provide a different kind of stockbroking services that he never came across during the 10 years span of his trading. He felt digitization and online user-friendly platform are the need of an hour when he first thought of starting Zerodha. Nitin Kamath also observed that the reason why the young generation is not willing to start trading is that there are high brokerage charges implemented on the transactions. His aim was to become an online broker using the latest technologies that is more people-first than profit-first.
Zerodha is derived from the Sanskrit word Rodha which means Obstructions. The name Zerodha means ‘No Obstructions’. Hence, the founder aimed at providing a hassle-free, low brokerage trading platform. He targeted clients who are young and more tech-savvy to contribute to the capital market ecosystem. According to him, he wanted more of a Google-like platform with a simplicity to use rather than a Yahoo-like platform. When he felt the need to change the system, he along with his younger brother, Nikhil, started Zerodha and the rest is the history or rather a case study for everyone.
The Secret Formula of Zerodha’s Success
It is indeed a fact that there is no short cut to success. However, Nithin Kamath, when founded this discount broking firm, decided to provide technology-efficient and cost-efficient services to its customers. He observed that there is a huge lag between the commissions charged by the other brokerage firms and the amount of money actually received by the customers.
In addition to that, the technology that was used was too old and Nithin felt the need to introduce a smart platform that enables users to trade online comfortably. He thought of providing services at a low cost where the idea of charging low commission clicked into his mind. He also wanted to attract more young customers who often do not enter into trading due to high commission charges. With this aim, he started his firm and today it has become the biggest discount broking firm. He believes if we do not depend too much on foreign capital and invest for our own companies, the day is not far when India will become an economically strong country.
Surprisingly, the firm hardly spent any money on advertising or marketing for its own firm. They do not run any advertisements. The founder believes in ‘the word of mouth is your true marketing’. Thus, with a very low operating cost Zerodha was able to capture a large number of customers. Interestingly, trading is provided free of cost at his stockbroking firm if the period of holding for shares is longer than a day.
They make money by charging a flat fee of Rs. 20 for futures, options, and intraday trading. While other competitors charge much more than this which is based on the percentage of a transaction traded. Its business model on which it works is ‘low margin – high volume’.
Innovation and New Additions
In order to stay competitive, the firm launched many products to expand its reach and to overcome some challenges they were facing. Below is a brief on what each product provides:
— Console: It is a central dashboard of a customer’s account with Zerodha that will provide in-depth reports and visualizations to get more insightful idea.
— Kite: It is a sleek trading and investment platform using the latest technologies. It eases the customer’s experience to trade and transact in the stock market.
— Kite Connect API: This is mainly focused on independent traders and startups to enable them to build an innovative trading and investment platform. Using algorithms, retail traders can automate their trades.
— Sentinel: A platform that enables you to create market alerts. The alerts can be customized based on price, trade quantity, and open interest. The interesting aspect of this product is that you do not need to be a Zerodha customer in order to use Sentinel.
— Z Connect: This is a blog facility regarding stocks, trading, and investment with Zerodha. They publish articles and information on this blog and any user is allowed to ask questions and post comments.
— Varsity: One of the challenges faced by this firm was that it lacked in providing research services to its customers who are sometimes clueless about what and when to buy or sell. To overcome this, they come up with Varsity that gives a vast collection of stock market lessons on the go.
— Coin: It provides a commission-free purchase of mutual funds directly delivered into the customer’s Demat account.
— Rainmatter: It is an incubator that provides funding as well as mentorship to startup companies in capital markets and gives minority stake in exchange.
In addition, Zerodha has also partnered with a lot of leading stock market platforms and portals like Streak, Sensibull, etc to create more value for their clients.
Let us Talk about Challenges
Despite the tremendous success and huge customer base, Zerodha also had to confront a few challenges as described below:
First of all, Zerodha does not provide stock advisory or any market-related calls that would enable its customers to decide on what to buy and sell.
They also suffered from a lack of delivery of valuable advisory reports and analysis of one’s investments and trading activities be it either weekly or quarterly. Most of the big full-service brokers provide research reports.
As Zerodha is mostly online and no offline support branches, inefficient customer support, and lack of quick customer service are the biggest challenges that this firm faces.
Technical errors like app down for a few minutes or charting errors were reported previously which was basically because of the high market traffic situations.
To sum up, competing with big players like HDFC and ICICI is indeed a daunting task that the genius was able to cope up. However, there are other competitors too such as Upstox, Groww, SAS Online, Angle Broking, TradingBells, etc. However, the founder wishes to continue with his low margin strategy. This firm also developed a strategy to start selling Treasury bills, Government Securities, and Sovereign Gold Bonds which is everyone’s preference while the markets are facing a downfall.
Nithin strongly believes in not running after the money but to do the right things for a long period of time. This is what is the reason his firm has become one of the top-most broking firms in the country over the eight to nine years of time. To add to that, after facing so many challenges, the firm has made its way to persistently increase its customer base year by year. To get more insights you can read Zerodha review 2021.
That’s all for this post. I hope this Zerodha success story is inspiring for all the budding entrepreneurs and business enthusiasts who are planning to make something big in the stock market industry. Stay safe and happy investing.
Different Charges on Share Trading Explained. Brokerage, STT, DP & More (Updated): There are a number of charges and taxes involved while trading in India i.e. buying or selling of shares. Some of them are quite popular like Brokerage Charge & GST, while there are many others that the traders and investors are not aware of. In this post, I am going to explain all types of different charges on share trading. Some common ones are brokerage charges, Security transaction charges (STT), stamp duty, etc.
Anyways, before we start discussing them, let us spend a few minutes to learn a few basics things that you need to know first. So, be with me for the next 10-12 minutes to understand the explanation of all the different charges on share trading. Let’s get started.
1. Intraday Trading and Delivery
A lot many beginners trades in stocks and confuse it by investing or delivery. However, both of them are really different:
Intraday Trading: When you buy & sell a share on the same day, then it’s called Intraday trading. For example, you bought a share in the morning and sold it before the market closes on the same day, then it will be considered as an intraday
Delivery Trading: On contrary to Intraday, when you buy a share and hold it for at least one day, then it’s called a delivery. For example, you bought a share today and sold it after three days (or any day but today) then it will be considered as a delivery. Here you can sell the stock tomorrow, or the day after that, or a week later, a year later or 20 years later.
2. Full-Service Brokers and Discount Brokers:
Full-Service brokers: These are the traditional brokers who offer full-service trading services in stocks, commodities, currencies, mutual funds, etc along with research and advisory, portfolio and asset management, banking all in one account. For example, ICICI Direct, Kotak Securities. HDFC securities, etc.
Discount brokers: These are those budget brokers who offer high speed and the state-of-the-art execution platform for trading in stocks, commodities and currency derivatives. They charge a reduced commission (flat price) and do not provide trading advice. For example, Zerodha, 5Paisa, Angel Broking, Trade Smart Online, etc.
In general, a full-service broker charges a brokerage between 0.03% – 0.60% of the transaction volume while trading in stocks. On the other hand, the discount brokers charge a flat fee (fixed rate of Rs 10 or Rs 20 per trade) on intraday. The majority of discount brokers also do not charge any fee on delivery trading.
It is important to note that you have to pay a brokerage charge on both sides of trading i.e. while buying a share and selling a share. Let’s take an example to understand the brokerage charge better.
Suppose there is a brokerage firm called – ABC. Now, this broker charges a brokerage fee of 0.275% on intraday trading and 0.55% on delivery trading. The total charges on both tradings can be given as-
Intraday Trading
Delivery Trading
Brokerage
0.275% of total turnover
0.55% of total turnover
Turnover
If you buy 100 stocks at Rs 120 and sell at Rs 125, total turnover is (120*100+ 125*100=) Rs 24,500
If you buy 100 stocks at Rs 120 and sell at Rs 125, total turnover is (120*100+ 125*100=) Rs 24,500
Total Brokerage Cost
Total brokerage charge on Intraday trading (for both buying and selling) = 24,500 * 0.00275 = Rs 67.38
Total brokerage charge on Delivery (for both buying and selling) = 24,500 * 0.0055 = Rs 134.75
As the competition among the brokers is continuously increasing, these brokerage charges offered by the different brokers are also decreasing. For example, the discount brokers like Zerodha offers a flat fee of Rs 20 or 0.03% on Intraday trading (whichever is lower) and Delivery investments are FREE. Here are the Brokerage charges for different segments offered by Zerodha.
— Delivery Trading: FREE (Rs 0) — Intraday Trading: Rs 20 per trade or 0.03% (whichever is minimum)
— Equity Futures: Rs 20 per trade
— Equity Options: Rs 20 per trade
Therefore, for the above table, assuming the same scenario, the person would be paying only Rs 7.35 in Intraday Trading and Zero Brokerage on Delivery, if he prefers Zerodha as its broker. Other discount brokers like 5Paisa, Upstox, Angel Broking, etc, also offer similar lower brokerage charges.
Now, apart from brokerage charges, there are also an additional couple of charges and taxes to be paid while share trading. As already mentioned earlier, some of them are Security transaction tax, service tax, stamps duty, transaction charges, SEBI turnover charges, depository participant (DP) charges, and also capital gain tax (which you’ve to pay at the end of the financial year but not while transacting).
Let’s understand these other different charges on share trading and taxes involved first. Further, we will also discuss an example at the end of this post to understand the charges and taxes involved better.
Different Charges on Share Trading
– Security Transaction Tax (STT)
Apart from brokerage, this is the second biggest charge involved while trading in stocks.
For delivery trading, STT is charged on both sides (buy & sell) of transactions and is equal to 0.1% of the total transaction price (on each side of trading).
For intraday and derivate trading (futures and options), STT is charged only when you sell the stock. For intraday, the STT charge is 0.025% of the total transaction price while selling.
For equity Futures, the STT is equal to 0.01% on the sell-side. On the other hand, for equity options trading, STT is equal to 0.05% on sell-side (on premium).
– Stamp Duty
Stamp duty is charged uniformly irrespective of the state of residence effective from July 1st, 2020. These new rates are only on the buy-side (and not on both buy and sell-side). Here are the new rates on stamp duty on different types of trades:
Type of trade
New stamp duty rate
Delivery equity trades
0.015% or Rs 1500 per crore on buy-side
Intraday equity trades
0.003% or Rs 300 per crore on buy-side
Futures (equity and commodity)
0.002% or Rs 200 per crore on buy-side
Options (equity and commodity)
0.003% or Rs 300 per crore on buy-side
Currency
0.0001% or Rs 10 per crore on buy-side
Mutual funds
0.005% or Rs 500 per crore on buy-side
Bonds
0.0001% or Rs 10 per crore on buy-side
Quick Note: Previously, the stamp duty was charged by the state government and hence not similar across all the states in India. A few states charged higher stamp duty, whereas a few of them charges lower duty taxes. Different states charge different stamp duty. Moreover, Stamp duty used to be charged on both sides of transactions while trading ( i.e. buying & selling) and hence are charged on the total turnover. **This rule changed after 1st July, 2020.
– Transaction Charges
The transaction charges is charged by the stock exchanges and that too on both sides of the trading. This charge is the same for intraday & delivery trading.
National stock exchange (NSE) charges a fee of 0.00325% of the total turnover as Transaction charges on Equity and Delivery Trading. On the other hand, Bombay stock exchange (BSE) charges a fee of 0.003% of total turnover as Transaction charges on Equity and Delivery Trading.
For Derivatives trading, BSE doesn’t cost any transaction charges. However, on NSE, the Exchange transaction charge is 0.0019% for futures trading and 0.05% of total turnover for Options Trading.
– SEBI Turnover Charges
SEBI stands for the Securities exchange board of India and it is the security market regulator. SEBI makes the rules and regulations on the exchanges for its proper functioning.
SEBI Turnover fee is charged on both sides of the transaction i.e. while buying and selling and is the same for all equity intraday, delivery, futures, and options trading.
The SEBI turnover charge is equal to Rs 10 per crore of the total turnover.
– Depository Participant (DP) Charges
There are two stock depositories in India- NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). Whenever you buy a share, it is kept in an electronic form in a depository. For this service, the depositories charge some fixed amount.
The depositories don’t charge the traders or investors directory but charge the depository participant. Here, the brokerage firm or your demat account company is the depository participant (DP).
DP acts as a linkage between the depository and the investor as the investors cannot directly approach the depository. In short, the depository charges the DP and then the depository participant (DP) charges the investors.
For example, while trading with Zerodha, DP charge is equal to ₹13.5 + GST per scrip (irrespective of quantity), on the day, is debited from the trading account, i.e. when stocks are sold. This is charged by the depository and depository participant.
– Goods & Service Taxes (GST)
GST is the mandatory tax levied by the government on the services rendered and is equal to 18% of total brokerage and transaction charges.
– Capital Gain Taxes
Lastly, Capital gain taxes is the most important tax to understand in this article for the traders and investors. We are not going to cover all the details regarding capital gain taxes in this article, but just a short over. If you want to read the complete details, you can refer to this article.
There are two types of Capital gain taxes in India – Short-term capital gain tax and Long-term capital gain tax.
When you sell a stock before one year of buying, then it is considered as a Short-term. Here a flat 15% of the profit is charged as short-term capital gain tax.
When you sell a stock after one year of holding, then it is called the long-term. For the long term capital gain, you have to pay a tax equal to 10% of the gains, if it exceeds Rs 1 lakh.
For Intraday Traders, they need to pay taxes on their capital gains which depends on their tax slab. For example, if you’re in the highest tax slab and made some profits while intraday trading, you’ve to pay taxes of 30% on those gains.
Quick Note: You can also download our FREE android app of ‘Brokerage Calculator’ to find the total brokerage and actual profits/loss while trading in stocks ‘on your phone’. Here is the quick link!
Example of Different Charges on Share Trading
Now, let us see an example to understand these different charges on share trading and taxes involved better. Suppose there are two traders- Rajat and Prasad. Here, Rajat is a delivery trader who invests in the long-term i.e. for 2-3 years. On the other hand, Prasad is an intraday trader.
They both have their accounts in the same discount brokerage company named ABC. The brokerage charge for ABC is Rs 20 Per trade on intraday trading and FREE for delivery trading.
Also, let us suppose that both Rajat and Prasad have traded a total turnover of Rs 98,000 in a share (i.e. total cost involved while buying and selling). In addition, they both live in Maharastra.
Now the different charges and taxes paid by them for complete trading i.e. from buying to selling the shares can be given as-
Prasad (Intraday Trader)
Rajat (Delivery Trader)
Buy Price
120
120
Sell Price
125
125
Quantity
400
400
Total Turnover
Rs 98000
Rs 98000
Exchange
NSE
NSE
State
Maharashtra
Maharashtra
Brokerage Charge
Rs 40 (Flat Rs 20 Per trade i.e. Buying & Sellling)
Rs 0 (FREE Delivery Trades)
STT
0.025% of sell side = 0.025 % of Rs 50,000 = Rs 12.5
0.1% on buy & sell = 0.1% of 98000 = Rs 98
Stamp Duty
0.003% of buy-side = 0.003% of 48,000 = Rs 1.44
0.015% of buy-side= 0.015% of 48,000 = Rs 7.2
Transaction Charges
0.00325% of total turnover = 0.00325% of Rs 10,000= Rs 3.18
0.00325% of total turnover = 0.00325% of Rs 10,000= Rs 3.18
At first glance, it looks cheap to invest in intraday as the total charges are comparatively less here. But you should note that the frequency of trading for intraday traders is quite high. Many intraday traders easily make 2-3 high volume trades every day. So, they have to pay these brokerage charges and taxes again and again. On the other hand, delivery traders or long-term investors do not make such frequent trades.
Overall, charges and taxes are a very important part of trading and should not be ignored. You might think that you are in profit, but the real profit is the one which is left after deducting the charges and profit. I hope the traders will keep this in mind before trading the next time.
Zerodha Brokerage Calculator
Before ending this article, here’s the brokerage calculator for equity trades using Zerodha, the discount broker.
That’s all for this post. If you’ve any doubts related to the different charges on share trading in India, feel free to comment below. I’ll be happy to help you out. Cheers & Happy Trading!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
A complete Angel Broking Review 2020: One of the leading broking service providers, Angel Broking is the largest full-service retail broker of India. Covering over one million customer base, the full-service stockbroker recently changed its business model in November 2019 to offer a flat brokerage charge on all services and equity delivery as free of cost which is indeed an impressive move. Earlier they used to charge some percentage of the transaction amount on each trading.
With over two decades of broking experience, Angel Broking has successfully managed to have a pan-India presence in over 1800 cities and towns. With modern and functional trading platforms, angel broking serves their best when it comes to investment and trading advisory services.
It is also known for its transparent working policies and ethical practices. The firm has trading strategies that are considered best among all other retail brokers of the country. Their studies of economic and corporate parameters are so well-researched that the firm is considered as a synonym to the best service practices in the stock-broking industry serving investors interest to the fullest.
Today’s article is a beginner’s manual to understand what Angel Broking offers. This Angel Broking review article will highlight the history of the broking firm, brokerage and other charges they charge, what are their key features, what range of products and services they offer and what are the advantages and disadvantages of investing and trading with this firm.
Angel Broking was incorporated in 1987 by Mr Dinesh Thakkar with a capital of Rs. five lakhs, half of which he lost in just eight months. Mr Dinesh comes from a textile business family in Mumbai with a very high reputation. Since he came from a family business background, he already had a flair of business ownership cum entrepreneurship running in his blood. He had his basic studies in Mumbai itself. He had a deep interest in technological innovations which is why he was able to bring innovations in his business – angel broking that boasts some of the best technological and digital advancements.
Mr Dinesh took an opportunity when other stockbrokers of that time were not too much concerned about the customer services. And amongst all other brokers, Mr Dinesh’s stock recommendations were quite accurate and which is why he was able to grow more quickly as the best stockbroker. He considered his clients’ interests as a priority and focused on providing personalized services based on their specific needs. He believes trading as a zero-sum game and that is the reason he studied market volatility by reading books on fundamental and technical analysis. Today, the firm is very well-known for its straightforward advice and stock recommendations.
The company enjoys his memberships across BSE, NSE, NCDEX and MCX and registered with CDSL as a Depository Participant. The vast range of the services offered by Angel Broking includes stock and commodity broking, wealth management services, investment advisory and recommendation services, loans against shares, margin funding and financial products distribution.
To stay competitive in the market, Angel Broking started providing discount broking services under which the delivery trading is free of cost and other trading segments such as Futures, Options, Commodities, Currencies and Intraday trading services are charged at a flat rate of Rs. 20 per trade. It is applicable for trading through all exchanges.
They also provide investment advisory services that suggest which stocks to trade, where to invest, and why you should invest or trade in a particular stock and this is the main reason why it has such a huge client base serving in more than 8500 cities and towns. The trading software launched by this firm is also quite comfortable to use for any investor as it is user friendly which is why it is famous. You can read the detailed Angel iTrade Prime Plan review and get more insights.
Angel Broking Brokerage Charges & Other Charges
Here is a list of the different charges by Angel broking in terms of brokerage and transaction charges, account opening charges, and other related charges.
Angel Broking offers ZERO brokerage for long-term delivery trades and maximum Rs 20 per trade for Intraday, F&O, and all other traders. Here are the segment-wise brokerage charges while trading with Angel Broking account.
Angel Broking Charges
Brokerage
Equity Delivery
Zero brokerage
Equity Intraday
₹ 20 / executed order or 0.25% (whichever is lower)
Equity Futures
₹ 20 / executed order or 0.25% (whichever is lower)
Equity Options
₹ 20 / executed order or 0.25% (whichever is lower)
Currency Futures
₹ 20 per executed order or 0.25% (whichever is lower)
Currency Options
₹ 20 per executed order or 0.25% (whichever is lower)
Commodity Futures
₹ 20 per executed order or 0.25% (whichever is lower)
Commodity Options
₹ 20 per executed order or 0.25% (whichever is lower)
Non-BSDA Clients ₹ 450 + Tax / Year
For BSDA (Basic Services Demat Account) Clients:
- Holding Value Less Than 50,000 : NIL
- Holding Value Between 50,000 To 2,00,000 : ₹ 100 + Tax / Year
Call & Trade / Offline Trade
Additional Charges Of ₹ 20 / Order
Franking, KRA, CKYC, ESignature Charges
Free
Email Statements / Contract Notes
Free
DP Charges
₹ 20 Per Debit Transaction
₹ 50 Per Debit Transaction For BSDA Clients
Delay Payment Charges On Outstanding Bill Amount If Not Paid Within Due Date
1.5 % Per Month (Levied Every 15 Days)
Angel Broking Strengths – Special Features
Here are some of the biggest strengths of Angel Broking compared to other discount brokers and competitors:
Implementation of advanced technology and digital platforms makes the firm the leading independent largest full-service retail broking house.
Thanks to a market share of 6.3%, Angel Broking is currently India’s fourth-largest retail broking house in terms of the number of active clients in the NSE platform.
With more than 2 decades of experience and presence in the stockbroking industry, ‘Angel Broking’ as a brand has garnered a significant amount of respect and brand equity.
Their huge sub-broker network and the presence in many cities have enabled them to provide quality services leading to client satisfaction.
They also share videos and podcasts to educate their customers and investors in terms of making the best investment and trading decisions.
The personalized services to the clients based on their requirements make them stand out in the market.
The involvement of technological advancements into their trading platforms makes trading and investing activities very comfortable.
The AI-based ARQ platform is considered a world-class Robot-assisted service.
Angel Broking pioneer in new client activation, with the ‘Trade in One Hour’ service facilitating client activation in record time.
The Angel Broking provides a wide range of products and services for their clients trading in the equity and other segments. Let’s continue our Angel Broking review by looking into the details of different products and services offered by Angel Broking which are provided as follows:
Products of Angel Broking: The mainstays of all the products offered by Angel Broking are Equity Trading, Derivatives, Commodity, Currency, Mutual Funds and Insurance. The products not only enable customers to trade and invest but also provide news alerts, advisory and a huge range of insurance plans. Investors are enabled commodity derivatives interface as well as various insurance products with term plans, endowment plans, money-back plans, and so on.
Services by Angel Broking: The services provided by the Angel Broking include Demat Account, Trading Account, Intraday Trading, Advisory Services, Efficient Customer Support, Depository Service, Portfolio Health Score, ARQ – AI-Powered Robo Advisory, NRI Services and Loan against Shares. They also provide High Net Worth Individuals with best Portfolio Management Services. The technical assistance and detailed analytics services are also the foundation of the stock-broking firm.
Research, Advisory, and Stock Tips: The Full-Service broker presents regularly various research reports, advisory and recommendations and stock tips from experts to the clients so that they do not need to go out for such tips and services. The all-in-one stockbroker is equipped with advanced technologies that help investors make well-researched decisions.
ARQ: The highly efficient Artificial Intelligence-based Robo Advisory platform provides stock and mutual fund suggestions to investors based on the future predictions of various stocks and not from the past records. The service does not involve any special fee or a charge from the investor and it provides personalized fund management suggestions and tips. It is an integrated trading software that has an inclusion of the latest technologies.
Angel Broking App: The app serves as a multi-purpose platform where investors can trade online, receive news alerts and tips with real-time updates, reports and ledgers without any difficulty. Suitable for both regular investors and frequent traders, the app also includes easy and quick online fund transfer, charts and quotes, multi-asset trading, margin statements, limits, orders and much more.
Angel Eye: This web-based training platform provides users with services to manage the portfolio, online trading and latest updates of the stock market.
Angel Speedpro: The desktop-based trading terminal enables investors with 30-day intraday and 20 years of historical data for the high-level analysis for better investment decisions.
Angle Swift: This is a mobile web-based trading platform that allows trading from your smartphones and tablets.
Angel Lite: This mobile browser-based trading platform is exclusively prepared for the users having slow GPRS connections and it does not require any download or installation procedure.
Angel Broking Review: Pros and Cons of Angel Broking
The unique selling price for Angel Broking can be their investment advisory service, stocktips, regular research reports and ledgers from the panel of highly talented experts in the field. Let us discuss what are other benefits and drawbacks the firm is having.
— Pros of Angel Broking Stockbroker
Angel Broking is the largest full-service broker with flat brokerage charges while delivery trades are provided for free.
It is a one-stop solution for a wide range of trading and investment-related products and services.
They use advanced technologies for investors to trade and invest on the go with the ease of access to many real-time updates and alerts.
On this page, the first step is to signup by entering your full name, your city, mobile number, and verifying the OTP. Then, you’ll be required to enter your PAN, bank account, Aadhar verification, and personal details to continue with the signup. Finally, you’ll need to eSign and online self-verification to complete the procedure.
All the instructions are clearly mentioned in the each-step of the account opening page. If you are good at reading and following instructions efficiently, then you do not need to read this entire post. Just go to the account opening page, follow the instructions, upload the documents and your account will be opened.
Moreover, you’ll be assigned an angel broking executive once you sign up on the first step. Their details will be sent to you via message. He/She will help you out in the entire account opening process. If you face any difficulties while opening an account online, you can directly reach them out.
Through this article, we tried to cover the Angel Broking review for our readers. Let’s quickly summarize what we discussed.
Angel broking is one of the leading full-service brokers in India which offer flat brokerage charge to its clients. It provides fast, modern, and easy to use trading platforms as well as expert advisory services to its customer base. Moreover, because of the simple and fast process, you can open your Demat account at Angel broking within an hour if you’ve already got all the required documents.
A Complete Guide to IIFL Securities Review: IIFL Securities is one of the biggest retail brokers which is a part of an IIFL Group, India’s biggest financial service provider. IIFL group enjoys the reputation of becoming the leading financial service company. From online trading and investment to well-researched advisory services, IIFL Securities has created its own brand in the fast-growing Indian economy. There are quite a few stockbrokers in India whose in-house research and advisory services had been award-winning amongst all others and IIFL Securities is one of those few.
This review article from the Trade Brains is exclusively made available to you that will serve as your complete manual and will enable you to study the IIFL Securities from the start to finish. Our IIFL Securities Review will include its origin, the fees they charge, why it is recommendable to trade through IIFL, what are its cons, what range of other products and services they offer apart from the stockbroking service and much more. Let’s get started.
‘An ex-commodity trader in HUL leaves his job to become a billionaire’ may sound unrealistic to you. But the truth is Mr. Nirmal Jain, promotor of IIFL Holdings Limited has given his company a well-recognized brand name when he founded IIFL Group in 1995. One of the country’s first online trading websites was initiated by him in the year 2000.
A brief look at his education makes anyone wonder how he could make it get the double degrees called Chartered accountancy from the Institute of Chartered Accountants of India and Master of Business Administration from the Indian Institute of Management (IIM)– Ahmedabad. There is one more feather to his qualification and that is he is a qualified Cost Accountant from the Institute of Cost Accountants of India.
He initially started the company as an equity research firm and gradually he diversified his products and services and today they provide Life Insurance, stockbroking service, Mutual Fund Distribution, Commodities, Fixed Deposits, Loans, IPO, Bonds, NRI Services and other financial services. The very popular among the retail traders, IIFL Securities is present in almost every major cities and not only that, but they also have their branches across the globe including Dubai, New York, Colombo, London, Mauritius, Singapore, and Hong Kong.
The launch of the Financial Inclusion Program by Prime Minister Narendra Modi supported Mr. Jain and encouraged people to invest in stocks and the company was able to increase their investors post this program. IIFL Securities is a part of the IIFL group that is one of the leading financial service providers in India providing wealth management, consumer finance, asset management and personal finance services. He emphasizes his knowledge from the CA course especially of accounts and law has enabled him to become a successful broker that eventually led him to be an inspiring entrepreneur.
The Full-Service Broker has presence across NSE, BSE, NCDEX, and MCX. Their expertise in providing customized products and services across the country as well as abroad has helped them gain huge customer trust to their satisfaction. They also developed a well-trained customer support team that is professionally structured and is available anytime and anywhere to solve investors’ queries.
Due to their magnificent trading services, the stockbroker has made its own brand in not only trading services but also all types of financial services. It was awarded the ‘Best Broker with Global Presence’ by BSE IPF. It also launched ‘5Paisa’ retail trading platform that offers discount brokerage charges.
Account Opening Charges at IIFL
At India Infoline (IIFL), the opening of accounts under the default plan will attract account opening fee of Rs 750/- inclusive of GST, The Demat AMC is free for the first year.
Default Account Opening Charges: ₹750
Annual Maintenance Charges (AMC): ₹400
Equity Brokerage Plan
IIFL offers different brokerage plans as Flat Brokerage Plan (FBP), Variable Brokerage Plan (VBP), and Value Added Subscription Plan (VAS). Here is the list of the charges in all these plans consisting of Brokerage and Transaction Charges, Account Opening Charges, and Other Related Charges (Source: IIFL About brokerage plans page).
— Flat Brokerage Plan (FBP)
Brokerage
Rate
Intra-day both side
0.05%
Delivery (Normal) settlement_
0.50%
Trade for Trade and Z group scrip
0.75%
Brokerage (FUTURES) both side
0.05%
Brokerage (OPTIONS) Minimum
1% of Premium or Rs.100/- per lot whichever is higher
Minimum per share Brokerage
Rs. 0.05
— Variable Brokerage Plan (VBP)
1) Delivery Cash Volume: Brokerage applicable both sides
Monthly Volume (in lacs)
Delivery Brokerage Rate (in %)
<1
0.6
01-May
0.55
05-Oct
0.45
Oct-20
0.35
20-60
0.25
60-200
0.2
>200
0.15
2) Intraday Cash Volume: Brokerage applicable both sides
Monthly Volume (in lacs)
Rate (in %)
<20
0.05
20-100
0.04
100-500
0.03
>500
0.02
3) Futures Volume: Brokerage applicable both sides
Monthly Volume (in lacs)
Intraday (in %)
Settlement (in %)
<100
0.05
0.05
100-500
0.04
0.04
500-1000
0.03
0.03
1000-5000
0.025
0.025
>5000
0.02
0.02
4) Options Volume: Brokerage applicable both sides
Monthly Premium Volume** (in lacs)
Intra Day (in %)
Settlement (in %)
Min Brokerage per lot (Intraday)
Min Brokerage per lot (Settlement)
Upto 4 lacs
2.5
2.5
100
100
04-Oct
2
2
100
100
Oct-20
1.75
1.75
80
100
20-50
1.25
1.25
60
100
>50
1
1
40
100
** Premium volume is (premium*lot size*No of Lots)
1% of premium or Rs 100/- per lot whichever is higher
1% of premium or Rs 70/- per lot whichever is higher
0.50% of premium or Rs 60/- per lot whichever is higher
1% of premium or Rs 90/- per lot whichever is higher
1% of premium or Rs 70/- per lot whichever is higher
Minimum Per Share Brokerage (Rs) (Delivery, Futures and cash Intraday)
0.05
0.05
0.03
0.05
0.05
Validity Period
12 Months
1 Month
1 Month
12 Months
12 Months
Key Features of IIFL Securities
Here are. a few of the best features offered by IIFL Securities while trading using their platform:
The Cutting edge technology of IIFL makes it user friendly and easy to trade and invest any time anywhere.
The panel of experts produces well-researched reports, charts, tips and recommendations that help investors make efficient decisions.
The platform is quite user friendly in a way that there is no specific training required for any new investor. Everybody using the service will be able to easily go through all the features and the investing and trading are made very easy for everyone.
The personalized advisory services are given to each client exclusively and that is why the company attracts more customers.
They also provide customer-centric brokerage plans based on the requirements by each investor and trader being either a regular investor or an active trader.
Products and Services by IIFL
In order to stay competitive, the firm launched many products to expand its reach and to overcome some challenges they were facing. Below is a brief on what each product provides:
Products: The range of products IIFL offers includes trading in Equity, Commodity, Currency, Options, Futures, Mutual Funds and Forex. The main objective of the company is to meet the financial goals of their investors efficiently and effectively. For better convenience, the broking house provides support for the trading and its related reports. They also provide customized products based on the requirements of each investor.
Services: The extensive services offered by the full-service broker contains Demat, Trading, Intraday, IPO, Stock Advisory and Portfolio Management Services. The company is known for providing tailor-made services. The continuous support from the company executives helps investors to maintain a strong portfolio base. All transactions are provided on a technology-based platform from where investors can easily track their holdings. The service of providing expert tips with research reports and analysis are appreciated by the majority of their users.
IIFL Research and Advisory: The company is renowned for its advisory and research-related services. This includes fundamental reports, company reports, annual reports, IPO reports and other regular frequency reports. They also provide a daily market review as well as the company stock review reports.
IIFL Markets App: Ranking amongst the highest-rated trading app, it provides its users smooth trading and investment platform along with online research reports and stock tips, any time available customer support and many more.
TT Website and Desktop Software for Trading: The website and the desktop software are specifically designed keeping into mind the users’ demands and needs and ease of access to trade from the website as well as the software for the PC.
TT Iris: With an annual charge of Rs. 54,000, the TT Iris focuses on the frequent traders where this decision-making software enables investors and traders to study real-time market updates with the latest information and such software also provides personalized charting, portfolio optimization, candlestick scanners, strategy testing and the price watch.
IIFL Mutual Fund App: This smartphone app allows its users to buy, sell, create SIP, and monitor the performance of their mutual funds online. It also provides an online opening of the account without any requirement to submit any documents. Equipped with the latest updates and news alerts relating to this industry, the app is a go-to guide for every investor for his investments into mutual funds.
Pros and Cons of IIFL Securities Account
Talking about the pros and cons of trading with IIFL Securities, it should be noted that the below are the generalized Pros and Cons and it may be different from person to person as the need and requirement of trading and investment will also change from one person to the other.
Pros of IIFL Securities
The review and research report by experts are available for free and not only that they also provide stock tips and recommendations to their investors.
The IIFL Securities have a presence in many major cities as well as outside India.
Their trading platform ‘Trading Terminal’ provides advanced technology-based trading and investment solutions.
They offer a dedicated team of customer support executives who are well-structured and for the personalized needs, they also provide the relationship managers.
They accept personal Fixed Deposits as collateral security for the margin funding.
It serves as your one-stop solution for your trading as well as financial related needs.
Cons of IIFL Securities
They do not offer 3-in-1, trading, Demat and bank account service
Their brokerage charges are comparatively higher than the other full-service stockbrokers.
The subscription fees are non-refundable and the brokerage plans selected can not be changed during the validity period.
Margin and brokerage calculators are not provided to know how much it will cost for a particular transaction.
Conclusion
India Infoline (IIFL) is a renowned name in the broking industry in India. Through this IIFL Securities review article, we tried to cover what IIFL Offers, their different Brokerage Charges, Pros, Cons & other important points that investors and traders should know before opening their account.
If you are new to share market, and you want to open your demat and trading account with India infoline (IIFL), you can use this link to direct the account opening page.
That’s all for this post. If you’ve got any queries regarding India Infoline (IIFL) securities, feel free to comment below. We’ll be happy to help. Happy investing and trading.
Zerodha vs Angel Broking Comparison: Zerodha and Angel Broking are two of the best and biggest discount brokers in India. In this article, we are going to compare Zerodha vs Angel Broking by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, pros, cons, and more.
This comparison between Zerodha vs Angel Broking will highlight the major differences between these two stockbrokers and help you choose the best between them based on your preferences.
Zerodha Introduction
Zerodha, founded in 2010 by Nitin Kamath, is the biggest stock broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It has over +2.2 million clients that contribute to over 15% of daily retail trading volumes across BSE, NSE, and MCX.
In terms of brokerage charges, Zerodha offers a zero brokerage for delivery equity investment & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a flat brokerage of ₹20 irrespective of the trading volume. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.
Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.
In the past, Angel Broking worked as a full-service broker and offered a percentage based brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.
Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per trade. The same simple rate is applicable across all exchanges and segments.
One of the key advantages of trading with Angel Broking is that they provide investment advisory, guidance, and recommendations to their clients for investing in the stock market. Further, they also offer research reports on companies along with many other value-adding tools and services to their clients for free.
Zerodha is the largest stockbroker in India with +1.5 million clients and +10% of daily retail trading volumes across NSE, BSE, MCX. Located at Bangalore, Zerodha offers zerod brokerage on delivery trading and a flat rate of 0.03% or Rs 20 per executed on all other segments.
Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers free delivery trades and flat charge of Rs 20 for all other trades
Founded
2010
1987
Company
Private
Private
Main Office
Bangalore
Mumbai
# of Active Clients on NSE (Nov 2019)
9,09,008
4,12,809
Broker Service
Discount Broker
Full-Service Flat rate Broker
Supported Exchange
NSE, BSE, MCX, NCDEX
NSE, BSE, MCX, NCDEX
Brokerage Summary
Free for Delivery Trading and Rs 20 for all other trades
Free delivery trades and flat charge of Rs 20 for all other trades
Angel iTrade, Angel Broking Mobile App, Angel SpeedPro, Angel BEE
Brokerage Charges
Equity Delivery
Free
Free
Equity Intraday
Rs 20/ trade or 0.03% whichever is lower
Rs 20 per trade
Equity Future Charges
Rs 20/ trade or 0.03% whichever is lower
Rs 20 per trade
Equity Options Charges
Flat Rs. 20 per executed order
Rs 20 per trade
Currency future charges
Rs 20/ trade or 0.03% whichever is lower
Rs 20 per trade
Currency options charges
Rs 20/ trade or 0.03% whichever is lower
Rs 20 per trade
Commodity Charges
Rs 20/ trade or 0.03% whichever is lower
Rs 20 per trade
Minimum brokerage fees
0.03% Minimum
Flat Charges Rs 20
Call & Trade Charges
Rs 20 per executed order
Additional Rs 20 per executed order
Margin Offered
Equity Margin Delivery
No margin for delivery - Cash and carry
Upto 3x for equity cash
Equity Margin Intraday
Upto 20x (Based on stock)
Upto 6x
Equity margin futures
Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin
Upto 10x (Buying/Selling)
Equity margin options
Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin
Upto 10x (Selling) and 3x (Buying)
Commodity Margin
Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin
Upto 5x
Currency futures
Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin
Upto 8x
Currency Options
Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin
Upto 8x (Selling) and 3x (Buying)
Addons
3-in-1 Account
Yes, with IDFC Bank
No
Research & Tips
No
Yes
Brokeage Calculator
Yes
Yes
Span Margin Calculator
Yes
Yes
Training & Education
Yes
Yes
Interactive Charts
Yes
Yes
Margin Against Shares (Equity Cash)
Yes
Yes
Margin Against Shares (Equity F&O)
Yes
Yes
IPO Services
Yes
Yes
Robo advisory
No
Yes
Other Features
Direct Mutual fund investments, Kite APIs, Sentinel, Streak, Sensibull
Research reports, Portfolio management system (PMS), Insurances
Pros
Zero brokerage charges for delivery trading, Simple and flat brokerage model in all other segments, Excellent trading platforms, Easy & fast online account opening, Direct mutual fund investments, Maximum brokearge of Rs 20
Free delivery trades; Full-Service Broker with Flat charges; Services offered in Equity, Mutual funds, Commodities, IPOs, PMS, Life insurances; Customised trading help; Robo Order, High Margin
*Disclaimer: All pricing data was obtained from the published stockbroker’s web site as of 02/04/2020 and is believed to be accurate, but is not guaranteed. Account opening charges, margins, etc can vary from time to time depending on the active campaigns by the brokers and hence recommended to refer to the broker’s website for the latest updates.
Both Zerodha and Angel Broking offers low (flat) brokerage and fast trading platforms for their clients.
Zerodha, being the biggest discount broker in India with over 22 lakh clients obviously adds trust and brand value. Moreover, Zerodha’s innovative initiatives like educational facility (Varsity), free direct mutual fund investments through COIN, investment in IPO’s from the same dashboard, partner portals like Streak, Sensibull, etc create more value for their clients.
On the other hand, Angel broking has built its reputation with over +30 years of experience in the broking industry. Since Angel Broking is a full-service broker, it offers a lot more segments than Zerodha like Portfolio management Services & Life Insurance. Moreover, a few notable advantages of Angel Broking over Zerodha is that they offer Research reports and robo-advisory to their clients, which Zerodha don’t.
Overall, if you’re looking for full-service facilities like investment advisory, Research reports, Robo-advisory, PMS, etc, then Angel Broking is a good alternative.
Nonetheless, if you wish to trade/invest on your own, but looking for essential add-on products like learning platform, Sensibull, Streak, etc and a user-friendly innovative trading platform, Zerodha is the go-to broker. Zerodha offers a little more benefits compared to Angel Broking for independent traders and investors.
A complete guide on where to open your Demat & Trading account (Updated): Two years back, I wrote an article on the difference between a demat and trading account. That article got a lot of attention from the readers, asking me to further elaborate on where to open these accounts.
As I didn’t cover which stockbrokers are suitable for which users in that article, I received a lot of queries from the readers regarding where to open demat and trading account. Most of them were beginners and therefore, I decided to write an article on the same which can be helpful for the newbie investors.
In this post, I’ll discuss the stockbrokers which I’ve personally used and researched. In my investing journey of the last five years, I’ve come across many trading platforms. From full-service brokers like ICICI direct, HDFC securities, SBI Smart, etc, to the newer discount brokers like Zerodha, Upstox, 5Paisa, Trade Smart Online, etc, I’ve reviewed them all. Moreover, being in the trading field, I need to remain updated with the latest brokers and their charges.
By the end of this article, you’ll have a good knowledge of where should you open your trading and demat account. I’ll try to keep things as simple as possible while answering. In addition, I’ll also disclose which stockbroker I use for trading in stocks. Therefore, make sure that you read this article till the end. I’m confident that it will be helpful to you.
Where to open your Demat & Trading account?
1) Difference between demat and trading account?
Before we dive into the topic, let me give you the smallest explanation of what’s the difference between demat and trading accounts so that we are all on the same page.
Just as money is kept in your savings account, similarly your bought stocks are kept in your demat account. When you buy a stock, it gets credited in your demat account. And when you sell it, it gets debited from the same. At any time, your demat account reflects all your holding stocks. By the way, a demat account is a short form for ‘Dematerialised account’.
On the other hand, a trading account is a medium to buy and sell shares in a stock market. It is used to place purchase or selling order for a stock in the market.
For example, let’s say you want to buy some shares. Then, you need to enter details like ‘Which share you want to buy?’, ‘How many quantities of shares you want to buy?’, ‘At what price you want to buy that shares’, etc. And all these placings of buy/sell order is done using a trading account.
While trading in Indian stocks, you’ll need to have both demat and trading account. Anyways, both these accounts are linked and can be opened with any stockbroker. Further, in the era of the internet, opening these accounts is really simple and fast.
2) Do you need a stockbroker to trade in stocks?
This is one of the frequently asked questions that I receive over email. Therefore, I needed to answer this one here.
Yes, you need a stockbroker to trade in Indian stocks.
You just cannot walk in the stock exchange to buy/sell your stocks. There are a lot of processes involved in the transfer and settlement of stocks for a satisfactory buying and selling experience of the participants. And here, stockbrokers plays an important role, along with the stock exchanges and regulators. Overall, you’ll need a stockbroker to trade in stocks.
3) What is a stockbroker?
Basically, a stockbroker is an individual/organization who is a registered member of the stock exchange and are given license to participate in the securities market in place of its clients.
From big banking corporations like HDFC Securities, ICICI Direct, Kotak securities, etc to newer fastly growing startups like Zerodha, Fyers, etc all are examples of stockbrokers in India.
Stockbrokers can directly buy & sell stocks in the share market on behalf of their clients and charge a small commission for this service. However, the commission is minimal compared to the fast trading platform that they offer. Using these platforms, you can buy/sell stocks within minutes using your web/phone while sitting on your home sofa.
4) What are the types of stockbrokers in India?
There are two basic types of stockbrokers in India: Full-service brokers (Traditional Broker) & Discount brokers (Budget brokers).
— Full-service brokers
These are traditional brokers who provide trading, research, and advisory facility for stocks, commodities, and currency. These brokers charge commissions as a percentage of each trade executed by their clients. They also facilitate investing in Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance.
A few examples of top full-service brokers in India are:
These brokers just provide the trading facility to their clients for stocks, commodities and currency derivatives. They do not offer advisory services. However, these stockbrokers can save you a lot of brokerages while trading in stocks. Here, you need to pay a flat brokerage charge on the executed trades.
Here is a list of a few top discount stockbrokers in India:
5) Brokerage comparison while using full-service vs discount brokers
Let’s compare the brokerage charges of a full-service broker compared to a discount broker.
A full-service broker charges commission as a fixed percentage on every trade their clients execute. This commission can be somewhere between 0.25–0.55% of the overall trade. Here, the bigger is the transaction, higher is the brokerage.
On the other hand, the discount broker offers a flat brokerage charge. This charge can be somewhere between Rs 10–20 per trade.
Moreover, these charges are applicable to both sides of trading. Therefore, when you buy a share, you’ve to pay brokerage and when you sell these shares, you again have to pay these charges.
For example, full-service broker ICICI Securities that charge 0.275% as brokerage on Intraday trading. Therefore, the total brokerage in a trade will be 0.275%* 2 = 0.55%, if we include both buying and selling.
If you make an overall transaction of Rs 5 lakhs per month with ICICI direct, the total brokerage in a year will be equal to 0.55% * 5,00,000 * 12 months = Rs. 33,000
Now, let us look at the brokerage charges offered by discount brokers. The popular discount brokers in India like Zerodha or Upstox charges Rs 20 per trade.
Let us assume that you make 20 trades per month using such a discount broker. Here, your total brokerage in a year will be Rs 20 (brokerage) * 20 trades per month * 12 months = Rs 4,800.
Clearly, you can notice here that you can save a lot of brokerage charges while opting for discount brokers. Moreover, both these brokers provide a similar trading platform and hence overall experience is not much different. Overall, you are paying some un-necessary brokerage while trading with full-service brokers.
6) What factors to check while selecting your stockbroker?
Brokerage charge is one of the biggest factors to look at while picking your stockbroker as an expensive broker can hurt you financially.
Apart, the second biggest factor to check is the reputation of the stockbroker. A stockbroker with a long history of a reliable trading platform and good customer service should be preferred.
When you are opening your trading account with a stockbroker, it’s a long term relationship. You might trade in stocks for years after opening your account. And here, you do not want your brokerage firm to be shut down in between and all your bought equities getting trapped with them. Therefore, while picking your stock broker, first always check the reputation and reliability of the stockbroker. A simple google search or reading the reviews by the existing users can help to find red flags.
Besides, you need to look into their web and mobile trading platforms, advisory services (if you are looking for trading advice), customer service and other perks offered by that stockbroker like research reports, trading/investing education, etc.
7) Where should you open your demat and trading account?
By now, you would have got a decent idea regarding stockbrokers in India. Next, let’s discuss the central topic of this article- where should you open your demat and trading account.
If you are looking for multiple services like shares, mutual funds, bonds, currencies, fixed deposits, commodities etc along with research reports and do not mind paying a few extra bucks for additional services, then you should open your account with full-service brokers like ICICI direct, HDFC securities, etc.
However, personally, I believe that if you planning to trade just in stocks (or commodities), opening accounts with discount brokers is more advantageous. They offer a fast trading platform with a low brokerage charge which helps traders to save a lot of money.
Moreover, with the rise of the internet, most of the information that you need to make trading/investment decisions are freely available online. If you want to read the research reports on companies, they too are freely available on websites like Trendlyne, markets mojo, etc.
Note: If you really need advisory to buy and sell stocks, it’s better to go with expert advisory services in this field, who can offer you personalized services rather than relying upon these big corporates for whom you might be a very small client.
8) Which stockbroker do I use?
I use Zerodha discount broker for making all my traders. It is the biggest stockbroker in India with over 2 million happy clients. Zerodha offers free equity delivery long term investments (zero brokerage) and a discount brokerage of maximum Rs 20 for all other trades.
Initially, I started my investment journey with ICICI direct. The reason I opened my account with ICICI was because of their good reputation and 3–in-1 account service facility. Basically, 3-in-1 means that you can open your saving, demat and trading account all at once. So, while opening your savings account with ICICI bank you can apply for the other two accounts as well.
I was happy with the services offered until I realized that I was paying too much brokerage charges and a chunk of my profit was paid unnecessarily to ICICI direct. Then, I started researching other stockbrokers where I can save these charges. Finally, I switched to Zerodha, the discount broker and I’m happy with the trading platform and services that it offers. Moreover, I am able to save huge brokerages after switching to Zerodha, which is always beneficial for small retail investors like you and me.
Other Frequently Asked Questions (FAQs) regarding trading and demat accounts.
1) How to open your demat and trading account?
Opening your trading and demat account is completely online, paperless and hassle-free. If you already have the soft copies of your documents (PAN card, aadhar card and saving account statement/Cancelled Cheque) on your mobile/laptop, you can open these accounts within an hour. Simply visit the stockbroker website and apply for an account.
In fact, you can open as many trading accounts as you want with multiple stock brokers. If you wish, you can have one account with a discount broker and another with a full-service broker.
However, keep in mind that you have to pay annual maintenance charges (AMC) for all your active accounts. Generally, this AMC can be between Rs 300–700 per year (lower for discount brokers). Therefore, if you three accounts, you might have to pay a maintenance charge between Rs 900–2100 per year, even if you are not actively using all your accounts.
3) Can I switch my previously purchased stocks from one demat account to another?
Yes, you can switch your stocks if you are planning to migrate from one demat account to another.
Here, you have two options. Either, you can fill the DIS (Delivery instruction sheet) with information about the new demat account number and submit it to your previous stockbroker. Once filed correctly, they’ll transfer the shares.
Else, you can do it online using the EASIEST facility available on the CDSL website. CDSL is the central securities depository based in Mumbai. EASIEST allows you to transfer shares from one demat to another demat account with simple clicks once you have created your account and linked your stock brokers. Here’s the link to the portal and instructions regarding the same.
4) How to close your demat account?
Probably the least asked questions. However, I thought to mention this here to complete the article.
To close your demat account, you can fill the Account Closure Form available on your stockbroker’s website and submit it. Generally, it takes between 7–10 days to close your account.
Note: Before closing your account make sure that you don’t have any shares or a negative balance in your account. You can have a negative balance if your account was inactive for the last few years and you didn’t pay the AMC. Further, if you have any stocks in the account, either sell them or transfer it to your other active account before closing this one.
Closing Thoughts
In this online era, buying and selling stocks is as fast as the click of your fingers. All thanks to the online stockbrokers.
There are many stockbrokers available in India and through this post, I tried to help you how to choose a broker for trading in stocks. If you still have any queries regarding where to open your demat and trading account, feel free to comment below. I’ll be happy to help you out.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Angel Broking vs 5Paisa Comparision: As of 2020, Angel Broking and 5Paisa are two of the leading discount brokers in India. Both of them have millions of clients and offer fast trading platforms & services. However, how do they differ and which one of them is better?
In this article, we are going to compare Angel Broking vs 5Paise by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, pros, cons, and more. This comparison between Angel Broking vs 5Paisa will highlight the major differences between these two discount stockbrokers and help you choose the best between them based on your preferences.
Angel Broking Introduction
Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.
In the past, Angel Broking worked as a full-service broker and offered a percentage based brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.
Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per trade. The same simple rate is applicable across all exchanges and segments.
One of the key advantages of trading with Angel Broking is that they provide investment advisory, guidance, and recommendations to their clients for investing in the stock market. Further, they also offer research reports on companies along with many other value-adding tools and services to their clients for free.
5Paisa is a discount broker that provides you the platform to trade in stocks, futures, and options at the lowest cost of Rs 20 flat per trade, even if you trade for Rs 10 Crore. 5Paise is a public company, which means that its stocks are traded on Bombay stock exchange and National stock exchange.
It is headquartered in Mumbai and is a part of India Infoline (IIFL), a leading non-banking financial institution in India with experience of over two decades (initially incorporated in 1995). 5paisa was re-launched with a new brokerage model for online retail broking services in late 2016. Later, it got de-merged from IIFL so that it can be listed on the stock exchanges. 5Paisa Capital started trading on NSE/BSE in November 2017, making it the first such listed financial digital marketplace.
5 Paisa Capital provides a platform for all financial products including equities, derivatives, commodities, mutual funds, AIFs, bonds & debentures, insurance, and personal loans. 5Paisa provides the trading facility in mobile, browser, and desktop platforms. The account opening process for 5Paisa is totally paperless based on Aadhaar.
Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers free delivery trades and flat charge of Rs 20 for all other trades
5paisa.com, second largest discount broker in India, is part of IIFL group (India Infoline), India's leading financial services company. It offers a flat brokerage of Rs 20 per trade for its clients.
Founded
1987
2016
Company
Private
Public
Main Office
Mumbai
Mumbai
# of Active Clients on NSE (Nov 2019)
4,12,809
1,06,280
Broker Service
Full-Service Flat rate Broker
Discount Broker
Supported Exchange
NSE, BSE, MCX, NCDEX
NSE, BSE, MCX
Brokerage Summary
Free delivery trades and flat charge of Rs 20 for all other trades
From the above comparison, you can find that both Angel Broking and 5Paisa offer low brokerage, high margin, and fast trading platforms for their clients. Moreover, both of these brokers also provide additional services like investment advisory services, research reports, robo-advisory, etc. Anyways, trading platforms and customer service offered by Angel Broking is a little superior compared to the 5Paisa.
On the other hand, multiple brokerage plans offered by 5Paisa can be one of the biggest cons against Angel Broking. 5Paisa offers Optimum, Platinum, and Titanium plans for their customers. Different traders can choose the plan accordingly depending on their trading frequency, volume, and strategy. 5Paisa customers can enjoy a lot less brokerage annually if they go with Platinum or Titanium plans.
That’s all for this post. I hope this article on Angel Broking vs 5 Paisa was useful to you. If you’ve got any queries regarding these two brokers, feel free to comment below. Happy trading & investing. Cheers!
Best stock discovery tool with +130 filters, built for fundamental analysis. Profitability, Growth, Valuation, Liquidity, and many more filters. Search Stocks Industry-wise, Export Data For Offline Analysis, Customizable Filters.
