Top 10 Stock Brokers in India
The main difference between them is that the full service broker would charge brokerage as a percentage of their commercial value (for ICICI it is between .5% – .9%). While discount broker is much cheaper than freight based on the number of trade. Most discount brokers charge between Rs 15 to Rs 30 per trade regardless of trade volume. So if you are going to trade several times a month, go for a discount broker rather than a full service one. To better understand the difference, please take a look at the video below.
Most brokers have begun offering online merchant services to their customers. Some of them also offer the trade on the phone or even physically at your location. Decide what would be a good fit for you. If you feel comfortable trading online from your laptop / desk, you will find that most of the major brokers are providing that services. There are some people who prefer trading in broker terminals, make sure you check with your broker if you have a terminal close to your place.
If you are a trader or investor. The investor is someone who trades seldom a year while trader will trade at least a few times a month. If you are a general broker investor, it will not make a big difference in your statements, whereas if you are a trader, brokerage can mean if you end up making a profit or loss. By that I mean that the brokerage is added to the merchants.
Top 10 Stock Brokers in India
Would you need financial advisors to trade or trade on your own? If you need counselor, remember to get some historical data on how good the counselor is and you would be comfortable giving him your money. Full service broker will usually have desk research that will send you plenty of recommendations for stock trading. Remember to review there historical recommendations and if it fits your investment needs. Some of the full-service brokers will even provide you with the relationship manager service that will call you a couple of times a month and telling you about the new investment ideas.
One more thing to keep in mind when looking at the broker is whether or not you provide call-n-trade service. Because even if you have a smartphone, there could be a possibility that you can not access your account because of the slow speed of the Internet. Then you should be able to call you broker to close the trade. Most broker provides call-n-trade service but ask what is the additional charge to use that service if any. Also some brokers say they provide this service but when you try to call then the number is always busy. Make sure that you ask them what is the normal waiting time to get call-n-trade service.
New generation people are tech savvy and do not mind switching completely by themselves. If you are like then, discount brokers would be a good fit and if you are someone who prefers to know the face of brokers, this list would be of little use to you as they have not included any local brokers here. But if you use local brokers, I would suggest that you at least compare your brokerages with some of the new discount brokers to see how much money you are losing through brokerage.
One more important thing to ask is what trading platform is provided by your broker and there are any additional charges to access that. Most of the broker will provide the NEST trading platform free of cost, but then charge a monthly access fee there graphics platform or to access real-time data from there platform. Therefore, it is a good idea to get a better understanding of what is being provided by you broker to get started.
In the last couple of years, with the increase in Internet penetration and the arrival of smartphones in India, I have added some of the top discount brokers also in the top 10 list. They are not the biggest, but they are giving full service brokers a run for their money and increasing their market share every quarter. I would suggest you read reviews before you end your runners. Times are changing and I think in the next couple of years more and more brokers would move from being a full service broker to discount brokers. And as far as the safety of discount brokers is concerned, most brokers have a solid risk management in place and follow strict SEBI standards.
Top discount stock brokers in India
1) Zerodha: They are one of the largest and oldest discount broker in India which has more than 50,000 customers. They have a very competitive and simple brokerage structure (Rs 20 per trade) and good customer service. The account opening process is also very easy and most of the work can be completed online.
They are one of the few discount brokers that have their own proprietary trading / charting software called Pi that allows you to write custom algorithm. The good thing about these discount brokers is that you will never have to visit their offices. The forms can be filled online and the application can be sent to them. These types of discount brokers are new in India and provide tough competition to full service brokers.
2) RKSV: RKSV is a discount broker operating from Mumbai. They provide very competitive rates of Rs. 20 per trade regardless of the size of the trade. The NEST and ODIN platform for negotiation. They are coming with the new mobile-based platform called Upstock and the look of the nice product. There are process of opening account is also very easy and most of the work can be completed online.
3) Fyers: They are one of the most recent discount brokers and offer brokerage rate of .1% for delivery and .01% for intraday. The thing to keep in mind with them is the brokerage is limited to Rs 100 per trade. They provide one the best platform that is built at home completely. To open the account with them with ZERO account opening charges.
Best Full Service Stock Brokers in India
1) Angel Broking: Incorporated in 1987, Angel Broking has become one of the most respected Stock-Broking and Wealth Management Companies in India. They have built a huge network of branches and franchises (more than 900 cities and 8500 franchises), thus maintaining a great support system for investors who prefer human interactions during trade. You can also use your trading platforms for the device of your choice, be it on the Web, Smartphones, Tablets and Desktops. They have more than 10 customers of lakh trading with them.
They are offering an account opening offer in which you can open the account for free. Please provide your details by clicking the button below and you will receive a call with 30 minutes.
2) ICICI Direct: By far the largest and best know the full service broker in India. They have good service and easy to use user interface. There brokerage varies from 0.55% to 0.20% depending on the value of the transactions you make with them. There is more selling point is the perfect integration with your ICICI bank account that makes the transfer / withdrawal of funds very easy and fast. They also offer special products like valid till cancel and even T + 90 trading in the BSE segment.
3) Motilal Oswal: These are one of the oldest and reputed runners operating in India. They are also full service brokers who provide range of financial services to the customer. They are the best known for there the advice service provided by them. They have more than 8 lakh customer to trade with them.
4) ShareKhan: Incorporated in February 2000, Sharekhan is India’s largest common broker 2 by number of clients, providing brokerage services through its Sharekhan.com online trading website and 1950s shared stores Branches and franchises in more than 575 cities across India.
They are full service broker and provide several other services like asset management etc. You can find my detailed review of Sharekhan brokerage charges here. As of July 30, BNP Paribas has bought ShareKhan for Rs 2,200 crore. We do not expect big changes due to the purchase.
5) HDFC Security: They are one of the largest brokerage houses in India and with its bank branches, they have one of the largest network that is only after ICICI. They have a vast network of bank branches in an even smaller city. Most investors who have a bank account end up opening a trading / Demat account with them. They are good full service brokers who provide all the important services like desk research, mutual fund investments and portfolio management services.
6) Kotak Securities: They are a well-known name in financial services and with their bank branches in big cities that are able to cater to customers in big cities. There is decent online service, but brokerage is not that competitive.
7) Reliance Money: They came with a blast, but lately they have lost a lot of glitter of their name. There have been many questions about your business practices.
Apart from this, some other notable names in the brokerage industry in India are Karvy, Axis Direct and SBI Cap.
After reading the list, I hope you can select the right corridors for your needs. Remember that brokerage is important, but it should not be the only reason to select the broker. Talk to some of them, get a feel and ask any questions you may have about them. Once you are comfortable, open an account with them.
I understand that some of you would say that this list is missing some of the top brokers in India, but I have tried my best level to common with this list. If you feel like I’ve missed someone, let me know in the comments.