What is a Best Discount Broker?
A best discount broker is an entity that provides all the essential trading services at a reduced rate. They provide you with a platform to easily enable the buy and sell transaction for the stock market. The stockbroking firm is SEBI Registered. Select the best discount broker in India on behalf of the following parameters.
Apart from the services they provide you with the knowledge and the material which are essential for trading. The other services are not linked with the trading; they are covered under the investment advisory, market analysis, etc. aren’t provided by such brokers. In simple and easy words, a stock broker helps enable the order and execution on behalf of the clients. Also, everything is turning online, which gave a significant hype to the stock broking firms.
How does a discount broker differ from a traditional one?
There are many reasons why discount brokers differ from the traditional stock brokers in India. There are many aspects which make them class apart from each other. Here are some of the points that are needed to look over:
1. Brokerage charges
Discount brokers in India charge a flat fee which is rs 10-20 per executed order. On the other hand, the traditional broker charges a percentage of the trade value as a commission fee. This can vary from 0.10% to as high as 0.75%.
2. Service type
The traditional broker may extend their service much beyond just trading services. The services may include the:
Wealth management services
These are managed by teams of highly professional and experienced analysts and advisors. This makes the traditional brokers a step ahead of the discount broker. Also, this can be a reason for the hiked price.
Moreover, the services are online, which helps cut the cost of the discount brokers as they focus on the trading part and not other services. Though any stockbroker is coming up with their services too with the price tag.
3. Market inputs
If you are into seasonal investing, you can surely opt for the discount broker, but if you are into a regular trading spot and don’t have much time to spare, then traditional brokers are the best way for you. They provide you with complete information, and the well-managed team helps in fulfilling the financial goals.
4. Customer support
The customer services of the discount brokers are great. You can contact them online and easily connect with them via web-based portals like Email and Chats. Also, the customer supports stands for 24*7, which lacks traditional brokers. The traditional breakers use the mix services like online and offline for the interaction.
If you have complete knowledge of the market and just want to invest and manage by yourself, then the discount broker is the solution for you. If you have time contractions and lesser knowledge then you can go for the traditional brokers.
Best Discount Brokers in India
Zerodha is one largest discount broker in India having the leading stock broking firms in India. It is placed as the number 1 stock broker. Nitin Kamath founded the company in the year 22010 since then the company has grown into one of the biggest discount broking firms. The platform offers free equity and mutual fund investments and flat brokerage on Intraday & all other traders.
Currently, it has over 6 million clients and has contributed over 15% of the daily retail trading volume to the stock market. The mobile app of the company is named Zerodha KITE. The application has been downloaded over 50 lakh. It is one of the biggest stockbroking firms in terms of the active client base.
2. Angel Broking
The company was started in 1987. It has been a brand name for 30+ years, which means its experience is relatively high. The current client base of the firm is over 4 million. They have their presence in PAN India. Currently, they have a presence in over 1800+ cities in India. They offer their services in the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.
Another fastest-growing stock broking/ discount broking platform is Upstox. They have been backed by some of the leading investors in the market like Kalaari Capital, Ratan Tata, GVK Davix, etc., formerly known as the RKSV. The RKSV started in the year 2012 and rebranded itself in the year 2015. According to the current stats, the company holds the second-highest active client base on the NSE after Zerodha. The company offers their vivid services in the equity, currency, and commodity.
Another well-known leading platform is the 5Paisa. The company is part of the IIFL (India Infoline). They are one of the firms which offer the cheapest stock brokerage in India. The company IIFL launched the 5 Piasa to the clients with the lowest brokerage, which helps them compete in the fast-growing market of the stockbroking industry.
They offer their vivid services in different segments like trading in equity, currency, commodity. Apart from this, they offer services in mutual funds, Insurances, Personal loans.
5. Kotak Securities
Another well-known leading broker is Kotak Securities. It is the subsidiary of the Kotak group and is one such broker. Thye was traditionally a full-service broker who entered the market of discount broking. The new venture started in the year 2020 when they introduced their Trade FREE Plan.
Here the company charges zero brokerage for intraday trading across segments. This is the first one introduced in India. The name also knows the plan of the Free Intraday Trading (FIT) plan.