Last updated on 27th May 2019
by Team Top Share Brokers
Before we discuss the lowest brokerage charges in India, we will divide this in two categories - Traders and Investors.
Investors have long term goal. They invest and wait for long term to get benefit. Traders have short term goal, they invest money for a day and book profit in short term. Investor do 2 to 5 trades per month, where traders play with market movement and do 10 to 20+ trades per day.
For a Investor (Delivery only trades or IPO investors), you just need a broker who is providing best service and low brokerage charges. Transaction charges in delivery trades are standard across the brokers.
For a trader (Perform trades in Intraday, F&O, Currency Derivatives, and Commodity), they need to worry about brokerage + transaction charges, best trading platform, high margin and availability of a trading application.
When choosing the right broker for "lowest brokerage charges", which makes the most difference is the trading expense. The other important factor is the transaction charges which not every broker is charging the same amount. It is usually charged on a per crore basis. The rate of transaction charges differs by the exchange and the trading segment.
For this review, we didn't only focus on cheapest brokerage/lowest brokerage charges/low brokerage charges firms in the Industry but also trying to compare them in terms of low transaction charges which also make a difference in your final profit or loss.
One more thing which needs to be considered for Traders is Margin or Exposure policy. As traders close their position every day, they look for higher margin and Cover Order, Bracket Orders to limit losses. In this article, we have considered brokers who are offering CO/BO and also providing high margin.
Here we come with "Best Brokers by Lowest Brokerage Charges in India" or "Top 5 Stock Brokers by Low Brokerage Trading Account in India":
Zerodha Brokerage Charges - Zerodha is the number one discount broker in India, For delivery trades company, don't charge any brokerage, Its completely Free. So for investors, this is the best company as they don't have to pay any brokerage. For traders, company charge Max Rs 20 per executed orders (0.01% or Rs 20 whichever is lower). So Intraday, F&O, Currency and Commodity trading the company charges Maximum Rs 20 per order. With that, you can lock your higher side of brokerage. Transaction Charges for Delivery and Intraday Trades - Rs 325 Per Cr, for Futures Rs 190 Per Cr, for Options Rs 5000 Per Cr on Premium, for Currency Futures Rs 90 Per Cr and for Currency Options Rs 3500 Per Cr on Premium. Zerodha Transaction charges were high when he was charging PCM fee, now the company is not charging PCM fee, so the transaction charges are standard. With this Zerodha is number one in Lowest Brokerage Charges + Transaction Charges.
5paisa Brokerage Charges - 5paisa is number two discount broker in India, charging flat Rs 10 per executed order across all segment. Transaction Charges for Delivery and Intraday Trades - Rs 325 Per Cr, for Futures Rs 190 Per Cr, for Options Rs 5000 Per Cr on Premium, for Currency Futures Rs 90 Per Cr and for Currency Options Rs 3500 Per Cr. Transaction charges are standard with 5paisa. Compare to Zerodha, 5paisa brokerage is a bit high on delivery trades and low in all other segments.
Upstox Brokerage Charges - Upstox is known for its trading platform, offering FREE delivery trades and charging maximum Rs 20 (Rs 20 or 0.01% whichever is lower) per executed order for Intraday, F&O, Currency, and Commodity trading. Transaction Charges for Delivery and Intraday Trades - Rs 325 Per Cr, for Futures Rs 210 Per Cr, for Options Rs 5500 Per Cr on Premium, for Currency Futures Rs 130 Per Cr and for Currency Options Rs 6500 Per Cr on Premium. Upstox is charging clearing charges on Equity Futures (Rs 20 Per Cr), Equity Options (Rs 500 Per Cr on Premium), Currency Futures (Rs 40 Per Cr) and Equity Options (Rs 2500 Per Cr on Premium). With this compare to Zerodha, even though brokerage charges are same, you need to pay extra charges on transaction charge (Clearing Changes) with Upstox.
Prostocks Brokerage Charges - Prostocks is known for its unlimited trading plans (Monthly Plans), offering Rs 15 per executed order plan and Rs 899 monthly plan. Transaction Charges for Delivery and Intraday Trades - Rs 325 Per Cr, for Futures Rs 190 Per Cr, for Options Rs 5000 Per Cr on Premium, for Currency Futures Rs 90 Per Cr and for Currency Options Rs 3500 Per Cr on Premium. With this compare to Zerodha, Prostocks is charging a bit lower brokerage charges in Intraday, F&O, Currency trading but delivery charges are higher with ProStocks.Prostocks does not offer Commodity Trading.
SAMCO Brokerage Charges - SAMCO is a complete online discount broker in India, charging maximum Rs 20 per executed order across any segment. SAMCO delivery charges are Rs 20 or 0.2% whichever is low, for all other segments 0.02% or Rs 20 whichever is lower. In all cases, your maximum brokerage will be Rs 20 per executed order. Transaction Charges for Delivery and Intraday Trades - Rs 325 Per Cr, for Futures Rs 190 Per Cr, for Options Rs 5000 Per Cr on Premium, for Currency Futures Rs 110 Per Cr and for Currency Options Rs 4000 Per Cr on Premium. Transaction charges are standard for equity segment, but bit higher on currency segment compare to Zerodha and 5paisa. Compare to Zerodha, SAMCO brokerage is a bit high on delivery trades.