Best Brokers for Options Trading in India-2020

Last updated on 10th Aug 2020
by Team Top Share Brokers

Options is a derivatives product. An Option is a contract that gives the right, but not an obligation, to buy or sell the underlying on or before stated date and at a stated price. While buyer of option pays the premium and buys the right, writer/seller of option receives the premium with obligation to sell/ buy the underlying asset, if the buyer exercises his right.

To choose the best broker for options trading in India, one needs to consider below points:

1. The broker should be the best in terms of technology, tools, and platform for trading. You are most likely trading using charts and technical analysis and you are looking at trading using options strategies which include buying & selling of options. Then you need a broker that provides you the best trading platform where you can analyze charts using various tools & charting indicators. The platform should be advanced enough to open multiple charts simultaneously & trade real-time with a single click.
2. There should be latest and advance mobile trading apps for quick action on buying and selling. It should have almost all features that are available on any desktop trading software, so you really don’t need to be in front of PC to trade.
3. Leverage is very important for small traders to take higher positions. Your broker should provide good leverage for taking position in options.
4. Brokerage should be low so you do not end up paying most of your profit in brokerage. There are brokers who charge from Rs 15 per lot to Rs100 per lot for options. Paying brokerage per lot means suppose if you buy 20 lot of Reliance, then you have to pay Rs 2000 as a brokerage for options. Popular full-service brokers charge brokerage as follows:
   • ICICIDirect: Flat Rs 20 + Rs 5 per lot.
   • ShareKhan: Rs 100 per lot
   • Angel Broking: Flat Rs 20
   • Edelweiss: Flat Rs 10
   • HDFC Securities: Rs 100 per lot

   Discount brokers charge on per executed order and not on lot size, so If you are trading 20 lots at once, even though you have to pay only Rs 10 or 20 which means you actually saving almost 15 to 20 times on brokerage. You reach your breakeven close to your buying price with a discount broker.

5. You should get timely alerts to ensure that you opt out of the trade to book profit or limit loss.

With above given points we have listed Top 5 Stock Brokers for Option Trading in India or The Best Brokers for Options Trading in India.