Top 10 Best Discount Brokers in India 2023

Nowadays, discount brokers dominate the stock market due to their low-cost trading services, super-fast and easy-to-use trading platforms, low account opening and maintenance fees, and much more. If you are struggling to find the cheapest discount brokers, we have compiled a list of the top 10 best discount brokers in India 2023 by number of active clients.

There were times when trading on the exchange was way too expensive because of the high percentage of brokerage fees charged by full-service brokers. Later in 2010, Zerodha, the country's first discount broker, launched the cheapest Rs 20 flat brokerage plan, irrespective of the quantity you trade. The pricing model created a massive disruption in the stock brokerage industry.

Later, many new discount brokers like Upstox, 5paisa, Paytm Money, Groww, etc came into the picture offering similar pricing plans. Not only discount brokers but also full-service brokers followed the concept by providing flat brokerage trading plans to their clients.

Who is a Discount Broker?

In simple words, discount brokers are budget brokers that charge you a nominal brokerage fee for trading in various segments. Their brokerage fees are much lower than the full-service brokers. However, these brokers do not provide you with trading tips, investment advice, and research services. They also do not offer dedicated account managers and in-branch customer support.

Discount brokers have a simple and transparent business model to offer an easy, feature-rich, and secure online trading platform and charge a nominal brokerage fee. The main reason for the growing popularity of discount brokers is their flat rates.

Many discount brokers in India offer brokerage-free delivery trading (Cash N Carry, CNC), while a flat brokerage fee is charged for trading in other segments (equity, F&O, commodities, and currencies), irrespective of the trading volume. The flat brokerage pricing plan helps traders and investors save a lot of brokerage costs.

Zerodha, 5paisa, Upstox, Angel One, Groww, etc. have Rs 20 pricing plan while some stock brokers even charge low brokerage fees. ProStocks, Paytm Money, and Stoxkart, for example, charge the cheapest fixed brokerage fee of Rs 15 per traded order across all segments.

Some discount brokers also have a unique pay-as-you-earn profit pricing plan, where no brokerage fees are charged for loss-making trades. This means that you only pay brokerage fees if your trades are profitable. Espresso Sharekhan is one such broker.

Characteristics of the best discount brokers

A good discount broker is one which has the following features;

• Competitive flat brokerage fee
• Good reputation with a significant customer base
• Latest technology and user-friendly trading platforms
• Advanced charting and technical tools for technical analysis
• Affordable account maintenance charges
• Low customer complain ratio to active clients
• No hidden charges

Zerodha is the country’s largest or number 1 discount broker that alone captures nearly 20% market share. Check out a list of the top 10 best or the most popular discount brokerage house in India 2023 by a total number of customers. Among all, select the right discount broker that best suited your profile requirements.