With the increase in number of stock broker, people have a lot of stock brokers to choose from, but still it is not easy to choose. You need to be sure of what is that you want from the Brokers. Some pointers to keep in mind before deciding which broker would be a best fit for you are: Most of the discount brokers charges between Rs 15 to Rs 20 per trade irrespective of the trade volume. So if you are going to trade multiple times a month, go for a discount broker rather than a full service one.
To understand there difference better, please have a look at the video below. Most of the brokers have started to provide online trading services to their customers. Some of them also provide trading on phone or even physically at their location.
Decide what would be a good fit for you. There are some people who prefer to trade on brokers terminal or want on call support while trading. Make sure that the broker you choose provide the service you are looking for. Whether you are a trader or investor. Investor is someone who trades few times a year while trader will trade at least few times a month.
So decide whether you want to be a trader or investor before choosing a broker. If you need adviser, remember to get some historical data of how good the broker is known to provide advice is and would you be comfortable giving him your money.
Full service broker generally will have research desk which will send you a lot of recommendations for trading in stocks. Do remember to check there historical recommendations and if it matches your investment needs.
Some of the full service broker will even provide you with the service of Relationship manager which will call you a couple of times a month and telling you about the new investment ideas. One more thing to keep in mind while looking at the broker is whether or not it provides call-n-trade service.
Because even if you have a Smartphone, there could be a possibility that you are not able to access your account due to slow internet speed. Then you should be able to call you broker for closing the trade.
Most of the broker provide call-n-trade service but ask what is the extra charge for using that service if any. Also some broker say that the 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 wait time to get call-n-trade service.
If you are like them, discount brokers would be a good fit and if you are someone who prefers to know the face of the brokers, this list would be of little use to you as I have not included any local brokers here. But if you do use local brokers, I would suggest that at least compare their brokerages with some of the new discount brokers to see how much money you are losing by way of higher brokerage. We would strongly suggest that if you are trading with Local brokers, you be aware that they are doing financially OK.
In last couple of years, there have been defaults by local brokers. One more important thing to ask is what trading platform is provided by your broker and is there any extra charge for accessing that. Most of the big broker have started providing their own proprietary platform. These new trading platform make trading easy and would take you just couple of hours to get used to trading platform.
Some people do face issues while trading on them as the phone hangs and quotes are not refreshed. We will advise you to research little more about the trading platform provided by the brokers before deciding on the same. In the last couple of years, with the increase in internet penetration and coming of smartphone in India, I have added some of the major discount brokers also in the top 10 list.
They are not the largest but are giving full service brokers a run for their money and increasing their market share every quarter. I would suggest to read there reviews before finalizing the brokers. Times are changing and I think that in next couple of years more and more brokers would move from being a Full service broker to Discount brokers.
And as far as safety of discount brokers are concerned, most of the brokers have a robust risk management in place and follow stringent SEBI rules. The account opening process is also very easy and Zerodha account can now be opened completely online. They also have a trading platform called KITE which you can run through your browser or by installing on App on your smart phone. PI has to be installed on your computer to make trades.
Zerodha is also one of the most innovative broker and provide range of financial products which include smallcase , a thematic based investment product, Coin , a star BSE mutual fund platform using which you can buy Direct mutual funds and many more.
The good thing about these discount brokers is you may never have to visit their offices. The forms can be filled online and the application can be shipped to them. They provide very competitive rates of Rs 20 per trade irrespective of the size of the trade. With them also, delivery based trades are free. They also provide a cutting edge trading platform called Upstox Pro which could be run from browser or by installing the App. There account opening process with Upstox is also very easy and most of the work can be completed online.
They are one of the newer discount Brokers and provide brokerage rate of. The thing to keep in mind with them is the brokerage is capped at Rs per trade.
They provide one the the best trading platform which is built in house completely. For a latest updated list of discount broker, read top 5 discount brokers in India. They have built up a huge network of Branches and Franchises More than cities and Franchises thereby maintaining a great support system for investors who prefer human interactions while trading.
Alternatively you can use their Trading platforms for the device of your choice be it the Web, Smartphones, Tablets and Desktops.
They have more than 10 lakh clients which trades with them. They are providing an account opening offer in which you can open account for free. Please provide your details by clicking on the button below and you will receive a call within 30 mins. By far the biggest and best know full service stock broker in India. They have good service and easy to use user interface.
These are one of the oldest and reputed brokers operating in India. They are also full service brokers providing gamut of financial service to the customer. They are best known for there advisory service provided by them. They have more than 8 lakh customer trading with them.
They are full service broker and provide various other services like asset management etc. You can find my detailed review for Sharekhan brokerage charges here. They are one of the larger broking houses in India and with their bank branches, they have one of the largest network which is only after ICICI. They have a vast network of bank branch in even smaller town. They are good full service brokers providing all major services like research desk, mutual fund investments and portfolio management services.
They are one more well know name in Financial services and with their bank branches in big cities they are able to cater to clients in big cities. There online service is decent but brokerage is not that competitive. They came with a bang but lately have lost a lot of sheen from their name. There have been lots of question about their business practices.
After reading the list, I hope you will be able to select the right brokers for your needs. Do remember that brokerage is important but should not be the only reason to select the broker.
Talk to some of them, get a feel and ask any question you may have from them. Once you are comfortable only then open an account with them. I understand that some of you would say that this list is missing some of the major Brokers in India but I have tried my level best to common up with this list.
If you feel that I have missed someone, do let me know in the comments. In case this sound complicated, read how to invest in Share market. I read all your replies to the previous posts and found them mighty helpful. From what I have gathered, i think discount broker would be suitable for me which I plan to go with Zerodha.
I would also like you to share some tips on how to go about the trading for a beginner. All the brokers we have reviewed here are SEBI registered.
Do read the review and choose which best fits your need. Look for a broker which have low brokerage and provide good platform. Most of the discount broker should work for you. I am a new trader too, using HDFC sec, i sold few shares for the first time and got to know that some money got debited from account as Depository Charges which i was unaware or was not briefed about while opening the account.
Yes Venu Depository charges are charged by all the broker. It mostly are between Rs and it provided to your Depository and not the broker. Almost all the broker will charge it separately from the brokerage.
Also, if we buy a share, is there any limit of holding period?? No Tanmaya, one you take delivery of shares there is no limit as to when you can sell shares. You can keep them for 10 years if you want. Yes that can be done. You have to give DIS slip to your old broker and tell them to transfer shares to Zerodha account.
In HDFC Sec the demat balance amount will be tranfered to the primary bank account in the same day or the next day is this possible with your platform. If you are looking for low brokerage, in the option you provided Zerodha has the lowest brokerage. For delivery they charge Zero brokerage and for intraday they charge.
You can know more about Zerodha here.More...