Indian Stock Broking market is a fragmented space filled with numerous Share trading companies. To place itself as one of the Top Stock Brokers in India, each share trading company tries to differentiate itself on multiple metrics such as brokerage/commission, market tips, customer base, research reports, trading platforms, company legacy, PAN India presence and so on.
If you are a beginner or a small investor though, you can check out this detailed article on Best Demat Account for Beginners and Small Investors.
From a consumer's point of view, all they need is growth. The consumer has entered into the market to make profit over his/her investment and that is why choice of the broker or share trading company is a very crucial decision he/she has to make. But before making that choice, the consumer must understand few things that can help him/her to make that choice:
Are you a Trader or an Investor?
This question can help you to decide on the basic fundamental of trading.
In share trading world, if you are looking to reap profits in quick time and want results in minutes, hours or days - then you are basically a trader. Thus, you will be making a higher number of transactions on a regular basis. On the other hand, if you are looking to put your money in the market on some trusted stocks and then hold the stocks for a long period (for instance 6 months, 2 years, 10 years etc.), you are an investor.
What a potential trader or investor looks for in a stock broker?
Once you have made a choice on whether you are a trader or an investor, there are an array of expectations you might have from your stock broker, such as:
- Reasonable brokerage charges
- High performance trading platforms
- No or low account opening or annual maintenance charges
- Array of trading and investment products
- Decent customer service
- Wide offline presence through sub-broker and franchise network
- Accurate market tips and recommendations
- Initiatives on Trading and Investment education
- Integrated trading and bank account
- High exposure or leverage across trading segments
- Low/no hassles in fund transfers
How to check the credibility of the Share Broking Company?
Don't get overwhelmed or impressed by the branding or market image created by the share trading company among the consumers. Have a detailed & thorough check before making a choice.
- Visit SEBI's website to get an idea on some of the reputed share trading companies.
- Talk to people who are already trading/investing with a stock broker and learn from their experience.
- Look at company's offerings, their trading platforms, their regular research reports, brokerage charges, customer support, experience in the industry etc.
- Do a secondary research on the internet and see what past customers have to say about the company. Be a little cautious here at the same time as some of the comments might be forged.
Best Share Trading Companies in India
Here are few Share Trading companies in India who have shown pretty good performance in the past 2-3 years and are challenging each other across technology, customer service & product innovations.
Top Stock Brokers in India
ShareKhan is one of the oldest pioneers in the online share trading space in India. Although it has been sold out to BNP Paribas for 2200 Crores recently, there has not been change in focus post the acquisition. ShareKhan continues to boost on this brand equity built over last 16 years and has multiple trading platforms to offer to its customer base. Their online platforms include Trade Tiger, Share Mobile & ShareKhan Classic.
ShareKhan is ranked 2nd in the Indian stock market industry and has presence in more than 675 cities in India. They charge in the range of 0.015% to 0.1% depending on the margin money scheme picked by the customer. ShareKhan charges INR 750 as Account opening fees and INR 441 as AMC.
One of the concerns with Sharekhan is its relatively high brokerage charges, which generally is the case with mainstream full service stock brokers.
ICICI Direct enjoys a good amount of brand equity through its ICICI Banking services. This brand equity helps high scale customer acquisition at low cost. Due to its high brand value, ICICI charges high commission charges for the simple reason of trust factor inhibited among the user base. It charges in the range of 0.5% for intra-day and 0.75% as commission charges. ICICI opens the Demat account for INR 975 while charges INR 500 as AMC. At the same time, it offers USPs such as 3-in-1 trading account, Classroom programs for learning share market, seamless integration with its trading platforms.
ICICI has a total customer base of 2.6 million with coverage in 87 cities with 200 branches.
It offers Trade Racer for its customer base to trade online. Trade Racer comes with features such as market watch, streaming quotes, advanced charting and quick transaction support.
HDFC Securities is another full service share trading company that has an advantage of brand equity gained via its banking services. However, a notch ahead, HDFC securities offers a one of its own kind 4-in-1 trading account. This allows the customers to seamlessly move funds and securities within their savings, demat and trading accounts.
HDFC Securities has been around for more than 15 years and has high coverage with more than 200 branches. HDFC also has desktop as well mobile trading applications. HDFC securities is known well for its research reports and accuracy of information on stock trends, market movements & industry dynamics.
HDFC charges 0.5% as brokerage commission, INR 999 for opening the demat account & INR 550 as AMC.
India Infoline or IIFL is one of India's leading full service stock brokers. They have recently introduced a discount broking solution in the form of 5Paisa as well. India infoline is majorly known for its wide offline presence, especially in North India. IIFL has a reasonable prominency in its research and offers regular tips, recommendations to its clients. Further, they have been putting good amount of emphasis in their trading platforms including IIFL Markets, which is their primary trading platform.
Established in the year 1995, IIFL has wide offline presence through its 4000 sub-broker and franchise branches. IIFL charges INR 750 for opening trading account and INR 555 for opening a demat account from its clients. It also charges INR 300 as annual maintenance charges on a yearly basis. It also has multiple options when it comes to brokerage plans, IIFL offers variable options to its clients who can chosen a plan based on their trading segment preferences.
Some of the concerns around IIFL including its okayish customer service and clients cannot invest in mutual funds through IIFL. Other than that, IIFL is definitely one of the decent stock brokers of India.
5Paisa is an IIFL (India Infoline) backed stock broker launched few years back and has presence in Mumbai. It offers one of the lowest brokerage charges in India at INR 10 per executed order. Furthermore, in terms of trading platforms - 5Paisa offers a decent perfoming mobile app to go along with web based browser application Trade Station and a terminal software. With backing from IIFL, it definitely adds up the reliability factor as well with 5Paisa.
One of the best parts of opening an account with it is that 5Paisa offers its clients regular tips and recommendations despite being a discount stock broker. No discount stock broker provides that luxury. To open an account with 5Paisa, account opening fees is INR 250 and AMC (annual maintenance charges) stand at INR 200.
The first 5 trades with 5Paisa are free and no brokerage is charged. Additionally, if you start with a capital to INR 25,000 or more, then the AMC and account opening charges are also made Free.
Motilal Oswal or MOSL is one of the oldest full service stock broking houses in the country with its establishment in 1987. They have, majorly been looking at Institutional securities but have recently pivoted towards retail stock broking as well. Motilal Oswal, also falls in the expensive stock brokers' category but what these full service stock brokers are doing recently is introducing multiple brokerage plans. With different options, the choice lies with the consumer on how much brokerage charges to pay. MOSL charges INR 1000 as trading account opening charges and INR 441 as Demat account annual maintenance charges.
Motilal Oswal has done few innovations innovations in customer service including Motilal Oswal Genie that allows its clients to get answers to few basic queries directly through an automatic bot.
Zerodha was the first discount broker in India with its establishment as recent as 2010. Like other high volume traders and investors, the CEO of Zerodha, Nitin Kamath faced the same concern of paying out high brokerage charges to the stock broker. Even though he'd spend most of his time in setting up his technical and fundamental analysis on stocks, a major chunk of the profits reaped was being taken away by the full service stock brokers. With Zerodha, he fixed this concern as Zerodha works on the flat rate brokerage model.
Zerodha, today, is known for its amazing digital initiatives and product innovations, giving them a positioning of a digital first share trading company in India. Zerodha offers different trading platforms such as Zerodha Kite Web, Kite Mobile, Zerodha Pi, Kite Connect API etc. They also introduced the concept of making sure the customer learns while trading with their product 'Varsity'. Varsity is a full-fledge learning web app that guides beginners on the basic fundamentals of investing and trading in share market.
Zerodha has a clear cut pricing model of INR 20 per transaction on Intra-day and no charges for equity delivery. Like the way discount broking works, they don't charge you any other commission percentage irrespective of your transaction volume or size. Zerodha charges INR 200 while opening the demat account.
Zerodha, however, does not allow you to invest in IPOs and its customer service is one area that still lacks maturity.
Angel Broking is a well known full-service share trading company and has been in existence for the last 29 years. Established in 1987, Angel Broking has presence in 1000+ cities in India with more than 8500 sub-brokers. Angel Broking charges commission in the range of 0.01% to 0.4% depending upon the margin money committed at the start. They open the demat account for free while charge INR 300 as Annual maintenance charges (AMC).
They have different online trading platforms such as Angel Eye, Angel Broking App and Angel Swift. Angel Broking runs different offers for customers at different times of the year.
Angel Broking has recently been coming out as quick mover in multiple digital facets and very recently, they came up with a concept of ARQ, an engine that basically predicts the future performance of a stock by going through billions of data points collected over the past 20+ years. Among other aspects, Angel broking also provides decent market tips, research and recommendations at both technical as well fundamental level.
However, Angel broking has an average customer service to go along with few concerns around its mobile app usage.
Trade Smart Online comes from the house of VNS finance, a financial house for the last 20 years in India. This discount stock broker is known for its flexible brokerage plans based on client's preferences. For example, you can opt for percentage level brokerage (0.007% for Intraday) or flat rate of INR 15 per executed order or you can also opt for ₹3999 monthly subscription price for unlimited trades.
Working on the low brokerage business model, Trade Smart Online is known for its impeccable customer service which comes handy at crucial junctures such as high shift in the stock market or during heavy traffic times.
The only concerns with Trade smart Online include its high transaction charges and you cannot invest in IPOs while using TSO's services.
Kotak Securities is another bank based stock broker that offers you a 3-in-1 demat account while cashing on its high brand equity gained through its banking services. Kotak Securities, with its 1200 branches across 360 cities and towns of India, provides a large offline network like Angel Broking and India Infoline.It has consistently put in its focus towards technology and its trading platforms across devices are few of the highest performing trading platforms in India. To go along with different trading softwares, Kotak securities offers some technical tools as well that help users to perform their analysis.
Kotak Securities charges INR 750 to open a trading account and levies a maintenance charge of INR 600 which can be paid monthly at the rate of INR 50. As far as brokerage is concerned, Kotak securities has a range of plans - including fixed percentage brokerage plans (which are generally expensive) as well as plans based on subscription charges. Kotak securities works well for heavy traders that need help in technical and fundamental analysis. You can check detailed understanding of brokerage plans of Kotak securities here.
All being said, Kotak securities is one of the expensive stock brokers when it comes to brokerage.
This concludes the list of top stock brokers in India. You can also read: Best Online Trading Platforms In India - A Review of Indian Share Brokers
Share trading industry requires your time and effort as an investment as well apart from the monetary investments you, as an investor, make. Be wary of the offerings your share trading company opens up for you and understand in length how they are better than the competition. If you want thorough understanding and knowledge coming from the research team, make sure how their researchers are looked upon. Do they have regular presence on business channels among other things.
If you are looking to test the waters, go with discount brokers because you will know how much money will be at stake while make the transactions. You can also refer to this detailed article on Best Stock Brokers for Beginners or Small Investors for reference.
Furthermore, if you need any assistance whatsoever, in finalizing a stockbroker for yourself or you need any advice on a recommended stock broker, you can provide your preferences and details below: