Lowest Brokerage Charges Comparison Between Different Stockbrokers
If you are new to the stock market, you should understand the significance of selecting the right broker. Stockbrokers are mainly of 2 kinds: Full-service brokers and Discount brokers. Discount brokers offer comparatively lower costs for executing buy and sell orders. A full-service broker can help investors invest in a variety of financial products, including stocks, IPOs, bonds, mutual funds, and other derivatives. Full-service brokers charge comparatively higher than discount brokers due to the offering of a large number of financial services.
Brokers charge some fees when trading in securities. The brokerage fee is compensation received by brokers for facilitating trades. It is charged on your total traded value. Let’s understand this better with an example:
Suppose Amit decides to buy 10 shares of HDFC Bank at ₹ 1200 each. And after 15 days, he sold those stocks at ₹ 1250. Assuming the brokerage charge is 0.5%.
Here the total traded value is:
₹ [(1200*10) + (1250*10)]
Which is equal to (12,000+12,500) = ₹24,500
Since the brokerage charge is 0.5%, the total fee he would pay will be:
₹ 24,500 * 0.5%= ₹ 122.5
Therefore, Amit would pay ₹ 122.5 as a brokerage fee for doing the transactions worth ₹ 24,500.
Different brokers charge different brokerage fees. So, you should select the one with the lowest brokerage and which provides you with prominent services.
List of Top 10 brokers with the lowest brokerage charges:
It is a discount broking company with the sole purpose of providing lower brokerage costs to its customers. They offer you the simple and cheapest pricing model. It is one of the trusted stockbrokers in the industry with the add-on facilities like excellent customer support and advanced trading tools.
Upstox is the best option for high-volume traders seeking high margins, low brokerage fees, and a good trading platform. It is safe and a reliable company backed up by some leading Marquee investors. You can also invest globally with Upstox. They have a diverse set of charting tools, including over 100 charting tools and indicators to make your trading easy.
3. 5 Paisa:
It is a part of one of the leading NBFCs- IIFL Group. They have 3 subscription plans for brokerage charges. They also offer you the lowest brokerage of as low as ₹ 10 under the Power Investor and Ultra Trader pack. It is the best mobile trading app in India because it is extremely easy to use and offers an excellent experience.
4. Angel One:
It is one of India’s largest full-service retail brokers that provides online discount brokerage services. They also provide loans against shares and margin facilities. You get free research and advisory tips on different stocks and mutual funds. Angel’s trading software includes ARQ, which is an advisory tool and acts as a personal fund manager for investors.
5. ICICI Direct:
It is a full-service broker that offers a wide array of services like investing in stocks, mutual funds, IPOs, bonds, etc. It provides a variety of brokerage plans like the ICICI Direct Prime plan, I-Secure plan, Lifetime Prepaid Brokerage Plan, and Neo Plan. Stock tips are given to all its customers for free.
They are full-service brokers with a large presence in over 550 cities in India. They serve all kinds of customers like individual investors and traders, corporates, NRIs, etc. It also offers online and offline workshops for its customers for free. They have a well-designed website and a very user-friendly app with a wide range of services.
7. Motilal Oswal:
It is a full-service broker whose USP is solid research. Equity research accounts for nearly 10% of their total revenue. The firm has large-cap, mid-cap, and technical research teams. It serves you better if you are an investor. It offers customers complete assistance with financial planning, research, and trading tips, based on the customer’s portfolio and needs.
8. Kotak Securities:
It is a subsidiary of Kotak Mahindra Bank offering financial services through 153 branches and 1332 franchisees in over 361 cities. As a full-service broker, they offer you a large number of investment options like stocks, bonds, mutual funds, debt instruments and US stocks as well. They have 3 subscription plans, named Trade free youth plan, Trade free max plan and Trade free plan.
9. HDFC Securities:
It is a subsidiary of HDFC Bank and a leading full-service broker in India. It offers a 3-in-1 account and an excellent research team to ensure a smooth trading experience. They have multiple brokerage plans and advanced trading tools for hassle-free trading. You will also receive additional benefits like 24/7 assistance, a personal relationship manager, a margin trading facility, etc.
It is a full-service brokerage firm which offers several investment services. They provide its customers with investment advice backed up by extensive research and analysis. They also offer you Portfolio Organizer which is used for analyzing your portfolio and Guided Portfolio which is the pre-created basket for investors. They have 2 brokerage plan options, which are Lite and Elite.
Here is the comparison of the lowest brokerage charges of different stock brokers:
Now, stock brokers charge you an account opening fee and annual maintenance charges apart from the brokerage charges. Here are the details:
|Stock Brokers||Account Opening fee||Annual maintenance charges|
|Zerodha||₹ 200||₹300 per year + GST charged quarterly (90 days)|
|Upstox||₹ 0||₹ 0|
|5 Paisa||₹ 0||₹ 300|
|Angel One||₹ 0||₹ 240|
|ICICI Direct||₹ 0||₹ 700 (waived for the first year)₹ 300 for ICICIdirect Neo customers|
|Sharekhan||₹ 0||₹ 400 (Free for the 1st year)|
|Motilal Oswal||₹ 0||₹ 299 (Free for the 1st year)|
|Kotak Securities||₹ 0||₹ 600|
|HDFC Securities||₹ 0||₹ 750 (Free for the 1st year)|
Choosing the right broker is essential for ensuring the safety of your funds. This article provides a list of the top brokerage firms with the lowest brokerage fees, all of which are backed by the regulatory authority, assuring safety. Also, there are a variety of other factors to consider for choosing a broker. They are account opening fees, trading platforms, advanced tools and indicators, ease of deposit and withdrawal of funds, and other services offered. As it is a significant decision to make, do not rush while making a selection.