Top 10 Brokers in India 2021 | Best Brokerage and Charges | Gunjan Grover - YouTube

Welcome all, this this is Gunjan Grover and today we are going to talk about the top 10 brokers in India.

Are they full-service brokers or discount brokers? What is the difference between the two?

What services do they provide? What applications are there?

Through which brokers could you invest in the international markets?

How much is their brokerage and how much is the account opening charge and the account maintenance charge?

We will talk about the charges of retail investors and small traders and not for high volume traders like us

High volume traders do thousands of transactions in a month. So, for them, the price model is little different and cheaper.

But, today in this video, we will talk about a regular investor and small traders who do not do too many transactions.

But before that don’t forget to like this video and subscribe to my channel.

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There are 2 kinds of brokers – full-service brokers & discount brokers

Both have their own advantages and disadvantages.

So first, let us understand the difference between full-service brokers and discount brokers.

At first, let’s talk about traditional brokers or full-service brokers.

Most of these brokers are operating since a long time.

Like Angel Broking, ICICI Direct, HDFC Securities, Sharekhan, Kotak Securities, Motilal Oswal, IIFL, etc.

The speciality about these brokers is that these are licensed brokers which provides offline services as well along with online services.

That means, you could go to their office physically and get your query solved. You get a good customer care service from them.

You even get your own dedicated relationship manager who is always available for you.

Apart from this, they also provide you with research reports, stock tips, wealth management and portfolio management services.

Basically, these full-service brokers employ a lot of people, which includes customer service people as well as research analysts

so you get an overall good experience and research reports.

But all these services come at a cost. Obviously, as their expenditure is more, so their brokerage is bound to be more.

So, these brokers charge a higher brokerage compared to discount brokers.

Although they trying to compete with discount brokers. They offer different brokerage packages to high volume traders, which are cheaper.

Retail investors or small traders mostly prefer discount brokerages like Zerodha, Upstox, Groww, 5Paisa, etc.

With increasing mobile penetration and reducing data costs, discount brokers are getting much popular among today’s youth.

As you can guess by the name, these brokers offer discounted or very low brokerages.

They have fixed brokerage plans.

How much more your trade value be, but you have to pay a fixed brokerage per transaction.

Their services include less physical presence and are mostly online.

They do not provide full range of services due to which, they do not have to bear the cost of license, physical infrastructure and employees.

And they transfer these benefits to the customers in the form of low brokerage.

Most of these brokers do not provide portfolio management services and research reports.

Now let’s look at India’s top 10 brokers and how much are their charges and what services do they provide.

Usually, with full-service brokers you can invest in a lot of segments like equity, F&O, currency, commodities, mutual funds.

Some brokers also provide the option to invest in international markets.

The services provide by discount brokers do vary. Let’s look at them in detail.

Zerodha is on top spot with the maximum number of active clients.

Founded in 2010, Zerodha is a discount brokerage which a physical presence in lot of Indian cities.

Zerodha provides services in equity, F&O, currency and commodities segment.

Kite is the name of it’s trading interface.

It operates in both web-based and smartphone-based interface.

Zerodha does not charge any brokerage for equity delivery trading.

But for equity intraday and equity futures, it charges a brokerage of 0.03% or Rs 20 per executed order, whichever is lower.

For equity options, it charges a brokerage of flat Rs 20 per executed order.

Zerodha charges an account opening charge which most of the other brokers do not charge.

It charges an account opening charge of Rs 200 for trading in equity, F&O and currency.

If you also add commodity account along with it, then you will have to pay Rs 100 extra and the opening charge will be Rs 300.

Apart from this, it charges a yearly account maintenance charge that is Rs 300/year + GST (that is charged quarterly).

Zerodha also provides services to invest in mutual funds through its Coin platform.

Mumbai based discount brokerage firm Upstox comes in 2nd number in terms of active clients.

Founded in 2011, this brokerage id backed by Ratan Tata and US Venture Capitalist Tiger Global.

This provides services in equity, F&O, currency and commodity segments.

The name of its trading interface is Pro by Upstox, that offers both web-based and smartphone-based interface services.

Like Zerodha, it offers free brokerage for equity delivery trading.

For equity intraday and equity futures, there’s a brokerage of Rs 20 per order or 0.05%, whichever is lower.

For equity options, it charges a fixed brokerage of flat Rs 20 per executed order.

Upstox do not charge any account opening fees. But, there’s a monthly account maintenance charge of Rs 25+GST.

Upstox also provides services to invest in mutual funds and digital gold.

In 3rd number, comes Angel Broking.

This is a full-services broker operating since 1987.

It is also a listed company and the name of its mobile application is Angel Broking app.

Through it’s web-based and smartphone-based interface, it offers services in equity, F&O, currency and commodities segments.

It charges a free brokerage for equity delivery trading.

For equity intraday, equity futures and options, there’s a brokerage of Rs 20 per executed order or 0.05%, whichever is lower.

This also do not charge any account opening charges although it charges a monthly account maintenance charge of Rs 20+GST.

You can invest in mutual fund though their Angel Bee mobile app.

It also provides opportunities to invest in US markets, in partnership with Vested.

In the 4th spot, comes ICICI Direct which is a full-service broker since 2000.

The name of its mobile application is ICICI Direct app.

It offers web-based and smartphone-based services in equity, F&O, currency and commodities segments.

It offers 6 types of brokerage plans among which Neo plan is one of them, in which it offers free brokerage for equity delivery.

For equity intraday, it charges Rs 20 per order. For equity futures, it offers free brokerage and for equity options, it charges a brokerage of Rs 20 per order.

Apart from Neo plan, there are other plans like ICICI Direct Prime brokerage plan

prepaid brokerage plan and Direct-I Secure plan for high volume traders

Direct NRI Prepaid brokerage plan and Direct NRI brokerage plan for NRIs to invest.

Although it does not charge any account opening charge, but it charges an yearly account maintenance charge of Rs 700+GST from the 2nd year.

In the 5th position is HDFC Securities which is a full-service brokerage operating since 2000.

The name of its mobile application is HDFC Securities mobile trading app.

This also provides web-based and smartphone-based interfaces in equity, F&O, currency and commodity segments.

For equity delivery and intraday, it charges a brokerage of Rs 25 per executed order or 0.50%, whichever is lower.

For equity futures, there’s a brokerage of 0.50% or Rs 25 per executed order, whichever is lower.

And for equity options, it charges brokerage of Rs 100 per lot or 1% of the premium, whichever is higher.

Although it does not charge any account opening charge but it charges an yearly account maintenance charge of Rs 750+GST.

HDFC Securities also offers its service to invest in mutual funds and digital gold.

You can also invest in US stock markets directly through its Global Investing arm.

In the 6th position comes 5 Paisa which is a discount broker.

Founded in 2016, this company used to be the discount brokerage arm of India Infoline previously.

Then, both got separated and got listed separately. Both of their promoters are same.

The name of its mobile application is 5 Paisa app and this also provides web-based and smartphone-based interface in equity, F&O, currency and commodity segments

It has 3 types of brokerage plans.

One of them is basic plan in which for equity delivery, intraday, equity futures and option, it charges a brokerage of flat Rs 20 per executed order.

There are no charges for account opening. There is a monthly account maintenance charge of Rs 45+GST.

Apart from this, the other plans are Power Investor pack with a monthly charge of Rs 499/month

and Ultra Trader pack with a monthly charge of Rs 999/month in which along with a flat brokerage of Rs 10

you also get lots of other offers which include research, portfolio analysis tools, free trades and free equity delivery.

5 Paisa also offers services to invest in mutual funds and digital gold.

It also provides investment opportunities in US stocks, in partnership with Vested.

Groww is a discount broker which started its operations in 2016, primarily as a mutual funds investing platform.

In 2020, the company launched its own stock broking business.

The name of its mobile application is Groww app.

Through its web-based and smartphone-based interface, you can invest in the equity segment.

They are soon going to start F&O services as well.

For equity delivery and intraday, it charges a brokerage of Rs 20 per order or 0.05%, whichever is lower.

There are no account opening and maintenance charges.

Groww also offers its service to invest in mutual funds and digital gold.

It also provides opportunities to invest in US stocks.

Now, let's talk about Kotak Securities which is a full-service broker, and started its operations in 1994.

The name of its mobile application is Trade Free-Kotak Stock Trader app.

This also offers its services in equity, F&O, currency and commodity segments.

It offers Trade Free plan for a yearly fee of Rs 999, in which it charges an equity delivery brokerage of 0.25%.

For equity intraday, it offers free brokerage.

For equity futures and options, it charges a flat brokerage of flat Rs 20 per order.

It does have any account opening charges but charges an account maintenance charges of Rs 50/month+ GST.

Kotak Securities also offers it service to invest in mutual funds

and has teamed up with Nasdaq-listed Interactive Brokers Group (IBKR),

and to invest directly in US markets.

Sharekhan is also a full-service broker since 2000,

which previously was a part of SSKI Group but has recently been acquired by BNP Paribas.

The name of its mobile application is Sharekhan: Share Market app.

It offers its services in the equity, F&O, currency and commodities segments as well.

For equity delivery, it charges a brokerage of 0.50% or 10 paise per share or Rs 16 per scrip, whichever is higher.

For equity intraday, there’s a brokerage of 0.10% on the buy side.

For equity futures, there a brokerage of 0.10%.

For equity options, there’s a brokerage of flat Rs 50 per lot.

There is no account opening charge and there is an annual account maintenance charge of Rs 400+GST.

Sharekhan also offers its service to invest in mutual funds.

On the 10th spot is Motilal Oswal which is a full-service broker, operating since 1987.

The name of its mobile application is MO Investors: Online Investing and Stock Market app.

It offers its services in equity, F&O, currency and commodity segments. The brokerage for equity delivery is 0.50%.

The brokerage for equity futures and intraday is 0.05% and for equity options, the brokerage is Rs 70 per lot.

There are no account opening charges and account maintenance charges are Rs 400+GST.

Motilal Oswal also offers its services to invest in mutual funds, digital gold and US markets.

So, these are India’s top 10 brokers in terms of most active clients and these are the summary of their charges and services offered.

Apart from these charges, there are other charges such as transaction charges, SEBI turnover charges, Securities Transaction Tax (STT), stamp duty and GST etc.

So which broker should you choose?

If your transactions are less, you don’t want more research and add-on services, no trading assistance

you are tech-savvy and can execute your trades on your own, then you should go ahead with discount brokers.

But if your transactions are more, you want good customer support and relationship manager

trading assistance, research and portfolio management services, then full-service broker is the right choice for you.

I hope all this information helps you choose the broker that is right for you..

If yes, then don’t forget to like this video n subscribe to my channel if u haven’t already.

We do not promote any broker/fund/stock and all this is just for educational purposes.

On that note, here's me Gunjan signing off. Buh bye. Take care. Keep calm and invest on.