Discount Broker

Who is a Discount Broker?

With Discount Brokers taking the stock broking industry by storm, today we will get the picture of the following points in a short and simple language.

  1. First, we will learn who is a Discount Broker?
  2. Then, determine if a Discount Broker suits you?
  3. Also, see the difference between a Discount Broker and Full-Service Broker.
  4. And lastly, who are the Top 10 Discount Brokers in India.

1. Who is a Discount Broker?

A Discount Broker as the name goes is a type of stock broker, who helps clients buy and sell shares at a discounted or fixed rate. Ex: Rs. 20 per order.

Unlike full-service brokers, discount brokers do not provide investment tips or analyses to their clients.

Most of the clients trade by themselves via trading platform and don’t depend on investment tips or expert’s advice.

2. Will a Discount Broker suit you?

Discount broker is suitable for any person who is looking for:

  • Low brokerage.
  • Trades frequently.
  • Trades independently (Not looking for any tips or expert advice) and
  • Is not looking for other add on features like wealth management, tax planning etc.

Services provided by discount brokers are as follows:

  • Provide a trading platform to access the markets.
  • Provide margins to trade.
  • Call and trade services.
  • Send daily transaction details.
  • Help transfer funds between your trading and bank account.
  • Provide customer support in case you have any issues or doubts regarding trading platforms.
  • Some select discount brokers offer financial planning, wealth management services. Ex: Tradejini Financial Services.

3. For a better understanding, let us see the difference between a discount broker and a full-service broker.

Full-Service Broker Discount Broker
Brokerage rates 0.3% to 0.5% of turnover. Flat fee. For e.g. Rs. 20 per order.
Branches Has huge number of branches. Do not have huge number of branches.
Services Equity Trading, Currency Trading, Mutual Funds, Commodity Trading, Investment Advice, etc. Equity Trading, Currency Trading, Mutual Funds and Commodity Trading.
Margin funding Yes No
Relationship Manager Yes No
Minimum Balance You are required to maintain a minimum balance. Not required.
Advisory Yes No
Financial Planning Yes No
Portfolio Management Service Yes No
Wealth Management Yes No
Initial Public Offering Yes Some select brokers.
Mutual Funds Yes Yes
Transparency High Low
3 in 1 Account
(Trading, Demat & Bank Account)
Yes Some select brokers.

4. Top 10 Discount Brokers in India.

Among an abundance/large number of Discount Brokers in India, we have handpicked the Top 10 considering the following factors:

Factors considered while ranking Discount Brokers:

  • Trading Platform
  • Brokerage
  • Client Base
  • Services Offered

Following is the list of Top 10 Discount Brokers:

Scroll down to know brief information about them:

Rank Broker Name
1 Zerodha
2 5Paisa
3 Upstox
4 Fyers
5 My Value Trade
6 Trade Smart Online
7 Tradeplus
8 Tradejini
9 Samco
10 SAS Online

Zerodha is a discount broker established in 2010, headquartered in Bangalore. They are depository participant of CDSL and offer products like :

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
15+ Lakhs 300 300 Rs.20 or 0.01% WIL Upto 28x on
Equity Cash
&
Upto 7x on
FNO
Desktop, Web &
Mobile

5Paisa is a discount broker established in 2016 , headquartered in Mumbai. They are depository participants of NSDL & CDSL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
2.5+ Lakhs 650 400 Flat Rs.10 Upto 20x on
Equity Cash
&
Upto 3.5x on
FNO
Desktop, Web &
Mobile

Upstox is a discount broker established in 2012, headquartered in Mumbai. They are depository participant of CDSL & NSDL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
2+ Lakhs 0 150 Rs.20 or 0.01% WIL Upto 20x on
Equity Cash
&
Upto 3x on
FNO
Desktop, Web &
Mobile

Fyers is a Discount Broker established in 2015, headquartered in Bangalore. They are depository participant of CDSL & NSDL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
9+ Thousand 0 400 Rs.20 or 0.01% WIL Upto 28x on
Equity Cash
&
Upto 4x on
FNO
Desktop, Web &
Mobile

My Value Trade is a discount broker established in 1985, headquartered in Ludhiana (Punjab). They are depository participant of NSDL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
41+ Thousand 0 400 Flat Rs.10 Upto 10x on
Equity Cash
&
Upto 3x on
FNO
Desktop, Web &
Mobile

Trade Smart Online is a Discount Broker established in 1994, headquartered in Mumbai. They are depository participant of NSDL & CDSL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
22+ Thousand 200 300 Rs.15 or 0.007% WIL Upto 30x on
Equity Cash
&
Upto 7x on
FNO
Desktop & Mobile

Trade Plus is a Discount Broker established in 1995, headquartered in Bangalore. They are depository participant of NSDL & CDSL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
9+ Thousand 200 500 (5 yr) Rs.9 or 0.01% WIL Upto 30x-40x on
Equity Cash
&
Upto 3x on
FNO
Desktop & Mobile

Tradejini is a discount broker established in 2012, headquartered in Bangalore. They are depository participant of CDSL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
20+ Thousand 300 400 (5 yr) Rs.20 or 0.01% WIL Upto 30x on
Equity Cash
&
Upto 6x on
FNO
Desktop, Web & Mobile

Samco is a discount broker established in 2015, headquartered in Mumbai. They are depository participant of CDSL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Bonds
Total Clients AOC AMC Brokerage Margin Trading Platform
39+ Thousand 0 400 (5 yr) Rs.20 or 0.02% WIL Upto 33x on
Equity Cash
&
Upto 33x on
FNO
Desktop, Web & Mobile

SAS Online is a discount broker established in 2012, headquartered in New Delhi. They are depository participant of NSDL and offer products like:

  • Equity Spot
  • Equity Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
Total Clients AOC AMC Brokerage Margin Trading Platform
14+ Thousand 200 200 (5 yr) Rs.9 or 0.01% WIL Upto 20x on
Equity Cash
&
Upto 7x on
FNO
Desktop, Web & Mobile




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