A discount broker is the one who buys and sells order at reduced commission rates in comparison to that of full service brokers. A discount broker doesn’t provide any advice related to investment or perform any analysis on the behalf of a client like a full service broker. People with handsome annual income can afford a broker who can give them an analysis about the market and its trends but not everyone can afford them.
In the realm of technology, Discount brokers have become a new sensation as they are providing individuals to trade by taking lesser fees. The discount brokers have become synonymous to the online brokerages.
Top 5 Discount Brokers in Share Market in India
Discount brokers charge less fee as they don’t provide personal consultations, advice, research, tax planning and estate planning services to their customers. Additionally, they don’t spend money closing deals with high net worth individuals. Many of them operate their businesses online where overheads are low.
Whom to choose- Full service broker or Discount Broker?
Well, it totally depends upon the individual choice. If you need professional investment advice or some sort of support to stay on the top of your financial planning outside of investing then full service brokers will be the best option for you.
On the contrary, if you are that type of investor or trader who is engaged in frequently and actively buying and selling securities then you must consult or discount brokers. Therefore, if you do not need any sort of advice or you have small portfolio or you simply want your trade to be executed then you should go for discount broker.
List of top 5 Discount Broker in Share Market in India
1. Zerodha: – It is an Indian brokerage and financial service company which offers low cost trading and investing platforms, education and community. It was founded in 2010 by Nithin Kamath, the founder and CEO of this company. This company is based in Bengaluru which offers an electronic trading platform which facilitates institutional and retail trading of stocks, derivatives, currencies, commodities, mutual funds and bonds.
It is a member of the national Stock Exchange of India, Bombay Stock Exchange and the Multi Commodity Exchange. A fixed Commission of up to ₹20 is applied to all equity trading and derivative transactions regardless of its size. Equity delivery is commission free. The company also offers commodity trading through its wholly owned subsidiary, Zerodha Commodities Primate Limited.
2. Upstox:- It is an Indian brokerage and financial services company, headquartered in Mumbai, Maharashtra, India. It was founded in 2009 by Raghu Kumar, Ravi Kumar, Kavitha Subramanian and Shrini Vishwanath. It offers a zero brokerage model which is designed in a manner to leverage prudent use of design and technology which helps to cut cost for the company which will greatly benefit the end users. It is a trading platform which offers financial instruments, covering stocks, IPO’s, mutual funds, futures and options, commodities and currencies.
It implements a user friendly methodology which distinguishes itself in the charge domain from others. It doesn’t charge any money for investments in mutual funds and IPO’s. It is expanding remarkably and has emerged as the fastest growing sector which is expected to grow at astonishing 30% annual pace between 2022 and 2030.
3. 5Paisa: – It is an Indian brokerage and financial service company which provides online trading and discount brokerages services in India. It is a trading platform which offers mutual funds, equities, insurance, currency, initial public offerings and non convertible debentures. It doesn’t charge any specific amount for account opening. Additionally, it doesn’t charge account management and equity delivery brokerage charge.
4. Angel One: – It is an Indian stockbroker firm stablished in 1996. It is a member of the Bombay Stock Exchange, the National Stock Exchange of India, National Commodity and Derivatives Exchange Limited and Multi Commodity Exchange of India limited. It is a depository participant with Central Depository Services Limited. Dinesh D Thakkar is the founder of this company.
It is headquartered in Andheri East, Mumbai, Maharashtra. It provides services such as stockbroker, equity trading, commodities, portfolio management services, mutual funds, life insurance, health insurance, IPO, depository services, investment advisory. It reached a client base of 24.7 million in June 2024.
5. Groww: – It is a popular investment platform in India which targets investors and traders. It is headquartered in Bangalore, Karnataka. Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh are the founder of this company. The company raised Series E funding of 251 million dollars at a valuation of 3 billion dollars in October 2021. More than 1.5 crore users across the country trust this platform for investment.
