The Best Cheap Online Stock Brokers.
Latest Update October 13, 2017.
The best cheap online stock broker offers a variety of investment options at a low cost. We compared fees, account minimums, and other costs of the cheapest brokerage accounts to find which best suits different investing priorities. While most online brokers have dialed down their costs, we found three that we like more than the competition.
For anyone just starting to wade into investing, Ally requires no minimum investment to start an account, and it offers some of the lowest trading fees. Its online-only platform transfers between devices with ease, making it easy and inexpensive for investors to set up an account.
The only brokerage of our three top picks that operates brick-and-mortar branches, this financial institution has kept offers plenty of useful tools and platforms while also offering traditional resources for in-person help.
This low-cost, high-account value trading platform offers surprisingly low fees if you meet its requirements for account balance and activity. But novice investors won't find the same benefits, or the same simplicity offered by our other picks.
The Best Cheap Online Stock Brokers.
Best for New Investors.
Best for Active Investors.
Whether you’re new to the stock market or a seasoned investor, choosing a brokerage with low overhead is a smart financial decision: Spending less money on fees means your investments have more room to grow. And while cheap trading platforms may not offer the same level of counsel or market research as a traditional firm, you can still find plenty of tools to make trading decisions smarter and faster.
If you’re a relative newcomer to the stock market, you should look for an account with low costs, plenty of educational resources, and, importantly, a low account minimum. Your best bets are Ally Invest and Charles Schwab. These two brokerages share a lot of price points, and most of the differences between the two are trade-offs. Example: Ally provides access to nearly twice as many mutual funds (around 10,000 vs. 5,000) and charges a much lower mutual fund commission (around $9 vs. Schwab’s $75). Meanwhile, no brokerage can compare with Charles Schwab for exchange-traded funds (ETFs): Over 200 trade commission-free. Conversely, Ally doesn’t offer any zero-commission ETFs.
With those differences in mind, we prefer Ally Invest for new investors due to its $0 minimum to start a brokerage account and because it offers virtual trading. With virtual trading, you can test out strategies before putting your own cash into the mix. Charles Schwab doesn’t offer any equivalent, and has a $1,000 account minimum. Ally also gives you the option to try your hand with individual trades or open a managed portfolio with a little more expert guidance, although managed portfolios require a $2,500 minimum.
Charles Schwab has retained more of a classic brokerage feel through its in-person presence (you can schedule a free consultation with a financial advisor) as well as its more traditional account minimums. And while Ally restricts its trading technology to online platforms, Charles Schwab gives clients an advanced desktop option: StreetSmart Edge. StreetSmart’s claim to fame: Making its platform more intuitive and convenient, based on user feedback about clunkier trading tech.
For more active trading, a higher account balance is par for the course. With Interactive Brokers, you’ll need $10,000 to start an account, but once you do, its other financial demands are incredibly small. Take advantage of the super low price per trade ($1) as well as extremely low margin rates (their highest interest bracket still charges less than 3%). It also offers the choice of fixed or tiered pricing, giving investors the opportunity to choose what makes more financial sense for them — tiered structures will typically benefit high-volume traders.
How We Found The Best Cheap Online Stock Brokers.
Your financial goals and your personal investing style will be the two biggest factors in choosing the right brokerage for you. We set out to find the strengths and weaknesses of the cheapest brokerages we could find, but you’ll still have to decide which offers the right combination of savings and services for your needs.
We considered seven brokerages in total: Ally Invest, E*trade, Fidelity, Interactive Brokers, Charles Schwab, Merrill Edge, and T. D. Ameritrade, all major brokerages that have made a name for themselves offering exceptionally low rates. This wasn't a comprehensive list — we focused on major names and newer players that were doing more to disrupt the space. To find the best among them, we investigated their platforms and compared the fine print to see how they stack up in fees, learning resources, and trading technology.
We primarily based our selection on the fees and strictures associated with each company’s brokerage account. Some of the most important: account minimum, account minimum fee, broker-assisted trade commission, monthly activity fee, price per trade, and price per share. Though the numerical difference between two brokerages’ fees can appear small — an extra $2 per trade or a 2% bump in margin rates — those dollars and percentages are still eating away at your investment. We looked for brokers that kept those fees and commissions as low as possible.
Special offers for opening a brokerage account can include a set number of free trades or even cash bonuses for investing above a certain amount. Read the fine print to be sure that these early benefits outweigh later costs, and whether those new client perks align with your investing practices. In other words, don’t be enticed into choosing a broker offering deals on investment products you don’t understand or aren’t ready to use. Since special offers are by definition short-term, we focused on set account pricing. In the long run, those are the savings that will impact your financial goals.
What We Looked For.
For the novice investor who wants to start small and spend small, we sought out accounts that have a low minimum balance (the amount you’re required to keep in your account at all times), no minimum activity rules, and as many $0 fees as possible. We also wanted low-cost options for both self-directed trading and investing in a managed portfolio, allowing you to make your first foray into the market as hands-on or hands-off as you like.
But we didn't want to neglect experienced investors, either. For investors who've had time to let investments grow, a low minimum balance probably isn’t a top concern. But putting more money in shouldn’t make your fees swell proportionately. We looked for brokerages that kept fees low for larger accounts — or, better yet, offered more discounts for frequent activity. We were also keen to see a full set of asset options, including advanced investment vehicles like forex and futures.
For any type of investor, a superior investment platform provides an array of research and learning resources, flexible trading options, and a usable interface compatible with most devices.
What We Found.
We found a lot of similarities among the different brokerages: Roughly half had the same $4.95 per-trade fee, with most of the rest charging $6.95. All our top picks charge $4.95 per trade, except for Interactive Brokers' $1 fee. Three of our seven finalists had no account minimum, and Charles Schwab will waive its $1,000 minimum with a monthly direct deposit of $100.
Ameritrade and Merrill Edge lost out to Ally for having higher per-trade fees, despite having no account minimums. Both Charles Schwab and Fidelity charge $4.95 per trade and have physical locations and learning centers for investors. But we gave Schwab the edge for its lower account minimum ($0-$1,000 vs. $2,500) and the reviews of its desktop platform.
E*Trade lost points for a high account minimum ($5,000) and high per-trade fees ($6.95), offering the worst of both worlds. For investors who have that much to deposit into an account, we much preferred Interactive Brokers' $1 per trade fee. Even with Interactive Brokers' $0.005 per share fee, a trader would have to buy or sell more than 1,000 shares at a time to exceed E*Trade's fees.
Here's how our top picks stacked up in some of these key areas:
*Waived with monthly direct deposit of $100.
Our Picks for the Best Cheap Online Stock Brokers.
Best for New Investors.
Ally Invest A clean and accessible online brokerage that provides investing newbies with a simple platform and no investment minimums.
Because Ally Invest doesn’t maintain brick-and-mortar branches or run advertising campaigns, it is relatively unknown outside of the trading world. Despite its insider status, Ally does better than most online brokerages at making investing accessible to newcomers. The real welcome mat in front of Ally’s door: some of the cheapest rates in the industry.
With a $0 minimum for independent brokerage accounts, just about anyone can get started investing with Ally. But just because it makes investing approachable for beginners doesn’t mean it isn’t an expansive company; there are plenty of tools and opportunities to expand your investment horizons. Ally offers all the same major investment vehicles as other brokerages — stocks, options, ETFs, bonds, mutual funds, forex, futures — as well as a host of accounts that fall under a managed portfolio.
These portfolios are comprised exclusively of ETFs — investment bundles that trade on the open market like stocks. They offer similar diversification to mutual funds, but typically carry lower expenses. A small percentage of your total investment is typically held in cash, but the exact amount will vary according to your described risk tolerance.
In addition to small fees for holding the ETFs themselves, Ally charges a 0.3% advisory fee. That's a pretty middle-of-the-road percentage in comparison with other full-service brokerages but slightly higher than companies that offer only managed portfolios. We discuss these robo-advisor companies at the end of the review.
In the first half of 2017, TradeKing made the move to Ally Financial, officially becoming Ally Invest. The transformation of TradeKing accounts wasn’t totally seamless, but today they’re functioning normally. What’s more, the merger created a stronger trading platform that improved the functionality of the two original systems, beefing up the tools and technology.
Ally boasts an aesthetically pleasing and easily navigable site, but buries all the hard data that we were craving. From the easy-to-reach pages, scout out fine print hyperlinks promising “More Details” to find consolidated information about fees, investment vehicles, and account types. This sparsity of upfront information carries over into their light touch on education and research. While having more in-house resources would improve the overall client experience, plenty of information can be found elsewhere on the internet. A couple good resources? Investopedia and The Simple Dollar.
Best Resources.
Charles Schwab This old guard brokerage has kept on the breaking wave of trading technology, while providing plenty of support and advising resources.
Just about every basic fee charged by Charles Schwab goes toe-to-toe with Ally. The price between the two does jump in certain instances — broker-assisted trades go up by $5 and mutual fund commissions go up nearly $70 — and while Ally lets investors start a brokerage account with any amount, Charles Schwab requires $1,000 to start. However, the breadth of tools and resources available with Charles Schwab does a lot to justify the extra expense.
Schwab puts extensive information on their accounts and products front and center. Plus, easily access both product info and wider investment education through the learning center. And while Ally Invest makes it difficult to track down brass tacks in the name of a friendly user-interface, Schwab hits you with its full store of counsel and breaking news. Not only does the firm provide access to independent research, it also publishes relevant in-house research.
Research and ratings both live inside Charles Schwab’s desktop trading platform, StreetSmart Edge, the upgrade of Schwab’s flagship platform StreetSmart. If you need personalized settings and advanced features, StreetSmart Edge provides both in spades. You’ll just have to learn how to use it. For streamlined trading and market insights on the go, there’s also a web-based platform, Trade Source. Investors that are new to the game may find the web-based option more accessible.
Like Ally, Charles Schwab offers a managed portfolio option, Intelligent Portfolio, available for a large number of managed account types. Unlike Ally, not to mention every other managed account we looked at, it charges no advising fees. Instead, Schwab makes money by holding some of the underlying assets of the accounts. The only fees associated with the account come from the investments, and while that percentage increases to a substantial amount (from 0.07% to 0.21% as risk builds), it is still lower than most. The $5,000 account minimum for Intelligent Portfolio accounts is, however, higher than Ally’s.
Still, if the security of investing with a solid name in finances appeals to you, Charles Schwab offers a lot for your money. And Charles Schwab is finding even more ways to make you feel secure investing your money with them. Automated financial advisors are the wave of the future, but many people don’t feel comfortable putting their life’s savings in the digital hands of a computer. Charles Schwab has developed a half-and-half solution: A hybrid service, Intelligent Advisory puts both financial professionals and financial algorithms to work. A nice little solution, so long as you have $25,000 to plunk down.
Charles Schwab offers a deluxe set of services, but depending on the account you choose, you don’t have to invest a correspondingly huge amount. Opting for an independent brokerage account gives you access to the resources of a traditional, full-service brokerage without putting down a traditional amount.
Best for Active Investors.
Interactive Brokers A top choice for experienced traders, this brokerage boasts a complete lineup of investment products, plus pro-grade trading tech.
Choosing a company with a variety of investment products is important if you plan on trading more than just stocks. All three of our favorite companies offer stocks, bonds, mutual funds, ETFs, and options trading. But if you’re particularly interested in more advanced investing, like options, Interactive Brokers is the way to go. The company also has incredibly low interest rates for margin trading: With an upper limit of 2.66%, IB’s rates are about a third of what’s charged by every other brokerage we looked at. For pure trading and competitive prices, no other brokerage comes close.
Interactive Broker’s account structure rewards the active investor. In fact, the two elements that make IB a bit unwieldy for new investors make it a perfect tool for the experienced: Once you meet the hefty minimum account balance — $10,000 — the rest of IB’s demands on your wallet are light. And the relatively high $10 monthly activity fee is charged only if your trades don’t rack up at least $10 in commissions. With the tiny $1 per-trade fee, that means you’ll need to make ten trades every month or pay the difference, e. g. six trades will leave you with a $4 activity fee.
If you are savvy investor who also happens to be under 25, you can open an Interactive Broker account with a reduced minimum balance — the required deposit is just $3,000 — and the monthly fee bumps down to $3. For an IRA, the minimum deposit is $5,000.
However, we didn’t love everything we saw about Interactive Brokers. Back in 2012-2013, the company was fined for several violations relating to the management of futures market funds. The result was a pair of fines totaling $925,000. Because the fines occurred several years ago, and because futures trading is a fairly niche investment area compared to stocks and funds, we don’t think this is enough to overrule Interactive Brokers’ overall cheap costs. However, if you’re planning on doing a substantial amount of futures trading, be aware of this mark on their record.
Interactive Broker’s incredibly rich platform offers trading technology advanced enough for professional day traders. Choose from the web-based trading platform WebTrader and the more advanced, downloadable platform, Trader Workstation. Both are included for Interactive Brokers clients at no additional cost. Serious traders will gravitate to the Trader Workstation’s more in-depth features.
Trader Workstation also comes with a steep learning curve. Navigation is far from intuitive as tools are located in discrete sections. However, it is also customizable, allowing you to group together the resources you make frequent use of and hide the ones you don’t. The interface, like the rest of an IB account, only benefits experienced traders. However, IB has recognized the learning gap. To supplement the educational tools on Traders' University, IB has introduced a layout library (choose from pre-made setups and templates for different trading strategies) as well as an AI assistant. IBot can answer plain-English questions but, like any other voice-activated helper from Siri to Alexa, it has its limits.
Did You Know?
The landscape of online investing is changing.
Financial institutions have gone through a lot of millennial growing pains. The culminating act: Several companies cannibalizing several others in the past year. For everyday investors, these acquisitions have little impact. For instance, T. D. Ameritrade gobbled up Scottrade, but Scottrade accounts are slated to transform painlessly into Ameritrade accounts in Q1 of 2018, to the extent that Scottrade is still enrolling new clients. The more major change is the movement away from traditional brokerages and toward increasingly automated investing options. Enter robo-advisors.
There’s an app for that.
The inexpensive trading platforms established by the likes of Scottrade and E*trade make it easy to invest by reducing or eliminating fees that make traditional brokerage firms elite. They also appeal to a younger generation of investors.
They are not, however, the newest rich kid on the block. A slew of robo-advisor investment apps have materialized within the last five years, with marketing and functionality geared toward a generation that has a job (yay!) and some money (yay!) but doesn’t know how to “adult.” A notable example, Wealthsimple, has a slogan that says it all: “Investing on autopilot.”
Hands-off investing as offered by Wealthsimple (or other robo-advisors like Wealthfront and Betterment) appeal to a demographic used to automated services. Simply plug in your time frame and risk tolerance and an algorithm takes it from there. A nice side effect of AI investing - even lower fees. Wealthsimple and Betterment both allow you to open an account with $0 down; Wealthfront asks for $500. Wealthsimple charges an annual 0.5% advising fee; Wealthfront and Betterment charge just 0.25%.
The Best Cheap Online Stock Brokers, Summed Up.
Table of Contents.
We find the best of everything. How? We start with the world. We narrow down our list with expert insight and cut anything that doesn't meet our standards. We hand-test the finalists. Then, we name our top picks.
Lowest Brokerage Charges in India for NSE Options Trading.
Lowest Brokerage Charges Options Trading in India.
The volume traded on the options trading markets of the NSE is in a stage of constant growth as the foreign and institutional investors considers the Indian stock market as one of the best options due to the growth potential and the past market returns. As of YTD (1-06-17), the Indian benchmark market NSE recorded a 17.91% growth, with a standard deviation of 11.44%. But the options markets are often overlooked by the investors because of high transaction costs incurred while trading options. The margin of earning on day trading the options contract is hurt by the brokerage fees. Most of the options trading in the market are done by top brokerage firms in the country such as ShareKhan, HDFC Securities, and ICICI Securities. But, there are other cheaper option trading companies you can consider. The rankings are made after considering various factors such as account opening costs, Annual Maintenance Cost (AMC), per transaction trading costs, etc.
Wisdom Capital can be considered as the best possible choice to trade options. You can open your account for a free of cost, and it can also be done within 2 minutes. Wisdom Capital charges zero rupees as the brokerage for every trade we make. There is no Annual cost involved as well The company also offers various offers regarding Margin exposure levels. This customer centric approach and the lowest brokerage charges in the NSE options trading policy of wisdom capital makes it no.1 stock broker company on our list. Wisdom capital won the NSDL awards for the best discount rate broker for the years 2010, 2013, 2014 and 2015.
Zerodha was started in 2010 by Nithin Kamath. Zerodha offers one of the lowest brokerage charges in NSE options trading. At Zerodha, you can open your account at the cost of Rupees 200, and the account opening can be done within 2 minutes. Zerodha charges a minimum 01 20 rupees per trade or 0.01% of the total traded amount. As the AMC, Zerodha charges Rs. 400/ account. Zerodha is one of the rapidly growing firms in the market as more than 2.5 lakh people opted for the company in the last 6 years and it is also responsible for a total of 5% transactions in the entire NSE market.
Upstox was first started in 2011. Upstox uses a similar strategy like Zerodha. At Upstox, you can open your trading account at the cost of Rs. 200. Upstox provides the first five trades in a month at a free of cost and then it charges a 20 rupees per every trade you make. Upstox also offers Upstox pro service, where you can avail mobile trading platform with various tools such as technical analysis, option chain, and options strategies, etc. Upstox offers its services at one of the lowest brokerage charges in NSE options trading and the technological tools that supports it.
At Samco, you can open your options trading account just for a cost of Rs. 300. The process is very simple, and it can be done within 2 minutes. Samco charges a minimum of Rs 20 / trade or 0.01% of the total traded amount whichever is lower. As the AMC, you have to pay Rs. 400/ year With over a 24 years of experience in the market, Samco provides one of the best customer services in the market. The also have the support of all the necessary investment decision making technology.
SAS is a relatively new firm in this list with just 3+ years of market experience. At SAS online, the account opening charges are just around 400 Rs. The brokerage charges only Rs. 9/ trade. And as the AMC, they charge Rs. 500/ year The brokerage firm promises no hidden costs to the investors. SAS online has made a sizeable investment in the past few years to enrich the user experience.
Tradejini is another Bangalore-based trading company started 4 years before. You can open your options trading account just for a cost of Rs.300 at TradeJini. After a simple and quick process, you can open your trading account by providing all the necessary details in the application. At TradeJini, the brokerage charge per transaction is a minimum of Rs 20 / trade or 0.01% of the total traded value, whichever is lower. The AMC for your account is Rs. 400 every year Tradejini uses the cloud-based platform, and they have one of the finest online trading platforms in the entire market.
Trade smart online, provides charges of third lowest brokerage charges in NSE options trading in the list. The brokerage charge per transaction is Rs.15/ trade. As the Annual maintenance cost, you have to pay Rs. 400/ year and additionally you also have to pay Rs. 300 to open your account. With 20+ years of experience under their wing, Trade Smart Online provides one of the finest trading platform and algo trading in the market.
Tradeplus online specialized in options and commodity trading. At TradePlus Online, you can open your options trading account just for a cost of Rs. 300. And for you can place your orders and trade for just Rs.99/month. As the AMC, you have to pay Rs. 400/ year It’s one of the most experienced company in the market with over 30+ years in the market. It won the NSDL star performer award in 2016. With a wide range of tools and tech at their disposal, Tradeplus online provides one of the premium services in the entire market.
My value trade is responsible for Rs.4500 crores daily turnover on the Indian markets. At My Value trade, you can open your options trading account just for a cost of Rs. 300. My Value trade charges Rs.10/ trade. And there is also AMC, you have to pay Rs. 350/ year The brokerage also offers a downloadable software, MVT trader to enrich the trading experience of the customers.
5 paisa is a premium discount broker, which provides services such as brokerage, mutual funds, and insurance. The trading platform of 5 Paisa is a mobile-first platform, which mainly focuses on trading with the App. At 5 paisa, you can open your options trading account for Rs. 150. 5 paisa charges a minimum of Rs. 10/ trade like My trade value. As the maintenance cost, you have to pay Rs. 400 every year annually. The 5 Paisa’s business model is powered by one of the lowest brokerage charges in NSE options trading and the strong mobile based platform.
Best Brokers by lowest Brokerage and Transaction Charges-2017.
When choosing the right broker for "lowest brokerage" trading, what makes the most difference is the brokerage charged per trade. The other important factor is the transaction charges which not every broker is charging the same amount. It is usually charged on per crore basis. The rate of transaction charges differs by the exchange and the trading segment.
For this review, we not only focused on cheapest brokerage / lowest brokerage / low brokerage firms in the Industry but also trying to compare them in terms of low transaction charges / low trading charges which also makes difference in your final profit or loss.
Here we come with " Best brokers by lowest brokerage & transaction charges in India ":
ProStocks Brokerage.
Rs 15 Per executed order or Rs 899 Unlimited Equity/ Rs 499 Unlimited Currency.
ProStocks Transaction Charges on NSE.
Rs 325/Crore Delivery Rs 325/Crore Intraday Rs 190/crore Future Rs 5000/crore Options Rs 100/crore Curr Future Rs 4000/crore Curr Options.
Zerodha Brokerage.
Rs 20 or 0.01% whichever is lowerEquity Intraday, F&O commodity and currency Free Equity Delivery.
Zerodha Transaction Charges on NSE.
Rs 325/Crore Delivery Rs 325/Crore Intraday Rs 210/crore Future Rs 5300/crore Options Rs 135/crore Curr Future Rs 4400/crore Curr Options.
SAS Online.
SAS Online Brokerage.
Rs 9 (Equity Delivery, Intraday, F&O commodity and currency) Rs 999 PM Commodity / Rs 999 PM Equity Cash and F&O / Rs. 499 PM Currency.
SAS Online Transaction Charges on NSE.
Rs 325/Crore Delivery Rs 325/Crore Intraday Rs 250/crore Future Rs 6500/crore Options Rs 165/crore Curr Future Rs 6000/crore Curr Options.
Trade Smart Online.
TSO Brokerage.
Rs 15 for Equity Delivery, Intraday, F&O commodity and currency Rs 1899 PM Commodity, Rs 1899 PM Equity Cash and F&O, Rs 999 PM Currency.
TSO Transaction Charges on NSE.
Rs 350/Crore Delivery Rs 350/Crore Intraday Rs 240/crore Future Rs 7150/crore Options Rs 165/crore Curr Future Rs 6000/crore Curr Options.
MyValueTrade.
My Value Trade Brokerage.
Rs 9 Equity Delivery, Intraday, F&O commodity and currency Rs 5555/year NSE Cash, F&O, currency, Commodity, Rs 9999/lifetime NSE Cash, F&O, currency, Commodity.
My Value Trade Transaction Charges on NSE.
Rs 325/Crore Delivery Rs 325/Crore Intraday Rs 300/crore Future Rs 6000/crore Options Rs 120/crore Curr Future Rs 4200/crore Curr Options.
Brokers Category.
Enquire Trading Account:
By Popular Trading Brokers.
Paperless account opening* Fix Price - Rs 15 Per Trade Rs 899/Month,8999/Year for.
Equity Cash and F&O Rs 499/Month,4999/Year for.
Currency Derivatives Lowest Transaction Charge.
Lowest Call & Trade Fee.
Lowest Stamp Duty.
*Except PoA and Nomination form.
e-Aadhar base account opening.
Max Rs 20 Per Trade for Equity Intraday, F&O, Currency & Commodity.
Beginner, seasoned investor, active trader or HNI. Get customised solutions.
Rs 0 account opening fee on Online Trading and a Demat Account.
Lowest brokerage charges in India.
Traditionally in India share brokers used to charge a certain percentage value of trade(for ex. ICICIdirect charges .5% for delivery based trading) . So if you were a trader or a large investor, you ended up paying a huge brokerage on your transaction. Most of the trader and large investor ended up paying brokerage worth lakhs of rupees. These type of brokers are know as traditional or full service brokers. Most of the retail investor were also using them for trading needs as these brokers where mostly linked with your bank like ICICIdirect with ICICI bank and it was very easy to open and manage account with them.
But in last few years, with the advancement in technology, there is a new breed of brokers available in Indian market which are called Flat fee or discount brokers. They have quickly taken a large share of trading value based on there aggressive brokerage charges. Flat Fee Stock brokers (also known as discount brokers) charges a fixed amount (i. e. Rs 15 or Rs 20) per trade irrespective to the size of the trade. The trader pays fixed price brokerage, say Rs 20, for trade of Rs 10,000 or Rs 1,00,000. This makes lot of sense to traders who trade multiple times a day.
When you buy 100 share of RIL at Rs 1000 per share, the brokerage charged by Fixed Price Broker will still be Rs 20; while the traditional broker like ICICI Direct will charge Rs 500 (at the rate of 0.50% of 100,000). This difference is even more for traders who trades in F&O segment. For example ICICI Direct charges 60/lot for option trading, so if you are buying 5 lots of NIFTY you would end up paying 300 brokerage while for the same the discount broker will charge you just Rs 20. A saving of more than 90% compared to a full service broker.
The above example clearly show that the brokerage charged in flat fee share dealing is significantly low and simple and this make a huge difference in the year end when you see your P&L account.
List of Lowest brokerage Stock brokers.
1.) Zerodha The Zero Brokerage Broker : A Bangalore based Zero Fee Share Trading broker who charges Rs Zero per trade for delivery based trades. In case you trade in intraday and F&O, pay flat brokerage of Rs 20 per trade. They are the largest discount broker in India with more than 150,000 clients. Click here to open account with Zerodha.
2.) Upstox Securities – Upstox is a Mumbai based broker which provide free brokerage for delivery based trade and .01% or Rs 20 per trade for intraday and F&O trades. They have an awesome trading platform called Upstox pro which you can use for trading. Account opening fees waived if you open account from here.
3.) Trade Smart Online : Trade Smart online provide one of the lowest brokerage rate in India at Rs 15 per trade irrespective of the volume and an unlimited plan for Rs 1899. But they provide trading only through NEST trading platform which is not that great. Open account here.
You can find our list of Top 5 Discount broker comparison and review here.
Why I should move to Flat Fee Stock Trading Broker?
There are multiple advantages of moving to a Flat Fee Stock Trading Broker.
If you are a trader, it can end up saving you around 90% brokerage on most of your trades. No additional fees, just one low, all-inclusive rate. They are more affordable to average investors. With the saving of this size, you can trade more. It makes the calculation of brokerage really simple. Once you know the number of trades you did, you can simply multiply it with the fixed brokerage and find out the total brokerage bill you have to pay (excluding taxes). They are focused only on brokerage services and provide better customer services. Your can trade on most of the exchange now as discount broker work with all the main exchanges. Taxes charged on brokerage (i. e. Service Tax of 14% on brokerage) are less as brokerage itself is less.
But apart from these advantages there are some disadvantages also. Most of the time Flat fee brokers wouldn’t have a physical office where you can go and talk to a real person. Most of the discount brokers will provide most of there services online. So if you are a kind of person who prefers dealing with real person, Discount brokers are not for you. These brokers also don’t provide much of investment advice and expect you to trade on your own. These brokers will provide you with linking with most of the nationalized banks but withdrawal wouldn’t be that easy and it will take some time to come to your account.
Finally I would like to add that some people still want to open account with full service brokers. You can question that since discount broker ask for so low brokerage, why will anyone want to open account with Full service brokers like ICICI direct or Angel broking. For that you have to look at the service provided by full service broker. Angel Broking is one of the best full service broker operating in India. They provide simple trading platform and if you are a starter, you will love the ease of there trading platform. They also provide support if you are just starting in trading and they charge ZERO for account opening. The brokerage they charge can go low upto .1% for delivery and .01% for intraday. The rate which you will get will depend on the initial margin check you provide while opening the account.
To open account with Angel Broking, please provide your details by clicking on the button below.
Full service broker not only provide broking service but they do provide whole gamut of services including advisory service which in case you are just starting. you will need a lot. They also provide insurance, mutual funds etc under one website which makes managing them easier for you. Also generally, Full service brokers provide much higher margin than discount broker, so if you want high margin, then you should again look at Full service broker.
Reader Interactions.
GAURAV KAKKAR says.
If I have DMAT account with Zerodha and after death how can my family members claim it? Family members are not much educated then how will they claim because there is no branch of Zerodha in city? It will be difficult for them to claim it.
Dr. Virag Vyas says.
Does modifying an order twice or thrice cost you higher brokerage ? I have trading account with Sharekhan.
No the brokerage is only charged when the order is executed.
zerodha RKSV and others have no city branches so they provide flat brokerage. If any of these providing flat brokerage gets bankrupt then what will happen to equity/stock hold by the customers? In case of such situation, can the equity hold be available to the stock holder to register with other broker? For that again all charges are to be paid as new customer for other broker company ?
Stock are kept in Demat form with CDSL/NSDL so even if the broker goes bankrupt your shares are safe. Also the money which you have with the broker would be paid back to your by SEBI investor funds upto a certain limit. Brokers generally don’t go bankrupt overnight, you should be able to see issues with them life withdrawal taking more time, not responding to queries in time etc. If you see this happening, you should close your account and move to some other broker.
Neelesh jain says.
hi m a beginner and want to start SIP, with which brokerage system I should go?
For SIP in MF you have to open account with an AMC and not a broker.
manoj singh says.
Hi sir I have my demat account with ICICI Bank and brokerage charges is about 0.50 percent.
I want to open new account with minimum brokerage charges like zirodha .
Is zirodha is safe and register with sebi .
Zerodha is registered with SEBI and is a safe broker.
Upstox Securities is safe or not??
Yes they are SEBI registered and safe to open account with.
FINVASIA is offering Zero brokerage trading AC in all segments. Please tell if anyone is using their service.
Pratik Desai says.
Is zerodha is 100% safe to open demat account ??
Yes they have more than 2 lakh customer and are safe to open account.
sajal sarkar says.
sir, 1. I want to buy 100 share of a company but the share comes to me in 5 trades then what is the brokerage charges they aplly if the broker is a discount broker and they chages rs 20 per trade. 2. If I want to buy 100 share of a company but I order them in 5 different rate and the trade executed then what are the brokerage if they charges rs 20 per order trade, the 100 share is the same company.
The brokerage is charged per trade. So if you put in a order to purchase 1000 shares and it get completed in 5 different time means 100 in one lot, 500 in other, then also you would be charged Rs 20 only and not more. Delivery brokerage is anyhow Zero so you dont have to worry about that.
pankaj Choudhary says.
I am new at share market plz tell me which discount broker is best and realible in the market.
All the broker which are reviewed on this website are SEBI registered and reliable. You choose the one which best fulfills your need.
Does zerodha provide any trading tips for intra day & short to medium term period, if yes than how much accurate will you rate them.
Zerodha dont provide advisory service in fact none of the discount broker provide these services.
Rohit Kumar says.
Please also comment on the web interface offered by these company, how user friendly those are, do they provide facility to set the order during non-market hours also, with which all banks - money can be transferred instantly, do they have mobile apps also.
Most of them provide good web interface for trading. Most of the major banks can be linked to there trading account. Some of them have mobile apps also for trading.
what is pay out and pay in.
Payout means when you take money out from trading account and transfer it to your bank. Pay in means when you transfer money to trading account from your bank.
Aslam Nadaf says.
please tell me about SAMCO broking.
I would be reviewing them very soon Aslam.
I am not trader. I m an investor.
I am looking for loe min brokerages. Can u guide me. if I want to buy 10 [ protected] of RIL then it will rs.20 or more due to minimum brockrage. I m searching for low min. Brok. Can u guide me.
With Zerodha, if you buy share worth 10,000 the brokerage due is .1% of 10,000 = Rs 10 or Rs 20 flat brokerage, whichever is lower. In this case the brokerage payable by you will be Rs 10.
NIKHIL JAWALE says.
I want start investing in stock market as beginner….can you plz sugest me good and efficient broker with less fees…
I would suggest you to have a look at our Top 10 stock broker list and choose one which best meets your need.
I am new to share market. I am looking to open a trading account with lowest brokerage because I wanted to learn 1st and I don’t have much investment plan right now.
so which one would be better for me please suggest.
hi ….i have already account with icici direct …..they really sucks brokerage ….
can i open a new with others or transfer same to others .
Yes you can open an account with other brokers. I would suggest to open an account with a discount broker which charge a flat brokerage fee. You can open the account at Zerodha here.
afroz alam says.
im a client of kotak securities and i want to change my broker to sos then what is the process to transfer my all holding shares from kotak to sos and if possible then i have to pay any extra charge for it plz confirm me ASAP. THANKA.
Yes you can transfer share from your old Demat account to new Demat account. You have to get Client master list from Kotak and send it to SAS online and they will take care of the rest.
Rashid Jorvee says.
Do Kotak or SAS change any amount for this?
Raza M. Ali says.
what happens when one of these flat fee brokers or discount broker goes bankrupt and closes its operations. How do we collect our shares etc. ?
Raza the shares that you purchase are never lying with your brokers but are kept in Demat account which is managed by CDSL and NSDL. Even if the brokers go bankrupt they cannot touch your share as they are safe in the Demat account and they cannot sell it without your knowledge.
Kawal Deep Singh says.
What is payout settlement process in flat free broker ??
It is same as a Full service broker.
Who is the fastest among all the discount brokers in India ?
Which is the discount broker having the lowest unlimited trading charges per month ? ( Of course with good spped & customer service ).
The fastest and largest discount broker in India is Zerodha. If you want an unlimited plan RKSV and SAS provide very competitive rates.
I am using SAS online account from March 2014.
– it is very good experience.
– Flat 9 per trade brokerage which is very lowest from other brokerage.
e. g. if u purchase 1000 share 100, u’r brokerage will be Rs9 only, but in other firm charge u 0.5 paise means Rs500.
– At the end of d day, contract they r sending in .
– Service is very good.
– 999 Unlimited plan also there, u can trade multiple time in a day, without pay any brokerage.
– U can trade in Future, Option with same price.
For e. g if u buy 20 Nifty lot in single trade, u need to pay only Rs20 as a brokerage & u can sell it in Rs5 profit also. Profit will be =20×25×5=Rs2500.
– Same things for Option also.
– Other brokerage are charging 120-150 per lot in option, means brokerage will be =20×150=3000 u can earn profit after including Rs6, in d cost.
– if u want earn then u need to choose lowest brokerage plan.
– I m happy with SAS online.
– I have used Reliance Money, they are high brokerage, same for ICICI.
I have come across a new discount broker named FINVASIA. Please review this broker.
I am very new to stocks. I would like to start investing. I would prefer to trade online. Which is better option: Online trading account or a 3-in-1 account? And which one is better in online trading accounts and 3-in-1 accounts for a beginner like me. I am looking for long term (3-5yrs) investing, initially.
Thanks in advance.
Yes, It is true. I have account in SAS online. Good service.
Is SAS online brokage firm genuine ? Is their brokage flat 9 Rs true ?
I am read the contents on topic i. e. lowest brokerage charges, monthly trading charges, per trading charges and so on…, but I have not found latest comments these comments related more then three month ago. Can you share us the current scenario, who is best and lowest broker who will be give the correct information compile with SEBI.
Mahesh Gupta says.
Sir I want to know the brokerage charges of the said discount brokers for day trading. Let me advice about their credibility, may it risky in terms of finance in long term kindly advice me as it is said that they have no city branches as well as no physical person to whom any contact may possible, waiting your response thanks in advance for your valuable suggestion.
Mahesh, I understand your concern but these discount brokers have to register with SEBI and have to follow strict compliance. As far as risk is concerned If you decide to go ahead with big discount brokers like Zerodha and RKSV you shouldn’t be concerned. They are able to provide competitive rates because they don’t have to hire/maintain city branches.
what about tradesmart online trading firm. is it fake?
No it is not fake. I have reviewed Tradesmart online on ISB.
tradesmartonline. in is an excellent brokerage firm . There customer service is the best in this segment. They have a wide variety of plan which will suits to any one.
I’ve taken flat plan , because i need not worry of my N number of intraday trading.
I came to know about “Amrapali Adya Stock Broking” they say they are charging Rs. 25 per trade. I am interested in Options trading, I do in mupltiples of 20 contracts at a time, i. e. 1000 shares. Any one has experience with them? kindly share or suggest better alternative if you know?
I am not aware of Amrapali brokers. There are many brokers like RKSV and Tradejini which are providing brokerage at the rate of Rs 20 per trade. You can read there reviews here.
Johnson Vihayathil says.
I do have some equity shares through a stock trading Company. Is it possible to transfer my scrips to IDBI Paise Builder?
Yes you have to get master list for DP from your previous broker and provide it to you new broker. They should do the needful.
A. G.Suresh Babu Shenoy says.
After going through all the articles on brokerages charged some some confusion arises.
//When you buy 100 share of XYZ Ltd at Rs 1000 per share, the brokerage charged by Fixed Price Broker will still be Rs 20; while the traditional broker like ICICI Direct will charge Rs 500 (at the rate of 0.50% of 500,000)//
Obviously there is a mistake here. It is not 500,000 but 100*1000=10000. This could be excused.
2) //You place a ‘buy’ order for 1000 Reliance share and it get completed it takes 10 trades until the whole 1000 are bought. However, , irrespective of how many trades it takes to complete the order, you will be charged a flat brokerage rate of Rs 9.// This in the review on SAS Online.
The above raises a unique question. Normally brokerages was computed on the total on percentage basis.
This got changed to a trade.
here is the confusion.
If a trader places a single BUY order for 1000 shares of any scrip, it is considered as ONE order numbered X even if the order is executed in the exchanges in several steps. It might be executed as small quantities in each of the executions.
While the trader normally consider the above as one trade, the article says its is considered as several trades by the brocker (discount broker). Thus of they charge rs 20 for one trade, and if it takes 5 executions, the actual brokerage shall be 5 * 20 = 100 instead of Rs 20 as expected by the trader.
In the above writeup, it is alleged that Sas online charges only Rs 9 for the entire 1000 shares (irrespective of the n number of executions).
So is it same for other discount brockers too like Zerodha ? Or do they charge rs20 * n number of executions ?
This needs to be clarified to have a proper understanding on the charges levied and its mode.
I have updated the article. The charge would be Rs 20 irrespective of the number of trade needed to complete the order. So even if it takes 5 executions you still will be charged for 1 trade. Hope it is clear now.
I have corrected the first mistake. Thanks for pointing out.
As far as the second point is concerned, irrespective of the number of trade required to fill the order, you would be charged a fixed brokerage of Rs. 9 by Sas Online. I hope that clarify your doubt.
B S MURTHY says.
Sirs, Is there any broker firm charging flat and fixed rate Rs.500/- p. m. for NSE CASH, F&O, MCX irrespective of volume in each segment. If so, the same may be confirmed to my mail id as above.
Not that I am aware of. The cheapest unlimited trading is provided by Trade smart online and they charge 1899 per month.
Achiievers Equities Ltd has revised its plan from 500 to 750 recently.. offer Rs 15 per trade.. they hv also a plan for Rs 750 per month…… small but good company…. they hv research team for recomendation…
i want to trade “usoil &ngas” in nymex market. Which forex broker in india or tamilnadu providing low brokerage and low spread in mt4 platform?
i want to know about the india trade online, sas online, rksv, which gives a unlimted trading plan and there is also less brokerage but these all works online they no branches in any city.
Please read out post on Discount brokers and comparison of Discount broker.
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