by admin | July 16, 2024
Last updated on July 16, 2024,
Recently, lots of people in India have started putting their money into the stock market because it’s growing fast. This means more regular people are getting involved in buying and selling stocks. Plus, with online trading that offers discounts, it’s become really easy and cheap for them to invest in things like stocks, currencies, and other market stuff. And what’s interesting is that the brokers who charge the least for their services in India are doing better than the ones who charge more.
The reason is clear: when stockbrokers charge lower fees, it means investors pay less for trading. If you want to invest in stocks without spending a lot, it’s smart to pick a stockbroker with low fees in India. But what exactly are low brokerage charges? And which stockbrokers offer them? You’ll find out everything right here in this post.
Table of Contents
What are the lowest brokerage charges?
The lowest brokerage charges mean the cheapest price a stockbroker can charge for their services. This happens when the calculated brokerage fee is less than the minimum amount set by the stockbroker. Each stockbroker has their own minimum brokerage fee.
According to SEBI (Securities & Exchange Board of India) stock brokers can’t charge more than 2.5% of the total order value as brokerage fee. But there’s no rule from SEBI about the minimum brokerage. Stockbrokers can set their own minimum brokerage. Here, we’ll talk about the best stock brokers in India with the lowest brokerage charges. We’ll compare their brokerage fees too.
Why Lowest Brokerage Charges is Important?
In any stock-related transaction happening over the stock market, the role of stock broker is paramount. And to avail their services, an investor needs to pay a certain amount to the broker against the chosen services. This is known as brokerage. The higher the brokerage charges, the more will be the overall trading cost.
Let’s look at the following example.
HDFC Securities charges a brokerage of minimum Rs. 25 whereas Zerodha levies zero brokerage for delivery and maximum Rs. 20 for other categories.
The more no. of stocks you buy or sell, the more brokerage you are liable to pay which means higher trading costs. Therefore, a majority of investors choose stockbrokers with lowest brokerage charges so as to keep their overall trading costs in control.
GST is yet another essential component that gets affected due to brokerage. This is because the brokerage charges are subject to an 18% GST tax. The tax of full service brokers is more than the brokerage itself of cheap brokers, which may be quite surprising but true.
Taxes are also increased by brokerage, which is deducted from our ledger. Therefore, having a lowest brokerage Demat account is crucial.
How To Choose Stock Broker For Lowest Brokerage Charges?
An investor may save a good deal of money by selecting the correct broker. Here are some important considerations for choosing the best decision:
Brokerage Structure: Different brokers have different charge structures. Therefore, the investor must compare the costs in order to choose which broker would be the most economical.
Minimum amount Requirement: A few brokers may demand that the investor have a certain minimum amount in their trading account. Therefore, while selecting a broker, this must be taken into account.
Hidden costs: A broker may impose hidden costs for account opening, software, and other services, which might raise the cost of trading overall. Investors must select a broker that is open about the costs they charge.
Extra Offers: Investors can also look for any additional discounts and promotions that the broker may be offering. The investor’s wallet is therefore spared from some additional expenses.
Customer Support: Last but not least, choosing the best broker requires considering customer service. Pick a company that provides exceptional and helpful services to its clients.
5 Best Stock Brokers with Lowest Brokerage Charges In India
If you are looking for the top stock brokers in India with lowest brokerage charges, look at the following 5 best stock brokers in India falling under this category.
1. M.Stock
M.Stock is a product by Mirae Asset, which is counted among the top financial service providers globally. m.Stock is an investment platform by the stockbroker. The new trading product combines access to several trading and investment products under one roof with a zero-brokerage and no-commission business model. The stockbroker provides India’s lowest brokerage fees.
Also Read: m.Stock Review
For intraday, delivery, and F&O trading orders, there is no brokerage charge levied by the stockbroker. There are two brokerage plans offered by brokers – Rs. 999 and Rs. 149. The brokerage details are given below:
| Category | 999 Brokerage Plan | 149 Brokerage Plan |
| Equity Delivery | Zero | Zero |
| Equity Intraday | Zero | ₹20 per trade |
| Equity Futures | Zero | ₹20 per trade |
| Equity Options | Zero | ₹20 per trade |
| Currency Futures | Zero | ₹20 per trade |
| Currency Options | Zero | ₹20 per trade |
| Commodity Futures | Zero | ₹20 per trade |
| Commodity Options | Zero | ₹20 per trade |
2. Kotak Securities
Kotak Securities is a popular stockbroker in India. It’s well-known for its fast and simple ways to invest in mutual funds, commodities, and stocks. It’s part of Kotak Mahindra Bank, a big banking group in India. Besides helping with investments, Kotak Securities offers other services like insurance, market research, keeping securities safe, and managing portfolios.
The lowest brokerage charges in India are offered by Kotak Securities, which stands at just Rs. 20 per order for trading in futures and options and 0% for intraday trading.
The Trade Free Plan, Trade Free Max Plan, and No Brokerage Plan are all offered by Kotak Securities. Each of the three services provides intraday trading for free. A brokerage charge of 0.25% or Rs. 20 must be paid for the delivery of stocks, whichever is greater.
| Category | Brokerage |
| Monthly Fee (Standard) | NA |
| Equity Delivery | 0.25% (Minimum Rs 20 per trade) |
| Equity Intraday | Free |
| Equity Futures | Delivery: Rs 20 per trade | Intraday: Free |
| Equity Options | Delivery: Rs 20 per trade | Intraday: Free |
| Currency Futures | Delivery: Rs 20 per trade | Intraday: Free |
| Currency Options | Delivery: Rs 20 per trade | Intraday: Free |
| Commodity Futures | Delivery: Rs 20 per trade | Intraday: Free |
| Commodity Options | Delivery: Rs 20 per trade | Intraday: Free |
3. Zerodha
Zerodha comes at the top in the list of best discount stockbrokers in India. It is the first stockbroker which brought the concept of stock broking in India. Actually, one of the brokers that introduced the flat-fee Rs. 20 brokerage model to India and contributed to the spread of the concept of cheap booking was Zerodha. In addition to having the lowest brokerage fees in India, the stockbroker is recognised for its speedy and user-friendly Kite trading platform, which can be used from both web browsers and mobile phones.
Zerodha, which costs a brokerage fee of Rs. 20 per order (or 0.03%) for trading intraday stock, equity derivatives, commodities, and currencies, is one of the most affordable brokers. There are no brokerage costs associated with stock delivery.
Also Read: Zerodha Review
| Trading Categories | Brokerage |
| Equity Delivery | Rs 0 (Free) |
| Equity Intraday | Flat Rs 20 or 0.03% (whichever is lower) per traded order |
| Equity Future | Flat Rs 20 or 0.03% (whichever is lower) per traded order |
| Equity Options | Flat Rs 20 per executed order (on Turnover) |
| Currency Futures | Flat Rs 20 or 0.03% (whichever is lower) per traded order |
| Currency Options | Flat Rs 20 or 0.03% (whichever is lower) per trader order |
| Commodity | Flat Rs 20 or 0.03% (whichever is lower) per trader order |
| Mutual Fund | Rs 0 (No Limit on Direct MF) |
4. Nuvama
Nuvama Wealth & Investment Ltd., a company from Mumbai, was known before as Edelweiss Broking Ltd. It started in 2008. They offer full-service stockbroking. They help with trading and investing in different things like stocks, debt, mutual funds, IPOs, currency, commodities, futures, and options.
For Nuvama Lite Plan, they charge Rs. 10 for each transaction. This is the usual charge for all services in this plan. If you like to trade by yourself and don’t need much help from the broker, this plan might be good for you. But, this plan doesn’t include services from a relationship manager. If you use extra services, you’ll be charged separately for them.
| Trading Category | Brokerage |
| Monthly Charges (Flat) | NA |
| Equity Delivery | Rs 10 per executed order |
| Equity Intraday | Rs 10 per executed order |
| Equity Futures | Rs 10 per executed order |
| Equity Options | Rs 10 per executed order |
| Currency Futures | Rs 10 per executed order |
| Currency Options | Rs 10 per executed order |
| Commodity Futures | Rs 10 per executed order |
| Commodity Options | Rs 10 per executed order |
5. Angel One
Angel One is a well-known stockbroker in India. It started in 1987. They have a fancy trading platform with lots of cool stuff.
In April 2019, Angel Broking changed their brokerage fees. Before, full-service stock brokers in India charged a small percentage of the value of each trade. But because there were lots of other cheap brokers around, Angel One decided to charge a flat fee instead.
Also Read: Angel One Review
| Trading Category | Brokerage |
| Monthly Fee (Fixed) | Rs 20 per executed order |
| Equity Delivery | Rs 0 (Free) |
| Equity Intraday | Rs 20 per executed order |
| Equity Futures | Rs 20 per executed order |
| Equity Options | Rs 20 per executed order |
| Currency Futures | Rs 20 per executed order |
| Currency Options | Rs 20 per executed order |
| Commodity Futures | Rs 20 per executed order |
| Commodity Options | Rs 20 per executed order |
Brokerage Charges Comparison of Top 5 Stock Brokers in India
Below is a table that highlights the top features and lowest brokerage charges levied the top 5 stock brokers in India.
| S.NO | Stockbroker Name | Lowest Brokerage Charges |
| 1 | Mirae Asset | 0 across all categories under Rs. 999 plan |
| 2 | Kotak Securities | 0 for equity delivery and max Rs. 20 for other categories |
| 3 | Zerodha | 0 for equity delivery and Flat Rs. 20 or 0.03% for other categories |
| 4 | Nuvama | Flat Rs. 10 per executed order |
| 5 | Angel One | 0 for equity delivery and Flat Rs. 20 per executed order across other categories |
Conclusion
In the Indian stock market, when you invest, you’ll always have to deal with brokerage fees. This is important, especially if you trade a lot, as a big chunk of your money goes to brokerage. So, most investors aim for the lowest brokerage charges in India to save money and make more profit.
Nowadays, many stockbrokers offer low brokerage charges in India. You can compare these charges and choose the best one for yourself.
People Also Read: Best Demat Account in India
FAQs on lowest brokerage charges
Q.1. Does Zerodha offer zero brokerage?
Ans. Yes, Zerodha, one of the leading stockbrokers in India charges zero brokerage for trading in equity delivery segment.
Q.2. What are the lowest brokerage charges in India in 2024?
Ans. The lowest brokerage charges in India in 2024 is levied by m.Stock, an investment platform by Mirae Asset. Under its Rs. 999 plan, there is zero brokerage across all trading segments.
Q.3. What are Top 10 Stock Brokers With Lowest Brokerage Charges In India 2024?
Ans. The top stockbrokers with the lowest brokerage charges in India in 2024 are:
- m.stock
- Kotak Securities
- Zerodha
- Nuvama
- Angel One
- Upstox
- 5Paisa
- SBI Securities
- Motilal Oswal
- Sharekhan
Q.4. What is the cheapest brokerage?
Ans. The cheapest brokerage is zero which is levied by various stockbrokers in India like Zerodha, Kotak Securities and others in a few or all trading segments.
Q.5. Which is India’s largest broker?
Ans. Zerodha is the largest broker in India in terms of active client base which stands at over six million.
Q.6. Which brokerage has lowest fees in India?
Ans. Mirae Assets ranks on the top in terms of lowest fees in India.
Q..7 Which Demat account is free of cost?
Ans. There are several stockbrokers in India that provide free Demat account to their clients. Some of them are Zerodha, Upstox, and others.