by admin | April 30, 2024
In recent times, the rapid growth of Indian financial sector has compelled many folks to invest in stock markets. This has, in turn, resulted in the increase of retail investors in the Indian stock market. Moreover, the easy availability of online discount trading has made it tremendously feasible and affordable for people to invest in various market instruments like commodities, stocks, currencies, and derivatives. Amidst all this, the stockbrokers with the lowest brokerage charges in India have been found to outperform those with higher brokerage charges.
The reason is quite obvious as the lowest brokerage charges levied by stockbrokers mean overall low trading cost for the investors. If you are also looking to invest in stocks without spending a fortune, it is recommended to choose a stockbroker with lowest brokerage charges in India. Well, what do lowest brokerage charges mean? Which stockbroker offer such charges? You will get to know everything here in this post.
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What are the lowest brokerage charges?
The lowest brokerage charges refer to the lowest price a stockbroker might possibly charge for the provided services. The lowest brokerage charges typically come in action when the computed brokerage amount remains lesser than the minimum brokerage amount since each stockbroker has a distinct minimum brokerage amount determined.
According to SEBI (Securities & Exchange Board of India), no stock broker may charge a brokerage fee more than 2.5% of the overall order value. Keep in mind that the SEBI has not imposed any minimum brokerage requirements and has instead given stockbrokers the freedom to choose their own criteria for calculating a minimum brokerage amount. In this post, you will get to know the top stock brokers in India with lowest brokerage charges and lowest brokerage comparison among them.
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 one of the leading stockbrokers in India and is primarily known for its quick and easy investment options in mutual funds, commodities, and equities. Kotak Securities is a subsidiary of one of India’s most reputed banking conglomerates, Kotak Mahindra Bank. The full-service stockbroker’s (PMS) expansive range of services includes insurance, market research, depository services, and portfolio management.
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 Mumbai-based company that previously known by the name Edelweiss Broking Ltd., was founded in 2008 and provides full-service stockbroking. The stockbroker offers trading and investment opportunities in all major asset classes, including stocks, debt, mutual funds, initial public offerings (IPOs), currency derivatives, commodities, futures, and options.
The normal brokerage charge for all categories covered by the Nuvama Lite Plan is Rs. 10 per completed transaction. People who prefer to trade independently and don’t need the broker’s complete support should surely give this method some thought. This plan excludes relationship manager services, and value-added services are also billed individually based on consumption.
| 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 reputable and reasonably priced stock broker in India that originally opened for business in 1987. The trading platform, which is incredibly high-tech and loaded with features, is the stockbroker’s most outstanding feature.
In April 2019, Angel Broking’s brokerage fees were updated. On a set percentage of all traded values, full-service stock brokers used to charge the lowest brokerage fees in India. Nevertheless, Angel one adopted a flat fee brokerage model in response to the fierce competition that cheap brokers had to contend with.
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
No matter what kind of investment you want to make in the Indian stock market, brokerage is an intrinsic part of the same. This is particularly true if your trading volume is high since a large portion of your money will be directed towards the brokerage. Therefore, a majority of stock investors focus on getting the lowest brokerage charges in India to save on brokerage, ultimately leading to more profit.
Today, there are several stockbrokers that have the lowest brokerage charges in India. You can do a brokerage charges comparison and decide the best one for you.
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.