There are more than 300 stock brokers in India, knowing which is best online trading account in India can be a daunting task.
Therefore in this post I have chosen best 3 stockbrokers who not only offers best trading account but also, best Demat account, lowest brokerage, best customer service, advanced trading platform and other value added services.
Best Online Trading Account In India:
- Zerodha Trading Account
- 5Paisa Trading Account
- Fyers Trading Account
However, if you are a beginner then it becomes utmost important to know first about what exactly is trading account and its purpose. Once you are aware of it , than only you can make correct decision in choosing the right broker.
What Is Trading Account And Its Purpose?
In layman terms, trading account is used for the purpose of placing trades, buy and sell orders in stock market. Without trading account you cannot trade in stock market.
Many times beginners in stock market often gets confused, is the trading and Demat account same?
A stock broker will give you trading account with unique Client ID and password, so that you can use his trading platform in order to place trades in share market.
Trading account is useful for making any investment or doing any intraday trades in different financial instruments available, for e.g.(Equity, Futures and options, ETF, bonds, Commodity, Currency)etc.
To invest or trade in stock market it is compulsory to open a trading account. Trading account is a gateway for you to enter in to the world of stock markets.
To better understand let us take an example.
You entered a shopping mall and you saw so many different things, after sometime you decided to buy a particular T-shirt, now in order to buy you have to make a payment.
Likewise, stock market acting as a shopping mall, where different stocks are listed and you as a trading account selecting the stocks and making a transaction. Your trading account is the source of funds for the transaction.
Suppose, you buy shares of HDFC Bank, from your trading account through call to your broker or by using there online trading platform they provided to you. The moment you buy and the trade gets executed the purpose of trading account is finished.
The money for buying those shares will get debited from your trading account. In a way you can say the role of trading account is just to do the transaction.
I think now that you are aware of trading account and its usage, you should also be aware of Demat account and its purpose because both go hand in hand if you talk about trading and investing.
What Is The Meaning Of Demat Account?
Demat account is just like a bank, where the shares that you bought as an investment will get stored. One thing you need to keep in mind, role of Demat account comes only when you bought the shares in delivery not intraday trading.
In intraday trades you have to complete the transaction same day(buy and sell same day, you cannot carry forward ).
However, in delivery trades where you are buying shares as to keep them for some time you require demat account. Now, those shares that you have bought will require a place to get stored, this is where the role of Demat account comes in picture.
These shares gets stored electronically to your demat account, so that in future when you want to sell them, like after 1 month or even after 3 days or 10 years, you can easily do so by going to your demat account. Once you sell these shares from demat account the money gets credited to your trading account(wallet).
Now that you are fully aware of trading and demat account and its purpose let’s move on to understand why I have chosen zerodha, 5paisa and fyers for the best online trading account in India.
Why Zerodha Online Trading Account Is Best?
First of all Zerodha trading account charges are very nominal, they are the India’s No.1 Stock broker in terms of active clients. Which is by the way more than 5.6 million (56 lakhs), and total clients of more than 75 Lacs.
If you compare In 2014, Zerodha had 17,500 clients trading on the Indian stock exchange.
Type of account |
Equity (for trades on Equity, F&O and Currency) |
Equity (for trades on Equity, F&O and Currency) and Commodity (MCX) |
|---|---|---|
Online account |
₹ 200 |
₹ 300 |
Offline account |
₹ 400 |
₹ 600 |
NRI account (offline only) |
₹ 500 |
N/A |
Partnership, LLP, HUF, or Corporate accounts (offline only) |
₹ 500 |
₹ 800 |
There are no charges for the Demat account at zerodha which is great. Now we know the charges of online trading and Demat account of zerodha but this is just tip of the iceberg.
The most important thing why zerodha is best is because of their latest technology in terms of trading platform. Whether you talk about desktop based trading platform, web based or Mobile based.
You will get complete tools and indicators which are required for best trading and investing experience.
At present, 10 million trades happens on a peak day at zerodha platforms.
You can read my complete Review On Zerodha here.
Apart from this if we talk about the other major important factor which is brokerage. See the image below:
As you can see, there are no charge for taking delivery of the trades to your demat account. Whereas for intraday trades across equity, currency, commodity, it is flat Rs.20 or 0.03% (whichever is lower).
What they mean is, suppose you bought stock xyz priced at Rs.100, quantity 100 on intraday basis,
so the total turnover would be bought 100, sold 100(100*200)= 20,000 on this amount they will charge either whichever amount is lower as 0.03% of 20000, is Rs.6 so they will charge that instead of flat Rs.20.
Zerodha offers margin in range of 5x to 16x times in intraday(same day square-off), however with Cover orders(CO) and bracket orders (BO), this margin can shoot up to more than 20 times as well.
The process of opening online trading account is very simple at Zerodha.
Why 5Paisa Online Trading Account Is Best?
Although I was little skeptical at first whether to keep 5Paisa to top of the list or zerodha. Reason being Opening online trading and Demat account with 5Paisa is absolutely free for a limited time period.
There are no charges, however as said its not only about the trading and Demat account but you have to look overall features in any stock broker.
5paisa is first Publicly Listed online broking company. Which means its shares get traded on both the exchanges NSE and BSE.
The total number of active clients are more than 10 lakh as per NSE. Which means they have added more than 1.5 lakh clients every year in last 4 years in market.
They have a daily turnover of over 45,000 Cr+ with more than 5.7 Million app users.
5paisa offers all financial services like Equity Trading, Mutual funds investments, Insurance, Research Products, Commodity and Currency Trading, Digital Gold Investment, Robo Advisory and Personal Loans under one roof.
If we talk about the 5Paisa trading platform they also have all the required tools and indicators which is must for any trader and investor. However, their mobile trading platform is much better than the desktop based trading platform.
You can read my complete review on 5Paisa here.
5paisa also gives best margin in every segment depending up on the subscription plan you choose.
Intraday buy exposure |
Intraday sell exposure |
Delivery |
20x |
10x |
2x |
This means if you have Rs.1000, you can buy shares worth Rs.20,000 in intraday, moreover 5paisa gives 2X times margin for delivery trades as well.
There are very few brokers who offers margin in delivery trades as well. This is what make 5paisa different and ahead 0f its competitors.
If we talk about the brokerages at 5Paisa, 5Paisa do not charge any brokerage, for any segment, they only charge flat fee of Rs. 20 per executed order.
Unlike other brokers, 5paisa offers different services depending upon the subscription package you take at the time of opening the account with them.
This means either you do not take any add on plan from 5 paisa and continue using the services with normal features or opt for 2 addon plans that they have.
They provide 2 types of add on Plans:
- Power Investor Pack
- Ultra Trader Pack
5Paisa Power Investor Pack Review:
If you are someone who does not have either time to do technical or fundamental analysis or you do not have enough knowledge to do so, than 5Paisa power investor pack are best thing you can opt.
Having said that as stated above these add on plans are not compulsory at all.
Let us know the features and services under 5Paisa power investor plan :
- Flat Fee of Rs. 10 per executed order (50% discount)
- Stock ideas for intraday and short term trading from another product known as “Swing Trader”
- Long term ideas from another product known as “Smart Investor”
- Advanced Portfolio Analytics: Compare your portfolio performance with benchmark indices, sectorial concentration and much more
- Free Model Portfolio and list of hot stocks to watch out for.
- Advisory recommendation for long term
- Model Portfolio for new customers (track record of 10-15% more return than NIFTY)
- Timely communication for BUY & SELL
- Get extensive research on over 4000 stocks absolutely FREE
- Short term recommendations for 2-14 days
- Success rate 60-65%
- Daily recommendations
- Timely communication for BUY & SELL absolutely FREE
- Get Market Evaluation
- Daily Market Outlook
- Track your Portfolio
- Create benchmark
- NAV of equity portfolio – a first in the industry
- Check your buy sell decisions
So basically under power investor pack you get the best trading and investment ideas. Hence if you are trader or investor looking for short, mid or long term form of investment or trading than you can atleast give it a try for a month.
5Paisa Ultra Trader Pack Pack Review:
5Paisa ultra trader pack as the name suggest is basically for someone who do more of intraday trading plus investment.
Features
|
Benefits
|
Free Trades
|
First 100 trades FREE every month
|
Brokerage |
Flat Rs. 10 per executed order from 101st trade for all segments |
Options writing exposure |
Up to 4 times on all days |
Call and Trade |
Free |
Smart Maintenance |
Free |
DP Charges
|
Free |
Net Banking Pay In Charges |
Free |
Smart Investor
|
Free |
Swing Trader
|
Free |
Portfolio Analyzer |
Available |
Note: 18% GST applicable on all the above mentioned charges
Also, keep in mind that subscription charges are payable either Monthly or Annually and once paid is non -refundable.
Incase you do not opt for any such add-on pack from 5paisa these features and services won’t be available for you.
Step 1: Fill in your personal details
Don’t worry! No endless forms to be filled. Just fill in your PAN No. and Date of Birth
Step 2: Fill in your Bank details
Enter your Bank Account Number and IFSC Code to fetch all your bank details in one go.
Step 3: Make Payment
You will be prompted to select any of the pay towards your Subscription Plan (Optimum/ Platinum/ Titanium). You will be redirected to a payment gateway where you can make payment. However, if you have chosen the free plan, you do not need to make any payment.
Step 4: Upload your documents
With 5paisa, you just need to upload Pan Card and Address proof. It is easy and simple. Just take a picture and upload.
Step 5: e-Sign your form
Review the complete form and e-sign the form digitally using Aadhar. Your application process will be complete and account will be opened in next 1 hour subject to verification by 5paisa team.
Why Fyers Online Trading Account Is Best?
Before I tell you why choose fyers, let me tell you about this company in brief.
Established in Aug, 2015 fyers is a discount broker co-founded by Tejas Khoday, who is also the CEO of the company. Tejas khoday, he does have an interesting background before founding the fyers. He has worked with Zerodha, a leading discount broker in India in 2011.
Of-course he has worked with several other companies after that and also as an investment advisor, managing portfolios and advising clients on various investment.
Today fyers have more than 1 lakh+ clients and more than Rs. 4500 Cr. Daily turnover across NSE, BSE & MCX within a span of 4.8 years of launch.
After experiencing their services I have no doubt about the bright future of this company at all.
It may seem the charges for trading account is little high in comparison to zerodha and 5paisa, but if we talk about the technology in terms of trading platform, I will rank Fyers above 5Paisa.
After seeing Fyers web based and desktop based trading platform, I was astonished and can’t believe as it a just 4 year old company.
You can check out my complete review on Fyers Here.
If we talk about the brokerage charges at fyers.
Fyers charge no brokerage for equity delivery based trades as well as zero charges for any investment in pre-build portfolios which is called as thematic investing at fyers.
Whereas for intraday trades across equity, currency futures, commodity futures, it is Rs.20 or 0.03%(whichever is lower).
Other than this in terms of giving margin to its clients, Fyers provide highest margin in equity (26X), future & options(33X) , commodities as well as currency segment.
In equity cash segment if you are placing intraday trades without cover order(co) or bracket order(bo), you get up to 18X Time the margin in fyers.
Where as with cover orders and bracket orders where you place buy/sell orders with a compulsory stop loss order in case of CO and plus target in case of BO, you get up to 25X times margin.
For a limited time period you can open a free trading/demat account at fyers through this link, and also Zero AMC (Annual maintenance charges).
However usually they do charges Rs.400 one time fee for opening an account as well Rs.300 AMC per year.
My Opinion On Best Online Trading Account In India:
You might be thinking why I only chose zerodha, 5paisa and fyers as best 3 or top 3 brokers in India for opening an online trading and Demat account. Let me ask you, what you really see before opening an account with any stockbroker?
Their history in Stock broking industry
Low brokerage charges
Advanced trading platform with all technical tools and indicators for every device(desktop/laptop, tablet, mobile)
Best Customer service support
No Debt in company
Their vision for future
Apart from this what other services they are offering like free stock recommendations, fundamental and technical reports etc.
Trust me you get all these in this stock brokers mentioned above, I may have made a list of 10 or 5 best brokers in India, but the more choices we have, the more confusion gets created and top of that if I am talking about the services I mentioned above I really do not find any other brokers to even get close to it.
I hope you have like the list of best stock brokers in India offering best trading and Demat account online.
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Note: Please do not take this as any recommendation, to trade or invest. This is just for reference, to make you understand more about the Best Online Trading Account In India and its importance, under no circumstances intended to be used or considered as financial or investment advice, a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset.
Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only. All investments are subject to risks, which should be considered prior to making any investments.
