Know About the Lowest Brokerage Charges for Online Trading in India | Espresso

Lowest Brokerage Charges for Online Trading in India

To invest in the capital market, you will need to open a trading account in India. However, before you open a trading account, you must think of the charges involved in trading online. To encourage investments in the stock market, several providers offer a zero brokerage trading account wherein the investor does not have to pay any brokerage for trading online.

 

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With a zero brokerage account, investors can ensure getting the lowest brokerage charges in India and make the most of their investments.

How to Find the Lowest Brokerage Charges in India?

The primary purpose of investments is wealth creation. However, before you start trading online, you must know about the types of trading account in India to find one that best suits your investment style.

A zero brokerage trading account helps you save your money, but several brokers have hidden costs involved, and so you must ask your broker upfront about the charges for trading online. Here is a comparison of some of the lowest brokerage charges in India:

Stock Brokers Account Opening Charges (in ₹) Account Maintenance Charges (in ₹) Brokerage in all NSE segments (in ₹)
Sharekhan Espresso Classic Account: 750 Tiger Account: 1000 400 0.50%
Wisdom Capital Free 999 and GST 0.00 in all NSE, BSE segments
ICICI Direct 975 500 after one year 0.75% for less than ₹25 lakhs and Normal: 0.55%
RKSV 150 150 20 per executed order or 0.01%
Kotak Securities 975 500 after one year 0.59%
SAS online 200 200 per year 9 per executed order
HDFC securities 999 750 0.50%
Zerodha 300 300 per year 20 per trade or 0.01% whichever is lower
SBI securities 850 500 0.15% intraday and 0.5% delivery
5 Paisa 650 400 per year 10 per executed order or 0.1%

*(reference: https://www.thebeststockbroker.com/lowest-brokerage-charge-in-india/)

Factors to Consider Aside from Brokerage Charge

While the brokerage charge is an important consideration, one must not make a decision solely based on the fees. To make informed investment decisions, you need to first identify the type of investor that you are. Here are some tips to help you decide whether you should open a regular trading account or a zero brokerage trading account:

  • Think about the time and the purpose of your investment to choose between a regular trading account and a zero brokerage account. If you are someone who would trade online multiple times a day, then look for the lowest brokerage charges in India. A broker who charges a flat rate for every trade is ideal because then you need not worry about the size and volume of your trade.
  • If you are looking for a short-term investment in the capital market, then you must opt for a zero brokerage account as they come with the lowest brokerage charges in India.
  • Contrarily, if you are investing for the long-term in the capital market, look for a traditional full-service trading account in India as they offer specialised services along with the basic ones such as trading online. With a full-service trading account, you can get market research reports and investment consultation to guide you when you are stuck and help you make informed investment decisions. This personal assistance is provided by experts who understand the market trends and can help you develop a profitable investment strategy.

To conclude

When it comes to trading online in the stock market, every investor seeks to minimise their cost and maximise their profits. However, to avoid making incorrect decisions, consider other factors such as the quality and the range of services aside from the brokerage charges. With the advent of the internet, the dynamics of the stock market have greatly transformed, and so investors can search for the most suitable trading account in India for themselves.

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Frequently Asked Questions

Intraday trading is when the shares are purchased and sold in the stock market on the same day. Intraday trading seeks to make profits from market movements. A zero brokerage account is recommended for intraday traders to save on their brokerage and maximise their profits.

Following are the top three advantages of a zero brokerage trading account: -

  • Investors need not worry about the size and the volume of the trade.
  • There is a higher probability of making a profit because of the low break-even point.
  • There is no unwanted persuasion by relationship managers to trade more than you want to because there is no incentive for the broker from a higher volume.

Price is an important factor while choosing a zero brokerage account, but to make a thorough analysis, here are some other things that investors must keep an eye for: -

  • The facilities offered by the broker such as tools that make it convenient for trading online
  • Comparative analysis of the annual account maintenance charge
  • Prompt customer services
  • Hidden costs, etc.