A Guide to Comparing Stock Brokers in 2024

Stock Broker License

A Guide to Comparing Stock Brokers in 2024

Registrationwala

Once you start investing, changing your broker later can be complicated. Hence, it is important to choose the right broker from the beginning. Doing so will allow you to invest in the share market without any hassle. 

Now, how can you decide the right broker for you? There are thousands of stock brokers registered with the Securities and Exchange Board of India (SEBI). Each broker has its pros and cons. You must take them into account before making your decision! To make it easy for you, we have provided you with a list of popular stock brokers in India along with their pros and cons. You can choose the one that suits you best!

Comparison between Popular Stock Brokers

Let’s compare the most popular stock brokers in India, along with their pros and cons.

1. Upstox

Google Play Rating: 4.1/5 Stars | Apple Store Rating: 4.2/5 Stars

Upstox is a popular trading platform. There are no account opening charges or annual maintenance charges charged by Upstox. For all the segments, including delivery, intraday and F&O, the brokerage charges are the same i.e. Rs. 20 per trade. A separate user interface has been developed by Upstox for investors and traders.

Although Rs. 20 per trade is a low fee charged by the platform, many stock brokers offer brokerage-free investment in the stock market. Moreover, Upstox doesn’t offer any recommendations or tips or stock research. An extra Rs. 20 (excluding brokerage of Rs. 20) is charged as call and trade fee for every executed order. 

2. Angel One

Google Play Rating: 4.3/5 Stars | Apple Store Rating: 4.4/5 Stars

Angel One is the oldest trading stock broker which has been registered in India since 1987. Angel One does not charge account opening or annual maintenance fees. However, this is only for the first year. For equity delivery, there aren’t any brokerage charges. But for remaining segments like F&O and intraday, a flat fee of Rs. 20 per trade is charged. 

The user interface of Angel One is a bit complex and not beginner-friendly. An extra fee of Rs. 20 per order is charged as call and trade fee.

3. Groww

Google Play Rating: 4.3/5 Stars | Apple Store Rating: 4.2/5 Stars

Groww offers a user-friendly interface which is simple and easy to use for trading and investing. There are no account opening charges or annual maintenance charges. The process for depositing and withdrawing funds is pretty simple.  For all the segments, the brokerage charges are the same i.e. Rs. 20 flat fee per trade.

Groww also offers a platform for investing in mutual funds with 1000+ mutual fund options to choose from. For investing in mutual funds, customers can choose SIP or make a lump sum investment.

An equity delivery fee of Rs. 20 per trade is applicable in contrast to other brokers offering brokerage-free investments to their users. Groww doesn’t provide stock tips, recommendations or research reports. Additionally, there is no facility for call and trade. For intraday and F&O traders, chart indicators are not very advanced. Moreover, advanced order and trading types like GTT, AMO, CO, BO and trailing stop loss order are not available on the platform.

There is absence of branch support for Groww users. Further, there isn't any margin finance facility or facility for margin against shares available. It is not possible to trade in currencies and commodities through Groww. 

4. HDFC Securities

Google Play Rating: 4.5/5 Stars | Apple Store Rating: 4.6/5 Stars

HDFC securities offers customers a secure way to invest and make money. Its platform is easy to use and offers 24x7 customer service. It offers derivatives trading, mutual funds, NRI services, IPOs and online life insurance. HDFC securities allows customers to trade in both NSE and BSE.

However, the brokerage is relatively high and there isn't any commodity trading facility. The platform may not be a good fit for small and penny stock traders. Moreover, charges are applicable for trading terminal usage. If you want to receive SMS-based research tips, you will have to pay for them.

5. IIFL Securities

Google Play Rating: 4.3/5 Stars | Apple Store Rating: 4.4/5 Stars

IIFL securities offers online IPO and equity SIP. It also offers trading facilities to non-resident Indians. Multiple broking plans are provided by IIFL to its customers. The IIFL Trade terminal is one of the best trading terminals in India. Commodity trading and investment facilities in mutual funds are also available.

It offers customer support which needs improvement. Only 2-in-1 account facility is provided as opposed to some other stock brokers. There is less transparency in brokerage plans and the brokerage fee is relatively high.

6. Kotak Securities

Google Play Rating: 4.2/5 Stars | Apple Store Rating: 4.6/5 Stars

Kotak Securities offers 3-in-1 online trading accounts to its customers. It offers a trading software known as KEAT Pro. It allows derivatives trading, NRI services, IPOs and mutual funds. The customers can trade on both stock exchanges namely National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

After market orders (AMO) and Good Till Cancel Order (GTC) and Buy Now Sell Tomorrow options are also available on Kotak Securities. However, the stockbroker doesn’t provide any commodity training. The brokerage is high and the platform isn’t ideal for small and penny stock investors. The equity delivery brokerage charges are 0.25% or Rs. 20, whichever is higher.

7. Motilal Oswal

Google Play Rating: 4.2/5 Stars | Apple Store Rating: 3.9/5 Stars

Motilal Oswal is one of the leading stockbrokers in India. It offers diversified trading services in commodity, currency, equity and derivatives. Other products offered by motilal oswal include IPOs, gold, insurance, fixed income products and mutual funds. Additionally, it provides research and advisory services that many other stockbrokers do not offer. It is present on every platform from mobile, tablet, smartwatch apps and desktop. Motilal oswal offers tailored service, education material and stock recommendations to its customers.

There have been complaints about management, work-life balance and compensation at Motilal Oswal. There is no automated trading facility and the Annual Maintenance Charges are on the higher side. No research reports for commodities are provided by it. Also, it doesn’t provide a 3-in-1 account as motilal oswal does not have a banking license.

8.SBI Securities

Google Play Rating: 4.1/5 Stars | Apple Store Rating: 3.9/5 Stars

SBI Securities offer a 3-in-1 account which offers smooth transactions between bank, demat and trading account. The stock broker offers online investment in bonds, mutual funds and IPO. All the clients can download trading terminal SBISMART Express and mobile trading app SBISMART free-of-cost.

Across major cities in India, trading is available at approx. SBICAP securities branches. All the customers get access to research reports and analysis tools. 

Compared to other stock brokers, trading account and demat account opening fees for SBI Securities is comparatively high. Moreover, it does not provide 24/7 customer services. There is low user experience in terms of technology. 

9. Zerodha

Google Play Rating: 3.7/5 Stars | Apple Store Rating: 3.0/5 Stars

Zerodha doesn’t charge any brokerage fees when clients purchase shares using cash-and-carry (CNC). The services offered by this stock broker have a simple pricing model. For every executed order, they charge 0.03% or Rs. 20, whichever is lower. 

Zerodha is a self-clearing stock broking platform. Customers are not charged any clearing charges. For your stock investments, you can establish long-term target orders and stop losses. Its mobile app offers high performance and user experience improvements that are intended for both active day traders and passive investors. 

Zerodha does not provide stock recommendations, tips or research reports. No lifetime free AMC demat account plans are available. For MIS/BO/CO positions which aren’t squared off by clients, Zerodha charges an additional Rs. 50 for every executed order. Investors can avail call & trade facility. However, it requires paying Rs. 50 for every executed order. 

10. Axis Direct

Google Play Rating: 3.4/5 Stars | Apple Store Rating: 3.6/5 Stars

Axis Direct offers a 3-in-1 account which includes bank, demat and trading accounts. Because of this, trading and investing can be done easily. A large number of products are provided by Axis under one brand. Free research reports are provided to clients of Axis Direct.

To assist beginners in understanding the fundamentals, Axis Direct provides webinars, online tutorials, classroom sessions, and expert articles. With an Axis Direct Demat account, investors can purchase and sell stocks in a matter of seconds. The account also serves as a record keeper for all holdings, documents, and transactions. 

However, Axis Direct charges brokerage fees for equity delivery. Additionally, it does not provide branch support. There is no margin trading facility available. The investors cannot do commodity or currency trading using Axis Direct.

How to do comparison between stock brokers?

Comparing stock brokers is essential before making out which stock broker is best for you. The following parameters can help you make the comparison between stock brokers and decide the best stock broker for you:

Conclusion

In order to trade or invest in the stock market, it is essential that you open a demat account with a stock broker. But before you choose your stock broker, you must compare the various stock brokers in India. You must take into account commission fees, brokerage fees, interface of stock broking apps and customer support. By choosing the right stock broker from the beginning, your trading and investing experience will be smooth from the very start! 

If you want to become a stock broker, obtaining a stock broker license from the Securities and Exchange Board of India (SEBI) is mandatory. For assistance in becoming a SEBI-registered stock broker, connect with Registrationwala!

 

Disclaimer: The Google Play and Apple Store ratings mentioned for the stock broking apps in this blog post are accurate as of 7th October, 2024. These ratings might change in future.

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