Stock Market – the most sought-after platform for making investments. Before you enter the market, you need to have a valid demat account and trading account. You can check out the list of leading demat account providers of India.
Trading account is another account which is mandatorily required for stock market trading in India. Trading accounts are opened with stockbrokers and work in sync with your demat account. You add funds in your trading account and place orders on the exchange. When the order is executed, the monetary transactions are done from your trading account whereas the securities transaction is done from your demat account. Both the accounts are mandatory for trading in the Indian stock market.
In India, it is not possible for the common investor to buy or sell directly from the stock exchanges. Today, we will take a look at some of the leading stockbrokers or trading account providers in India.
Table of Content
Stockbrokers and Trading Account Providers
Zerodha
Zerodha stockbroker was incorporated in 2010 and has topped the Indian broker industry with the highest number of active clients. Before Zerodha, the brokers charged a fixed per centage of total trade value. But Zerodha introduced the concept of discount brokerage where, the trader needs to pay a fixed amount for every executed order irrespective of the trade value.
Zerodha charges a flat fee of INR 20 per executed order as per their discount brokerage model. After Zerodha, many brokers came up with the concept of discount brokerage, but none of them was as successful as Zerodha.
Upstox
Earlier known as RSKV securities, Upstox is the second largest discount broker of India after Zerodha. Based in Mumbai, Upstox is funded by some of the leading business tycoons of India including Mr. Ratan Tata of Tata group. Upstox initially came with monthly plan, where the investor can trade unlimited for the whole month by paying a fixed monthly charge. However, this plan was later discontinued and Upstox too switched to discount brokerage plan.
Upstox too charges INR 20 for every executed order and provides free delivery trades for their investors. It was also the first broker to open 1 lakh demat accounts.
Angel Broking
Angel Broking was a full-time service broker which has recently switched to the discount brokerage model. Angel Broking was one the top 10 full time brokers of India and was incorporated in the year 1987. Angel Broking has a customer base of more than 20 lakhs with a presence in 900+ cities. The broker received cutthroat competition from discount brokers in India and as a result switched to discount brokerage model.
Angel Broking also charges INR 20 per executed trade and has completely dropped the earlier per centage model of brokerage.
5 Paisa
5 paisa was started in the year 2016 and became the fastest trading account provider to acquire 1 million customers. It was also the first publicly listed fintech company of India. 5 Paisa is also a discount broker but does not provides free delivery trades like Zerodha and Upstox. 5 paisa has an annual turnover of more than INR 50,000 Crores with a customer base of more than 1.5 million.
5 paisa charges INR 20 per executed trade which can be further reduced to INR 10 per trade if you opt for additional monthly packs.
Sharekhan
Sharekhan is a very prominent name in India in the stock broking and trading account industry. The company was established in 2000 and was acquired by BNP Paribas is 2015 for INR 2200 crores. The company also has its presence in the gulf countries of UAE and Oman.
Sharekhan is not a discount broker and charges a fixed per centage of 0.10% for all intraday trades and 0.5% for all delivery trades.
Conclusion
These are some of the leading stockbrokers of trading account providers in India. Before you finalize trading account provider, it is important to check the brokerage charges and history of the broker. Once you have your demat account and trading account ready, you are all set to start your investment journey in the stock market.
Happy Investing!
