Most of the new investors start their share trading career with large share brokers like ICICIdirect, Edelweiss, Religare, Sharekhan and much more because during initial stage they buy and sell shares not so frequently and they expect a decent profit margin on each investment. So they do not bother about brokerage charge that much.
But when they start trading very frequently and want to book profit with a small margin, then they feel the requirement of low brokerage charge at the time of each trade.
Now suppose you want to buy 500 SBI shares @Rs 248 (Total Rs 248*500 or Rs 1,24,000). But you have to pay brokerage charges of 0.5% both sides (Total 1% (.5%+.5%)), then you have to pay Rs1,240 (excluding govt. taxes) as your brokerage charges, so you can not trade with such small profit margin like 1-3% because of your high brokerage charge.
So many active traders who do multiple numbers of trades each day, they need such discount share brokers who fulfill their need.
Still, many investors prefer full-service share brokers as they provide research based investment recommendation and give an opportunity to buy/sell other financial products like mutual funds, NPS, insurance, fixed deposits etc.
There are many discount share brokers in India. They offer a different type of accounts for investors (delivery based orders- cash segment) and traders (for daily trades-derivatives-FnO, currencies, margin trading-intraday etc) or for both.
Brokerage charges offer by these discount brokers are very less as compared to other full-service share brokers.
Zerodha: Rs20 per executed order
RKSV: Free first 5 orders then Rs 20 per executed order
Tradejini: Rs20 per executed order ( For future, delivery/intraday- equity Rs20 per order or 0.01% of total turnover whichever is lower)
TradeSmartOnline: Rs15 per executed order
SASOnline: Rs9 per trade
CompositeEdge: Rs18 per order for first 1000 orders then Rs 15 per order
myValueTrade: Rs10 per trade
RKGlobal: Rs9 per trade
Achiieversequities: Rs15 per trade
Fixed Rate monthly fees (Unlimited trades):
TradeSmartOnline: Rs1899 per month
SASOnline: Rs999 per month
myValueTrade: Rs1000 per month, Rs10,000 per year
RKGlobal: Rs999 per month
Achiieversequities: Rs50 per day, Rs750 per month
tradeplusonline: Rs99 per month
These discount brokerage firms do not have many offices to serve their clients. They are having small offices with a few number of employees. They do not keep their clients updated through emails and research based reports or recommendation. So investors need to do their own research and capable to resolve basic issues regarding trading.
Most of these firms provide blogs to share any related issues and interact with their clients. Clients can contact with them over phone or emails as they have a less physical presence and staffs to deal with their clients.
Trading Platform
Some discount brokers are offering excellent trading platforms for their clients but there are some discount share brokers who are not providing the opportunity to trade in various modes.
Zerodha:
Pi trading platform: Advanced trading platform (Advanced charting, Algos, strategies, and back testing, Pattern recognition, Historical data, Expert advisors, Artificial intelligence and Genetic algorithms)
Quant: Provide trading insights
Q: Next generation back office system
Kite: A minimalistic, intuitive, responsive trading platform
RKSV:
Desktop trading platform
The web & mobile trading platforms
Tradejini:
NEST (Next generation Electronic Securities Trading platform) Trader is the trading platform provided by Tradejini and developed by Omnesys Technologies Pvt Ltd. It required two levels of password, one is login password and another one is transaction password
SASOnline:
SAS Trader (Customizable Interface, Advanced Charting, Connectivity)
myTradeValue:
MVT Trader (Personalized Interface, Social Integration, Options Strategy, Advance Charting, Market Monitor & Scanner, Advance Order Types, Dow Jones News Wire, Stability and High Broadcast, TV in MyValueTrade)
Achiieversequities:
NOW Web Platform is a browser based trading interface
tradeplusonline:
IFINI Trader- powered by Omnesys Technologies Pvt Ltd
TradeSmartOnline:
CompositeEdge:
RKGlobal:
If you check websites' of those brokers or their linked in pages, you can see that they have only a few numbers of staffs managing that huge turnover every day. Where ICICIdirect, Edelweiss and other large brokers have thousands of employees and many offices, almost in every city. But those discount share brokers managing their business with 100-300 staffs. They run their business with extremely low margins.
Such discount brokers do not spend too much money on advertising, they believe in word of mouth advertising where their clients are playing a role of advertisers and they usually bring clients for those firms.
Such discount firms generally do not have their own research team to provide trade recommendation to their clients.So discount brokers still can survive with such extreme low brokerage charges.Now it is over to individual's decision which broker he will choose based on his requirement and understanding.
But when they start trading very frequently and want to book profit with a small margin, then they feel the requirement of low brokerage charge at the time of each trade.
Now suppose you want to buy 500 SBI shares @Rs 248 (Total Rs 248*500 or Rs 1,24,000). But you have to pay brokerage charges of 0.5% both sides (Total 1% (.5%+.5%)), then you have to pay Rs1,240 (excluding govt. taxes) as your brokerage charges, so you can not trade with such small profit margin like 1-3% because of your high brokerage charge.
So many active traders who do multiple numbers of trades each day, they need such discount share brokers who fulfill their need.
Still, many investors prefer full-service share brokers as they provide research based investment recommendation and give an opportunity to buy/sell other financial products like mutual funds, NPS, insurance, fixed deposits etc.
There are many discount share brokers in India. They offer a different type of accounts for investors (delivery based orders- cash segment) and traders (for daily trades-derivatives-FnO, currencies, margin trading-intraday etc) or for both.
Advantages of discount share brokers:
Low brokerage charges:Brokerage charges offer by these discount brokers are very less as compared to other full-service share brokers.
Zerodha: Rs20 per executed order
RKSV: Free first 5 orders then Rs 20 per executed order
Tradejini: Rs20 per executed order ( For future, delivery/intraday- equity Rs20 per order or 0.01% of total turnover whichever is lower)
TradeSmartOnline: Rs15 per executed order
SASOnline: Rs9 per trade
CompositeEdge: Rs18 per order for first 1000 orders then Rs 15 per order
myValueTrade: Rs10 per trade
RKGlobal: Rs9 per trade
Achiieversequities: Rs15 per trade
Fixed Rate monthly fees (Unlimited trades):
TradeSmartOnline: Rs1899 per month
SASOnline: Rs999 per month
myValueTrade: Rs1000 per month, Rs10,000 per year
RKGlobal: Rs999 per month
Achiieversequities: Rs50 per day, Rs750 per month
tradeplusonline: Rs99 per month
Disadvantages of discount share brokers:
Customer ServiceThese discount brokerage firms do not have many offices to serve their clients. They are having small offices with a few number of employees. They do not keep their clients updated through emails and research based reports or recommendation. So investors need to do their own research and capable to resolve basic issues regarding trading.
Most of these firms provide blogs to share any related issues and interact with their clients. Clients can contact with them over phone or emails as they have a less physical presence and staffs to deal with their clients.
Trading Platform
Some discount brokers are offering excellent trading platforms for their clients but there are some discount share brokers who are not providing the opportunity to trade in various modes.
Zerodha:
Pi trading platform: Advanced trading platform (Advanced charting, Algos, strategies, and back testing, Pattern recognition, Historical data, Expert advisors, Artificial intelligence and Genetic algorithms)
Quant: Provide trading insights
Q: Next generation back office system
Kite: A minimalistic, intuitive, responsive trading platform
RKSV:
Desktop trading platform
The web & mobile trading platforms
Tradejini:
NEST (Next generation Electronic Securities Trading platform) Trader is the trading platform provided by Tradejini and developed by Omnesys Technologies Pvt Ltd. It required two levels of password, one is login password and another one is transaction password
SASOnline:
SAS Trader (Customizable Interface, Advanced Charting, Connectivity)
myTradeValue:
MVT Trader (Personalized Interface, Social Integration, Options Strategy, Advance Charting, Market Monitor & Scanner, Advance Order Types, Dow Jones News Wire, Stability and High Broadcast, TV in MyValueTrade)
Achiieversequities:
NOW Web Platform is a browser based trading interface
tradeplusonline:
IFINI Trader- powered by Omnesys Technologies Pvt Ltd
TradeSmartOnline:
- Browser based
- Trader (installable)
- Mobile based
CompositeEdge:
- Trader Workstation (TWS)
- Web Trader
RKGlobal:
- Software-based ‘RKG Diet ODIN’
- Web-based ‘RKG Net.Net’
- Mobile-based ‘RKG NOW’
- Call-n-Trade facility
How discount brokers can offer such low charges?
This is a most obvious question that comes first in everyone's mind. When large brokerage firms are charging a high rate, then how those brokers offer such low rate. How are they surviving?If you check websites' of those brokers or their linked in pages, you can see that they have only a few numbers of staffs managing that huge turnover every day. Where ICICIdirect, Edelweiss and other large brokers have thousands of employees and many offices, almost in every city. But those discount share brokers managing their business with 100-300 staffs. They run their business with extremely low margins.
Such discount brokers do not spend too much money on advertising, they believe in word of mouth advertising where their clients are playing a role of advertisers and they usually bring clients for those firms.
Such discount firms generally do not have their own research team to provide trade recommendation to their clients.So discount brokers still can survive with such extreme low brokerage charges.Now it is over to individual's decision which broker he will choose based on his requirement and understanding.
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