No matter what kind of stock investor you are, it is always a good idea to save on brokerage. This is because the savings you make at this state would directly increase your overall yield out of the investments you make. Thankfully there are several stockbrokers in India who are known to have the lowest brokerage charges across different stock categories.
Even some allow stock trading at zero brokerage. So, before you start your journey towards stock investments, it is necessary to choose the Best Demat Account in India that also features the lowest brokerage charges.
What is brokerage?
Brokerage simply refers to an amount that is charged by a stockbroker from its clients against the services availed by him or her. A brokerage is an intrinsic part of the stock broking segment and it is also related to the overall service level of the chosen stockbroker. In general, full-service stockbrokers tend to have high brokerage as compared to discount brokers.
How stock brokerage is calculated?
Brokerage fees are something that users need to be aware of when purchasing or selling shares. They will be better able to comprehend their possible gains or losses while completing a deal if they do this. This is especially true for traders using small profit margins who trade intraday.
Investors need to be aware of the various techniques used by brokerage companies to determine the appropriate brokerage costs for a given transaction in order to calculate brokerage charges. The three common brokerage calculation approaches are:
- A certain percentage of trade value
- Standard brokerage charge per transaction
- Subscription-based model
What are the lowest brokerage charges?
In simple terms, the lowest brokerage charges refer to the least possible amount that is levied by a stockbroker against every stock trade. The lowest brokerage charges tend to vary from one broker to another.
There could be different approaches taken by a stockbroker to calculate the minimum brokerage charges like a percentage-based approach or a standard brokerage one. One crucial thing to keep in mind while considering the lowest brokerage charge is that it isn’t always affordable for investors particularly if the trade volume is low.
This is where the percentage-based model seems the best way. so, don’t forget to take into account the free structure and overall trading cost while selecting the minimum brokerage charges demat account.
Top Stockbrokers with The Lowest Brokerage Charges in India
If you are looking for the best Demat account in India with the lowest brokerage charges, you can consider the following options.
1. M.Stock
m.Stock by Mirae Assets emerges at the top when it comes to finding the lowest brokerage charges in India. There are two brokerage plans offered by Mirae Assets – Plan 149 and Plan 999. Under the 999 plan, an investor needs to pay a one-time charge of Rs. 999 and enjoy the benefit of zero brokerage across all trade segments. In addition, the stockbrokers have some of the most advanced trading tools and features needed for seamless stock trading.
| 999 Brokerage Plan | 149 Brokerage Plan | |
| Equity Delivery | Zero | Zero |
| Equity Intraday | Zero | ₹20 per trade |
| Equity Futures | Zero | ₹20 per trade |
| Equity Options | Zero | ₹20 per trade |
| Currency Futures | Zero | ₹20 per trade |
| Currency Options | Zero | ₹20 per trade |
| Commodity Futures | Zero | ₹20 per trade |
| Commodity Options | Zero | ₹20 per trade |
2. Kotak Securities
Kotak Securities is another stock broker in India that offers competitive brokerage to stock investors. The leading stockbroker in India enables quick and easy investment options to stock traders to invest in equities, commodities, and mutual funds.
Kotak Securities offers three plans: the Trade Free Plan, Trade Free Max Plan, and No Brokerage Plan. All three subscriptions provide unlimited free intraday broking. For the delivery of stocks, there is a brokerage fee of Rs. 20 or 0.25%, whichever is higher.
| Category | Brokerage |
| Monthly Fee (Standard) | |
| Equity Delivery | 0.25% (Minimum Rs 20 per trade) |
| Equity Intraday | Free |
| Equity Futures | Delivery: Rs 20 per trade | Intraday: Free |
| Equity Options | Delivery: Rs 20 per trade | Intraday: Free |
| Currency Futures | Delivery: Rs 20 per trade | Intraday: Free |
| Currency Options | Delivery: Rs 20 per trade | Intraday: Free |
| Commodity Futures | Delivery: Rs 20 per trade | Intraday: Free |
| Commodity Options | Delivery: Rs 20 per trade | Intraday: Free |
3. Zerodha
Zerodha needs no introduction when it comes to finding the best stockbrokers in India with the lowest brokerage charges. Zerodha is known to be the first stockbroker in India that brought the concept of flat-fee brokerage of Rs. 20 in the country.
Being one of the cheapest stockbrokers in India, Zerodha charges a brokerage fee of Rs. 20 per order (or 0.03%) for trading intraday equities, equity derivatives, commodities, and currencies. The delivery of stocks is free of brokerage fees.
| Trading Segments | Brokerage |
| Equity Delivery | Rs 0 (Free) |
| Equity Intraday | Flat Rs 20 or 0.03% (whichever is lower) per traded order |
| Equity Future | Flat Rs 20 or 0.03% (whichever is lower) per traded order |
| Equity Options | Flat Rs 20 per executed order (on Turnover) |
| Currency Futures | Flat Rs 20 or 0.03% (whichever is lower) per traded order |
| Currency Options | Flat Rs 20 or 0.03% (whichever is lower) per trader order |
| Commodity | Flat Rs 20 or 0.03% (whichever is lower) per trader order |
| Mutual Fund | Rs 0 (No Limit on Direct MF) |
The Conclusion
If you are planning to invest in stocks without breaking your bank while yielding great returns on investment, it is recommended to look at the minimum brokerage charges demat account. There are numerous stockbrokers in India that are known for their competitive brokerage charges.