Choosing the Right Trading Brokerage Platform for Investing and Trading in India

When it comes to investing and trading in the Indian stock market, choosing the right brokerage platform is crucial. With a vast array of options available, it is important to understand the differences between full-service brokers and discount brokers, which can help you make the best choice for your needs.

The Two Types of Stock Brokers in India

India's stock market operates with two primary types of stock brokers:

Full-Service Stock Brokers

A full-service stock broker is a licensed financial broker-dealer firm that offers a wide range of services to its clients. These services include:

Research and advice Retirement planning Tax tips Other investment-related guidance

Examples of full-service brokers in India include: ICICI Direct, HDFC Securities, Kotak Securities, Sharekhan, Angel Broking, Motilal Oswal, AxisDirect, Karvy, SBI Securities, and IIFL.

Discount Stock Brokers

In contrast, a discount broker provides you with a platform to buy and sell stocks at a reduced brokerage fee. These brokers typically do not provide additional services such as advisory or research.
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Examples of discount brokers in India include: Zerodha, Upstox, 5paisa, FYERS, SAMCO, Master Trust, Alice Blue, Trade Smart Online, SAS Online, and Tradeplus.

Which is the Best Stock Broker for Beginners in India in 2020?

The best online stock broker for beginners in India in 2020 is discount brokers. This choice is based on several factors, including lower fees and the convenience of online trading. Discount brokers such as Zerodha and Upstox charge very low fees, typically ranging from 60 to 90, saving you a significant amount of money on fees and taxes. Additionally, these platforms are user-friendly and offer a wide range of stock and investment options, catering to new investors.

Key Differences Between Full-Service and Discount Brokers

To summarize the key differences:

Full-service brokers provide comprehensive services including research, advice, and tailored investment planning. Discount brokers focus on providing a low-cost platform for buying and selling stocks, without the added services.

Understanding Brokerage Terms

It is essential to understand the different types of brokerage terms:

Discounted Broker

Ex: Zerodha, Upstox: These brokers charge a lower fee or no fee at all.

Non-Discounted Broker

Ex: ICICI Brokerage, HDFC Brokerage: These brokers charge a brokerage fee or commission on your investment.

There are also intermediaries that provide insights on trending stocks, but their role is more advisory rather than transactional.

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Read more about the best online stock brokers in India for beginners in 2020.