Best Discount Brokers in India 2024

Recent statistics reveal an interesting trend: the top five discount brokers in India have increased their lead over traditional counterparts, now holding a significant 63.9% share of active clients on the NSE, up from 60.1% a year ago. But what are discount brokers? 

They are firms that offer trading services at significantly lower costs compared to traditional full-service brokers, making them popular among both seasoned investors and newcomers. In this article, we will explore the best discount brokers in India, highlighting what sets them apart in terms of affordability, services, and features.

Best Discount Brokers in India

There are more than 4,000 stock brokers registered with SEBI, which contains a mix of both discount and full-service brokers. We have reviewed and shortlisted 5 discount brokers on the basis of their active clients and services provided:

1. Groww
2. Zerodha
3. Upstox
4. Fyers
5. Shoonya

Know details about them ⤵

1. Groww

Capturing the investment world's attention, Groww, launched in 2016, has rapidly become a leading discount broker with the highest number of active clients in under 10 years. Surpassing even the established Zerodha in active users, Groww's competitive pricing, user-centric approach, and technological focus have been pivotal in attracting a large and engaged user base.

Here's what makes Groww stand out:

1. Discount Brokerage: Groww operates as a discount broker, offering low flat fees per trade instead of traditional brokerage commissions. This makes it attractive for cost-conscious investors.
2. User-Friendly Platform: Groww prioritises a user-friendly experience with a clean and intuitive mobile app and web platform, making it easy for beginners to navigate and manage investments.
3. Direct Mutual Funds: Unlike some brokers, Groww allows investors to invest in direct mutual funds. These funds have lower expense ratios, potentially leading to higher returns for investors.
4. Investment Education: Groww offers educational resources like videos, blogs, and tutorials to empower users with investment knowledge and make informed decisions.
5. Seamless Account Opening: It boasts a paperless account opening process, allowing users to set up an investment account quickly and conveniently.
6. Fees and Charges: It charges ₹0 for account opening and account maintenance, ₹20 for equity brokerage, and futures and options. 

Read more about Groww Review here.

2. Zerodha

Established in 2010, Zerodha aims to break down barriers for investors and traders. The name itself reflects this mission, combining "Zero" with "Rodha" (Sanskrit for "barrier"). It has become the largest retail stockbroker in India by offering features like low-cost, flat-fee brokerage, a focus on technology, and in-house-developed platforms. Zerodha caters to both retail and institutional investors, offering a wide range of products, including equities, currencies, commodities, mutual funds, and bonds.

Here are the key highlights of Zerodha:

• Investment Products: Zerodha offers a variety of investment products, including equity, equity derivatives (F&O), currency, and commodities. It also offers direct mutual fund investments through its Coin platform.
• Discounted brokerage fees: It charges zero brokerage fees for equity delivery and mutual fund investments. For other types of trades, such as intraday and F&O trades, it has a flat fee structure, which is significantly lower than what traditional brokers charge.
• Advanced trading platform: Zerodha's flagship trading platform, Kite, is a web-based platform that offers a wide range of features, including streaming market data, advanced charting tools, and technical indicators. The other platforms include- Varsity for stock market lessons and Coin for mutual funds.

Read more about Zerodha Review.

3. Upstox

Upstox stands out as a prominent online discount broker in India. It serves the needs of both active traders and those investing for the long term. It is highly regarded for its focus on ease of use, cost-effectiveness, and the provision of advanced tools, attracting a wide range of individuals involved in the Indian stock market.

Here are the key highlights of Upstox:

• Investment ideas: Top-rated mutual funds, best stocks for beginners, and actively traded options for informed decision-making.
• Order placement: Invest any time using our easy interface, which accepts UPI payments and offers SIP options for stocks and mutual funds.
• Powerful charting: Use TradingView charts for in-depth analysis with 8 simultaneous windows, 100+ indicators, and 80+ drawing tools.
• Market discovery: Analyse Open Interest (OI), option chains with Greeks, FII & DII data, and F&O smart lists to identify trading opportunities.
• Advanced order execution: For strategic trading, use features like Good Till Triggered (GTT) orders, basket orders with up to 10 entries, and double margin via pledging on select stocks.

Read more about Upstox Review.

4. Fyers

FYERS, founded in 2015, set out on a mission to transform the Indian brokerage environment by providing a user-friendly and technologically advanced platform for trading and investment. Their primary goal is to provide individuals with strong tools and intuitive interfaces, regardless of their expertise level. They enable individuals to participate in the markets with confidence, making investing and trading more accessible and appealing.

Here are the key highlights of Fyers offerings:

• Advanced charting platforms: TradingView and GoCharting offer extensive technical analysis tools for active traders.
• Fast order placement: FYERS' platforms are known for their speed and efficiency, allowing traders to execute trades quickly.
• Option trading tools: The Insta Options platform provides features like a strategy builder and option chain analysis that are specifically designed for options traders.
• Margin pledging: FYERS Pledge helps traders access additional margins by pledging their existing holdings.
• Real-time market updates and alerts: With real-time data and alerts, you can stay informed about market movements and react to opportunities.
• User-friendly platforms: FYERS Web, FYERS App, and FYERS One offer a seamless experience for managing investments.
• Market data access: Get comprehensive data on equities, commodities, currencies, and ADRs to make informed investment decisions.
• Educational resources: FYERS Insights provides educational content and market analysis to help investors learn and grow their knowledge.

Read more about Fyers Review.

5. Shoonya

Shoonya, offered by Finvasia, is a trading platform for traders and investors. It stands out for its commission-free structure across various segments, making it an attractive option for cost-conscious individuals. 

Here's a glimpse into the features Shoonya offers:

• Zero brokerage across all segments (intraday & delivery) for cost-effective trading.
• Advanced charting tools (TradingView & ChartIQ) for in-depth technical analysis.
• Over 100 technical indicators and studies to identify trading opportunities.
• Multiple timeframe analysis to understand short-term and long-term market trends.
• Option chain analysis for informed options trading decisions.
• Access to historical data to analyse past performance and make informed investment decisions.
• Multiple asset classes like equities, bonds, and ETFs to diversify your portfolio.
• Mobile app for convenient access to your investments and market movements.

Read more about Shoonya Review.

List of Discount Brokers in India

Broker	Active Clients as of July 2024
Groww	1,14,61,063
Zerodha	77,95,025
Upstox	27,34,211
Paytm Money	7,53,279
5paisa	5,36,009
Dhan	6,81,706
m.Stock	4,83,858
Fyers	2,42,035
Shoonya	1,44,834
Samco	95,178

If you want to read about The Pros and Cons of Discount Broker, then click on the link.

Conclusion

The rise of discount brokers in India has significantly altered the landscape of stock trading, making it more accessible, affordable, and user-friendly.
Each of these brokers has carved out a niche by providing distinct advantages. Groww leads with its seamless, user-centric platform and investment education resources, while Zerodha stands out for its comprehensive range of investment products and advanced trading tools. Upstox appeals to both beginners and seasoned traders with its powerful charting features and curated investment ideas. Fyers impresses with its technical analysis tools and fast order execution, and Shoonya offers an unbeatable zero brokerage structure across all segments.

You can compare all the above brokers at Finology Select and choose the one that suits you best. 
Happy investing! 😁

Frequently Asked Questions

1. Which is best discount broker in India?

The "best" discount broker in India depends on your individual needs and preferences. However, here are some of the most popular and highly-rated discount brokers in India:

1. Zerodha: Known for its low-cost brokerage plans and advanced trading platform, Zerodha is a popular choice among many investors.
2. Upstox: Upstox offers a user-friendly interface and competitive brokerage rates, making it a good option for both new and experienced traders.
3. 5paisa: 5paisa is another budget-friendly broker with a wide range of investment products.

2. Who are the top discount brokers in India?

The top discount brokers in India are:

1. Zerodha: Known for its low-cost brokerage plans and advanced trading platform, Zerodha is a popular choice among many investors.
2. Upstox: Upstox offers a user-friendly interface and competitive brokerage rates, making it a good option for both new and experienced traders.
3. 5paisa: 5paisa is another budget-friendly broker with a wide range of investment products.
4. Paytm Money: Paytm Money is a relatively new player in the market, but it has gained popularity due to its easy-to-use app and integration with the Paytm ecosystem.
5. Dhan: Dhan is a zero-brokerage platform that offers a simple and transparent trading experience.
6. Fyers: Fyers is another discount broker known for its advanced trading platform and low-cost plans.
7. Samco: Samco is a full-service broker that offers a variety of investment products, including stocks, mutual funds, and commodities.
8. Groww: Groww is a popular investment app that offers a simple and easy-to-use interface for investing in stocks, mutual funds, and digital gold.

3. What is the meaning of discount broker?

A discount broker is a type of brokerage firm that offers investment services at a significantly lower cost than traditional full-service brokers. These brokers typically charge lower commissions or flat fees for trades, allowing investors to save money on their transactions.

Key characteristics of discount brokers:

1. Lower fees: They charge significantly lower commissions or flat fees compared to full-service brokers.
2. Limited services: Discount brokers often provide more limited services compared to full-service brokers. They may not offer the same level of personalized advice or research.
3. Self-directed investing: Investors are generally expected to make their own investment decisions without extensive guidance from the broker.
4. Online platforms: Many discount brokers offer online platforms or mobile apps for easy trading and account management.

In essence, discount brokers are a good option for investors who are comfortable making their own investment decisions and want to save money on brokerage fees.