When starting to invest or trade in the stock market, most people focus solely on features, whereas brokerage charges are equally important. Even a small fee can impact your overall returns over time. Therefore, it is essential to compare charges and features before selecting a trading app. If you wish to open demat online, this guide will provide clear and simple information about India’s online trading apps with the lowest brokerage rates.
What Are Brokerage Charges in Online Trading?
Whenever you trade in shares, futures, options, or commodities, the broker charges a fee for executing orders on your behalf; this is known as a brokerage charge. Since this constitutes a significant portion of the total trading cost, it is essential to be aware of it before selecting a trading app.
Understanding How Brokerage Fees Work
Brokerage charges are fees levied by brokers in exchange for providing trading facilities. Additionally, government levies such as STT, GST, stamp duty, and SEBI charges are applied separately. Many brokers also generate revenue from premium tools, margin facilities, and other services alongside brokerage fees.
Types of Brokerage in India
| Segment | Brokerage Structure |
| Equity Delivery | According to the broker, many discount brokers charge ₹0 brokerage. |
| Equity Intraday | According to the broker |
| Futures Trading | A fixed fee per order or a small percentage of the turnover. |
| Options Trading | Fixed brokerage per order/lot applies. |
| Commodity Trading | Fixed or percentage-based fees, depending on the broker. |
| Currency Trading | Low-cost brokerage, typically based on a per-order model. |
| Mutual Funds | ₹0 brokerage on direct mutual funds across most platforms. |
| IPO Applications | Most brokers do not charge a separate brokerage fee for IPO applications. |
Top Online Trading Apps with the Lowest Brokerage Charges in India
- Pocketful
- Shoonya by Finvasia
- Upstox
- Zerodha
- 5paisa
- Angel One
- Fyers
- Alice Blue
- Paytm Money
- m.Stock
Brokerage Charges Comparison of Lowest Brokerage Charges Trading Apps
| Trading Platform | Delivery Brokerage | Intraday Brokerage | F&O Brokerage | Options Brokerage |
| Pocketful | ₹0 | ₹20 or 0.03% per executed order (whichever is lower) | ₹20 or 0.03% per executed order (whichever is lower) | ₹20 per executed order |
| Shoonya | ₹0 | 0.03% or ₹5 per executed order | 0.03% or ₹5 per executed order (whichever is lower) | Flat ₹5 + GST per executed order |
| Upstox | ₹20 per executed order | ₹20 per order or 0.1% (whichever is lower) | ₹20 per order or 0.1% (whichever is lower) | ₹20 per order or 0.05% (whichever is lower) |
| Zerodha | ₹0 | 0.03% or ₹20 per executed order | ₹20 per executed order | ₹20 per executed order |
| 5paisa | ₹20 per executed order | 0.03% or ₹20 per executed order | 0.03% or ₹20 per executed order (whichever is lower) | ₹20 per executed order |
| Angel One | ₹20 per order or 0.1% | 0.03% or ₹20 per executed order | ₹0 brokerage up to ₹500 for first 30 days, then ₹20 per order | ₹0 brokerage up to ₹500 for first 30 days, then ₹20 per order |
| Fyers | ₹20 per order or 0.3% | 0.03% or ₹20 per executed order | ₹20 per order or 0.3% | ₹20 per executed order |
| Alice Blue | ₹20 per order or 2.5% | 0.05% or ₹20 per executed order | ₹20 per executed order | ₹20 per executed order |
| Paytm Money | ₹20 per order or 2.5% | 0.05% or ₹20 per executed order | ₹20 per order or 0.02% | ₹20 per executed order |
| m.Stock | ₹0 | ₹5 per executed order | ₹5 per executed order | ₹5 per executed order |
Overview of Online Trading Apps with the Lowest Brokerage Charges in India
1. Pocketful
Pocketful is a modern discount broker offering low-cost trading and investment services. It is particularly known for its Margin Trading Facility (MTF) interest rates starting at 5.99%, placing it among the options offering low interest rates for MTF. You can also apply IPO online with no charges on it with detailed information & separate sections for Mainboard & SME IPOs.
2. Shoonya
Shoonya by Finvasia came out in 2021 from the Finvasia Group. It’s one of those rare Indian brokers offering a true zero-brokerage model for equity, intraday, F&O, and commodities.
3. Upstox
Upstox started back in 2009 and stands as a top discount broker in India. It’s best known for low-cost trading, high-tech platforms, and a really smooth user experience.
4. Zerodha
Launched in 2010, Zerodha completely changed discount broking in India. It remains a massive favorite thanks to cheap brokerage rates, powerful platforms, and solid trust among investors.
5. 5paisa
5paisa was established in 2016. It is a digital-first brokerage platform that offers trading, investment, mutual fund, and other financial services all in one place.
6. Angel One
Angel One began operations in 1996 as Angel Broking. With years of experience, it is now counted among India’s leading brokers for trading, investment, and research services.
7. Fyers
Fyers was established in 2015 and is a platform designed specifically with active traders in mind. Advanced charting and trading tools are its defining features.
8. Alice Blue
Alice Blue has been providing broking services since 2006. It is popular among investors for its low-brokerage model, multi-segment trading capabilities, and technology-driven platform.
9. Paytm Money
Paytm Money started as an investment platform in 2017. It later expanded into stock broking services and is now a well-known name for both investment and trading.
10. m.Stock
m.Stock was launched by the Mirae Asset Group. It is known for low-cost trading and flat-fee plans that appeal to active traders.
How to Reduce Your Overall Trading Costs
By adopting the right strategy, you can significantly reduce your trading costs.
Choose a Low-Cost Broker: Select a stockbroker that offers low brokerage rates and a transparent fee structure.
Avoid Excessive Trading: Frequent, unnecessary trading can lead to avoidable charges. Focus only on promising trading opportunities.
Compare Total Charges: Compare not just the brokerage fees, but also AMC, GST, and other applicable charges.
Use Online Investment Features: Many trading apps offer features like Apply IPO Online at no extra cost, helping you save both time and money.
Conclusion
Choosing a low-brokerage trading app can reduce your overall investment costs and increase the likelihood of better returns in the long run. However, when making a decision, consider not just the brokerage fees but also the platform’s features and reliability. If you wish to start investing, open demat online first and easily avail yourself of features like Apply IPO Online whenever needed.
FAQs
Q1. Which broker has the lowest brokerage charges?
This depends on your trading needs and the segment you choose.
Q2. Is zero brokerage really free?
Yes, but other government fees may apply.
Q3. How can I open a demat account online?
You can open an account online using your PAN, Aadhaar, and bank account details.
Q4. Can I apply for an IPO online through trading apps?
Yes, most brokers offer this feature.
Q5. Are there charges other than brokerage?
Yes, GST, STT, and other fees are also applicable.
