For more than 5 decades till 2010, Indian stock broking space had been working through full-service stockbrokers that charged clients a specific percentage of the trade value as brokerage. For instance, if you traded for a value of ?1,00,000 then you’d be required to pay as high as ?500 for brokerage only for that particular trade.
Furthermore, this has nothing to do with the kinds of profits or losses you make on such trades, the brokerage is a
definite amount that needs to be given to the stockbroker. Thus, it ended up eating a major chunk of profits made by traders and investors on the stock market.
This is where Discount broking concept was introduced in India. In 2010, Zerodha brought this concept and started charging a flat rate of ?20 per executed trade at the intraday level and ZERO brokerage for delivery trades. This was first of its kind of a solution where the stockbroker did not ask you about your trade value. Thus, whether you traded for ?10,000 or ?10,00,000 for a specific trade, the brokerage will stay at maximum ?20 for that particular trade.
Initially, the concept was met with a lot of doubts and scepticism from the traders’ community, thinking how can a stockbroker charge almost nothing in brokerage charges. But the business model was set at volume or scale level.
Gradually, the stockbroking industry in India saw an inflow of numerous such businesses that charged a flat rate or brought subscription-based pricing for unlimited trades and so on.
Today, there are more than 50 discount stock brokers in India with different pricing plans to go along with focus on Technology and customer education.
Here, in this article, we list down 10 best discount stock brokers in India that offer reasonable value to its clients, not just in pricing but in multiple facets of stock trading.
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