Your inclination is also moving towards the stock market but you don’t know how to start? Let me tell you that before trading in the stock market, you will need a demat account or just like you open a bank account.
For opening of a Demat account you can take help of SEBI approved brokers. I have given below the list of some brokers through which you can open your demat account. But before opening a Damat account, you should check their charges and choose the right broker keeping in mind your expenses.
For new retail investors, I have listed below the five biggest broker apps along with their fees.
Charges breakup of Stock brokers
| Broker | Equity delivery | Equity intraday | F&O – Futures | F&O – Options | Annual Maintenance Charges (AMC) |
| Zerodha | 0 fee | 0.03% or Rs. 20 per order whichever is less | 0.03% or Rs. 20 per order whichever is less | flat Rs. 20 per order | 300 + 18% GST (annually) and account opening fee is Rs 200 |
| Groww | 0 fee | 0.05% or Rs. 20 per order whichever is less | flat Rs. 20 per order | flat Rs. 20 per order | 0 fee |
| Upstox | 2.5% or Rs. 20 per order whichever is less | 0.05% or Rs. 20 per order whichever is less | 0.05% or Rs. 20 per order whichever is less | flat Rs. 20 per order | 0 fee |
| Dhan | 0 fee | 0.03% or Rs. 20 per order whichever is less | 0.03% or Rs. 20 per order whichever is less | flat Rs. 20 per order | 0 fee |
| Angel One | 0 fee | 0.05% or Rs. 20 per order whichever is less | 0.25% or Rs. 20 per order whichever is less | 0.25% or Rs. 20 per order whichever is less | 0 fee |
Remember that all these brokers are charging Rs 20, one order of derivatives like futures and options, that means Rs 20 on buy and Rs 20 on sell separately, totaling to Rs 40 (40 rupees) and then on top of that STT, Stamp Duty, Transaction charges, SEBI charges and then on total. GST as well as BSE and NSE charges are different.
So, calculate your charges on buy and sell orders separately and estimate accordingly. Brokers who charge 0 on equity also have other charges. So it is not completely ZERO charges.
5 factors to choose right broker
1. Brokerage charges:
if you are a beginner and cannot lend yourself in paying high brokerages, you should choose stock broker wisely considering all charges. As you and I are retail investors (who invest amounts in the market), it is not comfortable to give a big portion of investment and profit as charges.
2. Transparency and Customer Support:
Choose that stock broker who provides full transparency in their fee structure and gives full charges statement on your order. Their customer support should be accessible through chat, phone and email. So that if any issue arises while placing market orders, your issues get resolved within no time.
3. Easy-to-use and responsive app:
You and I are retail investors and who have no big knowledge to buy and sell in the stock market. Check each broker app interface or website interface to understand how much it is easy to place the order and exit the position. Easy navigation makes investors more comfortable. It is very important to have an app or website without many glitches as placing the order and exit the position for Intra-day trades and derivatives can affect your decision and ultimately will lead to financial loss.
4. Margin and Leverage:
wisely check the broker’s margin trading facilities and leverage options, if applicable. Understand the margin requirements, leverage options provided, and associated risks involved in trading on margin, and ensure that the broker offers suitable risk management tools like stop-loss, limit order and margin monitoring features.
5. Educational Resources:
Check the brokers who continuously promote learning and financial literacy. It means they care about your investments. The availability of educational resources, tutorials, webinars, and training programs offered by the broker will enhance your trading skills and financial literacy. Having the educational materials can empower investors to make informed decisions and navigate the complexities of the financial markets effectively. This will make you a long-term investor in the market.
