What Is a Broker and a Discount Broker : Who Is the Best Discount Broker in India ?

Broker is an individual serving as a middleman in the entire transaction of buying and selling of securities. Discount broker is an extended version of that term including lowest brokerage charges leading to higher profit margins. In today’s time most discount brokers operate through online mode. Unlike most brokers, discount brokers didn’t give any financial advice but they do provide technical outlook and future projections.

Best Discount brokers have come into light in the past two years. The reason behind that is the number of trading accounts have significantly increased in that course of time. Today the total number of active trading accounts in India stand at 20 million approximately.

There are more than 300 stockbrokers registered with SEBI in India. Among the list of discount brokers specifically the three at the top right now are Zerodha, Upstox and 5 paisa.

These are the ones holding more than 45 lacs of active trading accounts among which Zerodha accounts for 25 lacs trading accounts approximately. In India the lowest rates for brokerage are given by Zerodha and Upstox . Both of them have almost the same brokerage rates but the difference comes at the point of leverage. Zerodha provides more leverage than Upstox and hence it has more reach and is rated the best firm across all the websites.

Zerodha has the leverage margin of upto 28 times in equity intraday which is the highest by any discount broker across India. It has various subsidiary applications dealing with mutual funds, algorithmic trading, news flash and financial education all of those can be linked to one single DEMAT account.