Day trading is all about speed and alertness. One second of delay can turn your profitable position into a huge loss.
One thing that matters along with your trading strategy in intraday trading is your stock broker. Unless your broker is reliable, you can not succeed in intraday trading.
Today we are going to discuss about best broker for intraday trading in India and compare their offerings to their customers.
What is Intraday Trading?
Intraday trading sometimes referred as daytrading where you open the position in the morning and close it before the end of trading hours.
Best part of intraday trading is, you are not carrying any overnight risk and will have peaceful sleep.
Think of the positional traders who held the overnight position during big events like election results or news like demonetisation.
But the biggest disadvantages of day trading is , one has to be alert for the entire duration of market. You never know when the opportunity can come along . Similarly, a sudden move against you should be addressed as per your strategy.
Also, brokerage plays a crucial role for intraday trader as he normally trades more frequently for smaller profit target compared to positional trader.
Thus, it make more sense to choose good stock broker to carry out intraday trading.
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Qualities expected from a Good Intraday Broker:
When you select your broker, please evaluate each one of them with below parameters,
- Comparatively low Brokerage
- Superior trading platforms
- Decent exposure
- Supportive Customer care
Brokerage and exposure are measurable with number and it is very easy to compare two brokers. However, please keep in mind that, cheap is not always best.
Don’t give too much importance only for brokerage part. Suppose, if the trading platform hangs at crucial juncture and because of that you loose heavily, then what is the point of saving few pennies going after lowest brokerage.
Also you should be able to quickly access their call and trade facility whenever you problem of internet, system or platform issues itself.
Based on the above parameters, here is the list of top 5 intraday brokers
Zerodha has grown tremendously after its launch in year 2010. Now it is giving tough competition to well established brokerage houses.
It is the first discount brokerage firm in India and many other brokerage firms followed it footsteps but not all are as successful as Zerodha.
Some of the features of Zerodha in daytrader prospective are,
- Lowest brokerage: Rs 20 per executed order or 0.01% of traded value whichever is lower.
- Outstanding in house trading platforms like Zerodha Kite and PI
- Zerodha also has education initiative called Zerodha University.
- Margin of 3 to 20 times depending upon the risk and volatility of stock
You can understand more about them in our detailed review of Zerodha Brokerage.
Opening account with Zerodha is smooth if you have Aadhaar number. For more assistance you can request a free call back from them.
Upstox was previously known as RKSV securities. They started their business slightly after Zerodha. Upstox are based out of Mumbai.
They are the first one to introduce Aadhaar based account opening.
Upstox don’t have monthly fixed amount and unlimited trading plans where you pay a fixed brokerage and trade unlimited.
- Upstox provide upto 25x exposure for the stocks which are listed in F&O segment and only 2x for others
- Trading platform is good for intraday trading with lot of features
- Tools to calculate the margin requirement
You can understand more about them in our detailed review of Upstox Brokerage.
Like Zerodha, Tradejini is also located at Bangalore. The brokerage structure is also similar to that of Zerodha.
Best part of Tradejini is they offer a one full month of Zero Brokerage for their new customer.
- Exposure provided is 4 to 10 times
- The tools offered by them is from third parties (NEST Trader, which is very stable platform)
- Customers have reported satisfaction over their customer support
You can understand more about them in our detailed review of Tradejini Brokerage.
Trade Smart Online is discount brokerage arm of VNS capital. VNS is based out of Mumbai and they are present in stock market for more than two decades.
They have both Flat brokerage plan and Percentage Brokerage plans. As a day trader you need to select the Flat Brokerage Plan.
Flat per order plan is Rs 15 per executed order . They provide margin upto 30X (on cover orders) and 10X on MIS orders.
You can understand more about them in our detailed review of TradeSmartOnline Brokerage.
#5 SAS Online
SASOnline is probably one of the stock broker offering cheapest brokerage. They are based out of NewDelhi.
Rs9 per order is unbeatable and they also have monthly plans of Rs999.
- They provide margin of 5 to 9 times for F&O Stocks
- Again, SASOnline also provde the NEST trader like Tradejini
- Their customer care is OK-ish
You can understand more about them in our detailed review of SASOnline Brokerage.
Our first suggestion is to not to relay too much on Brokerage part. Never trade through the full service brokers who charge you on percentage basis. It is very difficult if not impossible to stay profitable after the brokerage is deducted.
Contact each of the above brokers and have chat with them to understand what they have to offer to them. With all the data of Stock Brokers to compare, you can decide on the intraday broker who will be better suited for you.