Best Stock Broker For Intraday Trading

Written By: Manish Sharma

Last Updated: February 23, 2024

Category : Investment, Stock Market
Best Stock Broker For Intraday Trading

In the fast-moving world of day trading in India, it’s essential to find the right stockbroker. This can make a big difference in your success. You want a broker that gives you advanced tools and charges low fees so that your trades can be as profitable as possible.

There are many options to choose from, so it’s important to pick carefully, looking at speed, reliability, and cost.

This guide will help you find the best stockbrokers for day trading in India. It will assist you in making a well-informed decision to improve your trading journey. Whether you’re an experienced trader or just getting started, the right broker can lead you to success.

Factors to Consider When Choosing a Stock Broker

Choosing the right stock broker is important for your success in day trading. It’s not just about selecting any broker; it’s about choosing one that fits your trading requirements and objectives. Let’s explore important factors that you should think about.

Brokerage Charges

Whenever you buy or sell stocks on the stock market, you have to pay a fee called brokerage charge. These charges can have a big effect on how much money you make, especially if you do a lot of trading in a single day. Different brokers have different ways of charging these fees – some ask for a fixed amount for each trade, while others take a percentage of the trade’s value. For example, a broker who charges ₹20 for each trade might be better for you if you trade a lot, compared to one who takes 0.05% of the trade’s value.

Here’s a brief comparison to illustrate:

BrokerCharge TypeCost
AFlat Fee₹20 / trade
BPercentage0.05% / trade

While Broker A seems more appealing for larger trades, Broker B could be beneficial for smaller trades, underscoring the importance of aligning brokerage charges with your trading volume.

Margin Facilities

When you do margin trading, you can trade more stocks than what you can buy with your current account money. This can give you the chance to make more profit, but it also means you could have bigger losses. Different brokers offer different margin options, which can really change how you trade. For example, Broker X might let you trade up to 10 times the stocks you can afford, while Broker Y might only allow 5 times. This gap can really impact how much you can trade.

It’s important to not just focus on how big the margin is but also to understand the extra details that come with it, like the interest you have to pay on the borrowed money and the time limit for closing margin positions.

Trading Platforms

When you choose a trading platform, it can really impact how you make decisions and how successful you are with day trading. A good platform should give you real-time information, easy-to-understand charts, fast order processing, and stay stable even when there are a lot of trades happening.

Let’s say you’re considering a platform from Broker Z that’s known for its advanced tools and automatic trading features. On the other hand, there’s a platform from Broker W that’s simpler but may slow down when there are many trades. Your choice depends on how experienced you are and your preferred way of trading. If you’re new, you might like something easy to use, while if you’re experienced, you might want more detailed analysis and options to customize.

To find the best broker for day trading in India, you should look at how much they charge for their services, what margins they offer, and how good their trading platforms are. These things can really impact how successful you are in trading, so it’s important to pick a broker that fits your needs and style.

Best Online Brokers for Intraday Trading

When you’re doing day trading in India, picking the right stock broker can really impact how your trading goes and how much money you make. With so many choices out there, it’s important to select a broker that matches how you trade and what you want to achieve. Let’s explore some of the top online brokers that work well for day trading.

Zerodha

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

Zerodha is the biggest stockbroker in India and provides a strong platform for people who trade within the same day. It is famous for its low charges and useful trading tools. When you trade with Zerodha, you pay a fixed fee of ₹20 or 0.03% (whichever is less) for each order you make, which saves you money. Their trading platform, Kite, is well-liked for being easy to use and giving you real-time information, helping you make quick decisions when trading within the day.

Pros of Zerodha:

  1. Low Charges: Zerodha is known for its low fees, with a fixed fee of ₹20 or 0.03% per order.
  2. Useful Trading Tools: The platform provides useful trading tools to assist traders.
  3. Easy-to-Use Platform: Zerodha’s trading platform, Kite, is well-liked for its user-friendly interface.
  4. Real-Time Information: Users can access real-time information to make informed trading decisions quickly.

Cons of Zerodha:

  1. Limited Research: Zerodha may have limited research tools compared to other platforms.
  2. Customer Service: Some users have reported issues with customer service responsiveness.
  3. Margin Funding: Zerodha’s margin funding options may not be as competitive as other brokers.
  4. Technical Glitches: Like any platform, Zerodha may experience technical glitches that can disrupt trading activities.

Upstox

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

Upstox, a top player in this field, gives you great rates for trading and a nice trading platform. Just like Zerodha, Upstox doesn’t charge any fees for holding onto stocks, and for other types of trades, they only ask for ₹20 each time. Their Pro Web platform and mobile app are made to be quick and easy to use, with fancy tools for looking at charts and making your own signals.

Pros of Upstox:

  1. Competitive rates for trading.
  2. No fees for holding onto stocks.
  3. Low fees of ₹20 for other types of trades.
  4. User-friendly Pro Web platform and mobile app.
  5. Quick and easy-to-use interface.
  6. Advanced tools for analyzing charts and creating signals.

Cons of Upstox:

  1. Limited customer support options.
  2. Reports of occasional technical glitches on the platform.
  3. May not offer as many advanced features as some other platforms.
  4. Limited investment options compared to some competitors.

Angel One

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

Angel One, formerly known as Angel Broking, is a popular brokerage firm in India that offers a wide range of trading and investment services. The information gathered from various sources provides a comprehensive overview of the pros and cons associated with Angel One. Here’s what you need to know:

Pros of Angel One:

  1. Trading Stocks for Free: With Angel One, you can trade stocks without paying any charges for a lifetime. This is great for those who plan to hold onto their stocks for a while.
  2. No Account Opening or Maintenance Fees: You can open an account on Angel One for free, and they won’t ask you for any yearly maintenance fees. This helps you save money in the long run.
  3. Suitable for Everyone: Whether you’re new to trading or have been doing it for a while, Angel One is a good choice. It’s easy to use for beginners and has advanced features for experienced traders.
  4. Competitive Pricing: Even though Angel One offers advanced tools, their trading costs are quite competitive. This is beneficial for active traders who want to keep their costs low.

Disadvantages of Angel One:

  1. Flat Fee System: While a flat fee works well for active traders, it may not be the best option if you trade infrequently or in small amounts.
  2. Complexity for Newcomers: The variety of tools and features on Angel One might be overwhelming for beginners who are not used to trading platforms yet.
  3. Limited International Market Access: Angel One mainly focuses on the Indian market. If you want to trade extensively in international markets, your options might be limited.

HDFC Sky

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

HDFC Sky, a relatively new entrant, is backed by the financial giants HDFC. It provides a unique blend of traditional banking safety and modern trading technology. While it’s more suited for investors with a high volume of trades, its advanced tools and research support make it a viable option for intraday traders looking for reliability and comprehensive market insights.

Pros of HDFC Sky:

  1. Backed by the financial giants HDFC.
  2. Provides a unique blend of traditional banking safety and modern trading technology.
  3. Advanced tools and research support available.
  4. Viable option for intraday traders.
  5. Comprehensive market insights offered.

Cons of HDFC Sky:

  1. More suited for investors with a high volume of trades.
  2. May not be as suitable for casual or infrequent traders.

Sharekhan

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

Sharekhan is one of India’s older brokerage firms, known for its excellent customer service and educational resources. While its brokerage fees are slightly higher, the quality of service and the depth of research material available make it a good choice for traders who need continuous support and a wide array of resources to make informed decisions.

Pros of Sharekhan:

  1. Wide Range of Services: Sharekhan offers a comprehensive range of services including equity trading, derivatives, mutual funds, IPOs, and more.
  2. Educational Resources: They provide extensive research reports and educational resources, making it easier for both beginners and experienced investors to make informed decisions.
  3. User-Friendly Platforms: Sharekhan offers multiple trading platforms that are user-friendly and cater to both novice and experienced traders.
  4. Physical Presence: Unlike many online-only platforms, Sharekhan has numerous branches across India, allowing for in-person support and services.

Cons of Sharekhan:

  1. Brokerage Fees: The fees might be higher compared to discount brokers, which can be a significant factor for high-volume traders.
  2. Complexity for Beginners: While it offers many resources for beginners, the wide array of options and platforms might overwhelm new investors.
  3. Customer Service: Some users report varying levels of satisfaction with customer service, which can be a crucial aspect of your trading experience.

5paisa

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

5paisa offers a compelling mix of low-cost trading and powerful analysis tools, targeting price-conscious intraday traders. With a flat fee of ₹20 per trade across all segments, it’s one of the most affordable options. The platform provides easy-to-use technical analysis tools and a robust mobile app, enabling traders to stay connected to the markets on the go.

Pros of 5Paisa

  • Low Brokerage Fees: 5Paisa charges Rs 10 per trade, which is lower than what traditional brokers charge. This is good for both occasional and regular traders.
  • Easy-to-Use Trading Platforms: 5Paisa offers user-friendly platforms for trading that work well on different devices. This makes trading smooth and efficient for you.
  • Various Investment Options: Besides stocks, 5Paisa lets you invest in IPOs, mutual funds, and other options. It’s a good choice if you want to diversify your investments.

Cons of 5Paisa

  • No 3-in-1 Account: Unlike some other companies, 5Paisa doesn’t provide a 3-in-1 account. This might not be convenient for you if you prefer managing all your financial services in one place.
  • High Demat Debit Transaction Fees: In their Optimum plans, 5Paisa charges Rs 25 or 0.025% as demat debit transaction fees, which is more than what some discount brokers charge. This can add up, especially if you trade frequently.
  • Margin Funding Without Notice: Sometimes, 5Paisa offers margin funding to customers without informing them beforehand. This could result in unexpected financial responsibilities for you as an investor.

Motilal Oswal

Best Stock Brokers For Intraday Trading
Best Stock Broker For Intraday Trading

Motilal Oswal is well-known for its great research skills and custom service. Even though their charges are a bit high, they give personalized advice and special help, which is good for traders who need lots of research and guidance. Their trading platform has live data analysis, advanced chart tools, and support for automatic trading, which is great for serious day traders like you and me!

Pros of Motilal Oswal:

  • Free Demat Account Benefits: Motilal Oswal gives you a free Demat account, so you don’t have to worry about paying to open or maintain it. This is great, especially if you trade every day and want to keep your costs low.
  • Brokerage Plans: Motilal Oswal has different brokerage plans, including a value pack plan. These plans can offer you good rates, but you may need to pay upfront.

Cons of Motilal Oswal:

  • Service Quality Concerns: Some customers have mentioned issues with the service quality, like unauthorized deductions from accounts. Good customer service is crucial for day traders like you who need quick solutions to problems.
  • Brokerage Costs: Some users feel that the brokerage fees are high, especially when compared to brokers like Zerodha. Since you trade frequently, high fees can affect your profits.

Additional Considerations:

  • Trading on Equity Market: Motilal Oswal provides information on equity trading, focusing more on long-term investments. Understanding the market trends is key for day traders like you.
  • Comparative Options: It’s wise to compare Motilal Oswal with other brokers such as Zerodha to see the differences in services, costs, and user experiences. This comparison will help you choose a broker that suits your trading style and preferences.

To pick the best broker for your day trading, you should look at things like fees, trading tools, research quality, and support. When you check out what each broker has, you can choose the one that works best for you and your trading style.

Pros & Cons of Day Trading

Day trading in the stock market could seem like an enticing pathway to riches for many, especially in India’s volatile market. But, it’s crucial to weigh its advantages and disadvantages before diving in.

The Bright Side

Lower Overnight Risk: Unlike long-term investments, day trading confines all activity within a single day, meaning you aren’t exposed to overnight price fluctuations. This element can be particularly appealing in the Indian market, known for its sudden shifts due to economic news released after the market closes.

Potential for Quick Profits: If you’ve got a knack for predicting market trends, day trading can offer substantial returns much faster than traditional investing. For instance, traders who capitalized on the rapid movements of stocks like Reliance and TCS during earnings announcements have seen significant gains in very short periods.

Enhanced Learning Curve: Day trading forces you to learn quickly. Every day is a new challenge, requiring an in-depth understanding of market movements, technical analysis, and the influence of global events on the Indian market. This can greatly accelerate your understanding of the financial markets.

The Flip Side

High Stress and Risk: Day trading is not for the faint-hearted. It requires making quick decisions, often in a high-pressure environment. The risk of loss is substantial, and many day traders incur heavy losses before they learn to become profitable. Emotional discipline and strict money management are essential to succeed in this arena.

Requires Significant Time Investment: Successful day trading isn’t a part-time job; it requires your full attention during market hours. Monitoring price movements, news, and executing trades swiftly is critical. This can be challenging for individuals who cannot dedicate this level of time and focus.

Cost Implications: Each trade carries a cost, including brokerage fees and taxes. Frequent trading increases these costs, and they can eat into your profits significantly over time. Here’s a quick glance at how costs can impact profits:

ActivityCost Implication
Brokerage FeesHigher due to increased transaction volume
Short-Term Capital Gains TaxApplicable at a higher rate than long-term investments

Conclusion

Choosing the best stockbroker for day trading in India is crucial for your trading journey. With my insights, you can navigate the complexities of day trading better. Remember, the right broker should match your trading style and help you grow as a trader with useful tools and resources.

When you start this journey, look for brokers with clear fees and helpful educational materials. This will help you manage risks and take advantage of day trading opportunities.

Frequently Asked Questions

What is day trading in the Indian stock market?

Day trading involves buying and selling stocks within the same trading day in the Indian stock market. Traders aim to capitalize on short-term market fluctuations to turn a profit.

What are the benefits of day trading?

Day trading offers several advantages: lower overnight risk since positions are not held over, the potential for quick profits by leveraging market trends, and a fast-tracked learning experience in financial markets.

What are the drawbacks of day trading?

The drawbacks of day trading include high stress and risk due to rapid market changes, a significant time investment as it requires active market hours monitoring, and various costs, including brokerage fees and taxes, which can diminish profits.

Is day trading suitable for everyone?

No, day trading is not suitable for everyone. It demands a thorough understanding of market dynamics, an individual’s risk tolerance, the ability to commit substantial time during trading hours, and a comprehensive strategy to manage potential financial losses.

Can day trading provide quick profits?

Yes, day trading has the potential to provide quick profits by exploiting short-term market trends. However, it’s important to note that it comes with high risk and there’s no guarantee of profit.

Best Stock Broker For Intraday Trading

DON'T MISS UPDATES!

Stay in the loop! Get only important updates over email. We promise No Spam!!

Zerodha Ad

Loved this? Spread the word


About the Author

I'm tech-savvy, loves to write about saving, investing and proper financial planning. Also, I am a blogger, share everything with 100% transparency and the best of my knowledge.

Manish Sharma

Related posts

Best Stock Brokers For NRI Trading in India

Read More
Best Stock Brokers For NRI Trading in India

Zerodha vs Upstox: Finding the Best Stock Broker

Read More
Zerodha vs Upstox: Finding the Best Stock Broker

Best Investing Apps in India

Read More
Best Investing Apps in India
Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}