I switched from my stock broker Sharekhan to Zerodha in year 2012. The main reason for opening account with Sharekhan in 2007 was that they conduct workshops for beginners and I can learn something about markets.
Once I learnt basics, my concern was to save brokerage which I was paying heavily to Sharekhan. Nevertheless , I will discuss some of the best stock brokers in India for beginners in 2021 who can help neophytes to understand fundamentals of stock market, investing and trading.
In 2007, we had limited internet access. If I i would have to choose the stock broker today, I think i would have not opened account with Sharekhan at first place as most of the information is available freely online.
But still for the benefits of those individuals who are not very tech savvy or prefer physical interaction with their stock broker, I am listing some of the best stock brokers who are good for newbies.
Characteristics of Best Share Brokers in India for Beginners
Once you become experienced, then you only have to worry about brokerage and features of trading platform of the broker.
But as a novice to share market. you may be looking for some characteristics of broker who may help you putting your first step ahead.
My advice for you to choose,
- A stock broker who helps you in understanding the basics of stock market and associated risk within
- A Broker who offers reasonable and competitive brokerage fees
- Has good reputation among investors/traders
- SEBI registration is must and make sure he displays it on his website
- Preferably has physical office near you, if not, has any other mechanism to address your issues (Some broker create online tickets to provide solution and they track it till client satisfaction )
- Supports seamless funds transfer between trading account and bank account
Best Stock Broker For Beginners In India 2021
Now lets us discuss in detail about the stock brokers who I consider good for beginners.
Here is the list of Best stock brokers in India for beginners,
- 1. Zerodha Stock Broker
- 2. Sharekhan Stock Broker
- 3. ICICI Direct Stock Broker
#1 Zerodha Stock Broker
Zerodha is my favorite stock broker and I personally use them.
I switched from Sharekhan to Zerodha in year 2012. I found that brokerage of Sharekhan was eating up most of my profit. This switch itself has helped me in tons of savings.
I will explain in detail with an example about the savings in coming section.
Also Read: In depth Review of Zerodha and its offerings
Though they do not conduct any workshops etc but they have overcome that shortcoming through Zerodha Varsity.
Zerodha Varsity is an educative initiative from Zerodha to everyone free of cost. It is an online module which has in depth information about Indian stock markets ranging from introduction to most advanced topics such as derivatives, trading psychology and risk management etc.
They also interact with traders through their Youtube live sessions.
Unlike other stock brokers where teachings are exclusive to their clients, Zerodha Varsity is open to general public too.
They do not offer any research reports, recommendations and tips. They just facilitate execution of your trade in stock exchange like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
I have seen some trades getting tips from other brokers but trade using Zerodha just to save brokerage.
KITE is the name of the trading platform offered by them It is believed to be one of the best Indian share trading platform.
Zerodha Brokerage Charges
How much Brokerage can be saved with Zerodha?
Now let us see how much savings a investor and a trader can do if he opens an account with Zerodha.
Because of the huge savings and the quality of products that Zerodha offers, they are able to overtake the likes of ICICI Direct and Sharekhan to become India’s largest stock broker within 8 years.
For Investor:
If you plan to invest Rs 10 Lakh, with 0.55% brokerage (ICICIDirect charges this much!), you have to shell out Rs5,500 in brokerage itself where as you pay nil in case of Zerodha (Investments are free at Zerodha).
Hence there will be 100% savings in brokerage charges compared to brokers like ICICI Direct.
For Trader:
Now let us see for intraday and Futures traders, how much can be saved.
Let us assume you buy Rs 10lakh and sell 10lakh worth of shares daily. That means in around 20 trading days of month it will be 400 lakhs.
ICICI Direct charges 0.0275% hence the brokerage charges per month is Rs400Lakh * 0.0275% which is Rs 11,000.
So yearly it would be,
Rs11,000 * 12 months = Rs 1,32,000
Now Zerodha charges Rs 20/trade for intraday. In Zerodha, brokerage is not based on trade value. For each order they charge Rs20 irrespective of trade value.
Hence per day it would be Rs 40 (Rs20 for buy and Rs20 for sell) and for each month it would be 20* Rs40 = Rs 800
So per year it is Rs 800 * 12 months = Rs 9,600
Hence, traders can save more than 90% of brokerage and indirectly add to their profit
Zerodha Account Opening Charges
- Accounts opened online : Rs 200
- Accounts opened by submitting the forms : Rs 400
Zerodha Account opening is completely online and 100% paperless if your mobile number is linked to aadhar number. It can be opened in 15 min. Please click here for step by step procedure of opening Account with Zerodha.
SaveRs200: One can save Rs 200 when account is opened online. You can click on below button to directly go to their account opening page
#2 Sharekhan Stock Broker
Sharekhan is third biggest stock broker after Zerodha and ICICI Direct.
You can find their outlets in all major cities and towns of India making them easily accessible.
They provide free online class rooms for newcomers through their Online Trading Academy (OTA). Also they conduct seminars and workshops regularly which are considered suitable for learners.
Read : Detailed review of Sharekhan and their offerings
But unfortunately their brokerage charges is one of the highest in India.
The delivery brokerage is 0.5% of traded values. Hence if you invest Rs10 lakhs, one need to shell out Rs 5000 in terms of brokerage.
(If you dont know what is delivery trade: If you buy shares today and don’t sell it on same day it is called delivery trade as you are taking delivery of the shares to the demat account. If both buy and sell transaction done on same day then it is called intraday trading)
Because of this exact reason, I switched to Zerodha where delivery transaction is free. However, intraday trading is Rs20/trader. Still this is way below than that of Sharekhan
Sharekhan offer trading platform called Trade Tiger (TT).
Sharekhan Account Opening Charges
- Trading Account opening fee : Zero
- Trading Account Maintenance Charges (AMC) : Zero
- Demat Account opening fee: Zero
- Demat Account Maintenance Charges (AMC) : Rs 400 per year (Free for first year)
Sharekhan Brokerage Charges
#3 ICICI Direct Stock Broker
ICICI Direct are pioneer in popularizing online trading in India.
Promoted by parent bank ICICI Bank, they command higher trust among the investors.
Big advantages of ICICI Direct is that, it is a 3-in1 demat account. That means, savings bank account, trading account and demat account are integrated since all are provided by same company. It results in seamless movement of funds.
Read : Detailed review of ICICI DIrect and its offerings
ICICI Direct also conducts workshops and seminars for their clients regularly.
However, brokerage charges of ICICI Direct too is on higher side. I am not a big fan of brokerage houses backed by banks. Because their main business is banking. Pure brokerage house tend to provide good service as their main business is stock broking.
ICICI Direct offer Trader Racer as their trading platform.
ICICI Direct Account Opening Charges
- Trading Account opening fee : Rs 975
- Trading Account Maintenance Charges (AMC) : Zero
- Demat Account opening fee: Rs 100
- Demat Account Maintenance Charges (AMC) : Rs 500 per year (Free for first year)
Best Indian Stock Broker for Beginners – Final Thoughts
If you compare stock brokers who I have mentioned above, Zerodha seems to be clear choice.
Offcourse other brokers handhold the beginners. However, in my opinion it is no longer required as it was in previous decade.
Every information is available on internet for free and Zerodha Varisty is more than adequate to understand any topic. Zerodha employees answer any questions if you post over there.
Hence paying exorbitant brokerage charges in anticipation of any help is not justifiable in this era.
So in my opinion, Zerodha seems to be best Stock Broker in India for Beginners. Please share your thoughts through comments.
