Discount stock brokers(also known as online stock brokers or flat brokerage brokers) started in Indian financial market since 2010. Similar to full-service brokers, with discount brokers customers need to link their bank saving account to trading account via NEFT/IMPS to transfer funds.
Online discount brokers offer extremely low and fixed brokerage for a trades. For instance, irrespective of trade turnover, a Zerodha customer never pay brokerage over Rs 20. Hence discount brokers, typically offer HUGE savings in brokerage and hence most active traders ( & high volume traders ) are moving their accounts to Discount brokers.
Although cost effective from brokerage fees perspective, these companies do not provide all services of 3-in-1 brokerage accounts like allowing investment in IPO or having offices customer support centers across India.
Our take on discount stock brokers is that with rising financial literacy among Indians and common man becoming more comfortable with technology, discount brokers will become more popular over the next few years.
Below are detailed review about various online discount brokers in India.