If you’re based in India, selecting a day trading broker that meets your individual needs isn’t straightforward. There are over 70 online brokers in India, and many more operating globally – how do you know which broker to choose? Here we list the best day trading brokers in India with detailed reviews.
Despite a population of over 1 billion, there are only 20 million individual trading accounts registered to Indian citizens and far fewer brokers. That means if you’re on the search for good online brokers in India you may need to look further afield. Use the day trading discount brokers and accounts comparison table below.
How To Compare Online Brokers In India
With the Bombay Stock Exchange (BSE) alone turning over half a billion dollars in day trading revenue, it’s no surprise there’s been a surge in the number of individuals turning their hand to intraday trading in India. But to do that, you’ll need to choose between the ever-increasing number of day trading brokers that are available to Indian traders.
Make sure you shop around before you sign up for a trading account. Everyone has different needs. The cheapest online brokers in India may be ideal for someone looking to implement a bot that will make hundreds of trades a day.
However, if you’re making fewer trades but require serious charting and back-testing capabilities, you may be better suited to a broker on the other end of the price scale.
Whether you’re choosing an Indian stockbroker or a broker from elsewhere, there are several important factors to consider.
Assets & Markets
Indian Stocks
Large publicly traded companies in India are listed on either the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).Trading takes place between 9:55 am and 3:30 pm (IST), Monday to Friday.If you’re interested in trading Indian stocks, make sure you open an account with a broker that offers access to Indian equities.
It’s also worth checking whether the broker offers access to any other assets that you’re interested in:
- Cryptocurrency – The crypto market is booming in India.An estimated 8 million investors hold $1.4 billion in investments such as Bitcoin.Retail traders in India can purchase digital currencies from local brokers or global exchanges, such as Binance.
- Forex – Forex trading is only legal at certified brokers.Also, local laws stipulate that currency trading must include Indian Rupee (INR) as the base currency.
This measure was introduced to help stop the Indian Rupee from weakening against the US Dollar.
Other authorised currencies to trade against the INR include the EUR and GBP.
Commodities – Online commodity trading in India takes place in either spot markets or futures markets. The most common way to trade commodities in India is through futures contracts. This is an agreement to buy or sell a commodity in the future at an agreed date. The main commodity exchanges include The National Commodity & Derivatives Exchange Limited (NCDEX), the Multi Commodity Exchange of India Limited (MCX), and The Indian Commodity Exchange Limited (ICEX).
Binary options – The legal status of binary options trading in India is a grey area. There are no licensed binary options brokers, so you will need to open an account with an offshore company. Offshore brokers that accept online traders from India include IQ Option and Olymp Trade.
Fees
Online brokers in India are normally split into two categories; full-service brokers and discount brokers. Traditional full-service brokers typically provide retail trading services plus additional features to enhance the experience, such as education and expert advisors. Charges can climb to 0.50% on all intraday trades. Discount brokers usually charge a flat fee or discounted rates for all orders with limited additional assistance.
There’s no use investing all your time and energy into an effective strategy only to waste money on excessive costs, so look for a straightforward price structure with no hidden fees.
Other factors to consider include:
- Margin – This is effectively a loan that will allow you to capitalise on future price movements.
Regulation
Whilst not mandatory, choosing online brokers in India that comply with local laws is advisable.
The Securities and Exchange Board of India (SEBI) monitors and regulates the capital and securities market. This is an established regulator that’s been overseeing online brokers in India since 1992. It is the principal regulator of stock exchanges in the country and all financial intermediaries participating in the securities market.
The main functions of SEBI include; providing trader protection, prohibiting fraudulent and unfair practices, and ensuring operational overview of all participating firms. The SEBI has the authority to ban online brokers in India from offering trading services.
It is important to check if a provider has been blacklisted by SEBI before opening an account.
Tools
The platform offered by the broker is as important as the fees charged. It will be your gateway to the trading world and where you will spend a significant part of your day. You need a platform that is sleek and easy to navigate. It should have all the technical charts and tools that you need to trade effectively. Market research capabilities may also be included to help you screen and identify assets to trade.
Leverage
SEBI has implemented a 75% trade peak margin in 2021, with plans to raise it to 100% in the future to protect retail investors from volatile financial markets. Any online brokers in India not adhering to this rule may be operating illegally.
Demat Account
SEBI requires all individuals who want to trade Indian securities to have a dematerialised (demat) account. These accounts are electronic records that track ownership of tradable assets. Demat accounts can be opened via a central depository such as the National Securities Depository Limited (NSDL) or the Central Depository Services Limited (CDSL). Maintenance and service fees may apply.
Although an additional requirement for trading in India, demat accounts have several advantages:
- A secure wallet – store securities electronically
- Instant execution – transactions are processed immediately
- Access to market information – users gain access to useful market information including live price charts
- No minimum balance requirements – there are no minimum balance requirements or minimum trading volumes
Paper Trading
A demo account will allow you to conduct a thorough day trading broker test.
Funded with simulated money, you can make sure the platform meets your needs. Not to mention it’s a fantastic opportunity to test a strategy before putting capital on the line.
Customer Support
You should check broker reviews before you sign up. If you’re in the middle of a trade with serious capital on the line, and you encounter a technical problem, you don’t want to be left on hold for half an hour. Every second counts, so you need fast and reliable customer support.
You’ll find many online brokers in India now offer 24/7 phone support in numerous languages as well as live chat assistance. Brokers that miss the mark on customer support may also fall short in other areas.
Security
Selecting online brokers in India with transparent business practices and secure trading platforms is important. All stockbrokers in India must be registered with the Securities and Exchange Board of India (SEBI). It’s also worth looking out for data privacy protection, secure desktop and mobile trading applications, plus payment protection.
Extras
Just like a free £75 voucher may convince you to change bank accounts, so could an irresistible broker offer. You can find extras in the forms of free capital for trading, perfect for beginners finding their feet. You could also benefit from free subscriptions to advanced technical tools and charting software.
It’s always worth enquiring to see if you can get some cheeky extras for free.
Every little bit helps.
Local Office
Many individuals understandably prefer doing their research in person. Whilst the internet can provide you with a whole host of information, if you want specific questions answered, why not check to see if the broking house has a local office?
You may be able to speak to a company executive or a sales representative. For example, RKSV has offices in both Mumbai and Delhi. Both ICICI Securities and Angel Trade have numerous offices across India.
Final Word; Online Brokers In India
We’ve listed some of the best online brokers in India above. However, consider what it is you want to trade and in what volume. The best day trading futures brokers may be different from the top CFD and mutual funds brokers, for example. Once you know the what, you can then streamline your search to find the who.
FAQ
Is Forex Trading Legal In India?
Yes, if investments are made via online brokers in India that are regulated by the SEBI or other regulatory bodies. Currency trading is only legal when the Indian Rupee (INR) is the base currency.
What Assets Can Be Traded With Online Brokers In India?
The most popular day trading markets include forex, commodities, stocks, futures, cryptocurrencies, and binary options.
Some online brokers in India may also offer alternative products, such as ETFs.
How Can I Understand Fees At Online Brokers In India?
Some online brokerages in India offer a fee calculator. This provides a breakdown of fees plus any regulatory charges including STT costs and SEBI fees, plus spreads and commissions.
Do Retail Traders Need To Pay Tax In India?
Yes, trading taxes in India apply. It’s an investor’s responsibility to file these based on their trading activity. Profits and losses can be filed through an annual income tax return.
Who Regulates Online Brokers In India?
The Securities and Exchange Board of India (SEBI) monitors and regulates the capital and securities markets in the country.