Options trading is another way of trading in India which many investors use to boost their investment.
Your success in option trading depends on many factors and one of them is your broker. Who would want to lag behind because of not so good broker? No one, so we have provided a list of the best options trading broker in India in 2023 to make your option trading easy and successful. Through our intense research these brokers have proven to be highly profitable in the zone of options trading.
What is option trading?
To proceed anyway you first need to learn what is option trading. We generally get many queries relating to option trading. People usually do not understand it and they just start investing in option trading which eventually leads to their loss because options trading is susceptible to high losses if not properly done. So, let us understand the basic concept of options trading.
Options trading is a highly advance method of trading for investors. Here in option trading, the buyers and sellers trade in options. An option is nothing but a contract that is kept between two parties namely a buyer and seller to buy or sell a share within the pre decided date. The shares should be bought or sold at a fix price and usually the shares are sold or bought in “lot” that is a predefined number.
We can look at it through an example where we can take Tata companies shares in a lot size of 1000 and the buyers and sellers have to buy or sell these 1000 shares or in multiples of 1000 at a fixed price within the due date.
Options trading is not an easy task to do and the two parties can suffer high losses in many cases. Therefore, we have brokers who trade on behalf of you in options trading.
How to choose the best options trading broker in India?
Options trading is not an easy task to do, the researchers have found that the option buyers hardly make money in long run because the options lose their values as the time passes by. Hence, we will choose some good brokers for option trading and for that we need to look for some qualities to identify the best among so many brokers present out there.
Here, I’m listing a few points to help you identify the best suited option trading broker in India:
- Brokerage- brokerage is the charge that your broker takes for every profit. So, you must take care in this manner so that your profit is not all gone by paying brokerage. The best option would be to choose a fixed brokerage irrespective of lots and not those who charge on per lot basis so that you can enjoy great profits.
- Leverage-if you’re interested in selling option then margin is very important so do look for good margin.
- Trading platforms-there must be charting tools to keep a check at the strike price.
- Mobile apps- go for the app with best features.
Best Options Trading Brokers List in India in 2023
While considering all these points I have gathered a list of a few best brokers for option trading in India. The list goes as:
A. Zerodha
What if tell you that zerodha is my most favourite broker because I chose them for my trade. I have been saving a lot with zerodha.
The first to introduce the discount broking concept in India in 2010 and since 2019, they have been the chart leaders for the best and the largest stock broker of India.
They charge Rs 20 fixed brokerage (irrespective of lot) per order and the delivery-based trades are free. They offer 3 times margin.
Zerodha has free trading platform named KITE and their mobile app Zerodha KITE mobile is light weight and low on resource.
It is easy to use with account opening charge as RS.200. you can open your account in just 15 minutes.
B. Upstox
Upstox was earlier known as RKSV securities. they are of the same age as zerodha. Therefore, they have a brokerage plan that is similar to zerodha however the delivery-based trades are not free.
Upstox gives two brokerage plans, the first plan is basic one with 3 times margin however they have a priority plan as well where margins are 4 times but the priority charges are increased from 20 to 30 per order.
Upstox PRO is the free trading platform and Upstox PRO Mobile is the app with loaded features. However, the account opening in Upstox is free of cost.
Between zerodha and upstox, you can choose as per your wish, they’re kind of similar.
C. Angel One
Born in 1987, Angel broking has been a part of this brokers community. Till 2019 they were full-service brokers and charged Rs. 75per lot for options but in the arena of discount brokers they also adopted the discount brokerage model and charge Rs. 20 per trade.
Not just brokerage but they also offer Life Insurance and PMS (Portfolio Management Services). They offer zero brokerage for delivery along with 4 times margin for option selling.
Angel Broking Speed Pro and Angel Broking Mobile are the trading platform and mobile app respectively.
D. Trade Smart
Trade Smart Online is another discount broker that is a brokerage arm of VNS Capital and Financial Limited. They are well established in India with over 3 decades in brokerage industry.
They have the brokerage charge of Rs. 15 per order irrespective of number of lots with 3 times margin.
NEST Trader is their trading Platform and SINE mobile is the mobile app.
E. 5Paisa
It is a brokerage arm of IIFL having the lowest brokerage charge for option trading in India that is fixed Rs.10 per order with similar delivery-based trade charge and 2 times margin.
5Paisa holds the maximum customer base in India. They have the best web trading platform as well as mobile app. This is the best discounting brokers in India.