Discount Broker in India: A Complete Guide for Beginners

 

Introduction

Have you ever thought about how investing has become as easy as ordering food online? Today, with just a smartphone, anyone can buy or sell shares. But here’s the catch—while traditional brokers often charge high fees, discount brokers in India have completely changed the game. They offer a low-cost, no-frills trading experience perfect for beginners and even seasoned traders who want to save money.

Think of it this way: using a discount broker is like taking a budget airline. You may not get a free meal or extra legroom, but you’ll reach your destination safely and at a much lower cost. Similarly, discount brokers help you trade without the unnecessary add-ons that make things expensive.

In this article, we’ll explore everything about discount brokers in India, the best ones to consider, how they work, and why they’ve become the go-to choice for millions of investors.

Discover the best discount broker in India, top discount brokers in India & trading apps for beginners. Learn everything about discount broker services.

 

What is a Discount Broker in India?

A discount broker in India is a stockbroker who provides only basic services like buying and selling of stocks at a low brokerage fee. Unlike full-service brokers, they don’t offer advisory, research, or personalized wealth management services.

For example, Zerodha, Upstox, and Groww are popular discount brokers known for flat brokerage charges and user-friendly trading platforms.

 

How is a Discount Broker Different from a Full-Service Broker?

Here’s a simple way to understand the difference:

  • Full-Service Broker: Like dining at a luxury restaurant—expensive, but you get full service (advisors, research, recommendations).

  • Discount Broker: Like a quick-service restaurant—affordable, fast, and simple (only order what you want, no extras).

Feature

Discount Broker

Full-Service Broker

Brokerage

Very low (flat fee per trade)

High (percentage of trade value)

Advisory

Not provided

Provided

Best For

Cost-conscious traders, beginners

Investors needing handholding

 

Why Are Discount Brokers So Popular in India?

Discount brokers are booming in India because:

  • They charge less, saving traders a lot of money.

  • Mobile-first platforms make them ideal as trading apps for beginners.

  • Fast account opening—often completely paperless.

  • Transparency in charges with no hidden fees.

In short, discount brokers are like the Swiggy and Zomato of stock trading—easy, accessible, and affordable.

 

Benefits of Using Discount Brokers in India

  • Low Brokerage Fees: Save more on every trade.

  • Seamless Digital Platforms: Intuitive apps and websites.

  • Access to Multiple Exchanges: NSE, BSE, MCX, etc.

  • Faster Execution: Real-time order processing.

  • Perfect for Beginners: No need for complex services.

 

Things to Consider Before Choosing a Discount Broker

Before picking a broker, keep these in mind:

  • Brokerage charges – flat fee or free equity delivery?

  • Account opening & maintenance charges (AMC).

  • User experience – is the app smooth?

  • Customer service – quick support matters.

  • Extra features – charts, tools, margin availability.

 

Top Discount Brokers in India (2025 Edition)

Here’s a list of the most trusted discount brokers in India:

  1. Zerodha

  2. Upstox

  3. Groww

  4. Angel One (discount plan)

  5. 5Paisa

  6. Shoonya by Finvasia

  7. Paytm Money

  8. Rupeezy

  9. BlinkX by JM Financial

  10. Fyers

 

Detailed Review of Popular Discount Brokers

Zerodha – India’s largest discount broker, known for Kite app and transparent pricing.
Upstox – Backed by Ratan Tata, offers low-cost trading and beginner-friendly UI.
Groww – Started as a mutual fund platform, now popular among young investors for stock trading.
5Paisa – One of the cheapest options with subscription-based brokerage.
Shoonya – Truly zero brokerage, gaining attention in 2025.

 

Discount Brokers vs Trading Apps for Beginners

Many people confuse the two. A discount broker is a licensed broker offering low-cost trading, while trading apps for beginners are platforms that make investing easy. Sometimes, both are the same (like Groww or Zerodha Kite).

If you’re just starting, pick a broker with a simple app interface, tutorials, and educational content.

 

Charges and Brokerage Fees Explained

Discount brokers usually charge a flat fee per trade (₹10–₹20), regardless of trade value. Some even offer free equity delivery (like Zerodha and Groww).

This is why they’re preferred over full-service brokers who take a percentage of your trade amount.

 

Hidden Costs You Should Know About

Even with discount brokers, watch out for:

  • DP Charges – for selling shares.

  • AMC (Annual Maintenance Charges).

  • Platform fees for premium tools.

  • Transaction charges & taxes.

 

How to Open an Account with a Discount Broker?

It’s simple:

  1. Visit broker’s website/app.

  2. Enter PAN, Aadhaar, and bank details.

  3. Upload KYC documents.

  4. Complete e-sign via Aadhaar OTP.

  5. Start trading within 24–48 hours.

 

Best Trading Apps for Beginners in India

Here are some trading apps for beginners that are user-friendly:

  • Zerodha Kite

  • Upstox Pro

  • Groww App

  • Angel One App

  • Paytm Money

These apps have easy navigation, charts, and even tutorials for new investors.

 

Mistakes to Avoid When Using a Discount Broker

  • Don’t ignore hidden charges.

  • Avoid overtrading just because brokerage is cheap.

  • Always do your own research; brokers won’t advise.

  • Ensure you understand market risks.

 

Future of Discount Brokers in India

With more people investing online, discount brokers will only grow stronger. Expect:

  • AI-based tools for beginners.

  • Free trading plans.

  • More educational support within apps.

  • Wider adoption among Tier-2 and Tier-3 cities.

 

Conclusion

The rise of the discount broker in India has made stock market investing affordable, accessible, and beginner-friendly. If you’re starting out, choosing the right broker can save you money and make your trading journey smoother. Whether you’re a beginner exploring trading apps or a seasoned trader looking to cut costs, discount brokers are the way forward.

 

FAQs

Q1. What is the role of a discount broker in India?
A discount broker helps investors trade in stocks at very low brokerage charges without offering advisory services.

Q2. Which is the best discount broker in India for beginners?
Zerodha, Upstox, and Groww are among the best for beginners due to their simple apps and low fees.

Q3. Are trading apps for beginners safe?
Yes, as long as you use SEBI-registered discount brokers like Zerodha, Upstox, or Groww.

Q4. How much brokerage does a discount broker charge?
Most discount brokers charge ₹10–₹20 per trade, while some offer free equity delivery.

Q5. Can I open an account with a discount broker online?
Yes, most brokers allow 100% digital account opening using Aadhaar and PAN.