Finding the best broker for Options Trading in India can be challenging since it has to match your trading style. Even though there are many brokers for Options trading in India these days, most people often need help to choose between them. This post will explain how to choose the right broker for Options Trading. Further, I will share some of the best brokers for Options Trading in India.
What is Options Trading?
Before we jump into the factors to consider for choosing an Options Trading broker, it's essential to ensure that you completely understand what Options Trading is. Options Trading involves both buyers and sellers. Options trading deals with buying and selling contracts of an underlying asset, which can be an index, stock, or ETF. It's important to understand these contract prices are a lot cheaper than the underlying asset. For example, if Bank Nifty is trading at ₹43700, you can buy its contract for some ₹250 per lot or even lower than that.
When the underlying asset performs well, the contract's value will eventually rise and vice versa. While Options Buying is a lot more affordable, Options selling comparatively need more capital. However, both sides have their own advantages. Another essential thing to bear in mind is that every Options contract has an expiry, which can be weekly or monthly. A contract can be either a Call or a Put. While Call is the current price of a contract to buy an underlying asset in the future, Put is the current price of a contract to sell an underlying asset in the future. The price of a Call or a Put contract at which you buy or sell is called the premium.
Interestingly, you can buy or sell a call or a put as an Options trader.
Options Trading: Essential Terminology
Here are some essential Options Trading terminology that every Options trader must know:
Spot Price: Spot Price is the current value of an underlying asset—for example, the current value of Nifty or Bank Nifty.
Strike Price: Strike Prices are the different price levels on the spot chart of the underlying asset. These price levels are usually round numbers and can be ATM, ITM, or OTM. You will find Call and Put for every Strike Price.
ATM: When the Call Strike Price (₹43700) is very close to the Spot Price (₹43720), it's called an ATM contract. Most experts recommend trading in ATM contracts.
ITM: When the Call Strike Price (₹43600) is lower than the Spot Price (₹43720), it's called an ITM contract.
OTM: When the Call Strike Price(₹43800) is away from the Spot Price (₹43720), it's called an OTM contract.
DII & FII: DII stands for Domestic Institutional Investors, and FII stands for Foreign Institutional Investors. Most importantly, they are the ones that move the value of an underlying asset with their high-volume orders.
Benefits of Options Trading
If you are like, “Why would one even want to trade Options when you can trade equities?” The answer is Options trading is more profitable. Options are more volatile than Equity, and you can expect to catch big movements if you trade wisely. I can say this from my own experience. I started with Equity trading and realized I was making very little money for myself, even on days when trades were going in my favor. Of course, you can compound your profits with leverage trading. However, the margin isn't the same for all stocks.
That was the reason that I switched to Options Trading, and on days when trades go in my favor, I make a lot more than what I was making with Equity trading. Besides, Options are highly flexible, and there are just so many ways to trade options. For example, you may use a single-legged directional strategy or may use strategies like straddle and strangle.
Factors to consider while choosing a broker for Options Trading in India
You need to consider several factors while choosing a broker for Options Trading in India. Here are the factors:
Brokerage plays a crucial role in trading, and you only realize it once you look at your PNL at the end of the year. You must look for a broker that charges low brokerage for Options trading. If you overlook this factor, the broker will likely eat a big chunk of your profits by the end of the year. Fortunately, there are many reasonable discount brokers around these days. You can easily compare their pricing and brokerage to determine what's the best for you.
While it's essential to look for a broker with a low brokerage, you must never do this, compromising on quality. If you end up choosing a broker with a low brokerage without being really sure about its trading platform, things can get extremely frustrating and devastating sometimes. The recent Finvasia Shoonya glitch earlier this year says it all. Hence, you must ensure that the broker you choose comes with a reliable platform alongside being affordable.
You must make sure that the broker you are going to choose comes with highly usable trading platforms for essentially Web and mobile platforms. To ensure that the broker comes with a good trading platform, you need to have clarity about your style of trading and your trading requirements. Next, you need to make sure that the broker comes with advanced charting tools like Tradingview or ChartIQ. Most importantly, the interface needs to be easy to navigate and fast. Delayed order execution can sometimes convert winning trades into losing trades. Hence, you can first experiment with small orders on a new trading platform and pay close attention to its order execution time.
Further, you need to ensure that the broker comes with multiple order types. One important order type to mention in this regard is GTT. GTT can be very effective if you want to place Stop Loss and Target while placing a buy order. Other essential features to look for are multiple watchlists, good fundamental and technical analysis data, and two-factor authentication.
Options Trading has many technicalities, and most importantly, there can be many technical issues that you may run into while trading Options. However, every minute is crucial in Options trading, and each time you run into a technical issue, you must strive to break out of it as quickly as possible. This is where good customer support comes into play.
Hence, you must look for an Options Trading broker with dedicated and responsive Customer Support. While most brokers come with ticket support, assistance through tickets usually takes about 15 minutes or more. Hence, you need to look for a responsive phone or live chat support.
7 Best Brokers for Options Trading in India
Launched in 2010, Zerodha has emerged as one of the most reliable brokers for Options Trading. Even though there were prominent online brokers like Sharekhan back in those days, they failed to create the impact that Zerodha succeeded in doing. Zerodha entered the industry as a discount broker and has put great efforts into simplifying things for new traders to encourage more and more people to take up trading.
As a matter of fact, most Options Traders in India prefer Zerodha. If you take a close look at Zerodha's trading interface, there is hardly any exaggeration. The interface is clean and intuitive, and everything is balanced-out to deliver the best trading experience.
Zerodha charges ₹200 for account opening and an additional ₹100 if you want to enable the commodity segment. The platform charges ₹300/year for Demat Account Maintenance.
As far as brokerage charges go, Zerodha keeps the brokerage charges pretty minimal. Here are the Zerodha brokerage charges:
- Equity Delivery: ₹0 brokerage
- Equity Intraday: Flat ₹20 or 0.03% (whichever is lower) per executed order
- Options: Flat ₹20 per executed order
Zerodha Trading Platforms
Zerodha Kite Web App
Zerodha Kite HTML5 trading app is built with speed and simplicity in mind. The App allows you to trade from your browser and is ideal for PC and laptop users. I have used the App from my mobile browser for Options Trading in the past, and it worked flawlessly. It would not be wrong to say that the Zerodha Kite has the cleanest interface among all trading applications. However, Kite has all the essential features that you would need for Options trading.
The features include advanced charting tools like two-factor authentication, Tradingview, and ChartIQ, over 100 indicators, multiple order types, multiple watchlists, Sensibull integration, Streak integration, Fundamental Analysis data, and Market depth. Besides, the App has an excellent reporting system, including PNL, and it's worth mentioning that Zerodha has the best P&L reporting system in the industry. You can get an excellent graphical overview of your daily trades when you click on the P&L report. You can access it from the Zerodha Console.
Zerodha Kite Mobile App
Zerodha Kite Mobile App is ideal for those Options traders who like to trade from their smartphones. The Kite Mobile App is as clean as the Kite Web App. The best part is you can stay logged in to your Zerodha Kite Mobile App. Every time you need to use the App, you will only have to use your Biometric 2fa authentication, which is an implementation of Passkeys technology for enhanced security and simplicity.
Simply put, you can use your Zerodha Kite Mobile App using your device's security Pin or Pattern. Besides, you don't need to enter Zerodha's client ID and Password every time. Order execution on Zerodha Kite Mobile App is exceptionally fast, and it's also easy to navigate between positions and order tabs within the application, which makes it an excellent mobile app for Options Trading.
I have used Tradingview on Zerodha Mobile App, which is exceptionally smooth. You can also access your reports right from the Zerodha Kite Mobile App, and all you need for this other than the Zerodha Mobile app is a reliable default browser on your Smartphone. To access reports, you can click on the tab with the client ID at the bottom of the App and navigate to the Console option. Over there, you will see various options populated, and you can click on any of these options to open them in the browser without having to log in again. Zerodha's Kill Switch can be effective for those Options traders struggling with overtrading.
Zerodha Customer Support
Zerodha has one of the finest Customer Support teams in the industry that does an excellent job of assisting users through tickets and phone support. Besides, the platform has excellent documentation for quick reference.
Upstox is another reliable discount broker for Options Trading that has been there since 2009. The platform is backed by investors like Ratan Tata, which has also added much to the platform's reliability among Indian traders. Upstox is one of those trading platforms that come with many dedicated features for Options Trading. Most importantly, Upstox comes with excellent trading applications and customer support. Upstox can be an excellent broker for advanced Options traders since the platform makes a lot of room for learning and experimenting with many advanced Options Trading strategies.
Upstox doesn't charge any fee on account opening, and besides, the platform has the lowest Demat Account Annual Maintenance fee, which is just ₹150. If you think it's not a big deal, I must tell you some brokers charge a hell lot of money for account opening and AMC. One good example is HDFC Securities, which charges ₹999 for account opening and ₹750 per year for Demat Account Maintenance.
Being a discount broker, Upstox has low brokerage charges on various segments. Here are the Upstox brokerage charges:
- Equity Delivery: ₹20 or 2.5% (whichever is lower) per order
- Equity Intraday, F&O, Currency & Commodity: ₹20 or 0.05% (whichever is lower) per order
Upstox Trading Applications
Upstox Pro Web
Upstox Pro Web is suitable for Options Trading from the PC or Laptop browser. The App has all the advanced options required for Options Trading — from Tradingview, ChartIQ charting tools, and multiple watchlists to GTT orders, Options Charts, and Readymade Options Strategies. If we consider the interface, it's user-friendly and easy to use. The dashboard gives you an excellent market overview with a lot of valuable fundamental analysis data.
Adding Calls and Put of different strike prices to the watchlist is also pretty simple. You need to search for the strike price, and after it populates, you can add them to the watchlist by clicking on the Add or + button. Besides, you can switch between Tradingview and ChartIQ anytime, as per your requirements. Options traders can certainly capitalize a lot on advanced features like Readymade Options Strategies. The feature is especially ideal for those Options traders who prefer two-legged strategies.
Upstox Pro Mobile App
Upstox Pro Mobile App allows you to trade in Options from your mobile phone. The App comes with an exceptionally sleek design, and everything is self-explanatory. Even a newbie should be able to use the App in minutes without much struggle. The Upstox Pro Mobile App has all the essential features of the Upstox Pro Web.
The App offers you the option to enable Biometric authentication. Once you enable it, you can log in to your Upstox Pro Mobile App using your phone's security PIN or Pattern. Tradingview and ChartIQ charting tools work flawlessly in the Upstox Pro Mobile App. Further, Upstox comes with many advanced order types. One such order type is GTT order type, which allows you to put Stop Loss and Target while placing Buy Orders.
Upstox Customer Support
Upstox's Customer Support service is the best in the industry and offers comprehensive assistance through multiple channels like Live chat, Phone, and Tickets. I had an amazing experience contacting the Upstox support team in the past through Phone and Live Chat. Unlike other brokers, I didn't experience long waiting times, and the executives did their best to assist me.
Angel One has been there since 1996, and the platform is still one of the preferred trading platforms for many Options traders. The platform is one of the leading discount brokers in India. Angel One had a tremendous journey so far, with many prestigious awards under its belt. The platform is known for its excellent advisory services. Besides, Angel One comes with powerful trading applications for Options trading.
Angel One Charges
Unlike many leading discount brokers, Angel One allows you to open an account for free. The platform, however, charges ₹240 per year for Demat Account Maintenance.
When it comes to brokerage, Angel One has low brokerage charges for all segments. Angel One's brokerage charges are similar to Zerodha. Here is a quick overview of Angel One's brokerage structure:
- Equity Delivery: ₹0 brokerage charges
- Equity Intraday: Flat ₹20 or 0.25% (whichever is lower)
- F&0: Flat ₹20 or 0.25% (whichever is lower)
Angel One Trading Platforms
Angel One Trade Web App
Angel One Trade Web App allows you to trade from the browser and is a suitable option for PC and laptop users. The App comes with multiple watchlists, stock screeners, the latest market information, research reports, and calculators. Besides, it has excellent notifications and reminders. One feature of the Angel One Trade App worth mentioning is that it allows users to add and manage accounts of their entire family from one place.
Further, Angel One allows users to choose between Tradingview and ChartIQ. Options Trading is self-explanatory in Angel One, and you can easily find contracts at various strike prices and add them to your watchlists. Besides, placing orders and tracking positions on Angel One Trade Web App is pretty intuitive.
Angel One Mobile App
Options traders who prefer trading from their Android and iOS devices can use the Angel One Mobile App. The App comes with all the crucial features that you will need in Options Trading. It includes OI data, technical charts, multiple order types, different indicators, and an excellent market overview. Further, the App is reliable and offers a fast interface.
Angel One SpeedPro
Angel One SpeedPro is an installable Desktop Software for Windows. The software comes with real-time rate updates, integrated news flash and reports, live market watch, advanced charting, and all other essential features that are required for Options Trading. Installing and using the software is exceptionally simple.
Angel One offers customer support through Phone and Support FAQs. Over the years, Angel One's Customer Support team has done a good job of assisting users.
Dhan is among the newest discount brokers and was launched in 2021. Many see the platform as a tough competitor to Zerodha. Dhan comes with many dedicated features for Options Trading and has feature-rich applications across Web and mobile platforms. Besides, the platform comes with many other innovative features, such as webhooks, free APIs, and Trader's Diary.
Opening an account with Dhan is entirely free, and besides, the platform doesn't charge any Demat Account Maintenance free. It certainly gives it an edge over other leading discount brokers.
As far as the brokerage charges go, Dhan keeps its brokerage charges pretty low. Here are Dhan's brokerage charges:
- Equity Intraday: ₹20 or 0.03% of trade value, whichever is lower
- Equity Futures and Currency Futures: ₹20 or 0.03% of trade value, whichever is lower
- Equity Options and Currency Options: ₹20 per executed
Dhan Trading Platforms
You can get to the Dhan Web to start trading on Dhan from your PC and laptop. The Web Application has a clean interface and is ideal for all types of trading. The platform has all the essential features for trading, including Tradingview and ChartIQ charting tools, Market overview, Multiple Watchlists, and advanced order types. If you are a single-legged directional Options trader, you should be fine trading Options on this application.
Dhan Options Trader Web
If you are an advanced Options Trader using two-legged strategies like Staddle, and Strangle, you will certainly get a lot of help on Dhan Options Trader Web since it has been designed keeping advanced Options Trading in mind. Some of the salient features of this application are Pre-Built Strategies, Staddle Chain, Strategy Builder, and OI Gainers and Losers.
Dhan App is Dhan's mobile application that allows you to trade Options right from your Smartphone. The App is available on both Android and iOS. Dhan App comes with a clean interface with all the essential features that are available in the Dhan Web. The App comes with advanced charting tools, multiple watchlists, and a nice market overview.
Dhan Options Trader App
Dhan Options Trader App is Dhan's mobile application, which is specially designed for advanced Options traders with dedicated features for Options Trading such as Market Outlook, Pre-built Strategies, Live Market Scan, Screener, Pay-off Graphs, and Option Greeks. Other features include Deep OTM/ITM Option, Basket Order, Pledging of Shares, Direct Trade from the Option chain, Reverse Position in One Tap, and Trade from TradingView Charts.
Dhan offers comprehensive Customer Support through Email, Live Chat, and Phone. Besides, Dhan has a dedicated Twitter handle, @DhanCares, to assist users. Further, Dhan has a helpful Community.
The SEBI-registered broker, 5Paisa, was launched in 2016. What's interesting about 5Paisa is the fact that it took discount brokerage to the next level through its Super Power Packs. Besides, the platform is ideal for all types of trading, including Options Trading, backed by powerful features.
You can open a paperless account with 5Paisa for ₹0 charges. However, after you sign up with 5Paisa, you will need to pay an Annual Demat Maintenance fee of ₹300.
When it comes to brokerage charges, 5Paisa has an interesting brokerage structure. The platform charges a Flat ₹20 on all segments. Besides, the platform allows you to bring down the brokerage charges to as low as ₹10 with the Super Power Packs.
5Paisa Trading Platforms
5Paisa Web allows you to trade Options from your PC or Laptop browser. All you have to do is sign in to your 5Paisa account on the Web, and you are good to go with your Options Trading. As far as the interface goes, it's pretty clean. Besides, the platform offers a good market overview. Regarding charting tools, you have the option to choose between Tradingview and ChartIQ. The interface is fast and easy to use. Further, you can use multiple watchlists and over 100 indicators.
5Paisa Mobile App
If you are an Options Trader who prefers trading from smartphones, you could use the 5Paisa Mobile App. The App has all the comprehensive features that you will need for Options Trading. You can access the technical charts right from your Smartphone. Besides, you can choose between Tradingview and ChartIQ charting tools. 5Paisa also comes with multiple order types and multiple watchlists. Most importantly, the App is easy to use and has a super clean interface.
5Paisa Trade Terminal
5Paisa Trade Terminal is an installable software for Windows PCs and Laptops. You can simply download the .exe file from the 5Paisa website and install it like you would install any other Windows software. Once installed, you can simply log into your 5Paisa account right from your Desktop without having to use any browser. The software has all the essential features for Options Trading, including technical charts, multiple order types, multiple watchlists, real-time market overview, and a fast interface.
5Paisa has a good customer support team to address its users' technical queries and issues. Users can contact the support through phone and email. Besides, the platform has excellent online resources for quick reference.
Paytm Money is another leading discount broker, launched in 2017. The platform is SEBI-registered and is a subsidiary of One97 Communications Ltd. The platform focuses on making trading simple and transparent. Paytm Money comes with reliable trading applications, and Options traders can certainly capitalize a lot on this platform.
Paytm Money Charges
Paytm Money charges ₹200 for account opening, and no Annual Demat Maintenance fee is involved. However, the platform charges ₹300 as an Annual Platform fee.
Paytm Money keeps its brokerage charges lower than many leading discount brokers. Here is the Paytm Money brokerage structure:
- Equity Delivery: ₹15 per executed order or 2.5% of turnover, whichever is lower
- Equity Intraday: ₹15 or 2.5% of turnover, whichever is lower
- F&O: ₹15 per executed order or 0.02% of turnover
Paytm Money Trading Platforms
Paytm Money Web
The easiest way to trade Options on Paytm Money is to log into its Web App. You would only need to get to the Paytm Money website from your browser. The interface is exceptionally clean and fast. Tracking positions and managing orders is also pretty seamless in Paytm Money. Paytm Money also allows you to choose between Tradingview and ChartIQ. Besides, the platform offers a nice market overview, multiple order types, and multiple watchlists.
Paytm Money Mobile App
Paytm Money Mobile App is the ideal Options Trading app for smartphone users. The App has all the comprehensive features that are available on the Paytm Money Web version. Besides, technical charts work flawlessly on the apps. Most importantly, order execution is exceptionally fast. Further, the App comes with two-factor authentication for enhanced security. Other features include live market depth, customized watchlists, price alerts, and notifications.
Paytm Money Support
When it comes to customer support, Paytm Money offers technical assistance mainly through tickets. Besides, Paytm Money users can quickly refer to its FAQs whenever they need.
ICICIDirect was founded in 1995 and is one of India's most popular online brokers. The platform is SEBI-registered and allows you to trade Options alongside other financial instruments. ICICIDirect follows a 3-in-1 model to offer excellent convenience. The platform has been exceptionally reliable, with excellent trading applications and customer support.
You don’t need to pay an account opening charge while opening an account with ICICIDirect. However, the platform charges an Annual Demat Maintenance fee of ₹300.
Next, it’s important to look at the brokerage structure of ICICIDirect. Here are the brokerage charges:
- Equity Delivery: 0.55% irrespective of turnover
- Equity Futures: ₹0 brokerage charges
- Equity Intraday and F&O: ₹20 per trade
Besides, ICICIDirect offers other pricing models for lowering the brokerage charges.
ICICIDirect Trading Platforms
If you are a PC or Laptop user, you can consider using the ICICIDirect Web from your browser. To start trading, you will need to sign into your ICICIDirect account. The interface is intuitive, and you get a nice real-time market overview. ICICIDirect comes with advanced charting tools, and you can choose between Tradingview and ChartIQ. Other features include multiple watchlists, advanced order types, market depth, and real-time price alerts.
ICICIDirect Mobile App
ICICIDirect Mobile App is exceptionally fast and reliable for Options Trading. The App has all the comprehensive features of the ICICIDirect Web App. Technical charts work smoothly on the App. Besides, placing and managing orders on the ICICIDirect Mobile App is easy. The application is available for both Android and iOS devices.
Trade Racer (Trading Terminal)
If you prefer desktop applications over web applications, you can consider using Trade Racer, the installable trading terminal of ICICIDirect. The software has all the essential features for Options Trading, with real-time market overview, real-time price alerts, research notifications, and charting tools.
ICICIDirect has a reliable Customer Support team, and the team does a great job of helping its users through phone and email. Besides, the platform has excellent documentation.
In this post, I have explained the different factors to bear in mind while choosing a broker for Options Trading in India. Besides, I have walked you through the best brokers for Options Trading. However, Options trading is highly risky and you must learn the basics really well before starting to trade.
Once you learn the basics well, choosing the right trading app will certainly give you an advantage in your trading journey. I am sure you have gained good clarity to be able to find the right broker for Options Trader for your trading style after reading this post.
FAQs Best Broker for Options Trading in India
What is Options Trading?
Options Trading is buying and selling Call and Put contracts of an underlying asset, which can be a stock, an index, or an ETF. Contracts are available at different premiums for different strike prices. Options Traders can buy and sell contracts at different strike prices: ITM, ATM, or OTM. However, most experts recommend trading ATM contracts.
What are the benefits of Options Trading?
Options are more volatile than Equity, and hence, you can expect bigger movements than Equity in Options. Besides, Options are pretty flexible in nature, and you can trade Options in several ways: from single-legged directional strategy to Straddle and Strangle.
Which is the best broker in India for Options trading?
Even though there are many good brokers for Options Trading, Zerodha continues to be the preferred trading platform for most Options traders because of its exceptional reliability, simplicity, and clean interface.
Is Zerodha good for option trading?
Zerodha is undoubtedly one of the finest Options Trading platforms. Zerodha Kite is easy to use, and everything is self-explanatory, from using a charting tool to placing and managing orders. The interface is so clean, fast, and intuitive that even a newbie will get the hang of it in no time.
What are the essential factors to consider while choosing a broker for Options trading in India?
Choosing the right broker for your trading style isn't simple since there are so many good and bad brokers out there. Here are some important factors to keep in mind while choosing a broker for Options Trading in India:
- Know your trading requirements well
- Look for a broker that comes with the lowest brokerage
- Ensure that the broker you choose comes with reliable trading applications
What should I consider when choosing the best broker for options trading in India?
Consider factors such as the availability of a comprehensive options trading platform, trading software and tools, and a variety of options strategies.
Are binary options available for trading with the best brokers in India?
Yes, some brokers offer binary options for trading, providing an alternative approach to traditional options trading.
Can I invest in mutual funds through the chosen options trading platform?
Most brokers may offer access to mutual funds alongside options trading on their platform.
Can I engage in online trading of options in the Indian market?
Yes, the best options trading platforms offer online trading capabilities, allowing you to execute trades from anywhere with an internet connection.