Trading is a game of probability, and there are times when the market is hard to predict. Even if you have the best trading setup, you can't always be the winner. However, one thing that you must understand is you can only trade as long as you have your capital intact. The day you are out of capital, you will have to be out of trading for some time until you have enough capital again. Hence, you must pay utmost attention to money management and keeping your capital intact.
Money management has many aspects comprising risk & reward ratio, daily loss & profit ratio, stop loss & target, and the number of trades per day. One crucial aspect of money management that we often overlook is the brokerage charge. Even though most people are okay with paying Rs 20 per executed order and don't want to think much about it, it eats up a significant amount of our money by the end of every year.
Hence, it becomes extremely important to reduce brokerage charges as much as possible. It's absolutely possible these days since we have so many trading platforms to choose from.
Definition of zero brokerage trading app
A trading app is an app that allows you to trade in different instruments in India, including Equity, F&O, Mutual Funds, and IPO. Most trading apps follow a two-account model: a trading account and a demat account. Trading apps in India like Zerodha and Angel One started with a discount brokerage model, which means you will be charged a minimal brokerage for every executed order.
However, one concept that has gotten extremely popular in recent times is the zero brokerage trading model. If you are wondering, “is that even possible?” It's absolutely possible. You can do it in two ways: 1. Choose a zero brokerage plan 2. Choose a zero brokerage trading platform.
Overview of the Indian stock market and trading landscape
Indian stock market is an emerging market and comprises FII, DII, and retail investors and traders. The Indian stock market opens at 9:15 am and closes at 3:30 pm. However, the MCX exchange is open from 9:00 am to 11:30 pm. The Indian stock market has exchanges such as NSE, BSE, and MCX and allows retail traders to trade Stocks, F&O, Currency, and Commodity. Indian traders can opt for Positional trading, Swing trading, or Day trading.
While Positional trading may last from a few months to years, Swing trading may last from a few days to a few weeks. Day trading or Intraday trading is a form wherein positions are squared off on the same day. Slightly different from Day trading, BTST or Buy Today Sell Tomorrow is also equally popular in India. It can be used for both Equity and F&O. Just as the name sounds. You can buy a contract or stock today and square off your position tomorrow.
For those who aren't familiar with F&O, it stands for Futures and Options, and you can trade on Index F&O such as Nifty50 Futures and Options, Bank Nifty Futures and Options, and FinNifty Futures and Options. As a trader, you can also trade in the Futures and Options of Stocks. However, one important thing to remember is that the lot size differs from stock to stock and index to index. For example, the minimum lot size for Nifty50 is 75 shares, while that of Bank Nifty is 25.
Need for zero brokerage trading apps in India
Using a zero brokerage trading app can help you with your money management. Even the discount brokerage model can eat up a lot of money on an annual basis if you trade every day. Traders have realized it, and so have the trading platforms. Hence, many trading platforms have come up to address the issue. Currently, the zero brokerage trading model is available in three options:
- A zero brokerage monthly plan
- A zero brokerage plan on a one-time price
- A zero brokerage trading platform
One question that is bound to cross your mind is how these zero brokerage trading platforms make money. The first two zero brokerage models are self-explanatory as customers choose a zero brokerage plan by paying a monthly or a one-time price. That way, the trading platform is making money for itself too.
The third zero brokerage model may look more lucrative to customers. It's, in fact, the best model since customers don't have to pay anything at all for zero brokerage trading, but you might wonder how such a trading platform will make money for itself. Even such a trading platform does make money for itself, and it does it through the commission received from the exchanges on volume trading.
If we look at zero brokerage trading from the customers' perspective, it can undoubtedly be very rewarding. Most importantly, it can help you with good money management. Every penny you earn from your effort will go into your pockets when choosing a zero brokerage trading platform.
Popular Zero Brokerage Trading Apps in India
ProStocks is a SEBI-registered trading platform established in 2016. The platform allows customers to open an account for free, and besides, it offers an option to have zero AMC for a lifetime for a one-time refundable deposit of Rs 1000. ProStocks offers zero brokerage on Equity and Equity Derivatives trading for Rs 899 monthly and Unlimited Currency trading for Rs 499 monthly.
- No charge on account opening
- No AMC with a one-time refundable deposit of Rs 1000
- Zero brokerage plans for Equity and Currency
- Cheapest Algo trading option
- Decent trading applications across PC, Browser, and Mobile
- The commodity segment is missing
- The chart gets sluggish sometimes
SAS Online is a discount broker that has been around since 1995. The platform puts a lot of emphasis on cutting down the trading costs for traders and claims to help traders save up to 90% of their trading costs. Account opening with SAS Online costs Rs 200, and the platform also charges an Annual Maintenance Charge of Rs 200. The platform offers unlimited trading across all segments with zero brokerage for Rs 999 per month.
- Lowest brokerage in the industry: Rs 9 per executed order
- Good trading applications across all device platforms
- Alpha Trader for advanced charting
- Zero brokerage for Rs 999 per month
- Margin funding available
- The platform charges Rs 200 for account opening
- The Good Till Canceled order option is missing
- Visit SASonline.in for current pricing
- Or read our full review on SAS Online
m.Stock is quite a new trading platform that started in 2022. The platform offers customers trade and investment options comprising stocks, FNO, currency, mutual funds, and IPO. Further, the platform offers a decent trading experience through its advanced applications across all device platforms. m.Stock offers zero brokerage for life across all products for a one-time cost of Rs 999.
- Easy-to-use applications with good charting tools
- Zero brokerage plan for a one-time fee of Rs 999
- Decent Support
- Advanced charting tools
- Super fast orders
- The agricultural commodities option is missing
- Visit Mstock.com for current pricing
- Or read our full review on M.Stock
Tradeplus is a reliable SEBI-registered broker that started in 1995. The platform supports products such as stocks, FNO, currency, mutual funds, and IPO. Tradeplus does charge anything for account opening. Besides, it doesn't charge any Annual Maintenance charge. Customers can enjoy zero brokerage trading on the platform by choosing the Tradeplus FLAT PRO plan for Rs 499 per month.
- Zero AMC and zero account opening charges
- Equally good charting tools across all platforms
- Zero brokerage derivative trading across all segments for Rs 499 per month
- Customer support is not up to the mark
- The user interface can get better
- Visit Tradeplus.com for current pricing
- Or read our full review on M.Stock
Finvasia is a SEBI-registered broker headquartered in Mohali, Punjab. The platform started in 2016. The platform allows customers to trade and invest in different instruments across BSE, NSE, and MCX. Customers can open an account with Finvasia for zero charges. Besides, the platform doesn't charge any AMC. The best part is Finvasia follows a zero brokerage model and doesn't charge you any brokerage.
- Zero account opening charges and zero AMC
- Zero brokerage for a lifetime
- Decent trading app across all devices
- Multiple order types, including GTT and Basket Orders
- UPI and NetBanking deposit options
- Free APIs for all trading
- Quick support through live chat
- The web app is a bit sluggish
- Visit Finvasia.com for current pricing
- Or read our full review on Finvasia
How to Choose the Right Zero Brokerage Trading App?
There was a time when there were just two to three reliable trading apps in the market, and now is a time when there are just too many trading apps for customers to choose from. I have already walked you through some of the best zero brokerage trading apps.
However, choosing the right trading app among these apps can also be challenging. Hence, I am going to share a few factors that you need to bear in mind while choosing the right trading app for your trading needs.
Understand your investment goals.
It all starts with a bit of introspection. You must take your time to understand the kind of investor or trader you are. Besides, you need to understand your goal and the features that you would need from a trading app to achieve your goal. Once you are clear about this, you can try out different trading platforms.
Interestingly, trying out any trading platform doesn't require you to pay anything in most cases. If you don't want to spend time signing up with various trading applications and going through the KYC process, you can go through their documentation and watch their feature-based videos.
Comparison of fees and charges of different apps
Once you are entirely aware of your trading style and requirements, you can compare the different trading apps in terms of their charges. The charges mainly include account opening charges, annual maintenance charges, and brokerage charges. However, never choose a cheaper option at the cost of quality.
User-friendliness and accessibility of the app
User-friendliness is undoubtedly a big factor when choosing a trading app. You can compare the interface of different trading apps and see which one has the right user interface for your trading style. However, the perception of user-friendliness may differ from person to person.
Most traders prefer a clean interface with all the essential options, such as watchlists and charts, placed in an organized manner. If you don't find the interface of a trading app up to your expectations, you must not consider choosing such an app.
Another essential thing to check is device compatibility, and it's important to look for a trading application that offers an equally good trading experience across all device platforms. Device platforms include Desktop, Browser, Android, and iOS.
Availability of research and analysis tools
Research and analysis play a significant role in trading, and you must choose a trading application with decent technical analysis tools. Most trading applications these days allow users to select between Tradingview and ChartIQ charting options. Some apps even allow users to integrate their trading accounts with an external Tradingview chart so that they can place orders right from the external chart itself.
Another important aspect to consider in this regard is the P&L statement. Zerodha has the finest P&L reports among all the online brokers, which is one reason that most traders prefer Zerodha. However, Dhan has come up with a better version of the same concept and calls it Trader's Diary, which will provide you with a graphical presentation of your daily profit and loss and allow you to add trading notes to any dates on the Trader's Diary.
How to Start Trading on a Zero Brokerage Trading App?
So far, you have gained good clarity on zero brokerage trading apps, and now, it's time to look at things you need to do to start trading on a zero brokerage trading app. It involves three basic steps.
Set up an account and complete the KYC process
You can sign up using your email or phone to open an account. After that, you must complete the email and phone verification process. Next, you will need to complete the KYC process, and for that, you will need to provide the trading platform with your PAN card and Aadhaar details. You will also need your mobile phone linked with your Aadhaar to verify your Aadhaar OTP. Besides, you will need your six months bank statement to activate the F&O section.
Linking bank account for funds transfer
You can link your bank account with your trading account during the KYC process itself or do it later. To link your bank account for funds transfer, you will need to provide the trading platform your bank account number and IFSC. Once you link your bank account to your trading account, you should be able to add funds through net banking and UPI.
Placing orders and managing investments
Once you link your bank account to your trading account, the next best thing you can do is fund your trading account. After that, you are good to go with placing your orders and managing your investments. You can place orders with a short-term perspective or a long-term perspective. Besides, you can place orders for Intraday, BTST, or Swing trading.
Final thoughts and recommendations
It's not hard to be a full-time trader as long as you are dedicated and choose the right trading platform in Zero Brokerage Trading App in India. However, you must know your trading style and trading requirements. It will help you select the best trading application for your trading. Most importantly, the time has come when you need to look for the best zero brokerage trading platform instead of selecting just any discount broker.
However, you must select a trading platform only after a good comparison of all the available zero brokerage trading apps since it's no point choosing a zero brokerage trading app if it's not reliable enough. Hence, you will need to carefully choose a trading platform, which is both zero brokerage and reliable.
If you want to stay long in the stock market, you must have a powerful money management system in place, and finding a zero brokerage trading app is just another excellent way of managing your money and keeping your capital intact. If you don't want to pay for exaggerated features, Finvasia is a great option to go with.
As far as the P&L report goes, you can create almost the same P&L as Zerodha or Dhan using excel. However, the Finvasia web app is a bit slow, and you can use the mobile application in combination with an external Tradingview app.
What are the best zero brokerage trading apps for stock and options trading in India?
The best zero brokerage trading apps for stock and options trading in India are:
- SAS Online
What is the best broker for opening a zero brokerage trading account?
m.Stock by Mirae Asset is a well-regarded option for opening a zero brokerage trading account. It allows investors to trade in the stock market without incurring any brokerage charges on equity delivery trades, making it an attractive choice for cost-conscious traders.
Which stock broker has the best trading app?
The best trading app can be subjective, as it depends on individual preferences and requirements. However, many traders find trading apps from brokers like Zerodha, m.Stock, Upstox, and Angel Broking to be among the top choices due to their user-friendly interfaces, reliable performance, and comprehensive features.
What is delivery trading or equity delivery in the stock market?
Delivery trading, also known as equity delivery, is a type of trading in the stock market where investors buy shares of a company and hold them in their demat account for an extended period.
In delivery trading, the shares are not sold on the same day of purchase, and the investor becomes a partial owner (shareholder) of the company. The aim of delivery trading is to benefit from long-term price appreciation and dividends, rather than short-term price fluctuations.