Best Broker for Option Trading in India
The options segment makes for a prominent part of derivatives market specifically in our country and thus it is important for us to know about the best broker for option trading in India. It would not be wrong to say that approximately 80% of derivatives traded in the stock market are options and rest is just attributable to futures stock market.
In the international market, options market has a good experience. Even though options market was established in the year 2001, the actual liquidity in the index options in India was seen just in 2006.
In case you trade in Options, there are a couple of important things which are important and should be considered. You might be trading with the help of technical analysis and charts and you might be looking at the option of trading with the help of different strategies that include buying as well as selling of the options.
You also need to ensure that the stock broker you are trading with offers you some of the top stock trading platform through which you may analyze the charts with the help of different charting indicators and tools. Your stock broker should offer you a good margin while you sell the options. You shouldn’t mess up your strategies by simply paying most of part of your profits as stock brokerage and you will also have to make sure that you choose to opt out of the trading for booking profits or for limiting the losses by simply getting right alerts.
Options are the derivatives products. For choosing the Best Broker for Option Trading in India you should consider the below mentioned points:
The stock broker you choose should be the best as far as tools, platform as well as technology for stock trading. You would mostly be trading through technical analysis and charts and you would be looking at stock trading with the help of options strategies that include buying as well as selling of the Options. Then you require a stock broker which offer you top trading platforms where you are able to analyze the charts with the help of charting indicators and different types of tools. This platform needs to be advanced enough for opening multiple charts at the same time and trading real time with one single click.
There has to be advance and latest application for mobile trading for quick actions of buying/selling. It is important that the app has all the features which are available for desktop trading so that you do not have to sit on the desktop for trading.
Margin is also quite important for the small scale traders for taking high positions. The stock broker you choose should be able to offer you a good margin in order to take the position in terms of options.
The stock brokerage has to be very low so that most of your profits doesn’t go into paying the stock brokerage. There are certain stock brokers who ask for Rs. 15- Rs. 100 for a lot for option trading.
You should also receive alerts on time for making sure that you choose to trade for booking the profits or for limiting the losses.
Having a unique name as well as meaning, it is one of the biggest discount stock brokers in the country. It is the best broker for option trading in India and the 3rd biggest share broker in the country. The biggest reason why Zerodha is becoming so popular is because it is one of the top online stock trading platforms in the country, it is a 100% online stock broker, offers lowest stock brokerage fee and offers a low stock brokerage as well as exposure.
Talking about customer assistance, it offers quite a memorable and consistent experience.
It is one of the best discount stock broking companies which specialist in the model of Zero brokerage cost. It focuses mainly on training as well as educating the people about financial markets and the way the investors may earn maximum profits. For the online traders, it is the best broker for option trading in India. It offers a pretty decent client assistance service which is important for maintaining as well as retaining the clients.
This is the next name on our list of the top broker for option trading India. It has made a good name in terms of discount stock brokerage. It has introduced new ways of investing in the shares which is known as “Thematic Investment” where a couple of shares could be picked on the basis of some particular ideas known as themes. The idea here is to concentrate on investing in the stocks which suits the preference of the investors.
This is the next broker for option trading in India. The USP of this stock broker is that it offers lowest stock charges in this industry. It offers to trade at the lowest transaction fee as they do not charge a PCM fees which all the other discount and full service stock brokers charge as usual. This stock broker also puts the call and trading at minimum for helping their clients make maximum profits.
It offers 3 very easy stock brokerage plans.
5Paisa is a part of IIFL Group, which is a well-established financial services provider. It offers a well-diversified model of business which includes credit and finance, wealth management, distribution of financial products, asset management, currency and share broking, etc. At present it is at the second position although it started quite late in the segment of discount stock brokerage. It offers the option of trading across Futures and Options, Equity, as well as Currency segments with a discount stock brokerage of just Rs. 10 for every executed order. Having an account with the brand is not compulsory and thus you may easily link any other Demat Account with the trading account of 5Paisa.
Kotak Securities is also one of the best brokers for option trading in India. It is a subsidiary of The Kotak Mahindra Bank. It is a share broking/distribution wing of Kotak Group. It has its business interests in share broking, commercial banking, life insurance, mutual funds as well as investment banking. It is a full service stock broker and the best broker for option trading India. It is a corporate member of the BSE and NSE and a DP (Depository Participant) with CDSL and NDSL for the Demat Account. They also have the research wing for studying macroeconomic indicators, company specific Equity research, sectors, that publish the analysis of the share market regularly. It offers one single platform for investment in mutual funds, currency derivative and equity. It offers margin against security with the help of shares in the Demat Account. He margin available could be used for any segment.
ICICIDirect is one of the biggest equity E stock broking houses in India. It offers a 3 in 1 stock trading account which gives the investors the comfort of opening an online Demat, trading and bank account. It also offers “Trade Racer”, the trade platform that offers LIVE Stream quotations and research calls, an integrated transfer of funds along with the facility of multiple watch-lists. It charges Rs. 35- Rs. 95 for each lot for Direct Options trade. It also offers the direct stock brokerage calculator to the investors.
Aditya Birla Money
Another popular broker for option trading in India, Aditya Birla Money has been in this business for quite some time now. It offers investment and trading in shares and securities through different affiliations with the stock exchange. It provides Portfolio Management Service, investment in mutual funds and debts through the digitalised platforms.
- the one click strategy for options
- a free call-n-trade stock trading facility
- Advanced chart tools with integration of buying and selling
- It charges Rs. 50 for a lot for Options Trading
Thus, these are some of the top stock brokers for Options trading in the country.
If you wish to undertake options trading in the stock market in India, and do not wish your profits to be swept away by the costly stock brokerage companies then you will have to make the crucial choice of selecting the best stock broker for option trading in the country. There are basically 2 types of stock brokers that are available in India i.e. discount stock brokers and full service stock brokers. Both these categories of stock brokers offer execution of trade on the trade platforms and Call-n-Trade option but the traditional stock brokers change a high brokerage as compared to discount stock brokers.
If you do not know what is stock brokerage fee then it’s simply commission that is supposed to be paid to the share broker on buying or selling of the order. The traditional stock brokers usually offer additional services as compared to the discount stock brokers like research reports, relationship management, offline support and advice through offices across India.