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Best Broker For Option Trading

Best Broker For Option Trading

Looking for a Best Broker For Option Trading? Great! You have reached the right place.

The trading of futures and options contracts is referred to as derivative trading. In the past couple of years, we have seen a significant increase in the trading activity of the options sector in the Indian derivatives market.

Because it provides the possibility to profit from all types of market mood, whether bullish, bearish, range-bound, or highly volatile, trading activity in this category are fast increasing.

Aside from the cash market, where stocks and indices may be bought and sold. The exchange also includes a futures and options market, where these equities and indices can be purchased and sold in the future.

This article will take a deep dive into the best options trading platform in India.

In this guide, we ranked and reviewed the 10 best option trading app in india, along with our top 3 choices, so that you can pick the best one for you.

Recommended
Zerodha

Zerodha

(Best For Price)

Overall Rating: 4.1/5

UpstoxUpstox

Upstox

(Best For Performance)

Overall Rating: 4.5/5

Groww

Groww

(Best For Overall)

Overall Rating: 4.6/5

Top 5 best broker for option trading in India

What are Options?

An option is a contract that gives the buyer the right, but not the obligation, to purchase or sell an underlying asset at a given price on or before a specified date.

When it comes to options, they are not complicated to understand. Essentially, you have the right to purchase or sell an underlying stock at a predetermined price provided you meet the requirements. The best part is that you simply have two choices: call or put, and you may purchase or sell.

Call Option

It gives the buyer the right, but not the responsibility, to "purchase" shares at the stated price on or before a given date.

Put Option

This option gives its buyer the right, but not the responsibility, to "sell" shares at the stated price on or before a given date.

Options Trading

Trading options allow you to buy or sell shares, ETFs, and other financial instruments at a predetermined price over a certain period of time. Customers may often opt out of purchasing securities at the set price or date when using this trading technique.

Options, despite the fact that they are a bit more difficult to understand than stock purchases, will enable you to gain much more money if the value of the asset rises.

This is due to the fact that you will not be required to pay the maximum-security premium associated with an incentive agreement. Selling options, in the same manner, can minimise your risks if the price of the asset falls. This is known as hedging.

Let's look at an illustration to better comprehend the concept:

Consider the following situation: Rajesh and Garima are two traders. Rajesh has his eye on a stock called X, which is presently selling at a price  Y.

Rajesh, on the other hand, wants to purchase the stock 10 days later because he expects the company to have great quarterly results that will benefit the stock.

According to Rajesh's estimate, the stock's price will rise in the near future. However, Garima is looking to sell the X stock in the near future. This is the point at which Rajesh executes an options trading order, and Garima accepts the order.

Ten days from now, the stock will be traded for a price of Z. "Premium" of Rs. M is paid to Garima by Rajesh to ensure that Garima is bound by the contract and does not sell off the stock to a third party before the contract is up.

In this case, the contract in question is called a "Derivative" or "Options Agreement." Rajesh, who is the buyer in the transaction, is referred to as the Options Buyer, while Garima is referred to as the Options Seller. The advance payment of Rs. M paid by Rajesh to Garima is referred to as "Premium."

Must-Have Qualities in The best app for option trading

Several brokers with a national presence provide services in the options trading segment. Choosing a reputable stockbroker who is most suited to your specific requirements is no easy undertaking. We will assist you in selecting a broker that has a significantly higher level of value to give to their customers.

Before we get into how to identify the best broker for options trading in India, let's look at the characteristics that a stockbroker should have to be the top broker for options trading.

1.  Credentials that stand out

The brand in which you place your confidence for trading must have a solid track record. They must have a large user base, and certain well-known companies and investors should be among their most active users.

The value of a company is also an important factor to consider when selecting the best broker.

2.  Pricing that is open and transparent

Transparent pricing is one of the most important characteristics of a reputable stock brokerage firm. All costs (brokerage, access fees, and transaction fees, among other things) must be disclosed to clients in advance.

3.  Must be able to provide at least two-in-one accounts

Having a 2-in-1 account implies that you may establish both a Demat account and a trading account at the same time, and they are connected to each other.

A 3-in-1 account is one in which the Demat, trading, and bank accounts are all created at the same time and connected to one another. A decent stock broker should provide at least two-in-one accounts to make trading and transactions as seamless as possible.

It is preferable to provide a 3-in-1 account, which allows for faster and more convenient money transfers.

4.  Charges that are not disclosed

Not only can hidden fees cost money because they may convert a lucrative deal into a loss, but they also erode trust between a stockbroker and his or her client.

A competent stockbroker will be completely clear about brokerage fees and other costs, which will enable you to trade with total confidence in their abilities.

5.  Excellent Trading platforms

The importance of trading platforms cannot be overstated. It should be simple to use, quick, and dependable, with as little downtime as possible.

A decent stock trading website should provide you with free access to powerful trading platforms that are fully equipped with all of the capabilities you need to evaluate and trade assets.

In order to make an informed selection, it is necessary to understand the trading platforms provided by brokers in depth.

6.  Efficient Customer Service

Another essential feature of a successful stockbroker is the ability to provide excellent client service. It must be available across all major communication methods, such as phone, email, chat, and branch locations, among others.

7.  The most up-to-date mobile trading apps

There should be the most up-to-date and advanced mobile trading applications available for speedy buying and selling.

It should contain practically all of the functions accessible on any desktop trading program, allowing you to trade without having to sit in front of a computer all the time.

8.  Brokerage Plans that are adaptable

Traders have a wide range of criteria while trading. There are traders who deal in large volumes and there are traders who trade in lesser quantities.

A brokerage plan that is one size fits all will not be beneficial to all traders. A competent stock trading firm, as a result, must provide a variety of trading and brokerage plans in order to meet the demands of a diverse range of investors.

9.  The company provides services, both online and offline

The world has gone digital, and with it, the world of trading. Internet stockbrokers, who solely provide services via an online platform, are now available to us. They have no or very little physical presence in the world.

When dealing with consumers who are unfamiliar with online trading or who have complicated service concerns to resolve, this might cause difficulties for them. Thus, your stockbroker must provide trading services both online and offline in order to be competitive.

10.  Excellent leverage

When it comes to taking larger positions, leverage is quite vital for small traders.

11.  Low brokerage

A minimal level of a brokerage should be maintained so that you do not wind up paying out the majority of your profits in brokerage.

1.  Zerodha

It is the biggest and most well-known broker, providing online flat fee discount brokerage services for investing in stocks, bonds, currencies, commodities, initial public offerings (IPOs), and direct mutual funds.

As the most transparent stockbroker, they provide a great online trading platform while charging a minimal brokerage cost.

Continuous progress and innovation have propelled them to the top of the list of India's fastest-growing fintech companies.

Features

  • Mobile APP: Zerodha KITE mobile is a lightweight and low-resource mobile application developed by the company.
  • Leverage: They provide an NRML margin of three times or 40%.
  • Trading Platform: KITE is one of the trading platforms offered by Zerodha, and it is absolutely free to use.
  • Brokerage: They charge a flat rate of Rs 20 for every completed order, regardless of the number of lots involved. Trades that are dependent on delivery are absolutely free.
Pros
  • The best part about the app is that it is available in ten different regional languages.
  • There are several trading charts on this app, which include a lot of data to see how the market is doing. You can use these charts to analyse the performance of the market.
  • You can place a limit on the number of orders.
Cons
  • You cannot trade in mutual funds using the Zerodha Kite app.
  • There are no price alerts given to the traders.

Brokerage Charges:

The brokerage charges levied by Zerodha are summarised in the following table:

Segment

Brokerage Charges

Equity Delivery

Zero

Equity Intraday

0.03% or Rs 20/trade whichever is lower

Equity Futures

0.03% or Rs 20/trade whichever is lower

Equity Options

Rs 20/trade

Currency Futures

0.03% or Rs 20/trade whichever is lower

Currency Options

Rs 20/trade

Commodity Futures

0.03% or Rs 20/trade whichever is lower

Commodity Options

Rs 20/trade


A complete breakdown of the charges levied by Zerodha for its Options segment is shown below:

Description

Charges

Brokerage

Rs 20/Executed Order

Security Transaction Charges (STT)

0.05% on sell side (on premium)

Turnover Charges

NSE 0.05% (On Premium) : BSE 0.003% (On Premium)

SEBI Charges

Rs10 per Crore

GST

18% of ( Brokerage + Turnover Charges)


Zerodha Special Offers

Zerodha Coupons

Zerodha Offers

Account Opening Offers

Free Demat Account

Refer and Earn

10% Brokerage Share + 300 Reward Points

Zerodha Offers

Commission Free + Reward Points

Coupon Code

Flat ₹20 Off on Intraday and F&O Trades

Mutual Fund

Free Direct Mutual Fund

Trading

Brokerage Free

Sign Up Offer

Get 10% Off for New User

2.  Upstox

5paisa.com

Upstox is a low-cost brokerage service based in India that offers trading possibilities at incomparable pricing to its clients.

Equities, commodities, currencies, futures, and options are some of the trading categories offered by the company, which may be accessed via its Upstox Pro Web and Upstox Pro Mobile trading platforms.

In addition to Kalaari Capital, Ratan Tata, and GVK Davix, Upstox has the support of a number of other investors.

The Upstox trading platform includes trading, analysis, charting, and a plethora of other useful trading tools.

Orders may be placed quickly and easily using mobile phones and web browsers using this platform. Upstox Pro is a subscription-based service provided by Upstox for traders.

Features

  • Mobile APP: Trade on the go with the strong features of Upstox Pro Mobile, a mobile trading app from Upstox.
  • Leverage: In terms of leverage, Upstox offers two different brokerage options (priority charges are Rs30 per order). They give 3x margin and 4x margin for options with the Priority pack, along with the basic plan.
  • Trading Platform: Upstox PRO is the trading platform provided by Upstox, and it is also available for free of charge.
  • Brokerage: They charge a flat rate of Rs 20 for every completed order, regardless of the number of lots involved. Delivery-based transactions, on the other hand, are not without cost.
Pros
  • There is no brokerage charge applicable on any of the transactions.
  • The app allows you to manage your portfolio quite well.
  • You can build a low-cost portfolio by investing small amounts in budget-friendly securities
  • It has a very detailed instruction section for traders who are starting new.
  • Using this app, you can also make fractional investments in different kinds of securities, i.e., you can invest in multiple securities at the same time
Cons
  • The only flip side of this app is that if you call and get into a trade, you will have to pay a sum of Rs. 20 for that particular transaction.

Brokerage Charges:


The brokerage charges levied by Upstox are summarised in the following table.

Segment

Brokerage Charges

Equity Delivery

2.5% or Rs 20/trade whichever is lower

Equity Intraday

0.05% or Rs 20/trade whichever is lower

Equity Futures

0.05% or Rs 20/trade whichever is lower

Equity Options

Rs 20/trade

Currency Futures

0.05% or Rs 20/trade whichever is lower

Currency Options

Rs. 20/order

Commodity Futures

0.05% or Rs. 20/executed order whichever is lower

Commodity Options

Rs. 20/order


A complete breakdown of the charges levied by Upstox for its Options segment is shown below.

Description

Charges

Brokerage

Rs 20/executed order

Security Transaction Charges (STT)

0.017% on Sell

Turnover Charges

Rs5500 per Crore

SEBI Charges

Rs15 per Crore

GST

18% of ( Brokerage + Turnover Charges)


Upstox Special Offers

Upstox Coupon Code

Upstox Offers & Discount

Demat Account Offers

Opening Free Demat + Trading Account

Referral Code

Refer and Earn ₹300

Offers on Brokerage Charges

Get Brokerage ₹0.00

Coupon Code Today

₹25/Month Demat Account Charges

Account Opening Offer Today

Free Open Trading Account & Pay up to ₹20

Coupon Code for Upstox

Get Worth ₹500 Discount for New User

Promo Code for New Account

Get Free Trades + Upto 20%/order on Equity

Demat Annual Maintenance Charges

Starting @ ₹150 only

3.  5paisa.com

India's Kotak Securities

5paisa.com is a major online stock broker in India that provides ordinary investors with affordable brokerage services.

5paisa Capital Ltd is a publicly-traded and actively managed firm that was founded by IIFL founders.

On the NSE, BSE and MCX, online trading in commodities, equities, currency and options are offered by 5paisa.com.

It charges a fixed Rs 20 brokerage fee, regardless of the quantity of the trade, the segment, or the exchange in which it is executed.

Features

  • Mobile APP: It contains a Mobile Trading App, a Trading Website, and a Trading Terminal that can be downloaded and installed.
  • Leverage: In order to facilitate option selling, 5Paisa offers a 2x margin.
  • Trading Platform: These platforms are constructed on the most up-to-date technology and have been acknowledged as the finest in the financial services industry for their usage of mobile technology.
  • Brokerage: 5Paisa offers the lowest brokerage fees for options trading in India, according to our research. They impose a flat fee of Rs 10 for each successful order, regardless of the number of lots. Trades that are dependent on delivery are likewise charged at the same rate.
Pros
  • You can get into instant investing of stocks and other securities.
  • Several charts are available on this app that are quite simple to grasp. You can make use of these charts to trade better.
  • Limit orders, After Market Orders, and other types of orders are available on the Upstox Pro app.
Cons
  • While the app is relatively easy to use, the website has a very complicated user interface, making transactions a little tricky.

Brokerage Charges:


The brokerage charges levied by 5Paisa are summarised in the following table:

Segment

Basic Pack

Power Investor Pack

Ultra Trader Pack

Plan Charges

No Charges

Rs 499/month

Rs 999/month

Monthly Brokerage Cashback

0

0

Upto Rs 1000

Equity Delivery

Rs 20/Order

Rs 10/Order

Rs 10/Order

Equity Intraday

Rs 20/Order

Rs 10/Order

Rs 10/Order

Equity Futures

Rs 20/Order

Rs 10/Order

Rs 10/Order

Equity Options

Rs 20/Order

Rs 10/Order

Rs 10/Order

Currency Fututres

Rs 20/Order

Rs 10/Order

Rs 10/Order

Currency Options

Rs 20/Order

Rs 10/Order

Rs 10/Order

A complete breakdown of the charges levied by 5Paisa for its Options segment is shown below:

Section

Charges

Brokerage

Basic Pack: Rs 20/Order; Power Investor Pack : Rs 10/Order; Ultra Trader Pack: Rs 10/Order ;

STT

0.05% on Sell Side Premium

Transaction Charges

NSE: 0.051%

SEBI Charges

Rs 15/Crore

GST

18% on (Brokerage + Transaction Charges)

Stamp Duty

Depends on the State


5paisa.com Special Offers

It offers a Free Demat account

FYERS

FYERS offers financial segments to trade and invest in NSE Equity, NSE Futures & options and NSE Currency Derivatives with its broking services. FYERS offers its customers all online platform services for trade at no extra cost.

It offers an in-house online platform for trading that includes a desktop trading terminal and a phone app. It aims to provide trading platforms with the feature for the best online trading experience.

The brokerage charges levied by Fyers are summarised in the following table: 

Segment

Brokerage Charges

Equity Delivery

Zero

Equity Intraday

0.03% or Rs 20/trade whichever is lower

Equity Futures

0.03% or Rs 20/trade whichever is lower

Equity Options

Rs 20/trade whichever is lower

Currency Futures

0.03% or Rs 20/trade whichever is lower

Currency Options

0.03% or Rs. 20/executed order whichever is lower

Commodity Futures

0.03% or Rs. 20/executed order whichever is lower

Commodity Options

0.03% or Rs. 20/executed order whichever is lower

 
A complete breakdown of the charges levied by Fyers for its Options segment is shown below:

Description

Charges

Brokerage

Rs 20/executed order

Security Transaction Charges (STT)

0.05% on Sell side

Turnover Charges

Rs5900 per Crore

SEBI Charges

Rs15 per Crore

GST

18% of ( Brokerage + Turnover Charges)


FYERS Special Offers

Free Trading Account

Yes

Discount on Brokerage

Yes

Free Equity Delivery Trading

Yes

Free Demat Account

Yes


4.  ProStocks

prostocks

ProStocks is the fastest-growing flat-fee relatively inexpensive stockbroker in the industry, providing online trading at the Bombay Stock Exchange

And National Stock Exchange. ProStocks is well-known for offering an unlimited trading package.

Features

  • ProStocks also offers a Rs 15 per transaction price plan, which is popular among investors and traders who are just getting started. Using this plan, ProStocks clients will pay a fixed fee of Rs 15 for every executed order, regardless of the quantity of the transaction.
  • In the equities delivery and intraday categories, as well as in the equity derivatives (F&O) and currency derivatives (F&O) segments, ProStocks provides trading services.
  • The custom-built trading platform provides straightforward trading via an installable trading terminal, a website, and a mobile app. All of these are provided at no charge to all consumers using the platform.
Pros
  • There are no account-opening fees associated with the app; therefore, one can open a Groww account without any hassles.
  • You don’t have to pay any account maintenance fees for your Groww account
  • Your information is protected and secure, thanks to ISO 27001:2013 certification.
  • Laboris nisi ut aliquip ex ea commodo consequat 
Cons
  • Brackets and orders, cover orders, and other advanced order and security kinds are not available on the Groww app.

Brokerage Charges:


A complete breakdown of the charges levied by ProStocks for its Options segment is shown below:

F&O Brokerage

Futures

Options

Brokerage (Flat Fee Plan)

Rs 15/Trade

Rs 15/Trade

Brokerage (Unlimited Plan)

Rs 0

Rs 0

STT

0.01% on Sell Side

0.05% on Sell Side(on Premium)

Transaction ChargesNSE:

Rs 190/Cr | BSE: Rs 50/Cr

NSE: Rs 5000/Cr | BSE: Rs 2500/Cr

Goods and Services Tax

(GST)18% on (Brokerage + Transaction Charge)

18% on (Brokerage + Transaction Charge)

SEBI Charges

0.0001% (Rs 10/Crore)

0.0001% (Rs 10/Crore)

Stamp Charges

0.002% (Rs 200 per crore)

0.003% (Rs 300 per crore)


ProStocks Special Offers

ProStocks provides a Free Trading Account as well as a Free Demat Account. For Rs 899/month, you may trade an unlimited number of shares in the equities and equity financials section, or you can choose for a Rs 15 per transaction plan.

As a result, you may save up to 90% on brokerage fees. ProStocks also offers a Rs 0 Demat AMC with a one-time Rs 1000 refundable investment in addition to their other services.

There is a small charge of Rs. 20 or 0.05% on every transaction; the lower of the two is deducted as a brokerage charge. Rs 20 is charged as a brokerage for all futures and options transactions.

5.  Kotak Securities

India's Kotak Securities Ltd. provides stock brokerage and financial product distribution services.

The company has a total of 1209 locations, including franchisees and satellite offices, that provide services.

Features

  • Investors may establish a Demat, trading, and bank account all in one place with Kotak Securities in partnership with Kotak Mahindra Bank Limited via a three-in-one account. One may open such accounts separately or all at once under a single umbrella using a single application.
  • When using a 3 in 1 account, the customer will not have to physically transfer money from their bank account to the trading account. The necessary amounts are credited to your account automatically. As a result, it is simple to manage. Once your account is established, you will be able to trade in equities, initial public offerings (IPOs), mutual funds, exchange-traded funds (ETFs), tax-free bonds, currency derivatives, gold ETFs, and other financial instruments.
Pros
  • There are several research tools available on this app. These tools help you in making a better and informed investment decision.
  • The app is suitable for both trading experts as well as people who are new to trading.
  • The auto investing feature of the app gives a hassle-free experience.
  • You can make use of the multiple learning resources that the app provides.
  • Also, you don’t have to pay any kind of commission if you are trading in mutual funds
Cons
  • If you decide to opt-in for the trade on call feature, you will have to pay Rs. 100 for every transaction that you make.

Brokerage Charges:


The brokerage charges levied by Kotak Securities are summarised in the following table:

Segment

Brokerage Fee

Monthly Fee (Fixed)

Equity Delivery

0.25%

Equity Intraday

Free

Equity Futures

Delivery: Rs 20 per trade | Intraday: Free

Equity Options

Delivery: Rs 20 per trade | Intraday: Free

Currency Futures

Delivery: Rs 20 per trade | Intraday: Free

Currency Options

Delivery: Rs 20 per trade | Intraday: Free

Commodity Futures

Delivery: Rs 20 per trade | Intraday: Free

Commodity Options

Delivery: Rs 20 per trade | Intraday: Free

  • Can you trade options without a broker?
    No, one cannot trade options without a broker.

  • How much money do you need for options trading websites?
    Since option trading doesn't need a large investment, it's quite appealing to smaller investors.

  • Kotak Securities Special Offer
    It has a trade free plan that offers Intra-day transactions free of charge, whereas orders for futures and options (F&O) are charged Rs 20 per order.

Conclusion

After going through the details of some of the best broker for option selling, now you are competent to decide with whom you need to trade according to your requirement.

I hope you liked our article on best broker for option trading, if you have any comments or suggestions do share them in the comments below.

frequently asked question

1. Where can I practice options trading?

Options trading may be practised on virtual stock trading platforms, which are available online. In virtual stock trading (also known as paper trading), you may purchase and sell stocks in a manner comparable to that of genuine stock trading. However, in this case, there is no actual money at stake.


2. Is Zerodha good for options trading?

The options trading capabilities offered by Zerodha are comparable to those offered by any other brokerage in India. In the options market, Zerodha is the company with the greatest share of transactions executed on the BSE and NSE.


3. Which broker offers the highest margin?

Upstox and Zerodha offer up to 20x times the margin.


4. Which app is best for options trading in India?

Zerodha Pi, Zerodha Kite and Upstox Pro are some of the best options trading apps.

vardhan bhardwaj

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About the Author

Vardhan Bhardwaj reviews health and fitness products at ankuraggarwal.in. He has been with the company since the beginning. He started his career as an intern in Bollywood news based company named Celeb Mantra where he was managing the content editing.

He reviews fitness products including health care devices. He did his graduation in Bachelor of Commerce from Delhi University and has been living in Delhi since his birth. He likes to stay updated on general awareness and hates interrupted internet connections. He likes to stay fit thus is a fitness enthusiast.

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