Looking for a best broker for options trading india ? 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.
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.
best broker for options trading india
App Name | Click to Open Account | Sign Up Bonus | Earn Per Referral |
|---|---|---|---|
Up To ₹500 Cashback | Up to ₹250 | ||
Free Demat Account | Voucher Up to ₹5000 | ||
Free Demat Account | 300 Reward Points | ||
Free Demat Account | Up to ₹300 Cashback | ||
Free Demat Account | ₹20* per order brokerage | ||
Free Demat Account | ₹20* per order brokerage |
Here's Top Recommendations for best broker for option trading :
Also Read :
best broker for options trading india
1. Zerodha
It is the biggest and most well-known best options trading platform India, 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
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) |
2. Upstox
Upstox is best broker for option trading in india with a low-cost brokerage service 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 for free making it one of the best free option trading brokers in india
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
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 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
5paisa.com is best broker for option selling 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
Brokerage Charges:
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 |
4. 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
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.
5. 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
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.
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.
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 broker is best for option selling?
Zerodha Pi, Zerodha Kite and Upstox Pro are some of the best options trading apps.
5. which are the best broker for option trading in India ?
Here is the list for all the best options trading platform india :
- Upstox
- 5Paisa
- Zerodha
- Kotak Securities
- Angle one
