Best trading platform for beginners
Updated: Jul 11, 2020
In general, there cannot be one thing which is the best for all of us.
Hence, it would be a misstatement to state that there is one stock broking firm which is the best for all the traders out there.
The 'best' is determined by the needs of the user, his expectations, knowledge, experience, and capital.
Criteria for selecting a 'good' stock broker
A stock broker is close to being "best" in general if it is:
Reliable (minimal downtime i.e. does not fail during high volumes/volatility)
Cost efficient (cost per trade should be reasonable so that our profitability increases)
Offers adequate margin/leverage (make high-value transactions with lesser capital)
Affordable (advisory or other related services are fairly priced)
Comprehensive (complete solution for all trading/investment related needs)
Easily accessible (available on web as well as mobile application with simple user interface)
Provides prompt customer support service.
Discount brokers versus full-service brokers
Before we proceed to selecting a suitable broker, it is important to understand the type of broking services available.
Discount brokers: Discount brokers trade huge volumes at a very low cost without offering any research or any add-on advisory services. You'll have to do all transactions on your own.
Full-service brokers: They will charge a higher brokerage but comes with a host of services. For example, there is research, short-term calls, advisory desk, and advisors to help you if you get stuck in positions. All major banks offer full-service trading accounts.
For beginners, I personally feel that you need your first account to learn executing trades on a trading platform and get a feel of how the stock market works. You will not need any premium service in the initial stage. Hence, a discount broker will be an appropriate choice for you.
Recommended trading platforms
Considering the above criteria in mind, I have enlisted below 2 stock brokers which stand out in the competition and are worthy of your consideration:
Zerodha is the largest and most popular stock broker in India with 2+ million clients. It is one of the first brokerages in the country to start discount broking service. Their trading platform called "Kite" is very simple and easy-to-use. Zerodha allows trading and investing in Futures and Options, Commodity derivatives, Currency derivatives, Stocks & IPOs, Direct mutual funds, Bonds and Govt. Securities.
The 'Kite' dashboard looks like this:
Trading Account Opening Charges ( one time) – Nil
Demat Account Opening Charges ( one time) – Rs 200
Trading Account Maintenance Charges (AMC) – Rs 0
Demat Account Maintenance Charges (AMC) – Rs 300 per year
Zerodha Brokerage Charges
Equity Delivery- zero brokerage
Equity Intraday- 0.01% or Rs 20/per trade whichever is lower
Equity Futures- 0.01% or Rs 20/per trade whichever is lower
Equity Options- flat Rs 20 per trade.
Leverage: You get 3-20 times leverage for intraday trading in equities depending on the type of stocks you are trading.
Suppose there is 10x leverage on the stock of HDFC Bank and you have Rs. 10,000 capital in your account. For intraday trading you can buy HDFC Bank shares worth Rs. 1,00,000 (10 x 10,000) only with a capital of Rs.10,000.
Note: Higher leverage gives you the freedom to trade higher value transactions with less capital. But it also means you are taking higher risk and so leverage margin should be used with great caution.
Pros and Cons:
Free investment (No delivery charges)
Advanced charting and UI
Low brokerage and charges
Sleek user dashboard (Console)
Other integrated useful platforms (Sensibull, Pi, Coin etc.)
Customer support service is not up to the mark.
Infamous for downtime during high volatility.
Upstox is a tech-first low cost broking firm in India providing trading opportunities at unbeatable prices on different segments such as equities, commodities, currency, futures, options which are available on its Upstox Pro Web and Upstox Pro Mobile trading platforms.
Upstox is backed by a group of investors including Kalaari Capital, Ratan Tata and GVK Davix.
Upstox Account Regular Fee & Charges
Upstox Equity Demat and Trading – Rs. 300 (includes first year AMC)
Upstox Commodity Trading Account– Rs. 150
Upstox Annual Maintenance Charges – Rs.150
Upstox and Zerodha have similar brokerage and account-opening charges. However, AMC charges are comparatively lower in case of Upstox.
Upstox also offers leverage of 2-20x for intraday trades similar to that of Zerodha.
Pros & Cons:
Upstox provide higher margin & better stable system & highest rated mobile app (Upstox Pro).
Upstox offer free mutual fund have one of best lowest broker in India as per now.
Upstox have advanced charting & all platform are integrated in Pro Upstox.
They provide margin trading facility at lowest rate in Industry. Most of the broker even don’t provide & few of them charge too much for this.
Fully-digitized sign-up process.
Advanced charting and options trading.
24/7 customer service is not available.
GTT/GTC orders not available.
User interface is not as simple as that of Kite(Zerodha).
Upstox Special Offer for a limited time:
If you are new to the world of the stock market, discount-brokers will be the most suitable for you. Both Zerodha and Upstox are good for the reasons given above.
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