The world of share markets is buzzing, and all thanks to the recent changes introduced by SEBI (Securities and Exchange Board of India) on 1st July, 2024. An important circular, “True to Label,” has shaken up the way brokers operate, and it has led to quite a few sleepless nights for brokers across the country! Because of SEBI’s new guidelines, many brokers are now introducing fresh charges on their platforms. For instance, Nitin Kamath, the CEO of Zerodha, tweeted about the significant impact of SEBI’s circular on brokers, indicating that many of them, including Zerodha, may have to hike their brokerage fees to comply.
Now, you might be wondering which are the best stock market apps to use with all these changes in place. In this post, we’ll compare the top 11 stock market apps and recommend the top 3 for the coming years. We’ll also cover the new SEBI regulations and how they might impact you. Let’s dive in!
What’s Changing Due to SEBI’s New Circular?
SEBI’s new circular brings specific guidelines for brokers regarding maintenance charges:
- If your investment is below ₹4 lakhs: No broker can charge maintenance fees.
- Investment between ₹4 to ₹10 lakhs: Brokers can charge a maximum of ₹1 + GST as maintenance fees.
These changes will be implemented from 1st September 2024, so expect broker charge structures to adjust very soon.
Maintenance & Account Opening Charges
One key point to check when selecting an app is account maintenance and opening charges. Typically, brokers charge for maintenance if the invested amount crosses certain thresholds.
- Most apps don’t charge for account opening.
- For example, apps like Zerodha, Dhan, and Paytm Money do not charge any maintenance fee for invested amounts.
- Motilal Oswal and Angel One offer the first year’s maintenance free.
In contrast, apps like Paytm Money, Groww, and Motilal Oswal may charge maintenance fees after the first year, depending on the investment amount.
Brokerage Fees for Intraday and Delivery Trades
When it comes to stock trading, you may either go for intraday trading (buying and selling shares within the same day) or delivery trades (holding shares for more than a day). Here’s what leading brokers charge:
- Zerodha and Dhan offer zero delivery charges and minimal intraday fees (₹20 or 0.03% per order, whichever is lower).
- Groww and Paytm Money charge a flat ₹20 per intraday trade and 0.05% per order, whichever is lower.
Most brokers, including 5Paisa, M Stock, and Upstox, charge a flat fee per transaction for intraday trading, while many charge zero for delivery trades.
Other Charges to Consider
Brokers may impose additional fees based on trading activities. Here are some common charges you might encounter:
- DP Charges: When selling stocks, a depository participant (DP) fee is charged. Zerodha offers one of the lowest DP charges (₹13.5 + GST), followed by 5Paisa and Dhan.
- Payment Gateway Charges: When transferring funds, no charges apply for UPI transfers up to ₹2 lakhs. However, for NEFT/RTGS transfers above ₹2 lakhs, fees may vary. Dhan, Groww, and Angel One offer free NEFT/RTGS, while Zerodha charges around ₹7.
- Auto Square-off Penalty: In intraday trading, if you forget to square off your positions by 3:15 PM, brokers may charge a penalty. Zerodha is an exception here, charging no penalty for auto square-offs.
Which Brokers Offer the Best Value?
To simplify things, we analyzed the costs for a hypothetical trade and found that Zerodha charges the lowest fees. Here’s a summary of our findings:
- Zerodha: Lowest charges for intraday and delivery trades.
- Motilal Oswal, Dhan, and Groww: Offer reasonable charges for most trade types, making them competitive choices.
- Paytm Money: Found to have higher charges, especially for certain transaction types.
Our Top 3 Picks for 2024-2025
After analyzing the data, we recommend the following three stock market apps for Indian investors:
- Groww: Known for its user-friendly interface, affordable charges, and solid support for beginners, Groww tops our list. It’s an excellent choice for new investors with a clear layout and good features.
- Angel One: Suitable for both beginners and seasoned investors, Angel One offers an intuitive interface and moderate charges, with plenty of features to support pro-level trading.
- Dhan: Although a bit complex for beginners due to advanced features, Dhan is a good option with a decent interface and lower charges for intraday trading.
Conclusion
With all the SEBI changes coming into effect, it’s more important than ever to choose the right stock market app. We’ve done the research to help you pick the best app based on fees, features, and ease of use. We hope this post has made it easier to find the app that suits you best. Share this with friends and family who are interested in trading, and let’s make the most of the stock market in 2024-2025!