Review our top 10 list of the most trustworthy and regulated online brokers in India. We tested with real money accounts and compared their key criteria.
There are many options when choosing an online broker in India. So it is difficult to find the best broker that is safe and matches your investment goals.
Doing in-depth research, detailed comparisons, and verifying the safety of brokers are important steps to avoid scam brokers and poor quality platforms.
To make it simple to choose an online broker, we selected a list of the top 10 brokers and what types of trading they are best for, followed by feature comparisons, reviews and frequently asked questions.
Best online brokers in India
| Rank | Broker | Score | Best For |
| 1 | Interactive Brokers | 4.9 | Best for Stocks and ETFs |
| 2 | Pepperstone | 4.8 | Best for Forex |
| 3 | Activtrades | 4.6 | Best for algorithmic trading |
| 4 | TradeStation | 4.6 | Best for active traders |
| 5 | Spreadex | 4.5 | Best for CFDs |
| 6 | TastyTrade | 4.3 | Best for options |
| 7 | FP Markets | 4.2 | Best trading conditions |
| 8 | Zacks Trade | 4.1 | Best for Beginners |
| 9 | Zerodha | 3.9 | Best local broker |
| 10 | Optimus Futures | 3.8 | Best for futures |
Safety and regulation overview in India
Online brokers that provide services for Indian citizens are regulated, licensed and governed by the Securities and Exchange Board of India, or SEBI, the country’s financial markets regulator.
- Securities and Exchange Board of India (SEBI): Oversees securities markets, brokers, and mutual funds, ensuring compliance and protecting investors from fraud.
- Reserve Bank of India (RBI): RBI regulates banking and foreign exchange in India under the Foreign Exchange Management Act (FEMA).
- Investor Protection Funds (IPF): Established by NSE and BSE exchanges, these bodies exist to compensate investors in case of broker bankruptcy.
Indian Tier-1 International Regulators
If you’re an Indian citizen and looking to choose an international broker, we advise brokers regulated by Tier-1 regulators.
For example in the US there is the US Securities and Exchange Commission (SEC), and in the UK the UK Financial Conduct Authority (FCA).
For Australia the Australian Securities and Investments Commission (ASIC).
These regulators set high standards for broker transparency, security, and investor protection.
These regulatory bodies are internationally recognized and make sure users have strong safeguards when dealing with global brokers.
Safety and regulation comparison for top brokers
Here are some key areas that determine how trustworthy a broker is: who they’re top tier regulators are, investor protection they provide, and if they have any history of misconduct, or scandals. Take a look at the table below where we break down this information for you.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| Top-tier Regulators | FCA (UK), ASIC (Australia), SEC (USA) | FCA (UK), ASIC (Australia), CySEC (Cyprus), BaFin (Germany) | FCA (UK), CMVM (Portugal) | SEC and FINRA (USA) | FCA (UK) | SEC and FINRA (USA), ASIC (Australia) | ASIC (Australia), CySEC (Cyprus) | SEC and FINRA (USA) | – | NFA (USA) |
| Trusted Broker | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Year of Foundation | 1977 | 2010 | 2001 | 1982 | 1999 | 2017 | 2005 | 1978 | 2010 | 2004 |
| Investor Protection | $500k (cash up to $250k) to US clients | £85k to UK, €20k to EU | £85k to UK, €25k to EU | $500k (cash up to $250k) | £85k | $500k (cash up to $250k) | €20k to EU | $500k (cash up to $250k) | No | No |
| Involved in Scandal | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | In 2011 paid fine £85,750 for breaching Principles of Management and control and Clients’ assets | In 2022 paid a fine for failing to register its Crypto lending product | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines |
Fees compared
Stock, Index, Mutual fund and CFD fees of selected platforms are compared in the table below. Interactive Brokers has a cost-effective rate of $0.005 per share with a $1 minimum. Zerodha provides $0 for Indian stock trading.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| US Stock | $0.005 per share with $1 min | – | – | $5 | – | $0 | – | $0.01 per share with $1 min | – | – |
| UK Stock | 0.05% with £3 min | – | – | – | – | – | – | 0.3% with £12 min | – | – |
| Indian Stock | 0.01% with 6 INR min | – | – | – | – | – | – | $0.01 per share with $1 min | $0 | – |
| EURUSD spread | 0.1 | 0.1 | 0.9 | – | 6 | – | 0.1 | – | – | – |
| US Stock Index Option | $0.65 per contract with $1 min | – | – | $0.6 per contract (additional $5 fee for non-US clients) | – | $1 per contract | – | $1 for first + $0.75 for each additional contract | – | $0.75 per contract |
| Mutual Funds | $15.00 | – | – | $15.00 | – | – | – | $27.50 | $0 | – |
| S&P 500 index CFD | 0.8 | 0.4 | 1.5 | – | 0.4 | – | 0.5 | – | – | – |
Non-trading fees compared
Non-trading fees such as account fee and deposit and withdrawal fee are compared in the table below. Interactive Brokers has a deposit fee of $0 and Pepperstone has a withdrawal fee of $0.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| Account fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | 300 INR yearly + 18% GST yearly | $0 |
| Deposit fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $20 |
| Inactivity fee | $0 | $0 | $10/mo after 1y | $10 per month for accounts below $5000 or for less than 10 transactions in 3mo | $0 | $0 | $0 | $15 per month for accounts below $25000 | $0 | $0 |
Deposit, withdrawal and account opening compared
Deposit, withdrawal, and account opening fees of selected platforms are compared in the table below. Interactive Brokers has a minimum deposit of $0 USD and FP Market accounts can be opened in just 1 day.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| Minimum deposit | $0 | $0 | $0 | $0 | $0 | $0 | $50 | $0 | $0 | $500 |
| Time to open account | 1-3 days | 1-3 days | 1 day | 1-2 days | 1-3 days | 1 day | 1 day | more than 3 days | 5 days | 1 day |
| Credit/Debit Card | No | Yes | Yes | No | Yes | No | Yes | No | No | No |
| 24/5 support | Yes | Yes | Yes | No | No | No | Yes | No | No | No |
| Market research | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
Mobile, desktop and web trading platforms compared
Trading platforms are compared in the table below. TradeStation offers the best trading platform and Interactive Brokers has the mobile app with the highest score.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| Trading platform score | 4.8 | 4.9 | 4.6 | 5.0 | 4.6 | 4.1 | 4.2 | 4.0 | 3.9 | 4.5 |
| Tradingview | Yes | Yes | Yes | Yes | Yes | No | Yes | Yes | No | Yes |
| Algorithmic trading | Yes | Yes | Yes | Yes | No | Yes | Yes | Yes | Yes | Yes |
| Demo account | Yes | Yes | Yes | Yes | No | Yes | Yes | Yes | No | Yes |
| Mobile app score | 5.0 | 4.9 | 4.8 | 5.0 | 4.6 | 4.6 | 4.7 | 4.5 | 4.2 | 4.6 |
Product selection, markets and financial assets compared
Available financial products are compared in the table below. Interactive Brokers is the best choice for stocks and ETFs and Pepperstone is the best choice for CFD and Forex trading.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| Stocks (markets) | 90 | – | – | 5 | – | 4 | – | 90 | 2 | – |
| ETFs | 13000 | – | – | 3000 | – | 2200 | – | 13000 | 66 | – |
| Mutual Funds (providers) | 600 | – | – | 54 | – | – | – | 550 | 39 | – |
| Bonds | 41336 | – | – | 630 | – | – | – | 38321 | 145 | – |
| Options (exchanges) | 34 | – | – | 10 | – | 8 | – | 34 | 2 | 14 |
| Futures (markets) | 32 | – | – | 11 | – | 8 | – | – | 2 | 14 |
| Forex | 100 | 97 | 49 | – | 60 | – | 70 | – | 4 | – |
| CFDs | 8515 | 1541 | 1575 | – | 3268 | – | 10091 | – | – | – |
| Cryptos | 5 | – | – | – | – | 4 | – | 4 | – | – |
User base of top online brokers compared
The number of clients per broker are compared in the table below. Interactive Brokers has the most clients.
| Broker | Interactive Brokers | Pepperstone | Activtrades | TradeStation | Spreadex | TastyTrade | FP Markets | Zacks Trade | Zerodha | Optimus Futures |
| Number of clients | 2.6M | 400k | 100k | 220k | 60k | 105k | N/A | N/A | 7.2M | N/A |
Top online brokers in India reviewed
Online brokers in India with the highest rated trading platforms are reviewed in more detail below.
Interactive Brokers
| Broker | Interactive Brokers |
| Recommended for | Stocks, ETFs, Bonds, Options, Futures, advanced and experienced traders |
| Minimum deposit | $0 |
| Time to open account | 1-3 days |
| Credit/Debit Card | No |
| Withdrawal fee | $0 |
| Inactivity fee | $0 |
| Mobile app score | 5.0 |
| Overall score | 4.9 |
| US Stock | $0.005 per share with $1 min |
| UK Stock | 0.05% with £3 min |
| Indian Stock | 0.01% with 6 INR min |
Key points –
- Interactive Brokers are regulated by the SEBI, SEC, and FCA, meaning your money is safe.
- With access to numerous worldwide markets, offering stocks, ETFs, options, and mutual funds.
- IBKR offers low trading fees and margin rates, ideal for traders looking to maximize profits.
- Mumbai office and INR-denominated accounts provide tailored services for Indian clients.
- Traders are supported at all levels with advanced research and educational resources.
Pros –
- Access to more than 150+ markets globally
- Regulated by SEC and FCA, SEBI (Indian Local authorities)
- Investment protection for Indian citizens and clients
- Office headquarters in Mumbai
Cons –
- Long winded account opening process
Pepperstone
| Broker | Pepperstone |
| Recommended for | Forex, CFDs |
| Minimum deposit | $0 |
| Time to open account | 1-3 days |
| Credit/Debit Card | Yes |
| Withdrawal fee | $0 |
| Inactivity fee | $0 |
| Mobile app score | 4.9 |
| Overall score | 4.8 |
| EURUSD spread | 0.1 |
| S&P 500 index CFD | 0.4 |
Key points –
- Pepperstone is regulated by the Securities Commission of the Bahamas (SCB), offering services to Indian clients under this jurisdiction. For those conscious of needing local regulation this is perhaps not the best choice.
- Pepperstone offers clients in Indian negative balance protection, meaning your account balances will not fall below zero.
- Pepperstone client funds are held in segregated accounts, this means your funds are safe.
They offer a broad range of financial assets focused on CFDs across forex, indices, commodities, and shares/stocks, making them best for active traders.
- Pepperstone offers multiple trading platforms, including MetaTrader 4, MetaTrader 5, and cTrader, suitable for traders of all experience levels.
Pros –
- Regulated by multiple top-tier authorities, including ASIC and FCA.
- Offers competitive spreads and fast execution speeds.
- Provides a variety of trading platforms, including MetaTrader 4 and 5.
- No minimum deposit requirement, making it accessible for new traders.
- Comprehensive educational resources and market analysis tools.
Cons –
- Limited range of tradable assets compared to some competitors.
- Customer support is primarily available in English, which may be a barrier for some Indian clients.
- Does not offer direct access to Indian stock markets.
Activtrades
| Broker | Activtrades |
| Recommended for | Forex, CFDs, algorithmic trading |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Credit/Debit Card | Yes |
| Withdrawal fee | $0 |
| Inactivity fee | $10/mo after 1y |
| Mobile app score | 4.8 |
| Overall score | 4.6 |
| EURUSD spread | 0.9 |
| S&P 500 index CFD | 1.5 |
Key points –
- ActivTrades is regulated by the Financial Conduct Authority (FCA) in the UK, which means your funds are safe.
- They provide negative balance protection and additional insurance coverage up to £1 million per client, available to any client regardless of their residency.
- ActivTrades have a broad range of trading platforms including ActivTrader, MetaTrader 4, and MetaTrader 5.
- They give users access to numerous financial assets including CFDs on forex, indices, commodities, shares, ETFs, bonds, and cryptocurrencies, catering to a wide range of trading strategies.
- ActivTrades have in-depth educational materials, including webinars and tutorials, supporting traders in enhancing their knowledge and skills.
Pros –
- Regulated by the FCA, ensuring a high level of client protection.
- Offers a wide range of CFDs, including forex, commodities, and indices.
- Negative balance protection to keep clients funds safe from significant losses.
- High quality trading platform with advanced tooling for technical analysis.
- In-depth educational materials and webinars for traders.
- Offers API access for algorithmic traders.
Cons –
- ActivTrades does not offer direct access to the Indian stock market.
- Limited customer support options for non-English speaking clients.
TradeStation
| Broker | TradeStation |
| Recommended for | Stocks, ETF, active trading |
| Minimum deposit | $0 |
| Time to open account | 1-2 days |
| Credit/Debit Card | No |
| Withdrawal fee | $0 |
| Inactivity fee | $10 per month for accounts below $5000 or for less than 10 transactions in 3mo |
| Mobile app score | 5.0 |
| Overall score | 4.6 |
| US Stock | $5 |
| US Stock Index Option | $0.6 per contract (additional $5 fee for non-US clients) |
| Mutual Funds | $15.00 |
Key points –
- TradeStation has trading platforms that are fast with advanced charting tools.
- They provide access to a wide range of financial assets, including stocks, ETFs, options, futures, and cryptocurrencies.
- TradeStation offer trading education, including webinars and tutorials.
- Their commission structure are similar to competing brokers and they have low trading fees.
- They are regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Pros –
- Advanced trading platforms with high quality analytics tools.
- Low trading costs for active traders.
- Broad range of financial instruments.
- In-depth educational resources and trading tutorials.
Cons –
- They do not have local regulation by SEBI; Indian clients may face restrictions.
- The platform may be complicated for beginners.
- Higher fees for less active traders.
Spreadex
| Broker | Spreadex |
| Recommended for | CFDs |
| Minimum deposit | $0 |
| Time to open account | 1-3 days |
| Credit/Debit Card | Yes |
| Withdrawal fee | $0 |
| Inactivity fee | $0 |
| Mobile app score | 4.6 |
| Overall score | 4.5 |
| EURUSD spread | 6 |
| S&P 500 index CFD | 0.4 |
Key points –
- Offers diverse trading options, including CFDs on forex, indices, and commodities.
- User-friendly design with reliable charting and analytical tools.
- Spreadex has low spreads across multiple asset classes.
- Provides guides and tutorials to enhance trading knowledge.
- Operates under the UK’s FCA for added security and transparency.
Pros –
- CFD trading platform, offers sports betting outside of India.
- User-friendly trading platform with a range of analytical tools.
- No commission charges on trades; fees are charged as spreads.
- Offer customers the ability to trade a wide range of markets, including forex, commodities, and indices.
- Detailed trading education blog.
Cons –
- Not currently regulated by SEBI. Services may not be available to Indian clients.
- Spread betting is not possible on Spreadex in India.
- Customer support options for non-English speaking clients are limited.
TastyTrade
| Broker | TastyTrade |
| Recommended for | Options |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Credit/Debit Card | No |
| Withdrawal fee | $0 |
| Inactivity fee | $0 |
| Mobile app score | 4.6 |
| Overall score | 4.3 |
| US Stock | $0 |
| US Stock Index Option | $1 per contract |
Key points –
- Specialized tools and resources tailored for options traders.
- User-friendly interface with a focus on strategy-based trading.
- Offers videos, tutorials, and expert analysis to improve trading skills.
- Transparent pricing with low commissions on trades.
- Overseen by SEC and FINRA for reliability and safety.
Pros –
- Low commission rates, especially for options trading.
- User-friendly platform with a focus on options strategies.
- Comprehensive educational content, including live shows and tutorials.
- Offers a range of investment products, including stocks, ETFs, and futures.
- No account minimums, making it accessible for new traders.
Cons –
- Not regulated by SEBI; Indian clients may face restrictions.
- Limited access to international markets.
- Platform primarily caters to options traders, which may not suit all investors.
FP Markets
| Broker | FP Markets |
| Recommended for | Stock, ETF, option trading |
| Minimum deposit | $50 |
| Time to open account | 1 day |
| Credit/Debit Card | Yes |
| Withdrawal fee | $0 |
| Inactivity fee | $0 |
| Mobile app score | 4.7 |
| Overall score | 4.2 |
| EURUSD spread | 0.1 |
| S&P 500 index CFD | 0.5 |
Key points –
- Trade CFDs on forex, indices, commodities, and shares with tight spreads.
- Supports MetaTrader 4 and MetaTrader 5, known for their advanced tools.
- Offers competitive spreads and zero inactivity fees.
- Regulated by ASIC and CySEC, ensuring compliance with international standards.
- Features webinars, tutorials, and in-depth market analyses.
Pros –
- Regulated by ASIC, ensuring a high level of client protection.
- Offers a wide range of CFDs, including forex, commodities, and indices.
- Competitive spreads and fast execution speeds.
- Provides access to MetaTrader 4 and 5 platforms.
- Comprehensive educational resources and market analysis tools.
Cons –
- Not regulated by SEBI; services may not be available to Indian clients.
- Does not offer direct access to Indian stock markets.
- Customer support is primarily available in English.
Zacks Trade
| Broker | Zacks Trade |
| Recommended for | Stocks, ETFs Bonds beginners and novice traders |
| Minimum deposit | $0 |
| Time to open account | more than 3 days |
| Credit/Debit Card | No |
| Withdrawal fee | $0 |
| Inactivity fee | $15 per month for accounts below $25000 |
| Mobile app score | 4.5 |
| Overall score | 4.1 |
| US Stock | $0.01 per share with $1 min |
| UK Stock | 0.3% with £12 min |
| Indian Stock | $0.01 per share with $1 min |
Key points –
- Provides extensive market analysis, analyst reports, and real-time insights.
- Competitive pricing for stocks, ETFs, and options.
- Access to stocks, ETFs, mutual funds, and bonds for diversified portfolios.
- Offers tools for experienced traders seeking advanced functionality.
- Facilitates international trading with a focus on accessibility.
Pros –
- Access to a wide range of international markets.
- Competitive commission structure, especially for active traders.
- Offers a variety of trading platforms, including Zacks Trader and Zacks Trader Pro.
- Comprehensive research tools and market analysis.
- Provides access to a wide range of asset classes, including stocks, options, and ETFs.
Cons –
- Not regulated by SEBI; Indian clients may face restrictions.
- Higher minimum deposit requirement compared to some brokers.
- Platform may be complex for beginners.
Zerodha
| Broker | Zerodha |
| Recommended for | Indian stocks |
| Minimum deposit | $0 |
| Time to open account | 5 days |
| Credit/Debit Card | No |
| Withdrawal fee | $0 |
| Inactivity fee | $0 |
| Mobile app score | 4.2 |
| Overall score | 3.9 |
| Indian Stock | $0 |
| Mutual Funds | $0 |
Key points –
- Zerodha is a SEBI-regulated broker specializing in Indian exchanges (NSE and BSE).
- Features zero brokerage for equity delivery trades and low fees for intraday and futures trading.
- User-friendly, with robust charting tools and market data integration.
- Offers Zerodha Varsity, a comprehensive educational portal for traders.
- Tailored for Indian clients, with INR accounts and local support.
Pros –
- Regulated by SEBI, ensuring compliance with Indian financial regulations.
- Offers direct access to Indian stock markets.
- Competitive brokerage fees with a flat fee structure.
- User-friendly trading platforms, including Kite and Coin.
- Comprehensive educational resources and community forums.
Cons –
- Limited access to international markets.
- No support for forex trading.
- Customer support can be slow during peak times
Optimus Futures
| Broker | Optimus Futures |
| Recommended for | Options, futures |
| Minimum deposit | $500 |
| Time to open account | 1 day |
| Credit/Debit Card | No |
| Withdrawal fee | $20 |
| Inactivity fee | $0 |
| Mobile app score | 4.6 |
| Overall score | 3.8 |
| US Stock Index Option | $0.75 per contract |
Key points –
- Specializes in futures trading with access to multiple global exchanges.
- Offers platforms like MultiCharts and TradingView for detailed analysis.
- Tailored solutions for experienced futures traders.
- Low trading fees with clear cost structures.
- Quick resolutions for trader queries, ideal for high-stakes futures trading.
Pros –
- Specializes in futures trading with access to multiple exchanges.
- Offers a variety of trading platforms, including MetaTrader 5 and Sierra Chart.
- Competitive commission rates for active traders.
- Comprehensive educational resources
Cons –
- Not regulated by SEBI; services may not be available to Indian clients.
- Does not offer direct access to Indian stock markets.
- Customer support is primarily available in English.
How to find the best online broker in India?
The most important criteria for finding the best online broker in India are listed below.
- Safety (regulation): We recommend brokers registered with the Securities and Exchange Board of India (SEBI). Brokers that comply with SEBI provide investor protection, including the NSE and BSE Investor Protection Funds, offering safety and a sense of security for traders.
- Fees : We analyzed trading fees, including brokerage charges and transaction costs, to highlight brokers offering competitive pricing. Brokers with zero or low brokerage for equity delivery trades and transparent fee structures ranked higher in our evaluations.
- Non Trading Fees : We considered the hidden costs that often catch traders off guard, like account maintenance charges (AMC), withdrawal fees, inactivity fees, and platform subscription costs. Brokers with minimal or no non-trading fees stood out as the best value for long-term traders.
- Deposit Withdrawal / Account opening / Customer service / Education: Our research focused on brokers offering fast account setup, multiple deposit/withdrawal methods, and fast customer support. We also prioritized brokers with strong educational resources like webinars, tutorials, and demo accounts, especially for beginners looking to enhance their knowledge.
- Mobile app / Trading platforms: We tested each broker’s mobile app and trading platforms to assess user experience. Brokers with intuitive apps, advanced charting tools, real-time price alerts, and reliable order execution scored higher. We believe a smooth, feature-rich trading platform is essential for both beginners and experienced traders.
- Products / Markets: Our selection emphasized brokers with a broad range of financial instruments, including stocks, ETFs, mutual funds, derivatives, and SEBI-approved forex pairs (e.g., USD/INR, EUR/INR). Access to global markets was an added bonus for traders seeking international diversification.
- Popularity / No. of App Downloads: We considered app download numbers and user reviews as indicators of trustworthiness and usability. Popular brokers with high ratings reflect customer satisfaction and platform reliability, which are key factors in our decision-making process.
Taxation of stock trading in India
In India, capital gains from stock trading are subject to income tax. There are two types of gains they consider:
- Short-term capital gains
- Long-term capital gains
If an Indian trader sells their shares within 12 months of buying and the sale price is higher than the buy price, then the income tax rate is 15%.
If an Indian trader sells their shares after 12 months of buying and the profit is more than Rs. 1 lakh when selling, then the income tax rate is 15%. This tax applies to shares traded outside of India as well.
If an Indian trader buys and sells on the same day (i.e. day trading) then the profit is considered as business income and taxed as per the income tax rate for the individual.
How to invest in stocks from India
1. Find an online broker
Choose a safe and well regulated broker that accepts clients from India such as Interactive Brokers.
If you are an active trader Pepperstone could be a great fit.
2. Open your account
Brokers typically allow users to fully open brokerage accounts online easily.
You will need to prepare the account holders name, address and other basic data.
Also, you’ll normally need to answer questions about your wealth, income, financial knowledge and trading experience.
Make sure to get your documents ready such as:
- Photo ID such as passport or local country ID card
- Recent bank statements
- Recent utility bills
These will be required to verify your identity, address and country of residency.
3. Fund your account
Once the broker verifies and fully opens your account, you will need to deposit your funds to trade ready for investing.
Some brokers require a minimum deposit, review the comparison section above on deposits and withdrawals for our recommended brokers. However these are normally low or $0.
Deposit and withdrawal methods are varied, most brokers accept deposits as bank transfers. Note that bank transfer withdrawals can take up to 3 business days.
Again, review the deposit options for recommended brokers in the above section.
If you value instant deposit and withdrawal use e-wallets such as Skrill.
4. Invest
Review the education and research materials and features of your chosen broker to help you select the right products to invest in.
Once you have settled on a product:
- Select it from the broker’s search menu
- Enter the amount
- Invest
Trading platforms offer several order types such as “market” or “limit”.
Which types of trading are legal in India
In India, trading is regulated by the Securities and Exchange Board of India (SEBI) to ensure fairness and safety for investors. The types of trading you can legally do include:
- Stock Trading: Buying and selling shares of companies listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
- Derivatives Trading: Trading in futures and options (F&O), such as Nifty 50 futures or stock options, is allowed on Indian exchanges.
- Forex Trading: You can trade INR-based currency pairs like USD/INR, EUR/INR, GBP/INR, and JPY/INR. International forex pairs like EUR/USD are not allowed for retail investors.
- Commodity Trading: You can trade items like gold, silver, crude oil, and agricultural products on platforms like MCX and NCDEX.
- Mutual Funds and Bonds: You can invest in mutual funds or trade in bonds and government securities through brokers or directly with issuers.
While these types of trading are legal, activities like cryptocurrency trading or using unregulated platforms for forex trading are restricted or not allowed. Always use a SEBI-registered broker to trade legally and securely.
Conclusion
After analyzing and comparing the top brokers available to Indian traders across multiple categories, we have chosen Interactive Brokers as the best broker for Indian clients in 2024.
Interactive Brokers stands out for its access to global and Indian markets, competitive fees, and advanced trading tools. With SEBI regulation, investor protection through Indian exchanges, and a robust range of assets, it offers unparalleled value for traders and investors alike. Its global reputation and comprehensive platform make it an excellent choice for Indian traders seeking a reliable and feature-rich brokerage.
| Rank | Broker | Score | Best For |
| 1 | Interactive Brokers | 4.9 | Best for Stocks and ETFs |
| 2 | Pepperstone | 4.8 | Best for Forex |
| 3 | Activtrades | 4.6 | Best for algorithmic trading |
| 4 | TradeStation | 4.6 | Best for active traders |
| 5 | Spreadex | 4.5 | Best for CFDs |
| 6 | TastyTrade | 4.3 | Best for options |
| 7 | FP Markets | 4.2 | Best trading conditions |
| 8 | Zacks Trade | 4.1 | Best for Beginners |
| 9 | Zerodha | 3.9 | Best local broker |
| 10 | Optimus Futures | 3.8 | Best for futures |
FAQ
What is an online broker?
Online brokers are financial service providers that allow Indians to buy and sell various financial products such as stocks, ETFs, CFDs and forex.
What is a brokerage account, and why do I need one in India?
A brokerage account is an investment account that allows you to buy and sell financial instruments using your broker. In India, having a brokerage account is essential to access stock exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
What should I look for when choosing a broker in India?
Key criteria to consider include:
- Regulation
- Fees
- Trading Platforms
- Customer Support
- Financial Products
Can I trade forex through Indian brokers?
Yes, but only through regulated currency pairs allowed by SEBI. Indian brokers offer trading in INR-based pairs, such as USD/INR, EUR/INR, and GBP/INR. International forex trading outside these pairs is not permitted for retail investors under Indian regulations.
Are Indian brokerage accounts safe?
Yes, brokers who are regulated by SEBI offer safe accounts. Some brokers also offer additional investor protection through the NSE and BSE Investor Protection Funds.
What are the common fees associated with Indian brokers?
Indian brokers typically charge the following fees:
- Brokerage Fees
- Account Maintenance Charges (AMC)
- Transaction Charges
- GST
- Other fees such as withdrawals
Can I invest in global markets through Indian brokers?
Yes, several Indian brokers and international platforms operating in India allow global investments. Brokers like Interactive Brokers provide access to US and other international markets. Ensure you understand the currency conversion fees and tax implications for global investing.
Is there a minimum deposit requirement for Indian brokers?
Many brokers in India, such as Interactive Brokers, do not require a minimum deposit. However, for margin trading or advanced services, brokers may recommend maintaining a certain balance.
Are brokerage charges negotiable in India?
Yes, some brokers may offer discounts or tailored plans for high-volume traders or long-term clients. Flat-fee brokers are also available for those seeking predictable and low costs.
What is a demat account, and how is it different from a trading account?
A demat account holds your securities in electronic format, while a trading account facilitates the buying and selling of those securities. Both accounts are linked, and you need both to trade on Indian exchanges.
Can NRIs trade through Indian brokers?
Yes, NRIs can open Non-Resident External (NRE) or Non-Resident Ordinary (NRO) demat and trading accounts with SEBI-registered brokers. They can invest in Indian stock markets under the Portfolio Investment Scheme (PIS) of the RBI. Ensure you choose brokers with NRI-specific services.
What is SEBI, and why is it important for brokers?
The Securities and Exchange Board of India (SEBI) is the regulatory authority overseeing financial markets in India. SEBI ensures transparency, fair practices, and investor protection. Only SEBI-registered brokers are legally authorized to offer trading services in India.
Are there brokers with zero brokerage in India?
Yes, brokers like Zerodha and Groww offer zero brokerage for equity delivery trades, making them attractive for long-term investors. However, there may still be charges for intraday trading, derivatives, or additional features.
What is margin trading, and is it available in India?
Margin trading allows you to borrow funds from your broker to trade larger positions than your account balance permits. Most Indian brokers offer margin trading services, subject to SEBI regulations and specific conditions.
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