Best Broker For Option Trading In India

Option trading is an advanced level of trading, Options is highly lucrative derivatives product. We just have to pay nominal amount as premium. Who are into trading for a long time used to trade over future and option which gives investors an opportunity to earn superlative profits (or losses).

When we look for an option trading platform the platform we are choosing must be credible reliable and faster as we need to execute trades in real time with much faster speed to beat the volatility.

Even all the trading platform out there in India do not provide up to mark data or say option chain & derivatives data over their trading platform. In India almost all brokers to provide trading in future and option segment but few of them are worth trading.

Key point for choosing option trading Stockbroker

  • Brokerage- First and foremost thing is that brokers should be as low as possible so you do not end up paying your profit as a brokerage, whenever you trade over option & futures make sure that whichever broker you choose they don’t charge brokerage on basis of per lot size.
    Whichever broker you should charge flat or fixed brokerage irrespective of number of lots, which will help you to save lots of brokerage charges.
  • Margin: I feel that higher the margins higher the risk of losing money. It’s better not to take margin for trading. This is also important key point for a small trader to who take higher position. Most of the people also look for higher margin for trading over future and option especially when people are interested in writing (selling) option.
  • Trading platform & Charting: Whichever the broker you choose they must be best in terms of technology tools because option and future trading is one of the advanced trading & you need a robust system where you can analyse derivative data & option chain. Broker should also support multiple charts simultaneously to trade in real-time with multiple script in a single click.
  • Mobile application: In India, not every stock broker provide option chain & derivative data over their mobile application. Make sure when you open an account with any broker should provide option chain data data on their application so you do not need to sit all the time in front of computer to trade.
Best broker for Option Trading

Upstox

Upstox is one of the best trading platforms for option trading because they provide option derivative data over trading platform & also India mobile application too.

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Upstox is one of India's leading discount brokerage firm. Our user base spans over 1 lakh traders process over Rs. 20,000 crores of the daily ...
Brokarage Type

Trading & Demat A/C Opening Charge

₹ 300

Commodity A/C Opening Charge

₹ 200

Equity Intraday Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Equity Delivery Brokerage

Equity Option Brokerage

₹ 20/ executed order

Equity Future Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Currency Option Brokerage

₹ 20/executed order

Currency Futures Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Commodity Options Brokerage

₹ 20/executed order

Commodity Futures Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

DP Transaction Charge

21.83 ₹

Segment Supported

, , , ,

AMC Charge (Yearly)

₹ 150

Tips & Research

No

Services

, , , , , ,

Offline Order Placing Charge

₹ 20

  • Brokerage: I put Upstox on the first place because they have very less brokerage charges for future and option they charge flat ₹ 20 or 0.01% (whichever is lower) per trade maximum so you do not need to worry about your lot size.brokerage for option trading is Rs 20 per executed order.
  • Trading Platform: Upstox mobile app allows you to check option chain & derivatives data through their mobile app so which make very easy to trade over mobile Application too & another benefit is that whenever you trade over upstox in future & option segments there is no condition as that you cannot sell or buy deep out of the money call and put.
  • Margin: Upstox gives up to 3-4x margin on writing options on intraday.
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Zerodha

Zerodha is one of the top most stockbroker in India. They have everything what ever you need as option trader but only concern with them is that sometimes new long positions in Banknifty/Nifty options are placed outside the range allowed by the mandated Open Interest restriction (i.e OTM, deep OTM strikes & deep ITM strikes), the order is rejected & the below error is displayed.

Strike price is outside the allowed range. Try a strike closer to the spot price.

The restriction is only for long options positions but you can place fresh short option positions.

In case of Zerodha position limit in equity index options Banknifty/Nifty option contracts is higher then Rs.500 crores or 15% of the total Open Interest (OI) in the market in Banknifty option contracts. Whenever Zerodha as Trading Member is breached 15% limit of total OI in Banknifty option contracts, they will block Bank nifty option trading outside of the range specified.

For example, let’s assume Bank nifty is trading at 24000 – and due to the open interest restriction the RMS team has set the range as 1% from the spot – you will not be allowed to place a buy order 240 points above or below, i.e you will have to place your buy order between 23760 – 24240

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Zerodha is top discount brokerage firm by Client base. Zerodha offers to trade in stocks, currency, commodities at very low brokerages.
Brokarage Type

Trading & Demat A/C Opening Charge

₹ 300

Commodity A/C Opening Charge

₹ 200

Equity Intraday Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Equity Delivery Brokerage

Equity Option Brokerage

₹ 20/ executed order

Equity Future Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Currency Option Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Currency Futures Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Commodity Futures Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Commodity Options Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

DP Transaction Charge

₹ 13.5

Segment Supported

, , , ,

AMC Charge (Yearly)

₹ 300

Tips & Research

No

Services

, , , , , ,

Offline Order Placing Charge

₹ 20

  • Brokerage: They charge Flat ₹ 20 or 0.01% (whichever is lower) per executed order on intraday trades in any segments including F&O & Free delivery Trades.
  • Leverage: Zerodha offer 3-4 times or 35-40% NRML margin.
  • Trading Platform: Zerodha partnered with Sensibull Platform which is simple & advanced Options Trading Platform. You can also trade through KITE trading platform but they don’t provide option chain data.
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Fyers

Fyers is another good option after Zerodha only if you will do trading over their platform you will feel the difference. They provide one of the robust trading platform in India for trading. They provide best charting out there in stock brokerage industry.

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Fyers is a discount brokerage firm driven by a group of young passionate entrepreneur know for its world-class charting solution & faster order ...
Brokarage Type

Equity Delivery Brokerage

Segment Supported

, , ,

Services

, , ,

AMC Charge (Yearly)

₹ 400

DP Transaction Charge

20 ₹

Equity Future Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Offline Order Placing Charge

₹ 20

Tips & Research

No

Equity Intraday Brokerage

0.01% or ₹ 20/executed order (whichever is lower)

Equity Option Brokerage

₹ 20/ executed order

  • Brokerage: Equity Intraday & Futures Brokeage is ₹20 per executed order or 0.01% (Whichever is lower). In option trading you will be charged flat ₹20 per executed order.

Margins provided by Fyers in Intraday:

  1. Equity Index & Stock Futures – 4x.
  2. Equity Options (Option Buyers – Cover Orders on Nifty Near-Month contracts) – 1.3x.
  3. Equity Options (Option Sellers) – 4x.
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Angel Broking

Angel Broking is one of oldest & prominent Indian full service brokerage firm established back in 1987. If you look at their brokerage plan it depends upon the plan (elite, classic, premier, preferred) you choose.

Angel Broking Margin Sheet:

Currency Future Upto 2X
Equity Option (Shorting)3X
Equity FutureUpto 4X
Currency Option (Writing)Upto 5X
Commodity Future 3x
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5paisa

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5paisa is a discount broker & subsidiary company of IIFL which is also leading financial services company in India. 5paisa is known for its ...
Brokarage Type

Equity Delivery Brokerage

Segment Supported

, , ,

Services

, , , , , ,

AMC Charge (Yearly)

₹ 400

DP Transaction Charge

0.025% or Rs 25 (Whichever is higher)

Equity Future Brokerage

₹ 10/ executed order

Offline Order Placing Charge

₹ 20

Tips & Research

Yes

Equity Intraday Brokerage

₹ 10/ executed order

Equity Option Brokerage

₹ 10/ executed order

Trading & Demat A/C Opening Charge

₹ 650

Commodity Futures Brokerage

₹ 10 / trade

Currency Option Brokerage

₹ 10 per trade

Commodity Options Brokerage

₹ 10 per trade

Currency Futures Brokerage

₹ 10 per trade

5paisa is known due to it’s lowest brokerage in stock brokerage industry. They charge brokerage as low as ₹10 per executed order irrespective of lot size or turnover value. This is the best broker for those who are looking for low brokerage on their trades. 5paisa is considered as one of the most economical stock brokers firm in India.

Derivatives intraday magin

DerivativesIntraday exposure/Margin
Futures3 x
Options long1 x
Options short3 x

On the lighter note I have above listed few brokerage firm which are best for option trading. I believe that brokerage is one of the important factor to look out when you trade over options. At the same time, I also suggest you to never compromise credibility & and reputation of the stockbroker because you will hand over your hard earned money to them.

If you will check there are few brokers who charges brokerage as low as 5 rs per order but you never know when they will shutdown their business. Make sure that you open account with one the top brokerage firm listed above.

Happy Investing!

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