Which is the Best Broker in India for Option Trading?

Short Answer

Zerodha is the best broker for options trading in India because of the minimal per-order charges, advanced tools for technical analysis, features for placing a stop loss, bracket orders, and many more.

Detailed Answer

What is option trading?

Options trading is the exchange of financial instruments that grants you the right to buy or sell a particular security at a particular price and on a particular date.

An option is a contract that is connected to an underlying asset, such as a stock or other security. Options contracts are valid for a predetermined amount of time, which could be as little as one day or as much as a few years.

How option trading differs from long-term investments?

  • Time period : In long-term investments, one keeps their investments for a considerable amount of time, typically five years or longer. Whereas, in options trading, contracts expire after a week or a month, and one must close the position before the expiration date.
  • Risk and return : Options trading is highly risky. One can lose all of their money in a matter of minutes, but options trading offers very high returns. Whereas in long-term trading, there is less risk and returns are also low.
  • Analysis : Options trading requires technical analysis like charts and historical patterns. Whereas long-term investment requires fundamental analysis of financial metrics and earnings reports.

Why best broker is required for Option Trading?

  • Options trading is extremely volatile, so a smooth trading platform with extra features like stop loss and bucket orders is necessary.
  • Traders make multiple trades in a day to maximize their profit; therefore, the broker should have fewer per-order charges.

Key Factors to Select the Best Broker for Options Trading

These qualities are necessary in order to select the best broker for option trading.

  1. Minimum amount per execution
  1. Simple User Interface
  1. Features like Stop loss, bucket order
  1. Tools for technical analysis
  1. Price alert
  1. Smooth and sophisticated

Which is the Best Broker in India for Option Trading?

Based on these parameters, we have selected Zerodha as the best broker in India for option trading.

Features in Zerodha Kite

  • Available for both Android and IOS users.
  • Android Rating: 4.3/5 stars
  • IOS Rating: 3.2/5 stars
  • App Downloads: 10 M+
  • Chart with 100+ indicators
  • Advance options for placing orders, like brackets and cover orders.
  • Rs. 20 or 0.03% (whichever is lower) for Trading in options
  • Option for Price alerts based on conditions like OHLC, volumes, open interest (OI), and more
  • Better customer support

Best Broker in India for Option Trading

Zerodha is undoubtedly the best broker in India for options trading because it has almost all the features needed for smooth option trading. Do you have any other stock broker name to add? Feel free to share your experiences and feedback on any of the best discount brokers in India.

Tagged With: option tradingbest brokerzerodhabest broker option tradingdiscount brokers indiastock broker
Categories: Option Trading
Ask your query and our expert community would be happy to help
Discussion (0)
Related FAQs
Which is the best stock broker for beginners in India?

Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.

Which is better Sharekhan vs. Zerodha Stock Broker?

I was just going through some stock broker reviews. So, I thought of sharing my opinion, A side by side Comparison of two popular stock brokers: Sharekhan vs. Zerodha.

Who is the No.1 Stock Broker in India?

When talking about the best stock broker in India, we cannot rule out Zerodha. It is the market leader in bargain stockbroking, is premised in Bengaluru, and accounts for more than 15% of total retail trading activity in the country. Mr. Nitin Kamath formed the leading brokerage firm in 2010 Kamath, and it now has a customer base of over 6 million.

Is Zerodha better than Interactive Brokers?

Interactive Brokers & Zeodha are two Brokers from the Discount Broking community but both are quite different from one another in terms of Features and Working. One is an Indian discount Stock Broker whereas the other is a U.S based Discount broker that has its branches in many countries. Let's look at them in depth below.

Which is best 5paisa vs Zerodha stock broker?

You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.

Is Paytm Money better than Zerodha?

You wish to know if Paytm Money is better that Zerodha or it's the other way round. Zerodha being a leading discount broker in India has been there for overe a decade now. While Paytm Money already established in mutual fund investment arena, but a fairly new entrant in stock broking industry. So, let's compare the features and discuss few details on each of them.

Which app is best for option trading in India?

Zerodha Kite is the best app for options trading in India. It is the preferred option among all traders due to its superior features and tools.

Is Zerodha good for beginners?

Zerodha is the largest stockbroker in India which holds more than 19% of the total market share. It is good for beginners as the account and brokerage charges are low. It offers a great trading platform and has a simple-to-use UI. All these features make it a suitable choice for beginners as well as advanced traders and investors.

Angel Broking vs Zerodha Comparison: Which is better stock broker?

There are a number of stock brokers in India. Here we highlight two of the leading stock broking companies: Angel Broking vs Zerodha, a comparison to read.

Why do people prefer Zerodha over other discount brokers in India?

The popularity of Zerodha has grown manifolds in recent times, all thanks to its simple trading tools, low and effective broker charges, Zero opening charges, and an all-round package for investors looking for a reliable and effortless trading platform.

Your finances on track

Select Country