Option trading is a popular investment strategy that offers opportunities to generate profits and hedge risks in the Indian financial market.
However, for trading in options, you need the best stock brokers who not only offer competitive brokerage charges but also provide an advanced options trading platform equipped with smart features and options chain analytics.
Understanding Options Trading
Options trading involves a contract between two parties to buy or sell an underlying security at a predetermined price on or before a specific date. As a derivative instrument, options grant the buyer the right (but not the obligation) to execute the trade.
Two types of options contracts exist:
- Call Options – which allow the purchase of an underlying asset.
- Put Options – which enable the sale of an underlying asset.
The option buyer pays a premium to the option seller, initiating the transaction.
Factors to Consider When Choosing a Broker for Option Trading in India
#1. Brokerage Charges
Brokerage charges play a pivotal role in determining the profitability of your option trades. Some brokers charge on a lot basis, while others have fixed brokerage charges irrespective of the lot size.
You can choose the broker that offers flat brokerage charges for option trading. You can also consider the broker who offers free demat account facility with zero annual maintenance charges.
#2. User-Friendly Mobile App
In today’s fast-paced world, having a user-friendly mobile app is essential for seamless option trading. A well-designed and intuitive mobile app allows you to trade on the go, access real-time market data, and execute trades with ease.
You can select the brokers that offer mobile trading apps with a clean interface, advanced charting tools, and features like price alerts and order placement capabilities.
#3. Robust Trading Platform
A feature-rich trading platform provides you with advanced tools and functionalities to analyze the market, place trades, and monitor your portfolio. You can choose the platforms that offer real-time market data, customizable charts, technical indicators, and order types to cater to your trading style.
A well-designed trading platform can significantly improve your ability to execute trades efficiently, track performance, and manage risk effectively.
#4. Customer Support
Having reliable customer support is essential when you encounter any issues or have questions regarding your trades. A broker with excellent customer support can provide timely assistance and ensure a seamless trading experience.
#5. Research and Analysis Tools
Access to comprehensive research and analysis tools can empower you to make well-informed trading decisions. Brokers that offer market insights, technical analysis tools, and educational resources can be valuable assets in your trading journey.
You may like to read – how to invest 50 lakhs for monthly income in India.
Quick Comparison of Option Trading Brokers with Brokerage Charges
| Broker | Brokerage Charges for Option Trading |
| Edelweiss | Flat Rs. 10 per executed order |
| Paytm Money | Flat Rs. 15 per executed order |
| Zerodha | Rs. 20 per executed order |
| Upstox | Flat Rs. 20 per executed order |
| Angel One | Rs. 20 per executed order |
| 5paisa | Rs. 20 per order |
| Groww | Flat Rs. 20 per executed order |
7 Best Broker for Option Trading in India
#1. Edelweiss (Nuvama)
According to our research report on top 20 stock brokers in India, Edelweiss (Nuvama) is the one who offers a lowest fixed brokerage charge of Rs. 10 per executed order for option trading under the Nuvama lite plan.
Edelweiss is a full-service broker that provides you in-depth research advisory at the cost of a discount broker.
Edelweiss mobile trading app provides a comprehensive platform where you can track market trends, access consolidated and standalone data of key financial metrics.
You can also create a watchlist of up to 100 stocks and utilize various charting indicators for in-depth analysis, all from the convenience of your smartphone.
You can also invest in Mutual Funds, NCDs, and Bonds through Edelweiss app.
Nuvama (Edelweiss) Account Opening Charges
| Account opening charges | Zero (Free) |
| Annual maintenance charges | Zero – for 1st year Rs. 500 – from second year onwards |
Nuvama (Edelweiss) Brokerage Charges
| Segments | Brokerage Charges (Nuvama Lite Plan) | Brokerage Charges (Nuvama Elite Plan) |
| Equity Delivery | Flat Rs. 10 per executed order | 0.30% |
| Equity Intraday | Flat Rs. 10 per executed order | 0.03% |
| Equity Futures | Flat Rs. 10 per executed order | 0.03% |
| Equity Options | Flat Rs. 10 per executed order | Rs 75 per lot |
| Currency Futures | Flat Rs. 10 per executed order | 0.02% |
| Currency Options | Flat Rs. 10 per executed order | Rs 20 per lot |
| Commodity F&O | Not Applicable | Not Applicable |
#2. Paytm Money
Paytm Money offers a flat fee of Rs 15 per options order for the equity segment. It’s important to note that Paytm Money doesn’t facilitate trading in currency and commodity segments.
Paytm Money charges zero annual maintenance fee for Demat & trading accounts. However, you need to pay the monthly platform fee of Rs 30, which amounts to Rs 360 per year.
Paytm Money has its own trading platform called Paytm Money (web and mobile based option trading app) that offers a seamless trading experience to you. The platform prioritizes data security, offering bank-level protection for user information.
In addition to options trading, Paytm Money provides investment opportunities in IPOs with zero application fees. You can also explore direct mutual funds from 37 fund houses, as well as investment options in Digital gold, ETFs, IPOs, F&O, and NPS retirement funds.
You can check out our latest report on upcoming IPOs 2023-2024 to invest in IPOs.
Paytm Money Account Opening Charges
| Account opening charges | Zero (Free) |
| Annual maintenance charges | Zero |
Paytm Money Brokerage Charges
| Segments | Brokerage Charges |
| Equity Delivery | Rs. 15 or 2.5% whichever is lower |
| Equity Intraday | Rs. 15 or 0.05% per executed order whichever is lower |
| Equity Futures | Rs. 15 or 0.02% per executed order whichever is lower |
| Equity Options | Flat Rs. 15 per executed order |
| Currency F&O | Not Applicable |
| Commodity F&O | Not Applicable |
#3. Zerodha
No doubt, Zerodha (review) charges higher for option trading as compared to Edelweiss and Paytm Money.
However, Zerodha is the most trusted and the largest discount brokerage firm with 64+ active client base. With a brokerage charge of Rs. 20 per executed order for option trading, Zerodha offers competitive pricing to its clients for equity delivery.
Zerodha has gained a strong reputation and popularity in the market due to its transparent pricing model and commitment to technology-driven solutions.
Additionally, Zerodha’s innovative trading platform “Kite” offers a seamless trading experience with advanced charting tools, real-time market data, and a user-friendly interface.
Whether you are a beginner or an experienced trader, Zerodha’s comprehensive range of features caters to all levels of expertise, making it an ideal option trading broker in India.
Zerodha Account Opening Charges
| Account opening fee (Online) | Rs. 200 for equity + Rs. 100 for commodities |
| Account opening charges (Offline) | Rs. 400 for equity + Rs. 200 for commodities |
| Annual maintenance charges | Rs. 300 annually (Rs. 75 quarterly) |
Zerodha Brokerage Charges
| Segments | Brokerage Charges |
| Equity Delivery | Free |
| Equity Intraday | Rs. 20 per executed order or 0.03% (whichever is lower) |
| Equity Futures | Rs. 20 per executed order or 0.03% (whichever is lower) |
| Equity Options | Rs. 20 per executed order |
| Currency Futures | 0.03% or Rs. 20 per executed order whichever is lower |
| Currency Options | Rs. 20 per executed order |
| Commodity Futures | 0.03% or Rs. 20 per executed order whichever is lower |
| Commodity Options | Rs. 20 per executed order |
You can check the detailed comparison of Dhan vs Zerodha.
#4. Upstox
Upstox is another leading discount brokerage firm that offers a flat brokerage charge of Rs. 20 per executed order for option trading.
While Zerodha offers free stock delivery, it’s important to note that Upstox charges a lower of 2.5% or Rs. 20 for such transactions. This makes Zerodha a more favorable option for long-term investments. You can check the detailed comparison of Zerodha vs Upstox in terms of brokerage charges, account opening charges, AMC, and trading platforms.
Upstox Pro mobile app is the one stop shop solution for all the investment options such as stocks, mutual funds, digital gold, bonds, and even IPOs, making it easy to track all your investments in one place.
Moreover, you can use the Upstox coupon code to open a FREE Demat and trading account with zero annual maintenance charges.
Upstox Account Opening Charges
| Account opening charges | Zero (Free) |
| Annual maintenance charges | Zero |
Upstox Brokerage Charges
| Segments | Brokerage Charges |
| Equity Delivery | Rs. 20 or 2.5% whichever is lower |
| Equity Intraday | Rs. 20 per executed order or 0.05% (whichever is lower) |
| Equity Futures | Rs. 20 per executed order or 0.05% (whichever is lower) |
| Equity Options | Flat Rs. 20 per executed order |
| Currency Futures | Rs. 20 per executed order or 0.05% (whichever is lower) |
| Currency Options | Flat Rs. 20 per executed order |
| Commodity Futures | Rs. 20 per executed order or 0.05% (whichever is lower) |
| Commodity Options | Flat Rs. 20 per executed order |
#5. Angel One
Angel One introduces its discount brokerage plan “iTrade Prime” which provides a flat brokerage fee of Rs. 20 per trade including option trading. As a full-service broker, Angel One assigns a dedicated relationship manager (RM) to assist you with advisory tips and support.
You can also invest in US stocks from India through Angel One with zero commission charges. Angel One has collaborated with Vested (a US-based broker) for a seamless US stock investment experience.
With the Angel One mobile app, you can utilize 40 technical chart indicators for technical analysis and implement various trading strategies.
The standout feature of the Angel One app is the inbuilt ARQ tool for enabling algorithmic-based trading. This innovative feature identifies top-performing stocks, maximizing potential profits, and simplifying your trading decisions.
Angel One Account Opening Charges
| Account opening charges | Rs 0 (Free) |
| Annual maintenance charges | Free – For 1st year Rs. 240 – From second year onwards |
Angel One Brokerage Charges
| Segments | Brokerage Charges |
| Equity Delivery | 0 (Free) |
| Equity Intraday | Rs. 20 per executed order |
| Equity Futures | Rs. 20 per executed order |
| Equity Options | Rs. 20 per executed order |
| Currency Futures | Rs. 20 per executed order |
| Currency Options | Rs. 20 per executed order |
| Commodity Futures | Rs. 20 per executed order |
| Commodity Options | Rs. 20 per executed order |
#6. 5paisa
5paisa offers as low as Rs. 10 per order for all the trading segments including option trading. However, you need to pay the monthly subscription fees of Rs 599 and Rs 1199 for Power investor and Ultra trader plan respectively.
If you choose the regular brokerage plan then you have to pay the flat Rs. 20 brokerage charges with zero subscription fees. You can check the our article on zero brokerage trading account in India.
Additionally, 5paisa offers a unique robo-advisory feature that can assist you in making informed trading decisions. 5paisa has also launched VTT (Valid Till Triggered) orders (which is a renamed version of GTT) making stock investment more flexible and personalized for you.
5paisa provides a powerful trading platform equipped with advanced charting tools and research capabilities.
If you want to do option trading, I would suggest starting investing with Rs 5000 as an initial investment.
5paisa Account Opening Charges
| Account opening charges | Free (Rs. 0) |
| Annual maintenance charges | Rs. 300 annually (Rs 25 per month) |
5paisa Brokerage Charges
| Segment | Regular Plan | Power Investor | Ultra Trader |
| Monthly Subscription | 0 | Rs 599/month | Rs 1199/month |
| Equity Delivery | Rs. 20 per order | Rs. 10 per order | Zero |
| Equity Intraday | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
| Equity F&O | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
| Currency F&O Trades | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
| Commodity F&O Trades | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
#7. Groww
Groww charges a flat fee of Rs 20 per order for the equity options segment. However, it’s important to note that Groww doesn’t offer currency or commodities trading.
Both the Groww web platform and app are designed to be user-friendly, making trading and investing a hassle-free process. When you log in to the Groww app you get a simplistic dashboard divided into two segments – Stocks and Mutual Funds.
You can search stocks, create watchlists, stay updated on top gainers/losers of the day, and access other useful options for stock investment and option trading. In addition to Indian stocks, Groww allows you to invest in US stocks, government bonds, and Soverign Gold bond.
Groww Account Opening Charges
| Account opening charges | Zero (Free) |
| Annual maintenance charges | Zero |
Groww Brokerage Charges
| Segments | Brokerage Charges |
| Equity Delivery | Rs. 20 or 0.05% whichever is lower |
| Equity Intraday | Rs. 20 or 0.05% per executed order whichever is lower |
| Equity Futures | Flat Rs. 20 per executed order |
| Equity Options | Flat Rs. 20 per executed order |
| Currency F&O | Not Applicable |
| Commodity F&O | Not Applicable |
You can use the paper trading apps to practice your trading strategies without risking real money.
Which Broker is Best for Option Trading
Zerodha is the best broker for option trading as it is the most trusted and largest discount brokerage firm. Zerdha charges you a flat brokerage fee of Rs. 20 per executed order for option trading.
With its user-friendly and intuitive “Kite” trading platform, Zerodha simplifies the trading experience allowing you to navigate the market with ease.
You can also go with Edelweiss (Nuvama) for option trading as it offers a lowest fixed brokerage charge of Rs. 10 per executed order under the Nuvama lite plan. With Edelweiss, you can enjoy the benefits of personalized guidance and expert insights while keeping your trading costs minimal.
Frequently Asked Questions (FAQs)
In options trading, the premium is the price that an investor pays for buying an options contract.
An options contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset (such as a stock or commodity) at a specified price and within a specified time frame.
Upstox charges a flat brokerage fee of Rs. 20 per executed order for option trading.
Yes, Paytm Money offers options trading with a flat fee of Rs. 15 per executed order. However, Paytm Money does not offer currency and commodity trading.
Yes, Zerodha is considered a popular and reliable broker for option trading in India. With a flat brokerage fee of Rs. 20 per executed order for option trading, Zerodha offers competitive pricing.
Zerodha has gained a strong reputation in the market due to their transparent pricing model and commitment to technology-driven solutions.
Zerodha’s innovative trading platform “Kite” provides a seamless trading experience with advanced charting tools, real-time market data, and a user-friendly interface.
Edelweiss (Nuvama lite plan) offers a lowest fixed brokerage charge of Rs. 10 per executed order for option trading.
5paisa also charges a flat fee of Rs. 10 per order for option trading under their regular brokerage plan.
Option trading is a form of investment strategy that involves buying and selling options contracts. An option is a derivative financial instrument that provides the holder with the right, but not the obligation, to buy or sell an underlying asset (such as stocks, indices, commodities, or currencies) at a predetermined price, known as the strike price, within a specific time period.
There are two types of options:
- Call options
- Put options.
A call option gives the holder the right to buy the underlying asset at the strike price, while a put option grants the holder the right to sell it.
Traders and investors use options to speculate on the direction of the underlying asset’s price movement, hedge their existing positions, or generate income through premium collection.
Popular options trading strategies include covered calls, protective puts, straddles, strangles, and spreads. Each strategy has its own risk-reward profile, and it’s crucial to understand their mechanics before implementing them.
