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Best Stock Broker for Day Trading

Published on Friday, April 5, 2019 by Team | Modified on Sunday, August 9, 2020

Best Stock Broker for Day Trading

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

While there are hundreds of small and big stock brokers in India, there are a limited few who are best brokers for intraday trading. To find the best broker for day trading who offers you value for many, you need to consider a number of factors. This article discusses what is day trading, qualities you need to look for in a good day trading broker and how to find one.


What is Day Trading?

Intraday trading (also called day trading) is a type of trading wherein you buy and sell a stock or F&O contract in the same day with the intention to make the profit from intraday price movements. For example, you buy 100 shares of Reliance Industries at Rs 650 at 10:00 am. The price of the share moved to Rs 653 at 2:30 pm. You sell the shares and make a profit of Rs 3 per share.

Intraday trading doesn't just involve buying and selling. You can also sell shares first and then buy it by the end of market hours and make a profit from a falling stock price.

For example, you are of the opinion that the price of SBI shares will fall today. You sell 100 shares of SBI at Rs 300 per share. Now by afternoon the price further falls to Rs 296. You buy 100 shares and complete your trade. You have made a profit of Rs 4 per share. Please note that unlike buying first and then selling, when you sell first and then buy later, you have to complete the trade i.e buy the sold shares by the end of market hours or else it will result in a short delivery and go into exchange auction resulting in huge losses to you.

After a brief understanding of day trading, you now need to understand the services required by day traders. Intraday traders have some very specific needs which are not provided by all the stock brokers in India.

6 Qualities of the Best Stock Broker for Day Trading

The market offers a range of good choices when it comes to picking stock brokers for day trading. Whether you need a best online stock broker for day trading or want to do business with a full-service broker- you will surely find one best suited to your needs. However, here are 5 qualities that the best stock broker for day trading must have:

  • Good Trading Platforms

    Most of the day traders look for good trading platforms that are feature rich, easy to use and are fast. Day trading in stocks is a fast game and you cannot afford downtime or software issues, particularly during the end of the market hours when you need to square off your trades. And that's why you need a day broker who offers the best day trading platform to you.

  • Good Trading Tools

    Day trading is also about quick analysis to identify short term profitable opportunities in real-time. To analyze various opportunities, you need smart trading tools like market scanners, real-time data feed, advanced charting tools etc., to regularly keep an eye on the market. Your day trading broker must also provide you with a mobile trading app so that you are location independent during market hours.

  • High Exposure Leverage

    One of the influencing factors for traders while choosing the best stock broker for day trading is the amount of margin trading or exposure leverage offered by a Please note that day trading is a low margin game. A stock price moves very less in a day. So if you want to make good profits out of it you need to play in high volume. And that's where exposure margin facility in day trading comes in. In margin trading, you can place an order on select stocks by paying just the margin amount. It varies from broker to broker. For example, 5paisa offers a margin exposure up to 20 times for equity intraday trading while Kotak Securities offer intraday exposure up to 50 times. So if you have Rs 10,000 in your account, you can trade up to Rs 2 lakhs with 5paisa and up to Rs 5 lakhs up with Kotak. So check out intraday exposure limits while finding a top share broker for day trading.

  • Order Types

    Another key factor in finding the best day trading broker is the order types it offers. Day traders need some specific order types like Market Order, Buy/Sell Limit Order, Stop Loss Order and Bracket Orders etc. This order types are highly useful in placing buy orders and locking profits or stopping losses in an intraday trade. For example, you bought 100 shares of TCS at Rs 2000 per share. To minimize your losses, you can put a STOP LOSS order at Rs 1970. So when the price reaches Rs 1970, the order is immediately executed.

  • Low Intraday Brokerages

    Most day traders look for low brokerage day trading brokers. It is because day trading is a low margin game. Now imagine, when the trade profit is a few hundred rupees, the higher brokerage can further reduce it. And most brokers, discount stock brokers and full-service share brokers, realize it and therefore offer low brokerage rates to day traders.

  • Research Capabilities

    Stock brokers, especially full-service brokers, have a dedicated research team. The team conducts technical and fundamental analysis of the stocks and recommends trading opportunities to its customers. They also regularly publish reports on the economy, market trends and IPOs etc., that offers insights to customers. So look for research capabilities of the stock broking firm while making your choice.

How to find the best stock broker for day trading?

To find a top share broker for day trading, you need to-

  1. Research on the brokers

    There are hundreds of stock brokers in India. You may not be able to research on all but you must check at least the top 20 share brokers in India and know in detail about their trading platforms, exposure margin and other services they offer for day traders.

  2. Compare stock brokers

    After researching on top brokers in India for day trading, shortlist a few brokers who cater to your needs and compare them feature wise. Please make sure that you compare brokers at least on 5 parameters discussed above. Customer review and ratings of stock brokers is another key parameter to compare.

Once you have objectively compared all the brokers, pick the one that best meets your need.

To help in your search for the best stock broker for day trading, we have compiled a list of Stock Brokers Offering high intraday exposure. You can use it as a starting point for your research:

Zerodha (India's Best & No. 1 Broker)

  Special Offer - Free Equity Delivery and Mutual Funds

  • Brokerage-free equity delivery trades.
  • Brokerage-free Direct Mutual Fund.
  • Pay ₹20 per trade for Intraday & F&O.
  • The best trading platform in India.

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