Top best broker for futures trading in India (2024)

Futures trading has become increasingly popular in India over the past decade. Choosing the right broker is crucial for effective futures trading. Here is an overview of the top 10 brokers for futures trading in India:

Zerodha

Zerodha is the largest discount broker in India with over 3 million clients. It offers futures trading in equity, commodity, and currency segments at low brokerage rates.

Features

• Lowest brokerage rates starting at ₹20 per trade
• Robust and easy-to-use trading platforms (Kite and Kite API)
• Good customer support and educational resources

Pros

• Very low brokerage fees
• User-friendly trading platforms
• Wide range of tradable instruments

Cons

• Limited research and advisory services
• Occasional tech glitches

Zerodha is best suited for active traders looking for a reliable platform at affordable pricing. The trading platforms offer advanced charting and analytical tools for futures trading.

Upstox

Upstox is one of the fastest growing discount brokers backed by marquee investors like Ratan Tata. It offers a flat fee of ₹20 per equity trade with no hidden charges.

Features

• Flat ₹20 per trade equity brokerage
• Intuitive trading platforms like Pro Web, Pro Mobile, and Pro API
• Over 500 F&O contracts across equity, commodity, and currency

Pros

• Low and transparent brokerage
• User-friendly trading platforms
• Good customer support

Cons

• Limited research and advisory services
• Small account opening amount

Upstox is suitable for active traders looking for a flat-fee structure brokerage and fast trading platforms. It has good execution speeds and covers all major futures segments.

Angel One

Formerly known as Angel Broking, Angel One is one of the top full-service brokers in India. It offers a wide range of futures trading services and products.

Features

• Equity futures, commodity futures, currency futures trading
• Advisory services from research experts
• Automatic buy/sell signals on trading platform

Pros

• In-depth research reports and advisory
• Robust trading platforms with advanced tools
• End-to-end service across segments

Cons

• Higher brokerage rates
• Old-school interface of trading platforms

Angel One is suitable for traders looking for research-backed advisory and recommendations alongside futures trading. It has higher brokerage rates but offers a more hands-on advisory approach.

ICICI Direct

ICICI Direct is the leading online trading platform from ICICI Bank. It facilitates futures trading across segments at competitive rates.

Features

• Equity, commodity, currency futures trading
• Margin against shares facility
• Trading on web, mobile app, and algorithmic platforms

Pros

• Competitive brokerage rates
• Integrated 3-in-1 trading account
• Good brand reputation

Cons

• Often faces technical glitches
• Average research and advisory services

ICICI Direct is suitable for traders looking for an integrated solution from their existing bank. It offers a decent trading experience but sometimes faces technical issues.

HDFC Securities

HDFC Securities offers a digital-first trading experience with futures trading across segments. It has competitive pricing for frequent traders.

Features

• Equity F&O, commodity F&O, currency F&O trading
• Flat ₹20 per trade brokerage with ActiveTrader account
• Robust platforms like Tradetron and HDFC Securities MobileTrader

Pros

• Digital account opening and trading
• Low brokerage with ActiveTrader account
• Good brand reputation

Cons

• Limited educational resources
• Average customer support

HDFC Securities is suitable for active futures traders looking for a digital trading experience. The brokerage discounts and integrated account make it user-friendly.

IIFL

IIFL is a leading financial services company that offers futures trading through its IIFL Securities arm. It has a range of futures products.

Features

• Equity, agri, metal, energy futures trading
• Trading on web, smartphone, and tablet apps
• Research desk with daily reports and recommendations

Pros

• Dedicated research and advisory
• Integrated trading and demat account
• Good customer service

Cons

• Account opening process could be smoother
• Higher brokerage rates

IIFL Securities offers an end-to-end solution for futures traders looking for research and advisory support. Its integrated demat account and trading is convenient.

Kotak Securities

Kotak Securities is one of India's leading stock brokerage firms offering futures trading facilities across segments.

Features

• Equity, commodity, currency futures trading
• Margin against shares funding facility
• Robust trading platforms like Kite and KEAT Mobile

Pros

• Competitive brokerage rates
• Good brand reputation
• Smooth integrated trading experience

Cons

• Limited educational resources
• Technical glitches on platforms occasionally

Kotak Securities is suitable for traders looking for an integrated brokerage account from their bank. It has good trading platforms and support but lacks educational resources.

Motilal Oswal

Motilal Oswal offers an end-to-end broking and investment service with exposure to different futures markets.

Features

• Equity, commodity, currency futures trading
• Flat ₹20 brokerage per trade
• Robust web and mobile trading platforms

Pros

• Low and transparent pricing
• Research expertise in equity markets
• Integrated trading and demat account

Cons

• Limited futures research reports
• Average customer support

Motilal Oswal is suitable for equity traders looking to diversify into futures for hedging. Its strengths lie in equity research advisory and competitive pricing.

Reliance Securities

Reliance Securities facilitates futures trading in equity, commodity, and currency derivatives. It offers flat pricing plans.

Features

• Equity, commodity, currency futures trading
• Flat brokerage plans starting ₹12 per trade
• Trading across web, desktop, and mobile apps

Pros

• Low brokerage rates Good brand reputation
• Integrated trading solution

Cons

• Tech glitches and downtime
• Limited educational resources

Reliance Securities offers an affordable integrated solution for active futures traders. However, its platforms struggle with intermittent technical issues.

Edelweiss

Edelweiss offers futures trading facilities across market segments. It has a strong digital presence and competitive pricing.

Features

• Equity, commodity, currency futures trading
• Trading on web, mobile apps, and NEO trading terminal
• Flat ₹9 brokerage with intense plan

Pros

• Low brokerage especially for high volume
• User-friendly trading platforms
• Good customer service

Cons

• Account opening involves paperwork
• Limited educational resources

Edelweiss is suitable for high volume active traders looking for the lowest brokerage rates. However, its account opening process lacks a seamless digital option.

FAQs on Futures Trading Brokers

What are the key factors to evaluate in a futures trading broker?

The key factors include:

• Trading platforms and technology
• Brokerage charges
• Margin and leverage
• Market access and products
• Research and advisory
• Ease of account opening and customer support

Which is the best futures trading platform in India?

The best platforms for futures trading in India are:

• Zerodha Kite - Robust API and charting tools
• Upstox Pro Web - Fast and responsive web-based platform
• Angel One Trading Platform - Packed with charting tools and market scanning features
• Kotak KEAT - Sleek proprietary desktop-based trading terminal

Is futures trading profitable in India?

Futures trading can be profitable for traders who employ disciplined trading strategies. Proper risk management, hedging techniques, and identifying opportunities through research are key to generate consistent profits from futures trading in India.

What is the minimum capital required for futures trading in India?

The minimum capital required for futures trading in India is quite low. Most brokers allow you to open an account with just ₹10,000 to ₹20,000. However, it is advisable to start with at least ₹50,000 capital for effective futures trading.

How is futures trading taxed in India?

Futures trading attracts the following taxes in India:

• 15% tax on intraday profits
• Taxation deferred to the time of settlement for delivery trades
• Securities transaction tax (STT) of 0.01% on sell-side intraday and delivery
• Commodity transaction tax (CTT) of 0.01% on sell-side non-agri trades
• No STT on commodities, but income tax on profits

Conclusion

Futures trading in India has seen tremendous growth aided by discount brokers and digital solutions. When selecting a broker focus on competitive pricing, robust and stable platforms, market access, and overall service. Strike a balance between pricing and functionality. Leading brokers like Zerodha, Upstox, and Angel One offer a great platform to get started with derivatives trading in India.

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