Many Indian investors still open their demat accounts with a familiar, full-service brokerage, usually one attached to a bank they already use. That familiarity is real, but it often comes at a cost: percentage-based brokerage on every trade and Margin Trading Facility (MTF) interest rates that run well into the double digits.
This comparison looks at five brokers, namely Kotak Neo, ICICI Direct, HDFC Securities, Sharekhan, and Motilal Oswal, on the two costs that affect an investor's returns the most: brokerage and MTF interest.
The Trade Free Pro plan from Kotak Neo is built to undercut the percentage-based brokerage and higher MTF rates that full-service brokers typically charge, while still bundling in research, calculators and a dedicated trading terminal.
The plan keeps trading costs relatively straightforward, with an introductory period of zero brokerage followed by capped charges across different segments. It also offers MTF at a competitive interest rate, with leverage available across a broad range of eligible stocks. Together, these features make the plan particularly relevant for traders who want access to trading and research tools without taking on the higher costs often associated with full-service platforms.
Key features
● MTF interest rate of 9.69% per annum, the lowest in this comparison
● Zero brokerage across delivery, intraday and F&O for the first 30 days
● Flat, capped brokerage instead of an open-ended percentage of trade value
● Leverage of up to 4x to 5x on more than 1,300 MTF-eligible stocks
● Bundled calculators for brokerage, margin, MTF, SIP and lumpsum investing
● Research recommendations and access to Nest, a dedicated trading terminal
Pros
● Lowest MTF interest rate among the brokers compared here, by a wide margin
● Delivery and intraday brokerage capped well below what full-service brokers charge as a percentage of trade value
● 30-day brokerage waiver across all major segments
● Combines discount-level costs with research and planning tools
Cons
● Trade Free Pro carries a ₹249 + GST monthly subscription
● Delivery brokerage of 0.10% per order applies once the 30-day waiver ends
ICICI Direct is one of India's largest bank-backed brokers, built around a 3-in-1 account that links your ICICI Bank account, demat account and trading account. Its default MoneySaver plan charges brokerage as a percentage of trade value rather than a flat or capped fee.
Pros
● Backed by a large, established banking group with wide research coverage
● 3-in-1 account makes fund transfers between banking and trading seamless
● Multiple plan tiers (iValue, Prime) can reduce costs for high-volume traders
Cons
● Default delivery brokerage is 0.29% of trade value, an open-ended percentage rather than a flat or capped fee
● Maximum MTF interest rate as high as 17.99% per annum
● Annual AMC of ₹700 applies on top of percentage-based brokerage
● Lower costs require paying extra for add-on plans rather than getting them by default
HDFC Securities pairs its trading platform with the reach of HDFC Bank's branch network and offers a relationship manager on higher-tier plans. Its standard plan brokerage is percentage-based; lower flat rates are only available through a separately priced Value plan. The figures below reflect HDFC Securities' standard e-mandate product; HDFC also operates a separate, lower-cost app-base platform, HDFC Sky, with different MTF pricing.
Pros
● Backed by HDFC Bank's brand and branch network
● Relationship manager support available on higher plans
● Option to reduce brokerage via the add-on Value plan
Cons
● Standard-plan brokerage is percentage-based, and lower flat rates require paying extra for the Value plan
● HDFC Securities’ standard e-Margin MTF interest runs close to 18.25% per annum
● Annual AMC of ₹750 applies from the second year onward
Sharekhan is a long-established full-service broker known for its research and advisory services, now operating under the Mirae Asset umbrella. Its brokerage remains structured as a percentage of turnover rather than a flat, capped fee.
Pros
● Decades of research and advisory experience
● AMC waived in the first year
● Supports commodity and currency segments alongside equities
Cons
● Delivery brokerage of 0.30% of turnover is an open-ended percentage rather than a flat or capped fee
● MTF interest rate of 18% per annum
● Doesn't offer direct mutual funds the way discount-style platforms do
● AMC of ₹400 a year applies from the second year onwards
Motilal Oswal is a full-service broker with over three decades in the market, known for research and wealth management alongside its brokerage business. Some of its intraday plans are competitively priced, but delivery brokerage and MTF remain on the higher end.
Pros
● Long track record in research and advisory services
● AMC waived in the first year
● Competitive intraday pricing on select plans
Cons
● Delivery brokerage of 0.20% is charged as a percentage of trade value rather than a flat or capped fee
● MTF interest of roughly 19.3% per annum is the highest among the brokers compared here
● An AMC of ₹199 per year applies from the second year onwards, with the first year free
Fee Comparison at a Glance
| Broker | Delivery Brokerage | Intraday Brokerage | MTF Interest (p.a.) | Annual AMC |
|---|---|---|---|---|
| Kotak Neo (Trade Free Pro) | ₹0 for 30 days, then 0.10%/order | ₹0 for 30 days, then ₹10 or 0.05%, whichever lower | 9.69% | ₹0 (₹249 + GST monthly subscription instead) |
| ICICI Direct | 0.29% of trade value | 0.029% per side | 17.99% | ₹700 |
| HDFC Securities (standard e-Margin) | Percentage-based (standard plan) | Percentage-based (standard plan) | ~18.25% | ₹750 (from year 2) |
| Sharekhan (Mirae Asset) | 0.30% of turnover | 0.02% | 18% | ₹400 (from year 2) |
| Motilal Oswal | 0.20% | 0.02% (select plans free) | ~19.3% | ₹199 (from year 2) |
If you're comparing a bank-backed, full-service broker against a lower-cost digital platform, the two numbers worth checking first are your expected delivery brokerage and, if you plan to use leverage, the MTF interest rate. Both scale with how much you trade and how long you hold funded positions.
As you compare brokers, evaluate four areas:
● Whether brokerage is a flat, capped fee or an open-ended percentage of trade value
● What the MTF interest rate costs you if you plan to trade on leverage
● What account or subscription charges apply annually, and how do they compare across brokers
● What research, tools and support come bundled with the plan
A brokerage calculator is worth using here rather than relying on the headline brokerage rate alone, since it factors in statutory charges such as Securities Transaction Tax (STT) and Goods and Services Tax (GST) along with the broker's own fees and makes percentage-based versus flat-fee pricing easier to compare directly.
Brokerage structure and MTF interest tend to have the biggest impact on your total cost, especially the longer you hold leveraged positions. Account charges matter too, but they're usually smaller and easier to compare directly since they're quoted as a flat number rather than a percentage of your trading activity. Weighing all these factors against how you actually plan to trade is a better test than going with whichever broker is most familiar.
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