Trading in financial markets requires the right choice of a broker, as security of traders’ funds, their profit and opportunities depend on it. Before you start working with a company, it is important to comprehensively assess it. Traders Union analysts have already done it for you. The experts prepared a review of the Best ETF Brokers in India for 2024. Five companies that enjoy huge popularity in India were selected and compared between each other.
1
RoboForex - Best in India for 2024
RoboForex bonus programs are the company's strong points. Every trader gets a $30 Welcome Bonus, if they deposit $10 or more to their account. Additional bonuses include 5%-15% cash back on the fees depending on the trading volume, as well as additional 10% extra funds for more than 1,000 traded.
The minimum deposit on all accounts except R StockTrader is $10. The minimum deposit for trading stocks on the R StocksTrader and copying trades on the CopyFx platform is $100. The spread on Prime and ECN accounts is floating, from 0 pips, on Pro and ProCent accounts – floating from 1.3 pips. You can trade 36 currency pairs, metals and CFDs on this type of account.
For trading, RoboForex has available the following applications: MetaTrader 4, MetaTrader 5, and R StocksTrader, as well as its web terminal, on which you can work on real and demo accounts.
Leverage is up to 1:300-1:500 depending on the account type, as required by the regulatory authorities. The leverage on the cent account is up to 1:2000. On standard accounts, manual increase of leverage to 1:2000 is possible during registration, but this option is subject to certain rules. This parameter is appreciated by experienced traders and amateurs of aggressive trading. With RoboForex, you can earn not only on trading but also on the affiliate program, making a profit from users you have referred to a broker. Multilingual support helps market participants solve their pressing problems 24/7.
2
TeleTrade - Best in India for 2024
TeleTrade offers its clients rather enticing trading conditions. The minimum trade volume is 0.01 lots for all trading accounts, and the minimum spread is 0.2 pips. The minimum deposit is $10. The company's clients can trade on three types of real accounts, as well as copy trades of experienced traders. The broker offers wide range of financial instruments: in addition to currency pairs, you can trade indices and cryptocurrencies.
3
Admirals - Best in India for 2024
Admirals trading conditions are suitable for any category of traders, regardless of their trading experience. There are 5 account types which differ in platforms, spread/fee, and asset type. Trade and Zero accounts with a minimum deposit of $25/$100/$250, subject to the regulator, are opened on MT4 and MT5 and are intended for trading CFDs on any type of assets. The Invest account with a minimum deposit of $1 is only available on MT5. This account type is intended for trading stocks and ETFs on the stock market.
How to buy/sell on AdmiralsStrict adherence to regulatory requirements is the reason for restrictions on leverage. For retail clients, maximum leverage is 1:20-1:30. Upon confirmation of the “professional trader” status, it increases to 1:500. For the JSC regulated broker, leverage for all traders is up to 1:500. Spreads depend on the account type. On the Trade account on both platforms it is from 0.5 pips, on the Zero account it is from 0 pips with an additional fee per lot of $1.8-$3 for currency pairs and metals. Both account types also have a fixed fee for trading stocks and ETFs.
There are no restrictions on use of strategies and tools: scalping, hedging, algorithmic trading, arbitrage, and carry trade are allowed. Hedging is only prohibited on the Invest account. Also, there is no negative balance protection on the Invest account.
Admirals AI-based analytical research terminal provides traders with advanced tools to enhance their trading experience. It is free for all clients, providing powerful analytical features to inform investment decisions based on news, sentiment, and price movements. The terminal is powered by Acuity's AI technology and seamlessly integrates with the MT4 and MT5 platforms. Key features of this new terminal include:
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Corporate calendar tool that helps stock traders stay ahead of upcoming corporate events.
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Economic calendar to help traders navigate macroeconomic events and market volatility.
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NewsIQ tool that detects trading opportunities by combining news data with other datasets.
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Integration with Dow Jones for financial news and insights.
4
4XC - Best in India for 2024
4XC combines advanced technology and innovation in its business approach. 4XC is duly licensed by the Financial Supervisory Commission. The company operates under strict regulations to keep customer accounts secure and protected. 4XC is a customer-oriented company, and offers professional customer support 24/5. 4XC ensures no interference with customer trades, and offers a range of benefits, including spread starting as low as 0.0 points, leverage of up to 1:500, daily withdrawal available, and fast order execution.
4XCis an execution-only broker with no dealing desk (NDD). It offers several account types and numerous payment methods to create a user-friendly environment for every customer.
5
Pepperstone - Best in India for 2024
Pepperstone is distinguished by favorable trading conditions. The minimum trade volume is 0.01 lots, and spreads start at 0.0 pips. Also, Pepperstone offers over 1,200 different trading instruments where trade orders are executed quite quickly - within 30 ms on average. The ability to auto copy trades is also provided.
TOP 5 Comparison
In order to choose the Best ETF Brokers in India in 2024, TU analysts chose 5 best brokers in this country. In the table below, you can see a basic comparison of these companies. Experts selected only the most reliable brokers that are popular among traders in India.
| RoboForex | TeleTrade | Admirals | 4XC | Pepperstone | |
|---|---|---|---|---|---|
|
Trading platform |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
MT4, MT5 |
MT4, MT5, WebTrader, Mobile platforms |
MT5, MT4, WebTrader |
MT4, Mobile Trading, WebTrader, cTrader, MT5, TradingView |
|
Min deposit |
$10 |
$10 |
$250 |
$50 |
$1 |
|
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
|
Trust management |
No |
No |
No |
No |
No |
|
Accrual of % on the balance |
No |
No |
No |
No |
No |
|
Spread |
From 0 points |
From 0.8 points |
From 0.5 points |
From 0 points |
From 0 points |
|
Level of margin call / stop out |
60% / 40% |
70% / 20% |
50% / 0% |
100% / 50% |
90% / 20% |
|
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Exchange execution, Market Execution |
Market Execution |
Instant Execution |
|
No deposit bonus |
No |
No |
No |
$50 |
No |
|
Cent accounts |
Yes |
No |
No |
No |
No |
How to Choose ETF Broker in India ETFs
Here are 5 tips for beginners on how to choose an ETF broker in India:
Assess the Range of ETFs Offered
When scouting for an ETF broker in India, one of the first things to look at is the types of ETFs offered on their platform. Make sure the broker provides a variety of options that suit your investment strategy. Whether you're into tracking specific sectors, commodities, or international markets, a broad array of offerings is crucial. A limited selection can hamper your diversification plans.
Scrutinize the Expense Ratio
An appealing aspect of ETFs is their relatively low expense ratios compared to mutual funds. Yet, this cost can vary from one broker to another. Always prioritize brokers who offer ETFs with low expense ratios. Even a minor difference in these costs can eat into your returns over time.
Gauge ETF Liquidity
Liquidity is the ease with which you can buy or sell an asset in the market without causing a significant impact on its price. Higher liquidity means smoother transactions and lower costs. Check the liquidity metrics of the ETFs your prospective broker offers. Often, ETFs that track popular indices will have better liquidity. High liquidity allows you to enter and exit positions efficiently, which is crucial for effective portfolio management.
Investigate the Broker's Track Record
Trustworthiness is paramount in any financial relationship. Spend time researching the reputation of your prospective broker. Look at customer reviews, regulatory history, and even the performance of the ETFs they offer. A broker with a solid track record is likely to provide reliable service and quality investment options.
Evaluate the Trading Platform
Ease of use matters, especially if you're new to trading. Check out the broker's trading platform. It should offer a user-friendly interface along with advanced features like real-time market data, analytics tools, and educational resources. A robust platform not only simplifies trading but also equips you with the tools to make informed decisions.
Are ETFs Safe in India?
ETFs (Exchange-Traded Funds) in India generally have a similar risk profile to those in other markets. They offer diversification because they often track an index, sector, or commodity. This can mitigate some risk. However, investing in ETFs in India can be a good option, especially for long-term investors.
Registered with SEBI
First things first: ETFs in India come with regulatory backing. They register with the Securities and Exchange Board of India (SEBI), the regulatory body that monitors and regulates the Indian securities market. This regulatory oversight adds an extra layer of safety for investors.
Low Fees
Why get eaten up by fees when you can opt for cost-effective investments? ETFs like the Franklin FTSE India ETF (FLIN) boast low expense ratios. With an expense ratio of just 0.19%, you keep more of your earnings.
Consistent Performance
While nothing guarantees endless gains, some ETFs in India have shown encouraging results. Take the Columbia India Consumer ETF (INCO) as an example. It offered a 1-year return of 0.75%. If you're in it for the long run, ETFs in India seem like a promising avenue.
Diversification
Why put all your eggs in one basket when you can diversify? In India, ETFs give you a variety of choices. You'll find everything from index ETFs and gold ETFs to sector ETFs, bond ETFs, and even currency and global index ETFs. This breadth of options enables you to spread risk and take advantage of different market conditions.
Watch Out for Market Volatility
Keep in mind, short-term market swings can impact your investment. If you're a short-term player, this could be a concern. For long-term investors, though, market volatility often smooths out, making ETFs a compelling choice.
Learn More About Top 8 ETFs For Indian MarketAre ETFs Taxable in India?
Sure, let's dive into the taxation of ETFs in India.
ETFs in India are subject to taxes, much like mutual funds. If you trade ETFs, you'll need to report your earnings in your ITR-Individual Tax Return-2 under the capital gains section. Your tax liability will vary depending on what the ETF is investing in and how long you've held it. Here are the tax rates:
Equity ETFs: If you hold these for more than a year, you'll pay a 10% tax on long-term capital gains that exceed INR 1 lakh. Hold them for less, and it's a 15% tax on short-term capital gains.
Other ETFs: This category includes Debt ETFs, Gold ETFs, and International ETFs. Long-term capital gains here get taxed at 20% but with indexation benefits. Short-term gains get taxed according to your income slab.
Don't forget about dividends. Any dividends you earn from ETFs get taxed according to your income tax slab. ETFs often come with higher tax rates than equity shares and equity-focused mutual funds. Short-term gains, in particular, can end up being taxed at your highest applicable rate. On the flip side, long-term gains can either incur a 10% tax without indexation or 20% with it.
How Can I Buy an ETF in India?
To buy an Exchange Traded Fund (ETF) in India, follow these step-by-step instructions:
Step 1: Open a Demat and Trading Account
To trade ETFs, you'll first need a Demat and trading account. Pick a broker and complete the online process to open these accounts. You'll typically need some basic documents to get started.
Step 2: Research and Choose Your ETFs
Think of buying an ETF like you're shopping for groceries: you need the right fit for your financial plan. Assess your risk tolerance, investment goals, and how long you plan to invest. Look at key factors such as past performance, what assets the ETF holds, Net Asset Value (NAV), expense ratio, and tracking error. Popular picks in India include Nifty BeEs, Gold ETFs, and Debt ETFs.
Step 3: Place the Order
After choosing your ETF, it's time to make your move. Log into your trading account and place a buy order. State how many units you want and the price you're willing to pay. Your broker's online platform should offer different order types like market, limit, and stop orders. Pick the one that suits your trading strategy.
Step 4: Make Payment
You've placed the order; now it's time to pay up. Complete the payment, and the transaction should clear in about 2-3 days. Once processed, your new ETF units will show up in your brokerage account.
Step 5: Monitor Your Investment
You've bought your ETF units; now keep an eye on them. Use your trading account or financial websites and apps to track performance. Make sure your investment aligns with your financial goals, and make adjustments as needed.
Buying an ETF in India doesn't have to be a complex process. Follow these steps, and you'll be well on your way to diversifying your portfolio.
TU Expert Review for the best ETF Brokers in India
Financial expert and analyst at Traders Union
Anton joined Traders Union as a financial expert and analyst in 2013. He performs comprehensive internal testing of brokers as a trader. Essentially, Anton “test drives” brokers: he checks the operation of the website and user account, the speed and effectiveness of customer support team, stability of the software, deposit and withdrawal processing times, legal documents of companies and also all additional services (VPS, affiliate programs, contests, bonuses, educational programs, etc.). Based on the results of his “inspections”, he prepares expert conclusions about the operation of brokerage companies in the Forex, stock and binary option markets and also of the cryptocurrency exchanges.
His opinion as for the best ETF Brokers in India is posted below.
RoboForex - TU Expert Review
Over the years, this broker has shown itself to be a reliable and trusted partner. RoboForex provides clients with the best conditions: tight spreads from 0 pips, the highest execution speed, and micro-accounts with a lot of 0.01. The positive feedback from real traders about RoboForex, instant withdrawal of funds, and operational support are what impress me about this broker. The brokerage company offers quality services to both beginners and seasoned traders. Over the years of cooperation with RoboForex, the broker has not received any significant claims against it. Therefore RoboForex is quite popular among Traders Union clients. All financial issues and claims on the broker's work are resolved by the company's representatives as quickly as possible and within minimum time. RoboForex always meets its clients and partners halfway. Following the mass of positive reviews about the work of roboforex.com, Traders Union recommends this company as a trusted broker with a high trust rating.
TeleTrade - TU Expert Review
Traders Union has been working with the company since 2012. Over this time, a lot of reviews have been received about the broker from the TU clients, which you can find on this page. All reviews are moderated and then published. Therefore, they contain relevant information about traders’ experience of working with TeleTrade. Each TU client who opened an account with a brokerage company is entitled to free legal support, as well as advice on general issues related to the broker’s performance. TeleTrade Company offers its clients the opportunity to trade 28 currency pairs, as well as metals, indices, stocks and energies. Cryptocurrency trading is also available. Traders canopen a free demo account and trade virtual funds. The broker also provides several types of real accounts, which allows you to choose the best option in terms of conditions. Thanks to a large analytical section and loads of educational information, the company attracts a lot of novice traders. A wide range of technical analysis tools and the possibility to use various strategies, including pipsing, are the main reasons why experienced traders open an account with TeleTrade.
Admirals - TU Expert Review
Admirals is a universal broker for over-the-counter Forex trading and exchange trading of stocks with tools for both active trading and passive investing. Following the rebranding in 2021, the company focused on the development of its technical functionality. Traders can use the StereoTrader trading panel with smart automation of executing trades, Trading Central technical analysis tools, volatility protection tools, the Supreme Edition plug-in, and other applications for free. More than 3,000 CFDs are available for trading almost all types of assets, including ETFs, bonds, cryptocurrencies, and more than 4,500 stocks on 15+ stock exchanges globally. Average spread starts from 0.3-0.6 pips subject to the asset and account type, which is a relatively good indicator for a CFD broker. Although cent accounts are not provided, Admirals offers a good scope of educational materials. Step-by-step usage of acquired knowledge on a demo account allows novice traders to approach the “professional” status. Recently, the broker's technical product line has been expanded with a social trading platform. Now Admirals’ clients can earn extra profit by delivering signals or, on the contrary, subscribe to trades of successful traders and copy them to their accounts. When you first discover the functionality of the broker and its security guarantees, you get a positive impression of Admirals, because the company is included in the TU Top 10 every month.
Pepperstone - TU Expert Review
Pepperstone is a notable trading company that caters to both beginners and seasoned traders, providing a robust platform for a seamless trading experience. For beginners, the user-friendly interface and comprehensive educational resources make it an ideal choice to embark on the trading journey. The availability of a demo account enables novices to practice strategies without real financial risk, fostering skill development. One of the standout features of Pepperstone is its commitment to regulation, holding licenses from reputable authorities like the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA). This regulatory adherence instills a sense of trust and security among potential traders, emphasizing the company's dedication to maintaining high industry standards. Pepperstone's diverse range of tradable instruments, including Forex, commodities, and cryptocurrencies, provides ample opportunities for traders at various levels. The competitive spreads and efficient order execution contribute to the appeal of the platform for both beginners and professionals. Moreover, the broker's commitment to customer support is evident through various channels, ensuring that traders have assistance when needed. However, potential traders should be mindful of associated fees, and it's advisable to review the terms and conditions thoroughly. In summary, Pepperstone emerges as a reliable and feature-rich trading platform suitable for both beginners and experienced traders, offering a blend of user-friendly interfaces and professional-grade tools.
Summary
Many brokers operate in India, but not all of them are reliable or offer attractive trading conditions. TU experts selected 5 companies and rated them based on collected data. By reviewing them, you will learn about the Best ETF Brokers in India 2024 and will be able to evaluate the pros and cons of its closest competitors.
Overall score of the best ETF Brokers in India
| RoboForex | TeleTrade | Admirals | 4XC | Pepperstone | |
|---|---|---|---|---|---|
|
Overall score |
8.86 |
7.63 |
8.21 |
6.47 |
7.96 |
|
Execution of orders |
8.95 |
3.21 |
7.65 |
4.41 |
9.15 |
|
Investment instruments |
9.73 |
9.3 |
7.99 |
7.87 |
7.6 |
|
Withdrawal speed |
9.71 |
7.79 |
8.57 |
8.47 |
8 |
|
Customer Support work |
9.17 |
8.41 |
8.2 |
6.12 |
6.98 |
|
Variety of instruments |
8.75 |
8.75 |
8.75 |
8.02 |
8.75 |
|
Trading platform |
6.86 |
8.29 |
8.09 |
3.95 |
7.29 |
|
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FAQ
Who is India's No. 1 broker?
RoboForex dominates the Indian market as the top broker. Traders highly recommend it for its low fees and diverse trading options.
Which trading platform is best for an ETF?
HFM stands out as the best platform for ETF trading. It offers robust analytics tools and an intuitive interface.
How can I buy an ETF in India?
You can buy an ETF in India through a Demat account with a registered broker. After that, you can make your purchase using a trading platform.
Where to buy US ETFs in India?
RoboForex is your go-to option for buying US ETFs in India. The platform facilitates easy access to a wide range of American ETFs
Does the choice of a beginner differ from the choice of an experienced trader?
Yes. A novice trader should primarily consider the availability of educational tools and a demo account, as well as basic assets. A more experienced trader is interested in wider opportunities on advanced account types, a wider choice of instruments for technical analysis, and a greater number of trading instruments.
What are the risks of trading in the financial markets?
Any trading in the financial markets carries risks of losing your money due to asset volatility. Therefore, it is important to develop the rules of risk management in your strategy and strictly follow them.
How much money do I need in order to start working in the financial markets?
The initial capital depends on the assets you plan to trade. However, in the majority of cases, $300-500 is a good amount for a start.
What commissions and fees should I take into consideration when I am choosing a broker?
The commissions and fees in the financial markets are divided into trading and non-tradings ones. Trading fees are the fees that are charged directly during trading (spread, commission per lot, etc.), while non-trading fees are the ones charged outside the trading process (for example, account fee, inactivity fee, deposit and withdrawal fee).
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).