Upstox
- Best broker if you trade deep OTM index options, ATM stock options, positional calendar spreads.
- It does not allow physical Delivery of options. From their website, “All open positions in the above contracts will be squared-off ONE day prior to the expiry at 2:30 p.m. by the Upstox RMS team. The position will be squared-off as per the market price at the time and no fresh positions will be allowed.”
- Upstox blocks near OTM options and even ATM options if there is illiquidity. Refer here.
- Upstox gives more margin benefits than Zerodha and Alice. We have tested with Long Calander Spread in all the brokers. It was taking near 80K in Upstox, 86K in Alice and 92K in Zerodha.
- Upstox allows Market Execution in the stock options if there is liquidity based on bid-ask. It is amazing and best for intraday stock options trader!
- Best broker if you do intraday trades with stop loss! Upstox allows not to “disclose the quantity”. It is highly important for intraday trading strategies like Entropy.
- Upstox doesn’t allow to buy options in MIS. Although it doesn’t have a significant effect as most of the brokers don’t give leverage in option buying. It is just an operational nightmare.
Unofficed is a registered Authorized Person of Upstox.
Zerodha
- Best Broker if you’re dealing with stock options and physical delivery.
- It doesn’t report to exchanges even in cases you’re in debit balance. It will charge 0.05% per day. This system is amazing as exchanges charge a very high penalty.
- Being the largest broker has its own negative perk. Sometimes because of too much active client participation, They block near OTM options.
- Also, they block ATM options for next week’s index options unless its next week is monthly expiry. It is a nightmare for a calendar spread traders. Specially diagonal spreads and time butterfly spreads can never be executed properly.
Unofficed is a registered Authorized Person of Zerodha.
Alice Blue
- Best Broker if you’re doing index options intraday in ATM and near OTM options! The intraday leverage is the highest amongst all the brokers discussed here but there are tons of different leverage systems.
- Like Upstox, Alice also allows not to “disclose the quantity”.
- Because of this high intraday exposure, The RMS team is very erratic in decisions. They have increased exposure margin for positional trades because of recent volatility in the market due to the COVID19 outbreak. So, 1 Lot BankNIFTY futures is taking 3 times the positional margin right now.
- % based block system – Blocks all strike prices over 3%-5% swings (varies). It means you can not buy/sell NIFTY 10350CEPE if the NIFTY price is 10000.) So, deep OTM options trading is a bad idea here.
- Stock options are not allowed in intraday. There is no leverage. You need to do it in NRML only.
- Pledging – Unlike Zerodha and Upstox, Shares get automatically pledged in Aliceblue like full brokers. So, this is an amazing benefit for those who use collateral stocks.
- Unlike Zerodha and Upstox, Aliceblue reports to the exchange and levies penalty. It is a nightmare for traders who don’t monitor for margin expansion before the market closure.
Unofficed is a registered Authorized Person of Aliceblue. You will get 10x leverage in Intraday stock options and the API for algo trading is free.
We also have dedicated persons from each broker catering to people under our subbrokership. You will get correct support for customer care and We enjoy tons of various perks being a community.
Note – As a highly evolving industry, These brokers changes a lot. So, please cross check the last update date of the Article.
PS: We shall soon update the article with a proper margin comparison chart.
