What is day trading?
A day trader closes every position before the market closes, so nothing is held overnight. In India that covers two things: intraday trading in shares, where you buy and sell the same stock on the same day (brokers call the product MIS or intraday), and futures and options positions opened and closed within the day, such as Nifty options. The NSE's normal session runs from 9:15 a.m. to 3:30 p.m., and brokers close leftover intraday positions automatically a little before the close, usually for a fee.
| Style | How long a trade lasts | What it usually trades |
|---|---|---|
| Scalping | Seconds to minutes | Index options and futures, liquid large-cap stocks |
| Day trading (intraday) | Minutes to hours, closed the same day | Stocks on margin, index futures and options |
| Swing trading | Days to weeks | Stocks in delivery, futures held overnight |
| Positional or investing | Months or more | Stocks and mutual funds |
The numbers to know first
SEBI's study of intraday trading in the equity cash segment found that more than 70% of individual intraday traders lost money in FY23, out of a sample of nearly 7 million. Among very frequent traders (more than 500 trades a year), 80% lost, and so did 76% of traders under 30. In futures and options, SEBI found that nearly 91% of individual traders made a net loss in FY25. Costs are part of the reason, which is why this page spends so long on them.
Six day trading platforms compared
| Broker | Equity intraday brokerage | F&O brokerage | Account opening and AMC | Trading API |
|---|---|---|---|---|
| Zerodha (Kite) | ₹20 or 0.03%, whichever is lower | Futures ₹20 or 0.03%; options ₹20 flat | Free opening; demat AMC ₹300 + GST a year after the first year (less on a BSDA) | Kite Connect ₹500 a month; a free Personal plan is also listed |
| Dhan | ₹20 or 0.03% | ₹20 flat | Free opening; ₹0 AMC for individuals | Trading API free; data API ₹499 + tax a month |
| Upstox | ₹20 or 0.1% | Futures ₹20 or 0.05%; options ₹20 flat | Free opening (a processing fee may apply); AMC ₹300 + GST a year after the first year | Free |
| Angel One | ₹20 or 0.1% (minimum ₹5) | ₹20 flat | Free opening; AMC ₹60 + GST a quarter after the first year (non-BSDA) | SmartAPI, free |
| Groww | ₹20 or 0.1% (minimum ₹5) | ₹20 flat | Free opening; ₹0 AMC | ₹499 + tax a month, or ₹4,999 a year |
| Fyers | ₹20 or 0.03% | Futures ₹20 or 0.03%; options ₹20 flat | Free opening; ₹0 AMC | Free |
For intraday orders, the difference is in the percentage. A broker charging 0.03% asks less than ₹20 on any order below about ₹66,667; one charging 0.1% asks less than ₹20 only below ₹20,000. Above about ₹66,667 per order, all six charge ₹20. In options, all six charge a flat ₹20 per order on their standard plans.
Charges that are the same at every broker
| Charge | Equity intraday | Futures | Options |
|---|---|---|---|
| Securities transaction tax (STT) | 0.025% on the sell side | 0.05% on the sell side | 0.15% of the premium on the sell side |
| NSE transaction charges | 0.00307% | 0.00183% | 0.03553% of the premium |
| SEBI fee | ₹10 per crore | ₹10 per crore | ₹10 per crore |
| Stamp duty (buy side) | 0.003% | 0.002% | 0.003% |
| GST | 18% on brokerage, exchange and SEBI charges | Same | Same |
These are set by the government, the exchange and SEBI, not by the broker, so switching brokers doesn't change them. For futures traders they're usually a bigger cost than brokerage.
What a day trade really costs
| Trade | Gross profit | Total charges | Net profit |
|---|---|---|---|
| Shares: buy ₹1 lakh, sell 1% higher | ₹1,000 | ₹82.97 | ₹917.03 |
| Shares: buy ₹10,000, sell 1% higher, at a 0.03% broker | ₹100 | ₹10.69 | ₹89.31 |
| Same ₹10,000 trade at a 0.1% broker | ₹100 | ₹27.29 | ₹72.71 |
| Nifty option: 1 lot (65) bought at ₹100, sold at ₹110 | ₹650 | ₹63.86 | ₹586.14 |
| Nifty future: 1 lot (65) at 25,000, sold 20 points higher | ₹1,300 | ₹966.90 | ₹333.10 |
Two things stand out. On small share trades, a 0.1% broker can cost more than twice as much as a 0.03% one. And on Nifty futures, the STT on the sell side, ₹813.15 here, now eats most of a small move: the trade needs about 15 points just to cover its costs. That changes which strategies are worth day trading at all. Put the costs into any backtest before you trust it; our VWAP and opening range breakout scripts let you set them in TradingView.
What to compare besides price
- Charts and order screens. Several brokers, including Zerodha, Dhan and Fyers, offer TradingView charts; check that the order types you use, such as stop-loss and GTT orders, work from the chart.
- Option tools. An option chain with Greeks, a strategy builder and basket orders matter if you trade spreads. Our payoff calculator works with any broker.
- Margin. SEBI's rules require upfront margin, so intraday leverage on shares is limited (at least 20% margin, or up to about 5 times), and F&O margin is the same intraday as overnight. Brokers can't offer more than the rules allow.
- API rules from 1 April 2026. Under SEBI's framework for retail algo trading, orders sent through an API must come from a static IP registered with your broker, API market orders must carry a market-protection setting, and strategies sending more than 10 orders a second must be registered with the exchange through the broker. Algo trading in India explains the rules.
- Auto square-off charges. Leaving an intraday position for the broker to close usually costs extra: ₹50 + GST per order at Zerodha and Fyers, ₹75 + GST at Upstox, ₹20 + GST at Dhan and ₹50 per position at Groww. Angel One charges its normal brokerage.
- Reliability. Platforms slow down on volatile days and expiry days. Keep a second way to exit, such as the broker's mobile app or a call-and-trade number.
Which platform fits which day trader
- Small share trades: a 0.03% broker (Zerodha, Dhan or Fyers in the table) charges less on orders under about ₹66,667.
- Options only: the six charge the same ₹20 per order, so compare the option chain, charts and how fast orders go through on expiry day.
- Algo and API traders: Upstox, Angel One and Fyers list free APIs, and Dhan's trading API is free with paid data. Zerodha's Personal API plan is free, while its full Kite Connect plan costs ₹500 a month, and Groww's API costs ₹499 + tax a month.
- Trying day trading for the first time: pick the platform you find easiest to read and keep positions tiny until your journal shows a few months of results.
How day trading income is taxed
- Intraday shares are speculative business income, taxed at your slab rate. Losses can only be set off against speculative income and carried forward for 4 years.
- Futures and options are non-speculative business income. Losses can be set off against other business income and carried forward for 8 years.
- Both mean filing ITR-3, and a tax audit can apply above certain turnover levels.
- The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, so section numbers and form names may change. Tax rules depend on your situation; check with a chartered accountant.
Before you start day trading
- Write the rules down: entry, stop, target and the time you stop trading. Our trading strategies each have exact rules and a free script to test them.
- Fix your risk per trade in rupees, and work out the size from the stop, not the other way round.
- Set a daily loss limit and stop when you reach it.
- Count every cost, using the tables above.
- Keep a journal. A trading journal shows whether the edge survives costs, and trading psychology covers the habits that break most day traders.