Are you looking for a new and innovative stock broking platform that offers you a fast and hassle-free trading experience? If yes, then you might want to check out Dhan, one of the fastest-growing technology and product-led stock broking platforms in India. Dhan is a relatively new broker in the Indian stock market, founded in 2021. However, it has quickly gained a reputation as one of the best brokers in the country, thanks to its innovative features, competitive pricing, and excellent customer service.
In this blog, we will give you an honest and unbiased Dhan Broker Review, covering its account opening charges, brokerage fees, trading platforms, customer care, pros and cons, and more. By the end of this blog, you will be able to decide whether Dhan is the right broker for you or not.
Overview of Dhan Broker
Dhan is a Mumbai-based financial services company that was incorporated in 2021. Dhan is registered with SEBI as a stockbroker and also with CDSL as a depository participant. It is also a member of the NSE, BSE, and MCX stock exchanges. It offers a variety of products and services to its customers, including stocks, ETFs, options, futures, commodities, and currency trading. This broking firm aims to provide a lightning-fast investing and trading experience to its users through its technology-led and product-based approach. Dhan also offers innovative alternatives such as small cases for investment, which are curated portfolios of stocks or ETFs based on different themes and strategies. Dhan also claims to be India’s first broker to offer 50% lower brokerage charges for women customers as part of its initiative to empower women investors. Dhan is backed by a team of experienced professionals from the fields of finance, technology, and product development.
Features of Dhan
- Low and flat-rate brokerage charges.
- For most types of trades, the brokerage charge is ₹20.
- Technology-led and product-based broker.
- No account opening or maintenance fees.
- Multiple trading platforms for well-sorted trading.
- User-friendly and simple trading experience.
- Innovative alternatives like small cases for investment.
- Up to 4x leverage for investing and trading.
- Led by an experienced management team.
- 50% lower brokerage charges for women.
In simpler terms, Dhan is a broker that is:
- Led by an experienced team.
- Affordable.
- Easy to use.
- Innovative.
- Flexible.
- Supportive of women traders.
Products Offered by Dhan
- Stocks: Dhan allows you to invest in stocks listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). You can also invest in IPOs (Initial Public Offerings) through Dhan.
- Exchange Traded Funds (ETFs): ETFs are baskets of stocks that track a particular index or sector. Dhan offers a wide range of ETFs to choose from, including index ETFs, sector ETFs, and thematic ETFs.
- Futures and Options: These are contracts that allow you to speculate on the future price of a stock or commodity. Dhan offers trading in futures and options on a variety of indices and commodities.
- Smallcases: Smallcases are thematic baskets of stocks that are curated by experts. Dhan offers a wide range of smallcases to choose from, including smallcases for investing in different sectors, different risk profiles, and different investment themes.
- Commodities: You can buy and sell commodities, such as gold, silver, crude oil, etc., that are traded on the MCX exchange.
- Currency: You can buy and sell currency pairs, such as USD/INR, EUR/INR, GBP/INR, etc., that are traded on NSE and BSE exchanges.
Platforms Offered by Dhan
1. Dhan App
Dhan App is a mobile trading platform that offers features for both long-term investors and active traders. It includes features such as
- Fast order placement and execution.
- Ability to place multiple orders directly from charts.
- Up to 5 watchlists and tracking of multiple segments.
- Price alerts for market movements.
- Brokerage calculator to estimate Dhan brokerage charges.
- Secure data encryption.
2. Dhan Web
Dhan Web is a web-based trading platform that also offers access to TradingView for chart analysis. It includes features such as:
- Direct buy and sell calls with Advanced Option Chain.
- Basket orders and option chains.
- Pledge margin for over 1,450 stocks.
- Instant fund withdrawals.
3. Options Trader
Dhan's Options Trader is a platform designed for F&O traders. It includes features such as:
- Syncing of all positions, orders, trade book, watchlist, etc., at once.
- Readymade futures and options trading strategies.
- Real-time information on bullish, bearish, and neutral trades.
- Live market scan features for rising trends and breakouts.
- Pay graph and risk/reward profile to review option strategies.
Pros and Cons of Dhan
Pros
- Multiple trading platforms like mobile app, web platform, and TradingView charting platform.
- No unsolicited calls, messages, or emails.
- 24/7 customer support
- 50% discount for women
- One of the safest, most reliable, and trustworthy brokers in India.
- Smooth execution of large orders with quantities above the freeze limit
- Dedicated options trading platform
- Zero-cost API for developers
- Rich data and analytics tools for better decisions.
- Free options strategy builder to help traders develop and test their strategies
- Trading on TradingView charts
- Special order types, including flash trade, basket order, draft order, forever order, SIP order, iceberg order, and trailing stop loss order
Cons
- Charges a relatively high fee of ₹50 for every call and trade placed.
- Not well-suited for new or beginner traders and investors.
- Does not offer relationship managers for portfolio management services.
- Does not provide free research reports, stock tips, or weekly recommendations.
- Does not offer the option to invest in mutual funds, insurance, bonds, or debt instruments.
- Does not provide monthly unlimited trading plans.
- Does not offer a 3-in-1 trading account because it does not provide banking services.
Charges and Fees of Dhan
Dhan has a very competitive brokerage structure, especially for intraday trading. For equity intraday trades, Dhan charges a flat fee of ₹20 per trade or 0.03% of the trade value, whichever is lower. For delivery trades, Dhan does not charge any brokerage.
Dhan also charges a flat fee of ₹20 per trade for options trading. However, their call & trade charges are higher than most discount brokers.
The following is a summary of Dhan's charges and fees:
- Account Opening Fee: ₹0
- Annual Maintenance Charge (AMC): ₹0
Brokerage charges:
Equity delivery | Zero |
Equity intraday | 0.03% |
Equity futures | 0.03% |
Equity options | ₹20 per lot |
Currency futures | 0.03% |
Currency options | ₹20 per lot |
Commodity futures | 0.03% |
For a detailed breakdown of Dhan's brokerage charges, you can visit Finology Select.
Our Verdict
Dhan is a new-age online stock broker that offers a variety of features and benefits, including a competitive brokerage structure, a user-friendly platform, and a streamlined account opening process. It is best suited for experienced investors and traders who are comfortable managing their own portfolios and conducting their own research.
Dhan's competitive brokerage structure makes it a good option for traders who place a high volume of trades. Its user-friendly platform and streamlined account opening process make it a good choice for investors of all experience levels.
However, Dhan is not well-suited for new or beginner traders and investors. It does not offer relationship managers for portfolio management services, and it does not provide free research reports, stock tips, or weekly recommendations. Additionally, Dhan does not offer the option to invest in mutual funds, insurance, bonds, or debt.
Overall, Dhan is a good option for experienced traders and investors who are looking for a broker with a competitive brokerage structure and a user-friendly platform. However, it is not the best choice for new or beginner investors or for investors who are looking for a broker that offers a wide range of products and services. So, you should weigh the pros and cons of trading with Dhan before opening an account with them.
If you want to open your Demat account with Dhan or any other broker, you can visit Finology Select, a platform that helps you compare their features and brokerages, and you can even find the perfect broker for yourself with the ‘Find my Broker’ feature. So, don’t wait any longer and find your perfect broker using Finology Select.
