Difference between NSE and BSE Introduction :
Where Do Most Beginners Go Wrong ?
When I first entered the stock market, I remember seeing the same stock listed on both NSE and BSE. But the prices were slightly different, and I didn’t know why. Out of confusion, I placed my order randomly — just picked one without understanding the impact. That turned out to be a big mistake. My order got delayed, then auto-cancelled, and I couldn’t figure out what went wrong until much later.
That’s when I realized how important it is to understand the difference between NSE and BSE . It’s not just a technical detail — it can actually affect your trading experience, speed, success rate, and even how much you pay in charges. Most beginners make the same mistake because no one tells them which exchange to choose and why it matters.
In this guide, I’ll explain everything in simple terms — from what NSE and BSE really are, to which one is better for beginners. I’ll also cover important points like execution speed, charges, and why picking the right exchange can help you avoid common trading errors.
What is NSE vs BSE ? (Full Form & History)
- NSE = National Stock Exchange
Started in 1992, it’s India’s largest and most liquid exchange. - BSE = Bombay Stock Exchange
Started in 1875, it’s Asia’s oldest stock exchange.
Both are regulated by SEBI and are 100% digital. You can trade stocks on either — if the stock is listed there.
Difference Between NSE and BSE
Let’s break it down clearly:
| Feature | NSE | BSE |
|---|---|---|
| Founded | 1992 | 1875 |
| Speed & Liquidity | Higher | Lower |
| Listed Companies | ~1,900 | ~5,500 |
| Derivatives | ✅ Yes | ❌ No |
| Trader Preference | Mostly used | Less used for active trading |
If you are an active trader, you’ll see most volume happening on NSE.
Which is Better for Intraday Trading ?
For intraday trading, NSE is hands-down the better choice. Why?
- Higher volumes
- Lower spread (buy/sell gap)
- Faster execution
- More traders = more price movement
That’s why nearly all trading courses and Telegram channels use NSE charts and levels.
NSE vs BSE Charges in Zerodha
Many beginners assume that trading on BSE might be cheaper than NSE, especially when using platforms like Zerodha, Upstox, or Angel One. But that’s not actually true. The brokerage charges remain the same whether you trade on NSE or BSE, because these brokers follow a flat fee model across both exchanges.
However, there are still a few practical differences that beginners should know. For example, some penny stocks on BSE may end up costing you more due to lower liquidity and higher impact costs. BSE often has less trading volume compared to NSE, especially for small-cap stocks. On the other hand, NSE usually offers tighter bid-ask spreads, which means you get more efficient entries and exits during your trades — especially for intraday and options traders.
So even though the fees are technically the same, the market depth and order execution experience can vary significantly between NSE and BSE depending on the stock and time of day.
Why Do Prices Differ Between NSE and BSE ?
One of the most confusing things for new investors is when they see two different prices for the same stock — one on NSE and another on BSE. It raises the question: why is there a price difference if it’s the same company?
The answer lies in market dynamics. NSE and BSE are two separate exchanges, each with its own pool of buyers and sellers. The stock price you see on each exchange is based on the demand and supply within that particular platform. So, if more people are buying a stock on NSE at a slightly higher price, and fewer are doing so on BSE, the prices won’t match exactly. This variation is usually small — often within a few paise or rupees — but can affect intraday traders and scalpers who depend on tight spreads.
How to Select NSE or BSE in Zerodha ?
When you open a stock in Zerodha (or any app), you’ll see:
- The stock symbol
- And two exchange options: NSE or BSE
By default, Zerodha chooses NSE for most stocks — because of higher volume. But you can manually select BSE if :
- NSE is down
- Or the stock is only listed on BSE
- Or IPO listing was exclusive to BSE
Which is Better for Beginners in 2025 ?
| Category | Recommended Exchange |
|---|---|
| Intraday Trading | ✅ NSE |
| Long-term Investing | ✅ Both |
| Mutual Funds | Doesn’t matter |
| IPO Participation | ✅ BSE (usually) |
If you’re just starting out and don’t want confusion — stick to NSE. It gives smoother execution and faster fills.
Frequently Asked Questions (FAQs)
1. Which is better NSE or BSE for intraday?
NSE. It has higher liquidity, better price discovery, and faster trade execution.
2. Is there any difference in charges between NSE and BSE?
No. Charges are broker-specific, not exchange-specific. Zerodha and others charge the same.
3. Can I choose NSE or BSE while placing orders?
Yes. You can manually pick the exchange in Zerodha or any modern broker.
4. Why is the stock price different on NSE and BSE?
Due to different buyers/sellers and volume. The exchanges are independent.
5. Can a stock be listed on both exchanges?
Yes. Most large companies are dual-listed on both NSE and BSE.
Final Verdict + CTA
If you’re a beginner, the answer is simple:
Choose NSE for active trading.
Choose either NSE or BSE for long-term investing.
Both exchanges are safe, SEBI-regulated, and fully digital. But NSE gives you the speed, volume, and edge that traders need.
Want to learn how to trade on NSE step-by-step?
Join our Telegram: @CryptoMitraSignal
Also Read: What is Indian Stock Market ? Complete Beginners Guide (2025)
