As compared to other types of brokers that we have come across, discount brokers are money saving solution. They are cheap and offer the no-frill solution and services. Such type of investment option is certainly worth to get the returns and if you are not really sure how it works, then certainly this is the right page that you have come up. You need to understand that discount brokers is a good option provided you know how well to use it. Such type of option is good for those who own a business or say tend to be do-it yourself kind of investors. Such type of services may vary as per the broker and that is why, it is important that you make a good research on the same.
Know more about the Discount Brokers
When you look for the list of discount brokers in India, you need to understand that there are some pros and cons associated with it. Remember, such type of brokers is available at the cheaper value and that is why, you need to expect the limited number of services you can avail. They are not suitable for the corporate companies or the large scale sector but yes, it is certainly the fact that such type of brokers can help the business get a better support in less time span. Unfortunately, some of the crucial yet helpful sources like mutual funds, FD’s , and even the IPO’s are missing.
The brokers who offer such type of services at a cheaper value will not do any kind of research and that would be something for which you need to actually spend a lot of time. Understand the fact that such type of brokers doesn’t offer the management associated services and which you might have to either hire someone else or do it manually. Such type of brokers in some countries is categorized into two sectors. The first one is the brokerage that charges as per the fixed price and the other one is the brokers that charges as per the fixed monthly fees. This means the category is made as per the brokerage charge and the services can either be unlimited or the restrictive depending upon the price charged.
How the Need for such service increased:
The fact is such type of brokerage is designed for those investors and traders who have been carrying the traditional approach and not really sure how more they can save money at least through brokerage. With discount brokerage the person can save up to 60% – 80% cheaper brokerage as compared to the other one and the best part is it is well accepted and is quite popular as well. This is certainly not a bad deal since it contributes in better progress and more money saving solution. Besides, it also allows the traders to execute the traders irrespective of the size by paying the minimal price.
As compared to the full service broker, such type pof brokers charges pretty less which eventually is the minimum trading facility that you will get. So what are you waiting for? contact such expert person today.
he discount brokerage firms opened their shops in India in year 2010. Since then thousands of investors and traders moved from traditional brokers (i.e. ICICI Direct, Sharekhan) to discount brokers. As they offer 60% – 80% cheaper brokerage and free trading terminals for everyone, they are well accepted and become very popular brokers.
Zerodha and RKSV are pioneers of Indian discount brokerage industry and among the most popular. Both of them offers flat Rs 20 per trade brokerage. This allows traders to execute trades of any size and pay flat Rs 20 brokerage on the trade.
Since year 2010, few traditional brokers adopted the business strategy of discount brokers and started offering discount brokerage plan or become a discount broker. IIFL and Master Capital are among few big traditional brokers who now offer discount brokerage plans.
Below is the list of top 10 discount brokers in India based on number of clients they have trading at NSE. Click on the name of broker to know more about them and the services they offer.
Types of brokers
You will want to understand the differences in brokers as well as the type of investor you are before choosing a specific broker. Two types of brokers include discount brokers and full service brokers.
Discount brokers will charge a lower fee than a full service broker while providing minimum trading facility at a lower cost. This will generally allow for an investor trust the broker to make fast, real time decisions. Full service brokers provide multiple services apart from buying and selling shared. Many are bank subsidiaries providing a client with a savings account, demat account and online trading facility. Above all else, a full service broker will provide well established personal advice regarding market trends.
Choosing the right stock broker
While choosing an Indian stock broker, you can think over the following points.
What kind of investor are you?
Before choosing an Indian stock broker you will need to ask yourself this question. If you consider yourself a day trader you will need to invest within a small time duration that can be as short as a few minutes and as long as a few hours. As a day trader you will want to seek out a broker who will offer a flat fee on transactions or offer lower fees. This is closely affiliated with discount brokers. Some well-established India based brokers who will offer you real-time, valuable market research platforms for a lower fee include Zerodha and RKSV Security.
The second type of investor will buy and hold stock for longer periods of time. In this case of an investor there is a strong need to obtain extremely accurate data in a short time period in order to make the best investment decision possible. You will need a broker with a solid execution strategy and one who understands long-term market values, trends and trading patterns. India based full service brokers include IDBI Palsa builder, Motilal Oswal Review, Indiabulls and Geojit BNP Paribas.
Reputation of a stock broker
Save yourself money by researching reputations of stock brokers. You can browse through SEBI and stock investment websites in order to find the right broker. Through reputation research you will be able to see any issues complaints that exist against a broker or browse their personal experience working with investors in the market. Choose a broker who is highly experienced and has an up to date knowledge of the inner workings and trends of the market.
There are different kind of fees associated with working with a broker. There are account opening fee, transaction fee, maintenance fee etc. Look for low transaction fees if you trade more often, and low maintenance fee if you hold stock for longer duration.
Platform and market research facilities
Brokerages are increasing capacity to utilize advanced technology through software development and market research tools. Operating an account with a broker who has knowledge of these kinds of software and market research tools will provide incentives for you to make informed and timely decisions in choosing stocks.
Range of facilities offered
Whether you are looking to invest in IPO or Market Funds choose an investor who allows you to do so. Working together as a team is crucial in choosing a broker to make decisions with your finances.