BEST DISCOUNT BROKER
Best Discount Broker
These brokers are enrolled in stock exchange and controlled by Security and Exchange Board of India (SEBI).
Earlier, when internet was not in existence, brokers were hired by rich people due to heavy charges levied by them.
There are two types of brokers exist:-
- Full service brokers:– They also provide suggestions to their clients in financial matters, investment, retirement, tax saving etc. They charge around 0.4-0.5% depending on the trade volume. They are not budget friendly. Examples include Motilal Oswal, Kotak security, ICICI direct etc.
- Discount brokers– They are online brokers who charge minimal fees from their clients.
- Examples include Zerodha, RKSV etc.
Zerodha is the leading Discount brokerage firm that provides its customers brokerage free equity delivery. It has launched its various advanced technology trading platforms that has made trading easier and convenient. It takes zero brokerage in mutual fund and equity trading whereas in F&O and commodity trading is charged at Rs 20 per trade through online mode.
Discount brokers are budget brokers. They have come up as a helpline for the small investors to do trade in the stock market . They are available in all shapes and sizes. As discount brokers is mainly for internet users, a client can make various charts, can do self analysis and research of the share market by using the advanced trading technologies available on various discount brokers websites or an app. With discount brokers a client can save upto 80-90% of their investment by paying minimal mount on brokerage.
Apart from above there is a drawback that these brokers don’t provide investment planning. Brokers who are in financial sector offer insurance services such as car insurance, life insurance etc. These brokers can also be found in real estate industries where they help individuals in purchasing and selling of real estate properties.
Some of the discount brokers don’t charge any penny for account opening and using their online services where some charge as much as 5000 bucks for opening account. In some cases, a customer can open account at zero balance or in some they require minimum balance. Some of the discount brokers can also charge some fees also for not maintaining minimum balance in account; all this varies with the type of broker a customer choose.
In discount brokerages, an investor doesn’t have to deal face to face with a live broker, the communication if happens is too low and it is only for trade purpose. Such brokerage options are beneficial for all active clients and small traders with good handling knowledge of stock market. A final word to say selects a discount broker wisely according to your investment and by comparing cost they charge vs services they provide. To open an Discount Demat account Click below