What's Discount Brokerage?
Discount Broker is that offer lowest Brokerage for purchase and sell shares to the customer. However Discount Broker not offer investment advice or study analyst of script to their customer. Discount Broker primarily customer base is online customer. They Provide online trading terminal for their customer to exchange.
Discount Broker not supply any advisory support to their customer but offer knowledge foundation site and trading instruments where you could learn and search greatest investment and trading wager.
Full-service agent: Full service broker basically conventional Offline Broker where customer can see division, sit transaction, utilize agents advisory service -- Conventional broker offer virtually all sort of investment choice. Mainly Full service has broad Branch Network that offer Relationship Supervisor for assistance Client query and assist day to day trading.
Key differences between full service brokers vs discount brokers
|DISCOUNT BROKERS||FULL SERVICE BROKERS|
|Suitable for||Expert Trader & Investor those who research on their own||An individual who seek hand-holding along with trading tools|
|Brokerage Charges||Rs 9 to Rs 20 Per order generally ( or monthly fees )||Charges percentage basis 0.01% – 0.05% for intraday and 0.10% – 0.50% in Delivery|
|Primary Service||They only provide trading platform||Advisory for shares, mutual funds, bonds, currencies, commodities etc|
|Research Department||Normally Discount Broker don’t have Research Desk||Own Research Desk and Advisory Team|
|Presence||Usually don’t have much branches they provide service online||Pan Indian Branches|
|Customer service||Call Centre and Support Branch for Customer Service||Relationship Manager|
|Other Facilities||Only stock, commodities & current trading available||Besides stocks, commodities & currencies, other facilities offered are forex, mutual funds, IPOs, FDs, bonds, insurance, etc|
|Add on services||Focuses mainly on trading and Investment||Margin Funding and Advisory|
|3-in-1 Account (Saving+demat+trading)||Not available||Available|
|Examples/ Top Brokers||Zerodha, RKSV, Samco ,Prostox ,Trade smart online, Tradejini, SAS online etc.||Sharekhan, Motilal Oswal, Angel broking, ICICI Direct, HDFC sec, Kotak securities, Axis direct, Edelweiss, Aditya Birla money etc|
|Deciding Parameters||a) Brokerage||a) Brokerage & Other Charges|
|b) Cost of Transaction||b) Research Desk|
|c) Customer Support||c) Customer Service|
|d) Call & Trade Facility||d) Leverages Funding|