Whenever you are planning to invest in stock market and start trading, you will need the help of stockbrokers. They are there to show you the right path to buy and sell your shares and proceed towards great profit. Share market is a turbulent ocean. It never goes equally every day as there are lots of ups and downs. Your share broker is the sailor in the ocean who navigates you well to get on the shore.
There are two types of brokers, like full-service brokers and discount brokers. Full-service brokers are those who provide enough suggestion on investing and trading and advice you while buying and selling shares. As they serve you in detail, the commission charge is quite high. But, there are also discount brokers in the market. Know about them in details.
What Is Discount Broker?
Before knowing about the best discount broker in India, you should know the details of it. Basically, a discount broker is a stockbroker who charges a minimum commission rate while buying and selling shares. The basic difference between a full-service and discount broker is that the former one provides detailed investment advice, while the discount brokers don’t offer anything like that. But, that doesn’t mean discount brokers are lagged behind than the full-service one. Rather, with the advent of the internet, discount brokers have come a long way from its initial days. It is only discount brokers who have brought trading to the all-income group as many people can invest inthe stock market with a minimum amount, just by giving a small fee.
Why Use a Discount Broker?
Discount brokers can execute the orders of their clients, but they never offer any personal consultations, tax planning, research and report submission, advice or estate planning services for customers. But, that is not a kind of drawback of discount brokers as it comes in huge help for the newbies who don’t want any interference and deal according to their own knowledge and instinct. Actually, discount brokers are specifically useful for the traders and the investors who are quite frequent in buying and selling shares. The lower commission charges are really useful to them as they don’t need to pay much on commissions. Investors with small portfolios can enjoy the benefits of discount brokers a lot.
Where Can You Find Discount Brokers?
Discount brokers provide the traders their own account. Usually, they don’t interact with live brokers. If they need to do that, the communication is made only on trade executions and that is too quite minimum. The self-directed traders and the investors get the maximum help from discount brokers. When the discount brokers work on the electronic trading platforms that will be quite attractive to the day traders.
Here, you get a brief overview of the discount brokers. There are lots of discount brokers in the market who offer the best services. You should look for the one that suits your need before starting trading.