What is a discount brokerage account?

Discount brokerage account - Let start with role of Broke. Broker who is mediator between buyer and seller. Every investor and trader required broker to trade execution on exchange.

Discount Broker is a stock broker who offer you lowest brokerage charges compare to full service broker. Mostly Discount Broker operates online they provide trading platform and back office platform to trade and manage your account. Compare to full service broker Discount Broker charges 80 -90 % low brokerage. They offer low brokerage because their cost of business is low. They save cost use maximum online tools and online operation and low man-power dependency. Where Full service broker has Pan India presence discount broker mostly operate from HO or few metro city as support office. Unlike full service broker , discount broker mostly not provide research advice or recommendation.

Why Discount Brokerage Account?

Key pointswhy to select discount brokers.

·         Brokerage – 90% Brokerage you saved if you trade or invest with discount broker

Discount broker typically charge per order ( Rs 9 to Rs 20 – Per order Brokerage ) where full service broker charges in % basis ( 0.01% to 0.05% - on traded volume )

·         Cost of Transaction – other then Brokerage Discount Broker Cost of Transaction also low due to their high volume trade in exchange.

·         Technical Software – Discount Broker dependency totally on technical part that why we usually see that discount broker offer best trading platform to their client compare to full service broker.

·         Client Education – as we saw that discount broker don’t offer research analyst or advisory. To fulfil this gap discount broker offer client education portal or interactive blog or webinar.

·         Transparency – Brokerage calculator , Margin calculator , Online trade verification portal , trade confirmation automatically those are key points only offer by discount brokers.

·         No misleading – Discount broker mostly don’t give revenue target to their sales team. And their one plan for all client details always available on website. Thus misleading chances are very less compare to full service broker

Above are key points why discount brokerage accounts are best.

If you are looking to compare top 10 discount broker in India

Also Read:

Which is the best brokerage account for beginners?

What is the difference between a discount broker and a full service broker?