Discount Brokers vs Full Service Brokers In India
Investing in India can be done only through Brokers, so before going to Discount Brokers vs Full Service Brokers in India let us understand what is a broker.
Any selling or buying in the stock market requires an intermediator which is called a broker. Brokers are legally registered members of Securities and Exchange Board of India (SEBI), the government body which regulates Stock Market in India. In India you cannot buy stock directly from stock exchange there needs to be a broker in between.
Today, in India there are two types of brokers: full-service brokers and discount brokers. Before choosing any type of broker, you should first understand pros and cons of them.
Discount Brokers vs Full Service Brokers
Discount brokers as the word suggests are giving discounts on overall brokerage charges. These discounts are provided to by curtailing few services provided by full-service brokers like technical analysis, SMS updates etc.
Full Service Brokers
These are conventional brokers which provide you all services like a dedicated manager, free technical analysis reports, SMS Alerts etc. For these extra services they provide, they charge you more compared to discount brokers.
top 5 discount brokers
- Trade Smart Online
- Pro Stocks
- Trading Bells
Must Read: Detailed Zerodha review
top 5 full service brokers
- Indiabulls Securities
- ICICI Trading
- SBI Securities
- Kotak Securities
No broker type will guarantee you success. At the end, you have to take the decision of purchasing stocks. If you are a beginner in the stock market then the full-service broker is the best option for you. If you are experienced then discount broker option is best as you won’t need any advice or technical support from the broker.
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