What is Discount Brokerage?
Discount Brokerage Concept Lunched in India 2010. Discount Broker is who offer lowest Brokerage for buy and sell stocks to the client. However Discount brokers not provide investment advice or research analyst report to their client. Discount broker mainly client base is online client. They provide online trading terminal to their client to trade.
Investallign is a business partner of Zerodha and one of the best online discount brokerage companies which offers stock trading services & expert financial advice. Open an online trading and demat account with India’s best discount brokerage house 2018.
Discount brokerage vs full service
- Discount Broker: Discount Broker concept lunched in 2010 in India is basically Online broker where client open trading account online, use their online trading platform and trade himself. Discount Broker not provide any advisory service to their client but offer knowledge base blog and trading tools where you can learn and search best investment and trading bet.
- Full-service broker: Full service brokerage basically traditional Offline Broker where client can visit branch, sit trade, use brokers advisory service – Traditional broker offer almost all kind of investment option. Mostly Full service has wide Branch Network who offer Relationship Manager for help Client query and help day to day trading. Full Service Broker provides Fundamental reports and technical calls for Investor & trader.
Discount Brokers vs Full Service Broker:
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|
Key points why 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 than 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.
- Zerodha: It leads the chart in discount brokers in India it has a client base of 6 lacs clients they charge flat Rs 20 per exe order and the are the few with their own in house software pi and chart base trading.
- 1st Discount Broker in India. Pioneer of Discount Broking concept in India
- Zero Delivery Brokerage
- 20 or 0.01% whichever is lowest brokerage in all other segment.
- Best Trading Platform – Zerodha Kite Web – Mobile ,Zerodha PI
- 1st In India 10 Regional Language Trading Platform
- India’s 1st Thematic Investment Product – Smallcase
- Zerodha Coin – Online Direct Mutual Fund Platform ( save up to 28 lacs in 25yrs go direct mutual fund )
- Zerodha Varsity – Knowledge HUB ( Interactive Blog )
- Trading QnA – Platform for all trader and investor query
- 22 Branch Office , 500 + Support Team
2) Upstox: Upstox has their own mobile software with trading, fund transfer, chart base trading they charge flat Rs20 brokerage and zero delivery brokerage.
- Rs 20 Lowest Brokerage in all Segment
- Free Delivery Brokerage – NSE , BSE
- Own frontend trading platform – Upstox Pro – Web & Mobile
- Mutual Fund Investment Platform
- Average Customer support
3) Samco: In 2008 Samco start his journey. With 23762 client Samco top 3 in discount broking league.
- Highest Leverage
- 20 per order Brokerage in Stocks , Future , Option , Commodities
- Delivery Funding upto 4x with interested charged
- Lowest Margin Requirement
- Weekly outlook from CEO desk
4) SAS ONLINE: SAS online offers the cheapest brokerage flat Rs9 per executed order they started their operations in 2013.it also provides its customer with monthly unlimited plans like 499 and 699.
- Rs 9 Flat per trade or Rs999 month choice is yours
- 20000+ Trading member
- 7000 + Cr daily turnover
- Advance Trading Platform – Alpha Trader
5) TRADEJINI: TRADEJINI is the latest entry in the discount broking founders with 3 decades of experience has made a extraordinary presence by customer service.
- Rs 20 Maximum Brokerage in all segment
- High Exposure and leverage in Intraday
- 1st 50 trade free
- Nest Trader – Web – Mobile Trading Platform – third-party trading platform
- Other investment option Available
6) RK GLOBAL: RK global first started its capital market business in year 2004 than later they started discount broking with a mere brokerage of 9 per lot the lowest in market a that time.
- Low Account Opening Charges
- 999 Rs – Monthly or 9 Rs Per Trade Brokerage Offer
- In-house Research Team – Research Report
- 7 support Office – Decent Customer support team
7 ) Astha Trade : Aastha Trade being a discount broker gives research reports and trading calls they charge 0.001% in intraday and 0.01% in delivery brokerage they have a prompt customer service and astha trade give 40 times exposure in intraday.
8) TradeSmart: Trade smart online is a subsidiary of a well renowned existing broker VNS FINANCIAL CAPITAL SERVICES LIMITED THEY CHARGE 0.007% OR RS 20 whichever is lower and to accommodate clients they have fixed monthly brokerage plans also.
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