Discount brokers are the individual persons who help their clients to execute a trade. They help in buying and selling of trades in stock markets. For this service, the discount brokers charge a nominal fee from the clients.
The top 10 discount brokers in India information is easily available on net and working with them will be a new age experience as they are all highly experienced and have a rapport in the market.
Advantages of Working and Hiring a Discount Broker:
- The main advantage of working and hiring with a discount broker is that they save a lot of money of the investors, especially on simple trade execution transactions. The full-service brokerage charges huge amount of brokerages to its client on the basis of transactions made.
- The second advantage of a discount broker is that they are very safe. Since the discount brokers deal in bulk transactions the fee charged is also very nominal. This makes it more profitable to the clients.
- The third advantage of a discount broker is that they are very straightforward and operate in similar fashion. They offer reliable, efficient and quality services to its clients so as to enable them to buy and sell stocks effectively.
Disadvantages of a Discount Broker
- Discount brokers do not provide any advice on stocks and stock markets in general as compared to the brokerage firms
- Plus some of the discount brokers would be dealing with only the popular stocks and would give its clients opportunity to deal with other less popular stocks in the market. This makes the dealings very restrictive overall.
Source of Income
As mentioned earlier, the main source of income for the discount brokers is a nominal fee charged on the trade execution transactions for clients. These fees are generally lower than the fee charged by the brokerage firms. They focus mainly on a fee per trade transaction and lower the price higher numbers of transactions are made by the clients. The investors would always go for low brokerage to earn more profits
Apart from the nominal fee the discount broker also charges a fee for the following services:
- closing an account
- transfer of assets into the account
- Custodian charges
- Inactivity Fee
- Annual Fee charges
They are free to provide services to their clients offline or online.
Discount brokers provide services in various sectors. For instance
- In the Financial sector, they focus to provide services such as insurance products like car insurance, life insurance on a very discounted basis
- In the Real Estate sector, the discount brokers provide services like helping in buying and selling real estate properties
The reviews of each of these 10 discount brokers in India are easily available on the internet and it is essential to check the reliability of these brokers before starting a business with them. The Discount brokers are regulated by the same bodies as that it is for the brokerage firms. They are required to abide by the same rules and regulations as it is applicable to every brokerage firm.