To select the correct broker according to their own requirements, one must have adequate knowledge about various types of brokers. In this post, we will shed light on discount brokers and what kind of merchants should open an account with them.
What does a discount broker mean??
A discount broker is a stockbroker that facilitates the purchase and sale of shares at a very minimal brokerage compared to that charged by the full-service broker.
However, it should be noted that a discount broker does not provide any financial advice or research reports or any other type of financial consultation. Most discount brokers work with a flat rate structure, which means they charge a lower brokerage than other full-service brokers.
Discount brokers provide investors with brokerage accounts through which they can execute multiple orders. Investors do not have any interaction with the broker and even if they have it it is very minimal and is only limited to the execution of the orders placed. They only execute orders on behalf of investors through their online trading platforms.
The best discount brokers in India
Widely known as the first discount broker in India that offers a maximum brokerage of Rs 20, regardless of the value of the operation. They have been pioneers in the discount brokerage space paving the way for others to follow suit.
Founded in 2015, 5Paisa is the leading discount brokerage firm based in Mumbai. It provides its services in the domain of online commerce, insurance and mutual funds.
Founded in April 2013, SAS Online is relatively new in the stock brokerage space, but has made great strides in acquiring customers at a very fast pace.
Wisdom Capital is a discount brokerage company with its main focus on providing a large amount of leverage to its customers. Being a discount broker, it also offers low brokerage charges to its customers that are competitive compared to other discount brokers.
Upstox is one of the leading discount brokers with more than 2 active Lakh customers who trade with them. They are known for developing internal trading platforms for their customers.
Founded in 2012, Samco is one of the leading discount brokers in India that allows its clients to trade in the stocks, currencies and commodities segments.
Founded in 2016, Prostocks is a discount broker that allows its clients to trade in segments of stocks, currencies, commodities and derivatives trading.
Smart commerce online
Another low intermediation discount broker in India. Trade Smart Online, a subsidiary of VNS Finance has also become an important player in the discount trading business.
Like some other discount brokers, this also offers different brokerage plans for low and high volume merchants.
The discount broker is suitable for
Discount brokers are suitable for,
- Investors and traders who actively buy or sell shares in large quantities, since the brokerage charged by discount brokers is lower compared to that charged by the full-service broker.
- Investors who are very knowledgeable about the stock market and the investment as a whole, so they do not require any type of advice or consultation from the broker.
- Discount brokers only facilitate the purchase and sale of shares; Therefore, they are suitable for investors who do not wish to diversify their portfolio.
- Investors who only want to buy or sell the shares that are all.
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