Brokerage that gives you benefit | SEO World

Monday, January 29, 2018

Brokerage that gives you benefit

Any kind of transaction in stock market whether it is buying or selling, needs the intervention of a broker whose main functions is to work in the capacity of an agent between the market and market participants. Brokers are functionaries who are registered members of exchanges that are regulated by the Security and Exchange Board of India (SEBI). Now, you can classify and categorise the retail brokerage business model into two major classes that are discount brokers and full-service brokers. Before choosing any type of broker,investors are needed to comprehend first of all these two options by drawing a comparison of the services, charges, and features, minimum opening balance clauses etc.

A discount broker is said to be a stockbroker who provides the service of buying and selling orders at a lower commission as compared to a full-service broker but does not provide any kind of investment advice. Before coming of technology, it was only wealthy people who could afford a broker and got easy access to the stock market. On the other hand, the easy access to the internet has caused an explosion of discount brokers that allows the people who have thesmaller capital to trade by offering a smaller fee.

In contrast to full-service brokers, discount brokers do not offer services in personal consultations, research, advice, estate planning services for customers, and tax planning.

Need for a discount broker

Discount brokers execute orders at lowest costs, but usually, they are meant to carry out order execution for their customers. They do not provide any extra wealth management services, but discount brokers give reduced fees as they do not indulge in the practice of spending money to close deals with high net worth individuals and almost all of them run their business online in these times of technology.

Full-service brokers or traditional brokers can be counted better option investors who are in need of professional investment advice or who desire to remain on top of their financial planning. In case a person should go for a discount broker,or full-service broker mainly depends on their investing and knowledge regarding trading and skills, needs, financial goals, and current financial status.In view of the fact that commissions usually eat away most of the investment and trading returns, seeing to that some people choose to go for products that are offered by discount brokers India in their place.

Discount brokers come into the scene as a consequence of an enhanced preference for the internet. These brokers only prepare a trading platform for investors but do not provide advisory one. This kind of brokers demands low brokerage. Some of them are the most competitive discount brokers in India who provide their trading experience in equity, currencies, derivatives, and commodities at Rs 10/ per trade which is the lowest in the industry that is irrespective of the amount of money invested. For last some years, discount brokers have gained their foot in the industry and the market and give close competition to full-service brokers who are in the market for a quite sufficient time.