Before choosing a specific broker as per your requirements you should first understand the types of stockbrokers that are available in India. There are just two types of stockbrokers that prevail in India and they are the discount and full-service brokers. Now it’s up to you to decide which suits you the best.
Both functions differently. Discount brokers provide you a web-based portal while a full-service broker will provide you a trading platform of their respective broking company or Odin among others. Since discount brokers offer fewer services in comparison to full-service brokers they charge a lesser fee while a full-service broker depending upon their company’s policy charge brokerage accordingly. To start investing and trading make sure you have opened an account only with the Top Stock Brokers in India. Let’s discuss how both these brokers are different from each other:
- Full-Service Broker: A full-service broker is the one who will have a local office in your city and offers you a full range of services rather than just buying and selling of stocks. They offer you a range of financial products like Mutual Funds, SIP’s, IPO’s and ETF’s among others. They charge a higher brokerage in comparison to discount brokers. Having said that they provide you end to end services like a physical weekly report of your trades and also phone trading services among various others. This is suitable for the ones who don’t invest on their own and needs an expert advice or someone who can guide them in their trading and investing.
- Discount Brokers: If you are interested only in buying and selling of shares then these brokers are best suited for you. They charge a very low brokerage and some discount brokers even charge flat brokerage on your trades. There are some discount brokers who provide you a lot of services like transaction through phone and research papers. Therefore make sure you choose the top stock brokers in India who provide you the best brokerage and also the best of services. Discount brokers are mostly preferred ones who can manage trading on their own and don’t want to seek any guidance regarding trading. They provide you an online tool to initiate real-time trades. They are in huge demand these days as people are getting financially educated and have mastered the art of trading.
Here are some of the pointers that you should be considering before finally choosing a broker:
- Reputation of a stockbroker: You can do this online and can have all the answers. While checking must check since how long are they in this market and compare them to their peers in terms of cost efficiency, facilities provided and exposure they give to their clients.
- Market research tools: They should provide you research tools so that you can invest or trade after proper research. This will help you take a decision in choosing stocks to trade or invest.
Investors or traders must obtain accurate data first and only then they should enter the stock market.