What Is Discount Broker And Full-Service Broker In India

Brokerage firms facilitate trading transactions in the stock market. They help to connect buyers and sellers of financial securities on stock exchanges. These firms take care of the paperwork to make the trades legally sound. For their online trading services, brokers charge a commission called brokerage fees. It can be a flat rate or a percentage of the trade value executed by the trader.

In the online trading system, brokerage service providers can be discount or full-service brokers. 

Discount brokers came into existence to meet the increasing trading demand after the inception of Demat accounts. More investors are interested in stock trading with the convenience of online trading facilities. 

Both discount and full-service brokerages have merits of their own. A discount brokerage offers all the trading services, platforms, and tools traders require in exchange for a minimal cost. Full-service brokerage firms offer you trading guidance and trading services and tools for a higher fee. 

Cost and your needs are the right basis to differentiate between discount and full-service brokers. Discount brokers are preferred by active investors and traders who buy and sell securities on a frequent basis. These brokers can benefit from the lower commissions and brokerage charges. You might go with a discount broker if you have the market knowledge. You can get full-service brokerage services if you do not have the time to research the market. 


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