How to choose between a Full-service broker & Discount broker?

What is Full Service brokers & Discount Brokers

The first thing that comes to an individual’s mind when he wants to invest is:-
How to choose between a full-service broker & discount broker?

Let us first understand what roles do full-service brokers and discount brokers play. Full-service brokers are the one who provide customers with full-time services of investing in equity, commodities, currencies. Full-service brokers offer many services to investors, however these offerings do not come cheap. With service broking, a lot of the legwork is accomplished by means of the broker, who helps the investor with extra one-on-one advice as well as individualized tips and research.

For more youthful traders, discount brokers are probably the best bet. You are going to be below 30, therefore chances are that your budget is limited. Discount brokers provide services at very discounted rates.

In India, the best full-service brokers include India Infoline, Motilal Oswal. Angel Broking, Kotak Securities, Sharekan among other, whereas discount brokers are 5paisa, RKSV, Zerodha, Samco, SAS Online etc.

Full-service broker charges certain percentage on your order amount whereas discount brokers charge a flat fee per transaction. For example, 5paisa charges only Rs. 10/ transaction.

If a person is going to trade multiple times in a month than discount broker is best suited for him. Discount broker helps you save a lot of money on brokerage as compared to the amount that you pay a full-service broker.

Full-service brokers have offices setup across different locations in India. Discount brokers can operate out of a single office unlike full-service brokers. Full service brokers provide investment opportunities in IPO, bonds, forex, National saving schemes, Insurance, loan against stocks, private equity etc. Full service brokers provide personalised fund manager to customer.

Choose the broker which suits your need the best.

Check out our previous blog on How is a discount broker different from a full-service broker? .

2 thoughts on “How to choose between a Full-service broker & Discount broker?

Leave a Reply

Your email address will not be published.