The main benefit of a discount broker is they offer an unbiased service as they are going to guide you in buying or selling a stock at the same time. A perfect answer to the high costs plaguing the financial sector is discount brokers India. On the lines of low frills they are a low cost airline. Just as the task of a low cost airline is to enable you to reach your destination in a safe manner, so the same objective of a discount broker is to complete your transactions in a proper manner. Research material is available on the internet and through a host of other periodicals and journals.
The main difference between a discount and a full time broker is in relation to options trading. Some brokerage goes on to levy a fee below a certain transaction fees. In case of options trading most broking firms have a flat rate of commission on each and every transaction. How you go on to calculate the brokerage has a huge impact on the amount of money you make as a client.
A focal point with a discount broker is they are unbiased. As no form of advice is provided they are not going to make you buy or sell a stock at the same time. Do not be bothered about their research calls and they are not going to remind you about the trading calls which clicked and forgetting to mention any recommendations which did not perform as per standards.
The Indian financial markets has transformed for the better in the last few years. A level of transparency has been brought about with electronic trading leading to decrease on the cost front. Transparency and even cost parameters have gone on to reach a new level. The emergence of internet has paved way for a new set of brokers who are providing rock bottom rates for transactions. In industry parlance they are known as discount brokers.
The broking firm offers a platform for a client to execute a series of transactions. Traditional brokers levy a high charge as they are going to provide research based inputs. Even a traditional broker may go on to claim that the outputs provided were by a team of backend experts with the sole objective to enhance the wealth of a client, the real factor appears to be something else. A broker is only going to make money if a client transacts. More the client is going to transact more brokerage gets added on to the kitty of the brokers. There are varied rates of brokerages depending upon the quantum of trade and what is the transaction of the client. For an investor whose trade is at a higher quantum the rates of brokerages are on the lower side, whereas for a small trader it is on the higher side.
Before you are planning to open an account with a discount broker there are hidden costs involved. Do check out the infrastructure of the discount broker.