Stock market investment has become a lucrative avenue using an individual can earn a substantial amount of profits on their investment. There are various types of securities which are actively traded on the primary and secondary stock market. Apart from shares and debentures, an individual can invest in commodities, mutual funds, ETFs and various other types of securities. An individual, however, requires support and assistance from a stockbroker who acts as a professional intermediary in the stock market investment process. Stockbrokers can be of various types depending upon their services and brokerage rates. Stockbrokers can be categorized into two parts which include full-time service brokers and discount brokers.
Discount brokers also are known as online brokers provide limited services combined with low brokerage rates which attract small investors and people with less investment outlay. Discount brokers in India are known for providing limited services as compared to full-time service brokers. Their services are limited to assistance in buying and selling procedure of securities. They do not provide other professional services like the provision of personalized services for investment and the creation of an investment portfolio. Moreover, the brokerage rate charged by discount brokers in India is very low as compared to full-time service brokers. They charge brokerage on a commission basis or flat rate basis which in turn reduces the overall cost of investors.
Discount brokers in India are known for using a limited asset and liability model under which they serve a limited number of customers to provide maximum support and assistance to investors. They provide individual attention to their clients and provide the necessary support so that they can make an informed decision for better profitability. Discount brokers are known to provide excellent customer service which makes them more reliable as compared to traditional full-service brokers. Discount brokers have their own customer care service center instead of separate branches which can be accessed online or through the toll-free numbers. Customers feel satisfied with their customer care services. Moreover, they provide all their services online and do not indulge in one to one interaction with the traders and investors.
Discount brokers use online tools and platforms for investing in various types of securities on behalf of their clients. Online discount brokers make sure their clients use a secure and reliable trading platform for investing in stock market securities. There are various types of online discount brokers in India who serve their clients by providing necessary services at a given point in time. A discount broker in India may also provide various types of investment plans including zero brokerage plans under which an individual is meant to pay monthly or yearly brokerage amount which in turn reduces the overall cost of investing.
Therefore, discount brokers provide customized customer-driven trading services which in combination with low consultation fees provide them an upper hand over traditional full-service brokers. Various firms strive to be the best discount brokers in India which require efficiency and greater risk-taking capabilities which must be provided at lower costs.