Advantages and Disadvantages of Discount Stock Brokers

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What are the Advantages and Disadvantages of
Discount Stock Brokers?
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Pros and Cons of Using Discount Stock Brokers
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What is discount Broker? In India 2010 Discount
Broker concept lunched by Zerodha Leading Stock
Broker. Before we start lets see what
is discount broker? Discount Broker who offer
lowest Brokerage or cheapest brokerage for buy
and sell stocks. They offer you online execution
platform. Discount Stock Broker offer very low
brokerage compare to full service broker. But
mostly discount broker doesnt offer advisory
like full service broker. Discount Broker mostly
operates centralised. Full-service broker Full
service brokerage basically traditional Offline
Broker who offer client dedicated relationship
manager, advisory, Sit and trade facilities and
charges Brokerage higher compare to discount
broker. Full service has wide Branch Network in
Pan India. Full Service Broker provides
Fundamental reports and technical calls for
Investor trader. Click here to Open free Demat
Account Online in Zerodha
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• Advantages of Discount Stock Broker
• Benefits of Discount Stock Broker
• Low Cost Discount Broker offer lowest brokerage
  charges compare to full service broker. Which
  help for trader or investor convert any trade in
  profit with low BEP ( Break-even Point )
• Online Trading Terminal As you know discount
  broker mostly work centralised so for them online
  trading terminal is best way to manage client.
  They offer best Online Trading Terminal free of
  cost
• Unbiased Offer Either you big player or small
  investor Discount Broker offer you same.
• Low Transitional Cost Mostly Discount Broker
  offer lowest Transactional cost due to their high
  volume of trades.
• Transparency Discount Broker offer 100
  transparency in their cost Brokerage Calculator
  , Margin Calculator , Charges Sheet , Trade
  Confirmation

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• Clients Education Discount Broker offer online
  educational video tutorial for their client so
  client can educate and trade with them for longer
  time. Mostly full service broker not provided
  this type of facilities.
• No Misleading Discount broker doesnt give
  brokerage target or third product sales target to
  their employees.
• Paperless Account Opening With help of Aadhar
  Number Discount Broker offer Paperless Account
  Opening  Open Online Trading account in 10
  mins . Whereas full service broker still process
  same way.
• No Minimum Brokerage Unlike full service broker
  discount broker dont charge minimum brokerage
  for their client. Means if you want to buy or
  trade in panny stock then discount broker is best
  option for you.
• Flat Brokerage Charges Discount Broker offer
  their client Flat brokerage charges irrespective
  of Trade volume means if you buy 1 lot or 100 lot
  of nifty they charges you flat Rs 20 (Zerodha
  Leading discount Brokerage Charges for FO) where
  Full service broker charges you as per on
  volume you trade.
• Also Read Top 5 Investment Apps for Beginners

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Disadvantages of Discount Stock Broker

• No Branch Support Mostly Discount Broker worked
  centrally so if you required Branch Support for
  Paper work then Discount Stock Broker not for
  you. You should search Broker who offer Branch
  Support and offer discount brokerage like
  Zerodha.
• No Relationship Manager Discount Broker dont
  offer relationship manager like Full service
  broker so if you service class people and dont
  have time to check online portfolio regularly and
  required a person who can manage your stocks and
  mutual fund portfolio then Discount stock broker
  is not you cup of tea.
• All-in-one Roof Full service broker office all
  investment product in one roof where discount
  broker mostly offer stock investment and mutual
  fund investment option to their client

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• No advisory Discount Broker dont offer Advisory
  service where as full service broker offer their
  client advisory service free of cost.
• PMS Service Discount Broker doesnt offer
  Portfolio management service to their client. If
  you are looking fund manager who can manage your
  fund then Full service broker is best option for
  you Motilal Oswal is your choice.
• 3 in one Unlike Full service banking broker
  Discount broker dont offer 3-in-one (Banking
  Trading Demat) account opening. If you are
  looking for 3-in-one account then ICICIDirect,
  Kotak Sec or SBICAP Sec your best option to
  select.
• Above comparison shows that Discount Broker is
  best option for who want to trade in stock market
  and dont required advisory.

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What to watch out for Selection of Discount
Broker.

• Online Trading Terminal As you aware that
  Discount Broker works online you should check
  their Trading Terminal software what they offer
  to their client. And review of that Terminal.
  Currently Zerodha Kite and Upstox Pro is best
  Online Trading terminal offered by Discount Stock
  Broker.
• Hidden Charges Discount Broker mostly show their
  charges sheet on their website. Compare their
  Transaction cost with other discount Broker.
  Someone you found that one discount broker
  brokerage charges is less than other discount
  brokers but they charge heavy on Transaction
  cost. Will end up more cost than others.
• Broker ReviewBefore Selecting Discount Broker
  Read Discount Broker review online. Clients
  reviews are the best way to understand where they
  are lacking.

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Branch Network  Discount broker also have
branches in mostly major cities check before
opening Trading account with Discount broker are
they provide Branch service in your
area. Discount Broker Financial Strength Check
broker financial strength before put all your
investment amount broker. Best way to understand
that check Broker Risk management system if
broker dont allow more risk leverage to their
client means they are under control. You will
compare Top 10 Discount Broker Here Also
Read Which is the Best Discount Broker for
Beginners 2019?
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CONTACT US

• Mob No- 07940325797
• 8866502020
• Timing- Monday to Friday
• 9.30 AM - 7.00 PM

• Address- 28, Genernal Bank Chamber Opp Munciple
  Market Above kotak Bank C.G.Road Ahmedabad
  India Gujarat 380009

Website- https//www.investallign.in/