Get started with discount broker in India
The global financial crisis of 2007-2008 had downsized the pace of Indian stock market during that time. When several industries were in shock, the old axes of Dalal-street like HDFC Securities, ICICI Direct, Kotak Securities, Angel Broking etc also suffered the impact. Later in 2010, the discount broker came into existence with some flat fee concept or much reduced brokerage rates. That was a sigh of relief to the massive range of traders all around. The discount brokerage firms were there to serve the investors by their trading services at most reasonable cost. The idea was augmented and broadened its reach to the different regions. As earlier the full service brokers were not able to avail benefits of stock trading to all interested traders. They charge high commissions on the name of brokerage. Though discount broker does not offer investment advice still provide free research and educational tools to redefine your market tactics.
Discount broker and Full-time service broker: Their contribution in the Indian stock market
Discount brokerage firm in brief:
Discount stock broker allows trading in stock market at lesser brokerage charges than the traditional brokers. To enjoy trading with discount brokerage firm, you can open free account with them. Most of them do not charge fee on opening trading account. They allow you to trade online by yourself through a computerized or mobile app based trading tools. That gives flexible approach by encouraging stock trading on the go. Additionally, the discount broker also provides call n trade facility. You can call a broker over the phone to execute trading. However, the next discussed method to trade may cost you more. Whatsoever, you will ultimately be on beneficial side if pursue trading via discount broker in India. Wisdom Capital, RKSV, SAMCO, Zerodha, Trade Smart Online are some well known discount brokers in India.
Short description of Traditional broker:
The full-service brokers too allow buying and selling of a stock or bond. However, their services and products like investing, financial advice and planning, research calls and regular portfolio updates collectively cost much higher than the discount brokers.
ICICI Direct, Kotak Securities, HDFC Securities, Angel Broking are full-service broking giants. That, allow investing in Mutual Funds, FDs, IPOs, Bonds, Insurance etc. Some traditional brokers have in-house banking as well as the demat account services. In other words, we can call them stock advisors for the traders and salesmen for the financial product catalogue they offer.
Review the following points while deciding online discount broker
Brokerage charges: You would have often heard of discount brokers stating free trading offers. It is fine to go through the interesting plans but also check diligently if they are opaque. Yes, some of the discount brokers apply hidden charges. If you double check the offers made you will surely find the right discount broker.
Trading Methodology: The trading style you follow also makes a difference. In case of intraday trading, earning profit needs some specific tool. Notice the speed, charting packages, product and trading tools available with the discount broker you choose. Ensure the usability and stability of such features. If you trade on a frequent basis, go for the broker offering deep discounted commissions.
Margin requirements: The advantage of trading with online discount broker is not limited to low cost brokerage only. You can enjoy the benefits of extra fund facility in the form of margin. The discount brokers in India also provide funding required to trade high positions in the stock market.
Good market product range: Popular discount brokerage firms generally allow their clients to trade or invest in almost all the essential market products. Like in equities, currency, Futures and Options (F&O), commodities, IPOs and Mutual Funds etc.
Impressive schemes and offers: Some of the discount stock brokers advertise eye popping schemes coupled with good add on plans. Most of them really favor clients’ profit. They catch special attention of new customers in the stock market. The schemes can be lucrative but check if they are genuine.
Better customer assistance: Customer focused service play a vital role in stock trading. The brokers should have a good client servicing capability. They should guide and update clients on time. Check the support channels availability like email, phone, live chat etc. Get to know if the clients’ queries are dealt properly and resolved within a short span of time.