Full-service Broker vs. Discount Broker : which is right for you

Full-service Broker vs. Discount Broker

Full-service Broker vs. Discount Broker: which is right for you

Hello, As we know, a Demat account is compulsory for trading in the stock market, means, you can not do direct trading in the stock market without a Demat account, So when you go to buy a stock, it is necessary to open a Demat account, And when you open a Demat account, many questions come to your mind, Basically, You have to open a Demat Account with a brokerage firm, There are many brokerage firms in India and different types of brokerage firms, And what is the difference between them, And which brokerage firm you have to open a Demat account, A big question is in the mind of a stock market investor, basically, 3 types of brokerage firms are full service, discount broker, and banks.

  • full-service brokerage firm

So let's start with a full-service brokerage firm, called full service. Because they offer different services such as on-call support, call and trade facilities, and recommendation tips.

That means, they appoint a relationship manager for you, So whenever you have a query, Then you can call your Relationship Manager and solve your query, But you can't expect anything more than that relationship manager, Usually, they just tell the basics, Apart from this, most full-service brokerage providers offer free call & trade service, That is, you can tell which stocks you want buying and which stocks you want to sell, by calling them, According to your request, he will execute your order.

Means if you are busy somewhere, you can call your Relationship Manager and say that I have to buy shares of this company, Then he will execute your order on your request, So this call and trade facility is mostly provided in full-service broker free, Plus the full-service brokerage firm also provides an equity research report to its customers, Meaning, which stocks you should buy and which stocks should be selling, they also give you some tips, Frankly speaking, you should not depend on these tips, You should always analysis yourself, And accordingly, you should take your own decision, If you do not have time to research the stock market or to research any company, It would be better if you invest in the market through mutual funds, But, as a third person is saying that you buy shares of this company, and if you buy, then he is not the right way to invest, I just want to say to you that you will never take any investment decisions on the advice of a third person.

You can pick some data from that research report, And with the help of it, you can make your own analysis, So full-service brokerage firm mainly gives these three things, Customer Relationship Manager, Free Call & Trade Services and Recommendation Tips, And in exchange for so much service, they charge too many fees, means their brokerage charges are high, mostly, Full-Service Brokerage firm charges in intraday 0.03% to 0.05% And delivery charges are 0.2% to 0.5%, which is much more.

  • banks

Now let's talk of the bank, Basically Banks open 3 in 1 Account, Savings Account, Demat Account, and Trading Account, And full service and discount brokerage firms open two accounts Demat account and trading account, The only advantage of opening an account with the bank is that all your accounts are in one place, But it also has no special advantage,You can open your Demat account with any brokerage firm and link it to any bank, i.e. any bank account, Now if talk about banks brokerage charges, banks charge too much brokerage, More than full service, And they do not even have a justification for these more brokerage charge, Nor does the bank make sense to pay more brokerage fees

  • discount brokerage firm 

Now talk about discount brokerage firm that is currently running in trending, Discount Brokerage Firms Do not Give You a Relationship Manager, So when you have any questions, So you have to mail them or you have to call the customer care number, And the other thing is that most discount brokerage firms charge fees for call & trade service, That is, if you ask them to buy some shares on the phone then they will charge fees for it. And most discount brokerage firms do not even offer any stock recommendation tips, Then the discount broker form does not provide all the service, Because of which he gets enough saving, And this is why their brokerage fees are quite low, Discount Brokerage Firms Focus On Manly Technology, And their branches are also very low, as you will see that the branch of the full-service brokerage firm is very much.

If talk of a full-service brokerage firm, Sharekhan, Motilal Oswal is the full-service brokerage firm, The same Zerodha Upstox, 5paisa is all discount brokerage firm

As far as recommendation tips are concerned, let me tell you, Is a site of marketsmojo.com, You go to that site by clicking on a Recos section, after which you will get tips from all brokerage firms recommendation, With that research report, after that, you will be able to see which firm gave tips to buy and sell, And you can also read his research report on what basis he is saying, So this is the kind of recommendation tips that you will get there free.

But we would like to tell you that you do not focus blindly on these recommendation tips, Read the Research Report and learn how to analyze it from the research report, but, Do not blindly Trust Him, You Do Your Own Analysis, After that, take your own decisions, nowadays most people are going with the discount brokerage firm, And so many full-service brokerage firms are bringing their discount brokerage firm division, Like IIFL, which is a full-service brokerage firm, it has started the own discount brokerage firm named 5paisa, And this 5paisa is working as a discount brokerage firm,  And soon a lot of full-service brokers can do some similar strategy, So if you ask us which brokerage firm you should open your account, we will suggest you go with a discount brokerage firm because we believe that you should pick your stock yourself,  As far as tips are concerned, your demand complete by marketsmojo.com, and nowadays no one does call & trade.

Because with the help of some apps, you can buy shares so easily, you do not need any call and trade, And the special thing is that some discount brokerage firms charge zero on delivery, means, their brokerage is completely free on delivery, That is the best thing for stock market beginners, so if you buy shares for delivery then your entire brokerage is saved.

So, guys, I hope you like this article if you like it then share with others, for more future updates please subscribe to our blog website by email, thanks for visit.

Full-service Broker vs. Discount Broker : which is right for you Full-service Broker vs. Discount Broker : which is right for you Reviewed by Yogesh Dhawan on June 01, 2019 Rating: 5

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