Full Service Broker vs Discount Broker — Pros & Cons 2021

There are two sorts of brokerages: discount brokers and full service brokers. Selecting the perfect stockbroker type for your trading needs will help you get the most return on investment. This post will go through Full Service Broker vs Discount Broker, as well as when to use a discount brokerage and when to use a full-service brokerage.

Full Service Broker vs Discount Broker

Let’s understand both of them in Detail

What is a discount broker?

Online stock trading has become a reality. As a result, in India, a new breed of broker known as discount brokers has arisen.

Due to their low, fixed brokerage plans, which impose a flat brokerage fee regardless of the trade value, discount brokerage services are becoming increasingly popular among traders.

Zerodha, a discount brokerage firm based in Bengaluru, levies a brokerage fee of Rs 20 per order on stock intraday. The brokerage fee will be the same regardless your trade is worth INR 1,000 or INR 1 Crore.

What is full Service broker?

A full-service broker (also known as a traditional broker) is a licenced broker who offers a variety of services to its clients, such as research advisory, investment services, wealth management, and portfolio management. Full-service brokerage firms, unlike online discount firms, provide services both online and offline.

They have local branch offices, provide dedicated Relationship Managers (RM) to customers, and employ a large number of individuals.

A committed research team at full-service stock brokers performs technical and fundamental analysis and publishes a variety of reports on equities, businesses, and markets.

Originally published at https://profitmust.com on October 29, 2021.