Stock market investing has become a common medium using which an individual investor is able to invest in lucrative securities through which one can be sure of earning a reasonable amount of interest upon investment.
An individual can hire the services of stock market brokers and other brokerage firms. Stockbrokers act as middlemen who provide assistance in buying and selling of shares and other securities on the online stock market. Apart from buying and selling, brokers also provide other services like assistance through providing real-time market information, the creation of an efficient investment portfolio and keeping records of transactions. They charge a small amount of fee for their services which are termed as brokerage.
There are various types of brokers all over India that differ from each other on the basis of services they provide to an individual investor or trader. Discount brokers are similar to normal brokers. However, the distinguishing point between a full-service broker and discount broker is that later charges less amount of brokerage as compared to former. Moreover, discount brokers provide limited services as compared to full-service brokers. Top 10 discount brokers India is ranked on the basis of their services and plans which they provide to individual investors and even large corporate companies. A high ranking discount broker may provide extra benefits as compared to a lower-ranking discount broker, for example, providing zero brokerage plans or quarterly and yearly investment plans to traders.
Discount brokers provide the following services and benefits which make them popular among small investors:
- Less brokerage as compared to full-service brokers:
Discount brokers and brokerage firms provide limited services at a much lower cost as compared to full-service brokers. This feature makes them suitable and appealing to small investors with limited financial needs and outlay. Discount brokers charge very less amount of brokerage providing almost all types of services a full-time broker provides.
- Charge on a flat rate basis:
Discount brokers charge less amount of brokerage. Moreover, high ranking brokers charge an individual investor on a flat rate basis or on the basis of volume. This can mean an individual investor has to pay brokerage according to the number of transactions he/she enters into on behalf of investors and traders. They adopt a system of charging an investor on the basis of the number of transactions which is multiplied by a flat rate which is considerably lower as compared to full-service brokers.
- Limited asset model:
Discount brokers invest or work using a limited asset or outlay model which compressor of a lesser amount of assets or investment in order to reduce their liability and risk on investment in the stock market.
One must search for top 10 discount brokers India which provides a complete list of discount brokers ranked on the basis of their services, benefits, and overall functionality.