When the financial scenario is plaguing with the high transaction costs, adiscount broker is a thing that comes into thepicture. If you have ever traveled by a low-cost airline, you know how money-saving way it is. Using discount broker gives you kind of thesame feeling. The only aim of using discount brokerage service is to provide the users a platform where they can go for easy transactions and perform that faster and easier. To know more about the discount brokers India, you should dig deep. Read on to know more.
What Is Discount Broker?
Basically, the name signifies everything. After all, you are going to get a discount. But, how? Actually, a discount brokerage is the business where clients are charged quite lower than the charges of traditional brokerage firms. To be more specific, the sole aim of discount brokers is to create a platform for the investors where they can buy and sell their shares online without getting any financial advice.
Difference between Traditional Broker and Discount Broker
Obviously, there will be certain differences between these two things. The basic one is that in traditional brokerage, you can get financial advice from the expert ones which are not available at discount brokerage. The discount broker is the platform where the users can buy shares and sell them without any additional features and that is at minimum cost.
There are several types of brokerage, which charge low amount of stocks that are also lower than the particular price. They do so only to protect the absolute terms of brokerage. The discount brokerage provides aflat discount over the main amount so that buyers can get shares at anaffordable rate.
Advantage of Discount Broker
Today, people are preferring discount brokers over full-service brokers as it comes with lots of essential benefits. Here are those-
- Unbiased– This will be the most important benefit of adiscount In case of discount brokerage, you will get no advice. Therefore, they don’t advice to buy the shares or to sell one. They are not at all responsible for the research and call you make while buying or selling your shares.
- Lower Cost– Again, this is another essential benefit of this type of broker. In case of full-time brokerage, the commission rate is high and that’s why people need to spend much there. Here, the commission rate is quite low, comparatively the full-time brokerage. That’s why people prefer this over the other one.
- Access to Information– It is true that you don’t get expert advice while accessing discount broker. But, if you contact the reputed ones, you will get informationon the present market situation at their website.
These are the benefits that are gained by a discount broker. As the Indian Financial Market is changing rapidly, the total scenario is also transformed and getting anew shape. Internet trading has made the entire process quite transparent and that has helped the users a lot.