A Discount Broker as the name goes is a type of stock broker, who helps clients buy and sell shares at a discounted or fixed rate. Ex: Rs. 20 per order.
Unlike full-service brokers, discount brokers do not provide investment tips or analyses to their clients.
Most of the clients trade by themselves via trading platform and don’t depend on investment tips or expert’s advice.
2. Will a Discount Broker suit you?
Discount broker is suitable for any person who is looking for:
- Low brokerage.
- Trades frequently.
- Trades independently (Not looking for any tips or expert advice) and
- Is not looking for other add on features like wealth management, tax planning etc.
Services provided by discount brokers are as follows:
- Provide a trading platform to access the markets.
- Provide margins to trade.
- Call and trade services.
- Send daily transaction details.
- Help transfer funds between your trading and bank account.
- Provide customer support in case you have any issues or doubts regarding trading platforms.
- Some select discount brokers offer financial planning, wealth management services. Ex: Tradejini Financial Services.